The Sun.
London, England, 1867-11-27 00:00:00

THE FALL 1N COTTON.

(Front the Round Table.)
The mechanical engineers of Birmingham say
that, in every quarter of each minute during the
working day of ten hours in England, the spindles
of Manchester alone produce a length of cotton
thread which might be wound about the entire
world. What would Hargreave's ghost say to this ?
or Wyatt's, or Arkwright's ? It is, as we pointed
out recently, only one hundred years ago that all
cotton was spun by hand and by the single thread
at a time. All the fingers in the world now, fit for
the labour, could not in one day produce the
threads which Manchester spins in an hour.
The cotton question is becoming highly interest-
ing, and it is for that reason that we venture so soon
rpeur to it. It is but little more than a month
ago that we told our readers some interesting facts
about the staple, and indulged in some speculations
with regard to its future, but at that time we cer-
tainly did not expect that events would so speedily
prove. the correctness of our impressions. Since
then middling upland cotton has declined in Liver-
pool from 90. on September 19, to 88d. on Oct.
10. In three weeks the fall was equivalent to
.nearly fifteen per cent. abroad, while in New York
during the same time the decline was from 25 cents
per pound to 182, equivalent to twenty-five per
cent.

The following tables, showing the rapidity of
the tumble both here and in Liverpool, may bo
interesting. The quotations in Liverpool for mid-
dling upland cottons on the days mentioned below
were as follows :

Sept. 19,
~ 24,
~ 26,
~ 28
„ 10,

and in New York as follows :

Sept. 19, ... 25 ceutF.. ... Oct. 2, ... 22 cents.
„ 24, ... 23} „ ,7 3, ... 21+ „
„ 26, 23 „ „ 7, ... 20 „
„ 28, ... 22 „ „ 8, .. 19+ „
„ 10, ... 18+„

This shrinkage in the value of cotton in New
York, between the dates mentioned, was greater
than an average of one per cent. per day, which
we believe, is altogether unexampled in the history
of the trade.

A decline so rapid as this has directed general
attention to its causes, and all classes of business
men are asking each other the reasons why,
which, however, we venture to say, are not far to
seek. At the outbreak of the war cotton was sell-
ing in New York in gold at prices which were above
those now current, notwithstanding the enormous
crop of the previous year. The general trade of the
world was good, and it was thought in Europe as
well as in this country that hostilities between the
North and the South would so greatly diminish the
world's supply of the article that cotton must soon
reach extravagant figures. The South thought
cotton was king, and was never weary of boasting
about it. No country had for a century successfully
competed with this in its growth, quality and not
quantity considered, and consequently when we
became involved in civil war many foreign coun-
tries assiduously devoted attention to its cultiva-
tion.

While these crops were yet in the ground Ame-
rican cotton rose enormously —that is, in currency
value, although it ought to be of served that it never
reached a price above about sixty-five cents per
pound in gold. The demoralisation in this country
consequent upon the war, the losses as well as gains
inflicted upon Europe resulting from it, the political
influence which it has had upon the Governments
of the Old World, all helped to impress upon
Manchester the increased apprehension that their
supply could no longer be confidently expected
from us in any safe degree. The result was,
as we have said, greatly increased production
elsewhere, observable mainly in the enlarged ex-
ports from India, which speedily put an end
to the cotton famine in England, and stimu-
lated her forty millions of spindles to greater

