The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1844-02-21
The Cotton Mania In Danger.

The return made BY the cotton brokers of the
sales tor the week ending last night, reaches the
unprecedented number Of 109 $40 bales. The true
character OF the operation will be seen from the adj
m:ted division amongst the parties-84, $40 bales
having changed hands on speculation, being $3.50
bales for the trade, or about the average current
consumption. The advance in prices compared
with last week is given at i'd. upon American, 3D.
upon Surats, and all other descriptions except Sea
Island, so small relative quantity of the latter
now being used that it does not run exactly part
passn with the general market No other reason is
assigned for the mania than the reports of the short
crop in the United. States, the true value of which
reports we have so frequently exposed Of late,
that need not repeat the statements. The
brokers gave that several of the spinners have
taken the alarm for fear of further advance of
prices, and had purchased freely, but the proper
ton. as above shown taken by the trade, does not
bear out the allegation. Indeed, If such a course
were adopted, it would be act of suicide against
their own interests, we'll as that Of the people
they employ, which we should not expect under cir
and clearly understand. The real secret Of the mat
ter is the facility with which credit can be obtained
and the fancied security OF the banks that with
such large amount OF bullion in her Golfers, the
Directors of the Bank Of England will not think Of
putting on the screw. In this matter, however,
they may lind themselves mistake en- when they least
expect it.-Standard Feb. 8. 49,
The present position of the Money Market in
duces capitalists to watch every movement in the
trade Of the country with more than the usual de-
gree OF interest," to ascertain the probable extent to
| which the surplus, which continues to be thrown
off from our manufacturing industry, may find en-
ployment. In all articles OF subssting comfort
there is steadily Increasing demand for consump-
ton, and still without any manifestation OF desire
to spe culate on an advance IN prices Purchasers
are, therefore, restricted to the supply Of current
done for cash or short credits, which reduces the
demand for discount to an unprecedented extent
compared with the value OF the commodities which
are daily changing hands. With the single excep-
ton of cotton wool, the same feeling is evinced
respecting the materials of manufacture,
prevails with agricultural and colonial productions
On that account the movements in the Gotten mar
ket al LIVERPOOL the locus OF the speculation, Is the
subject of daily observations; and attention is the
more polntedly directed towards it because that,
notwithstanding all the attempts made to keep up
the illusion respecting deficiency the Anne rican
crop, no DISTINGUISHED person believes that it has
| any Just foundation. On that ground, and because
the lower the price at which the article can be OBJ
tained leaving the average rate OF profit upon pro-
ductiOn, the more advantageous 1t is for that great
branch of our national industry, we consider it ne
cessary to keep the matter constantly before the
public eye, in order to expose all undue artitce,
make use Of the word Temporarily. because we en-.
terrain not the slightest doubt but that in proportion
as prices are forced up by artificial means above
their natural level, in the same, if not in greater,
proportion, will there be recoil when the bubble
| bursts.
| We observe by the Liverpool brokers return
for the week ending last night, that the sales have
amounted TO $3.50 bales. OF that quantity,
5000 stated 10 have been taken speculation,
which leaves 1880 to be purchased by consumers.
| Early in the we k the market was comparatively
tranquil, the amount which changed hands for the
first three days, not much exceeding 10000 bales.
THIS comparatively quiescent state, however,
rather seems to have alarmed the SPECTATORS,
who, to prevent any reaction in prices, renewed
their efforts, and Thursday and yesterday 10000
| bales are said to have changed hands each day.
We farther observed, that the weekly deliveries,
from the Both OF December until last night, give an
average Of $3.50 bales ag linst 81 $50 during the
first four weeks OF the past year; which must be
| something considerably above the current con-
sumption, when all due allowance is made for the
| increase between the two periods We specially
notice this part OF the case, because it indicates
that the trade has been partially at least alarmed,
tor fear OF further advance in prices and by that
means have, as far as goes, aided the efforts OF
the spectators This proceeding, 10 say the least
OF IT, is very unwise, the obvious duty and interest
| under such circumstances being not TO purchase a
single bale more than what is required for immedi
ate use. The tone OF the Liverpool brokers' let
tiers Is papaby in favour of the continuance of the
speculation, apparently perfectly unconscious that
It involves any moral evil; but we draw no
line OF distinction. il respects the principle, of
commercial quibbling and the orgies of London
| hel-Sfandrd, Jan. "a.
NORTH AMERICAN Trust CoMpASY.-A more lc.
gal method than that OF repndiation appears to have
| been adopted by the Americans in order to get rid
OF their abllites-viz., by bringing into question
the right OF the officers Of any corporation to exc
cute trusts IN favor OF its creditors, without the
concurrence OF the Board OF Directors This prin-
cple once established will prove highly injurious
to the Europeans aud Others, who fanced that by
the granting Of trusts, they were at least partially
| secured. Thus the Bank Of England has trust
to the extent of half million OF dollars, granted
by the North American Trust and Banking Com
pany. and holds probably many similar deeds, all
placed in jeopardy by the proceedings Of the re-
ceiver appointed to ind up the affairs OF the COM
pany in question, and likely to be initiated, so in
fictitious is bad example, by every other corpora
| ton similarly crcumstanccd. The trust Is said to
vency, and because Thomas G, Talmadge, the