Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1844-02-28
MISCELLANEOUS.
From the Southern Eatriot. -
THE COTTON SPECULATIoNS OF
,S4d HHnt1S2E
1874 AND 1925.

From The Southern Patriot. ~.
THE COTTON SPECULATIoNS OF
1874 AND 1925.
There are two remarkable eras in tho
history Of the Cotton trade-that Of 1925
and that Of 1874. They are s,rikiDgly diff
| ferent in many of their characteristics.
The speculation of 1925 had its origin in
Eugland-lllat of 1874 had its source in
the Uuited States. That Of 1926 was fos-
tered exclusively by British capital--,hat
of 1874 is sustained as we'll by American
as by British capital. In 1925 it was.the
abundance of money that stimulated the
speculation in Great Britain. This was
the moving principle. Cotton felt the in
fluence in common with all other COM
modites. In 1874 an expected deficiency
in the supply is the spur TO excitement
and The plethora Of money is collateral
effect. Can there be any general deduc-
lions drawn from this relative difference in
The character and circumstances Of these
speculative eras? We think the COM
parison affords some instruction.
l. The speculation Of 1925 had its linn
i,ation as to time in the reaction that over
took all other commercial dealings. An
artificial excess ofpaper money in Eng
land forced up the prices of all commodi-
lies. The boundary or limit TO specula-.
ton was Of course the ability of England
to keep the currency go full as to. be above
the level of the currencies of the cont.
nent. The termination Of the speculation
aud the reaction of prices was found there
fore in tile faci, that all Fictitious value,
having its origin in excessive issues Of pa
per money, can be sustained no longer
than the excess is thrown back on the
country that originates and nurses specu-
la,iou by such excess.
2. The speculation of 1914 having It's
origin exclusively iu an expected def
cheney, the abundance of money being only
an incidental effect, its duration or limit
must be sought in some other circumstance
than contraction Of the currency from ar,
ti6cial expansion. The condition Of the
mouey market is still an important elc-
lnent in the question. But it is not a
forced and a fictitious, but a natural ex-
cess of money, that now stimulates and
sustains speculation on both, sides Of the
Atlantic. 1t is a trial Of real money
power between capitaliis on both theatres
of speculation. A real deficiency in the
supply being the foundation Of the excite
menl and not The artificial abundance of
money, The struggle can only be deter.
mined by The relative pecuniary ability OF
the parties. A money-power that would
enable the spectators on this side OF the
Atlantic 10 keep the cotton market only
sparingIy supplied on the other side for
Two months would triumph in this struggle.
But of this ability we have our apprehen-
sions. Although the United States are
more independent Of England, in a pecu-
mary sense-albough there is less mer-
cautile indeb,edness-than at almost any
other period of their commercial history
still the revival. Of business-lhe large IN
crease of British imports -lbe remiltances
for these imports, and for dividends OH
State bonds-must daily lessen the ability
on This side to command funds, locked up
in Cotton retained at the ports OF exporta-
liou, as it increases the ability on the other
side TO force its sale and shipment. Tho
| IQfeIenCeS t[OIIt luSSC oho'e aSeS~'S
of warning to those who have entered the
dangerous field Of speculation, as to the
limit Of time which they may have pre-
scribed 10 themselves for continuing or
terminating their operations.
We ary sorry to see leading CONNER
ciaI paper 10 New York, the Courier u
Enquirer, holding out hopes that may
prove delusive, aud encouraging specula-
i've movements that must be extremely
hazardous, 10 this stage Of the struggle.
We contend that the advance which will.
in all probability, be realized in our mar
ke,s, Immediately after the advless Q; .ne
4th February, will be sufficiently large
to satisfy any rational desire to profit, and
having reasonable proportion TO any ek'a
pecled deficiency. Any speculation ta-
king iu a larger range of Time and deepcr
calculation Of probabilities, must involve
risks teo hazardous for the chance OF gam
y