activity than ever. Manufactured goods soon
clogged the paths of commerce, and the tremen-
dous power of machinery in England and the Con-
tinent has kept them choked ever since. Europe,
for two years past, has had too much cotton, far
more than she could use, and now we have the col-
lapse, which means simply this, that until old gar-
ments are worn out no new clothes are needed.
In addition to the causes which we have named
in order to account for the recent decline there are
others as potent, and not the least among them
is the conservative feeling which is daily spread-
ing abroad in this country with regard to ex-
penditure. People on all sides are beginning to
be careful about money. In truth, they have less
to spend, while business lags and profits dwindle,
while events at Washington are uncertain and the
price of gold is doubtful. The cost of living is
extravagantly high, and the prudent arc disposed
to retrench. if we look abroad and add to this
the political condition of Europe, the scanty harvest
in England, the very uncommon distrust in all
commercial and banking circles, there so great that
money is a drug on the security of gold bars at ore
and one-half percent. per annum, and without such
collateral cannot be had at all ; with the Bourse in
Paris in a ferment ; the Credit Mobiliere with its
millions hastening toward a crash ; the Bank Of
France gorged with idle coin ; California wheat
selling in Liverpool at 17s. per cental ; riots in
Manchester ; prisoners tried in its courts with
shackles on them while under arrest on mere
suspicion ; heavy failures in Liverpool—among
the rest the Royal Bank with an indebtedness of
over four million pounds sterling; no confidence
or courage anywhere ; how can it be expected
that cotton should be dearer ? The whole \Vold
is against it ; and ruinously low as it is for the
people who produce it, there seems a lower depth to
come. In this country, had not the war impove-
rished a very large class of its consumers, cotton
would not probably be to-day at its present price;
but war is always destructive to industry, and al-
though a few thrive by it the many must inevitably
suffer. While we write there are thousands of
planters in this country who are selling the product
of their year's hard labour for far less money that
they put in the ground helpless and almost despair:,
ing, unable to refund the loans made them to till
the soil, and amidst the constant cheerlessness
the political aspect of their lives living upon Wet
barest hope of the future. For instance, it is a fae
that in Georgia to-day planters sell their cotton'
that is, the average crop of their farms, at about
with
cents per pound in currency. The Government,
a rigour which is quite unworthy any generous ad-
versary, taxes them two and one-half cents Per
pound, a tax which is simply ruinous. The inte-
rest upon the money which the planters borrowed
last spring to put the seed in the earth is a great
one, as must necessarily be the case in all countries„
which have been devastated by war, and consequently
impoverished ; and, in short, eighteen cents Per
_
pound in New York pays the Georgia planter, after
all charges are reimbursed, not over twelve cents for
his in currency, or about eight cents in golds or
his crop, which must be middling in quality to o°°lci
mand even that price. These figures are low, an
as Manchester and the continent will use the Alneri,
can staple instead of Surats at a low cost, and in'xats
cotton must follow our own down in the marks
of the worn, we believe that the day is net, fat
distant when India will temporarily withdraw 09—„,
the English market to a great extent, and prices °f
our own staple possibly improve. At present, b°,
it
ever, our own spinners are not profiting h:
low as it is. They cannot sell the goods which tale:
make, except at a less price to-day than awee'
ago. They buy sparingly and cautiously, warti,:ge
few hands as possible, and, like the most of Ws

in hope.
it of
Finally, a reason which might not occur to all n
our readers in thinking about the recent revolatie
in cotton is this: the South, particularly Texas, where
the best cotton in this country is grown other thisi/
Sea Island, which is produced from a special see to
has just suffered under a pestilence which sPreaci
to
New Orleans, thence to Mobile, and finally t
Memphis. These four points are the most imports is
of all domestic ports in the trade. While Peil
were dying by hundreds daily in these places °t,
could hardly be much trade. We anticipate
-
some activity in the cotton businessfrom""°
recent abatement of the disease, but we are Per-
suaded that the favourable weather of late for Pic'to
ing and saving the crop will enable planter,T3
send such heavy supplies into the ports in 1;
vember and December that no consider
increase of price in New York or Manchester oat
er
speedily be hoped for, and no large advance eitll.l
here or there until prices reach a lower level le
in this country, as they will probably do,
and
to.
export to England from other countries be COII-of
quently diminished, or until the general trade
the world revives, and consumption of manufaeturea

goods becomes much greater than at present.
ea
Since the above was written prices have adVanco
a little, both here and in England, the sbilinlefio
from this country since the commencement of 'OO
present cotton year, viz., September 1, having b.ag
less than one-third of the quantity shipped dar./
e
the same time in 1866, and the stock of An„ tn ;
having been sharply reduced in Liverpool. 11 (3;
no reason, however, to believe that the advance pD
be permanently sustained. The quotation,ls
eq
Monday of this week were 20 cents per pound in d,
York and 88d. in Liverpool. Freights ha" :00
vanced largely, which will serve to lessen co'
values for a time.