Baltimore commercial journal, and Lyford's price-current. [volume] (Baltimore, Md) 1840-1849, 1847-01-30

mendment, and total want of confidence in the
stability of the Money Market. Slightly. but
very slightly, counterbalancing this complication
of adverse circumstances the reports of the forth
coming Crop Of American Cotton were anything
but 6attering, but holders had been SO often de-
| ceved in former years this point, that little
| importance was attached TO it, aud had certainty
| even existed with regard to it, it could not have
| operated for many months in a market glutted
with the superabundant supply Of the previous
year. The Import came forward pretty freely
also, Notwithstanding the lghtness of the receipts
in the American ports; and the scarcity of money,
and consequent difficulty of discounting even
good Bills, prevented speculation, and left almost
| the whole Of the demand to the Trade. who had,
at the end of the year. good Stock in their hands,
rendering them to some extent independent OF the
Liverpool Market. Low prices however. led
| them to purchase freely, and in January and Fe-
bruaTy their takngs rather exceeded their weekly
consumption. In the latter month, owing to the
combination of adverse circumstances we have
enumerated, still lower scale of prices was quot
ed than that current at the beginning OF the year,
and the quotations did not actually represent the
true position of affairs large quantity of Cot
| ton having been forced off at whatever the pur-
chasers chose to Offer In March, some little i'm
provement took place, and prospects rather brigh-
tened; the estimates of Crop were continually
reducing, and the bare state OF the Continental
Markets made it evident that later they
must draw large supplies from this country, Buy
ers on Foreign account. however, held aoof. and
Spectators did not see their way clearly enough
TO induce immediate operations. This state OF
| things continued without much change till the
middle of the year, Ex porters in the meantime
coming largely into the market, and confidence
gradually increasing. The diminished Imports
showed the truth of the reports of short Crop,
and the reduction of Stock made the rise or tall
OF prices more dependent on the prospect of
small or large Crop to succeed that which was
coming TO market. Prices meanwhile, had slow
ly but steadily crept up, ID, per h. from the low
est point, with very little aid from Spectators,
and the Trade demand, at the same time, rather
on the decrease. Exporters. however, bought
heavily, their takings being double those OF the
preceding year. The first great impulse given to
the market was by the steamer Of the 10th of
August BY that time it was clearly ascertained
| that the Crop then coming to market could not
exceed 2, 100000 bales. being 100000 less than
| the Crop preceding. This, of itself, would have
been OF little importance, had the growing Crop
| been early and promising; instead of which, very
all quarters of the Cotton region, of the backward
ness OF the plant and the great injury it had sus-
tanned from rain and insects, circumstances cal
culated 10 excite the apprehension OF further
| casualties as the season advanced. Notwi,h-
standing the ridicule with which such reports
usually treated, very sensible effect was at once
produced by them; it being evident to all parties,
| that should they be true, the consequences must
be very serious in the then position of Stocks IN
Europe; and the entire unaniInity of the state
sustained, together with the fact that the crop
was three weeks backward, and therefore liable to
| greater vcissitudes from weather, produced the
| conviction that an advance in prices was well
| warranted, and certain to take place. The alter
ed state OF the money market too, afforded facili-
ties OF which spectators readily awaited them
selves. During September they bought very
largely, the quantity taken by them being, how
| ever, exceeded by the trade, and the advance OBJ
tanned in the month was I'D. to I'd. per h., ac-
cordng to quality, the larger advance having been
in the inferior description.
Throughout the month of October, the excite
| ment continued undated, every packet from the
United States adding fresh fuel to the flame. and
further advance of Sd. pei Id: was established;
The sales during the months of September and
October, a period of nine weeks, amounted to
549, 900 bales, quantity altogether unprecedent-
ed in the history of the trade. Some reaction
| took place in November, the natural consequence
of the previous excitement, and a recession in
price of 4d per ID. occurred. The beginning OF
December witnessed another speculative excite
ment; the enormous reduction of stock, together
with the confirmation of the bad account of crop,
and the easy state of the money market, bringing
prices advanced. The maximum weekly busi-
| ness was reached in this month, III $40 bales
having changed hands between the 4th and lth.
at I'D. per ID. increase in price. In the following
week, I'D. per Id. more was Obtained, thus making
| i'd per ID. in the fortnight. Since then tempo
| rary decline of Cd. per Id. occurred, but it has
been recovered in the last few days, and we close
the year with prices fully 3sd. per h. higher than
| those current on the 3lst December, ls45, the
quotations for fair being on that day as follows:
to-day, Bowels, I'D; Mobile, 75d; Orleans. 74d.
and with a stock of Cotton in the port less by
| 446, $40 bales.
| 1--WE have thus given brief but faithful mar
| rative of the course of the market for the year
| 1876, a statement of facts which furnish matter
for serious ,refe ction to all who interested in
| the Cotton trade. II is now generally admitted,
| that the prices of the raw material may reach
point of depression productive OF injury alike to
| the producer and consumer. The natural result
| of such reduction in prices as to make the
growth of an article unremunerative to the grower,
| is to lead him to employ his skill ard capital in
some other method which will yield him a better
return. And if in addition to the decreased Gull
unfavorabe season, still further diminishing the
quantity of the raw material, the inevitable con-
sequence must be great and rapid advance IN
prices, the reduced supply coming upon con-
sumption unnatuIally stimulated by previous low
prices, Such precisely has been the case with
| ihe Cotton Market. Low prices have diminished
cultivation, by making it unremunerative, fact
| which the great falling off in the growth OF East
India Cotton sufficiently establishes; and this,
| coupled with two partial failures in the American
crop has of necessity, led to speculative action
in an article in which consumption has thus over
taken production. We cannot, therefor, agree
with those who entertain the opinion, that the
advance which has taken place in Cotton is UNI
warranted-the result mainly of wild and ground
| less speculation. On the contrary, we think the
advance well founded and likely TO be maintained,
aud that opinion is in some measure borne out
bv the fact, that notwithstanding the partial ces-
ss,ion of speculation, and the almost entire with
drawaI of the trade demand for ten days past, the
| market is now firm at the highest point 1t has
reached this year. IL we are to continue to have
such supply of Cotton as is adequate to the in
creasinp consumption of the word-a matter of
immense importance in every point of vIew-we