The Liverpool Standard and General Commercial Advertiser.
Liverpool, Merseyside, England, 1842-06-14 00:00:00

STATE OF TRADE, MANUFACTURES, &c,

Our market for cotton during the past week has been less
lively, yet has maintained considerable firmness, notwith-
standing the temporary check which business appears to have
sustained in the manufacturing districts, since the arrival of
the last India mail. The disposition to stand out for ad-
vanced prices has subsided, and 26,610 bales have been sold
during the week. Of these speculators have taken 2500, and
exporters 2010, leaving 22,100 bales taken for consumption.
On Saturday we had again a quiet market, the buyers hav-
ing the advantage, and 3100 bales were sold. Yesterday 4000
bales changed hands, a few hundreds for speculation.
Business in the manufacturing districts has relapsed into
its former ruinous state, the bad prospects from the East

having, confessedly, had the most material influence in para.
lizing the improvement which we noticed a fortnight ago.
In the country trade, too, little is doing, and a few failures
which are mentioned have deepened the feeling of gloom

which hangs over the market

STATE AND PROSPECTS OF THE CORN MAR-
KET, AND OPERATION OF THE NEW LAW.

We have now had a month's experience of the working of
Sir Robert Peel's amended corn law ; and if the intent of
such law was to put down that tampering with the averages
which alternately withholds supply, until a famine price is
attained, and then gluts the market with a large stock at a
nominal duty ; if it was designed to secure regular and mo-
derate prices, and, at the same time, a regular trade—as we •
submit was the object of its supporters—the experience which
we have so far had must, we think, afford sufficient proof of
its entire success. We shall endeavour to collate together a
few particulars which will perhaps suffice to afford our rea-
ders the means of forming a judgment for themselves; and
dispel the illusions with which the interested advocates of
ultra free•-trade doctrines—and especially our wise contem-
porary the Liverpool Times and others—have sedulously
striven for weeks past to surround the subject.
The duties under the amended scale became payable on
the 2d of May, at which time we held under bond, in Liver-
pool, about one-fourth of the entire stock of foreign grain
in Great Britain ; viz., 209.032 quarters of wheat, and
165,166 barrels of flour. We had at the same time in the
market 25,000 quarters offree wheat, 5,000 barrels and 5,000
sacks of free flour. On the 31st of May, after four weeks'
operation, the stock of foreign wheat in bond was estimated
at 229,136 quarters, showing an increase of 20,000 quarters,
or one-tenth of the entire stock on band. Of flour, how-
ever, the quantity of bonded was only 111,548 barrels, or a
decrease of 53,618,which will render the stock of both
descriptions as nearly as possible equal at the two periods.
The quantity of free wheat on the 31st of May was 20,00(1
quarters, and of free flour 30,0'00 barrels and 3,000 sacks,
from which we can assure ourselves that, since the operation
of the duties commenced, importation and the payment of
duty for consumption have gone nearly hand in hand. A
few days, however, will perhaps make a considerable altera-
tion in this balanced state of things. The last average de-
clared, reduced the duty from 12s. per quarter to lls., and
some people were sanguine with respect to a further reduc-
tion. Some, in fact, went so far as to prognosticate a reduc-
tion to the lowest point; and, consequently, importers and
consumers have deferred releasing their stocks. The excel-
lent accounts, however, of the approaching harvest, and the
prospect of its being some weeks earlier than was anticipated,
has caused speculation to flag. Prices are declining instead
of rising ; and in all probability our next week's circulars
will show large entries for duty at the present rate of eleven
shillings per quarter.

It must be borne in mind that the stock of wheat in
farmers' hands was never lower than at this period, and con-
sequently that there was never a fairer opportunity presented
for speculators to work upon the fears of alarmists. Yet
what has speculation bee❑ able to effect upon prices ? On
the week previous to the operation of the new law the price
per quarter throughout England was 61s. ; on the Gth May
it was declared at 60s. Bd.; on the 13th at 595. 9d. ; on the
20th at 60s. 9d. ; on the 27th at Gls. 10d., and on the 3d
June at G3s. 6d. It is now, we expect, on the decline, and
will continue so until harvest. Again, has foreign importa-
tion been able materially to swell our stocks? It has not;
for although we have had an absolute certainty of the duty
this year not rising higher than 13s. per quarter, the rate at
which the scale came first into operation, and it has since
declined successively to 12s. and now to I ls., yet the stock,
as we have shown, remains at the same point as on the 2d
of May.

The operation of the new law, then, by permitting the
introduction of a moderate supply of foreign grain for
consumption, when prices were still at a moderate rate,
has protected alike the farmer and the revenue from the
consequences of an inordinate importation, at a nominal
rate of duty, during the present season. At a duty of
lls. to 12s. we may now assure ourselves that, except
in seasons of extraordinary abundance, a regular trade
will take place; and although it may be thought that a
favourable harvest this season will act as a prohibition, yet

we are scarcely satisfied that such will be the fact. For it
must be borne in mind, that from the deteriorated condition
of a great portion of the wheats, upon which the average for
the regulation of duty is at present being made up, we are

paying the present duty of lls. per quarter upon a price
nearly 11)8, lower than the market value of sound well-har-
vested grain. A good harvest therefore, although it may
lower the value of good wheats nearly 10s. per quarter, may
probably give a merely nominal addition to the existing duty
upon foreign importations. We fully anticipate that this
will be the case ; that the duty will rarely exceed 125.: that,
in fact, as we originally calculated, it will range between 6s.
and 12s. ; and that we shall thus always be able to command
a timely supply of foreign grain, for mixing purposes, at a
moderate price and duty.
Surely this is a consummation which few advocates of a
fixed duly upon foreign corn, and no one who wishes the na-
tive agriculturer to receive adequate protection, can except
against !