The Sun.
London, England, 1869-03-29 00:00:00

TRADE AND FINANCE.

The holidays have greatly interfered with trade gene-
rally throughout the past week, and we have no very
prominent feature to notice. Cotton, however, remains
in the same anomalous position as noticed in our last, and
the result of the recent rabid speculation threatens to be
a collapse, either on the part of the holders or of the
spinners, if not of both. Already the small spinners are
giving way, not being able to withstand the current along
with their stronger brethren. The fact of these weak firms
being weeded out may prove of service to the trade in the
long run ; but it is unfortunate that so much distress should
prevail at a time when there is really no need for it. The real
fact of the case appears to be that the cotton-spinningtrade
has had too much capital invested in it, capital which can-
not be recovered, because sunk in machinery and plaLt.
Messrs. Ellison and Haywood, in their Lent annual cir-
cular, demonstrated this fact in a most forcible manner.
They shewed that, as compared with 1860, the weekly
consumption of 1868 chews a decrease of 4,000 bales, or
41 per cent„ while, during the same period, the spinning
power of the country had increased at least 10 per cent. ;
so that the average consumption of 1868, according to
these figures, represented only 84 per cent. of full time,
that is, about five-working days per week. To give full
employment to the spindles now in existence we should
require an import of 64,500 bales of the average
weight of 1868 import, while the present rate of consumption
is not more than 50,000 bales per week. The inference is,
therefore, that capitalists who have "fixed" their money
in the cotton trade, are obtaining but a small return for
their investment. That they are healthy enough to
withstand any ordinary crisis is evident from the
dangers through which they have passed. The
only solution to the problem will be the extension of
the growth of the cotton plant. The South has not
by any means arrived at the limit 01 its production,
and there are other fields where the plant may be intro-
duced with success. We can make use of
every bale of cotton we can possibly import, and
although prices may decline, that does not shew,
under improved means of cultivation and increasing
skill, that any loss will accrue to the planters from that
fact. Cotton has recommended itself to universal favour
as the cheapest and most durable article of clothing, and
there is little fear of any other staple attempting to cora-
pete with it.

The money market has again relapsed into a state of
quiescence. Contrary to general expectation, the demand
for discount has been very moderate, notwithstanding the
close of the quarter, and the rates have, therefore, been on
the decline. The course of events has proved that the direc-
tors of the Bank of England were perfectly right in not
raising the official rate of interest three weeks ago, when a
somewhat violent spasm passed over the market. All
circumstances point to the probability that even lower
rates will rule before long. There is a large quantity of
gold on passage from Australia, and the exchanges, as a
rule, being favourable, it is anticipated that a consider-
able portion of it will be:retained;here. The payment of the
dividends, about to fall due, will also add considerably to
the capital afloat in the market.

There is another point, too, which is likely to affect the
money market here. The American trade from the com-
mencement of the present year has been of a more than
usually adverse character, and there is now a large balance
against the United States. The value of foreign goods
landed at New York in January and February has
been 0,014,000 against £7,247,000 in the corre-
sponding period of last year. Meanwhile the
value of the exports has been only £4,790,000,
against £7,400,000 last year, showing a great
excess of imports, with an even greater deficiency of
exports. A large portion of this difference has been made
up by the late heavy shipments of bonds made to Europe;
but we must not forget that the interest on the bonds
themselves, will not amount to less than twenty millions of
gold dollars for the half-year, and it is very evident that
the shipments of bullion from America must soon be
resumed on an extended scale. With regard to the posi-
tion of trade in the United States itself, it is evidently
much inflated from overtrading and the facilities afforded
by an inconvertible paper currency. A crash must, sooner
or later, be the result.
While we are writing on New York financial affairs,
we cannot but pay a tribute to the discretion of General
Grant for his choice of Mr. George S. Boutwell, of
Massachusetts, for the office of Secretary of the Treasury.
He is well qualified for the office in every way, and has
more than once showed the sound economy of his
financial views. No course detrimental to the credit of
the country is likely to he adopted at his instigation, and
that he is an able administrative officer is fully proved by
the success with which he organised the New Internal
Revenue Bureau in 1802. It is needless to say that his
appointment has been regarded with favour both in New
York and in London. It must be borne in mind
that this appointment is of much more importance
than formerly. Before the war the United States was
the " Great Untaxed Republic." The revenue was a
small one, and was mostly derived from Customs duties,
and the secretary was accordingly thrown into contact
with a very small proportion of the population. His pro-
ceedings, therefore, excited little interest, and his diffi-
culties little sympathy. Since the war, however, all
is changed. The revenue and taxation of the United
States are on a most gigantic scale, and the people groan
under burdens unknown before in Christendom. The
patronage of the Secretary is immense, and his power
over the money market extraordinary. We believe, how-
ever, that in Mr. Boutwell General Grant has secured a
coadjutor who will make nounworthy use of his position.

,c Another scandal in high life," which we have
already mentioned, is likely to prove a very sensa-
tional case. Sir Charles and Lady Mordaunt will, we may
yet hope, keep out of the Divorce Court, but, if, as is re-
ported, proceedings are imminent, we understand they are
not unlikely to make troablo in very high places. Lady
Mordaunt is tho sister of the beautiful Countess of Dudley.
General Dix, at present United States Ambassador
at Paris, has written a letter denying, as absurb, the state-
ment that he had interfered in the Turco-Greek diplomatic
settlement. As the principles of the Americans, ho says, is
to tolerato no interference in their affairs, so they expect to
strictly carry out the converse policy, and refrain from in-
terference with other States.

A committee has been formed for the purpose of
endowing a bishopric in Madagascar, and for providing ad-
ditional clergy in that island. Tho Archbishops of Canter-
bury and Dublin, the Bishops of London, Oxford, Hereford,
Lincoln, and Mauritius, Bishop Ryan (late of Mauritius),
Lord Lyttelton, the Dean of Ely, Archdeacon Bickersteth,
and others, aro among the most active promoters of the
scheme.

A co-operative conference was held on Friday, at
Leeds, and was attended by about four hundred delegates,
from all parts of England. Tho object of the conference
was to obtain faciliti:s for the application of ca-operative
principles to the purchase of land and for the transfer of the
shares of the secietics to the representatives of deceased
members. Le,.outions were passed 'in favour of a simpler
method of transiferri,g land, and of a less costly mode of
entitling the re pr:sentalives of a deceased person to property.
Th 3 Oichcstra Lams that a new Italian Opera
Company has been forme', inclu Hug Sr i,t; cf European
clel,rity, with an orchestra ch,-Tus cl.ie3 ;elected front
the dishanded forces of Iler 3i;•j tv'sTheatr, . The season
will commence on MoLdey, 3d :May, at the Theatre Royal,
Lyceum, which has been secured for a period of six years ;
et.d the reperto:re, will include a number of op ra3 as yet
unknown in this country. The Ft aeon wit: extend to August,
end six represen!atLus will i.e given w,•

The following colloquy took p! arc on Tuesday in
the vicinity Of Dumfries :--" IV,II, to be a
new election for the "S , I . ear, ;:iir." "I sup-
pose :you inte!nl to vote wa: yeti did in
N vember?" "Nn, na, no ; !,,y glt! ours teal
inn I'll be fined fifteen 61‘i.Ln,.. it I vet, for tile Sallie man
twice, and I wad na pay fifteen shillins for the sake o' the
host candidate that ever stepped."