The republic. [volume] (Washington [D.C.]) 1849-1853, 1850-08-27
From the Philadelphia Inquirer.
The Cotton Trade.
THE PROFITS OF MANUFACTURING

Cotton, its growth, consumption, and manufac-
ture, continue to be topics of interest in the
mercial circles, and especially among the manu-
tacurcrs OF the North and the growers of the South
The opinion ID still inculcated by several of the
leading southern journals that the crop this year
will fall short and that of consequence there will
be no material decline in prices. writer in the
Merchants Magazine says that the causes of the
recent advance plain and evident, and he spe-
Cites them thus:
The pacfcation of Europe;
The revival Of business in France;
The large consumption;
The small stocks;
The discouraging prospects of the crop
Alter the largest production ever before known
we see, according to the best information that the
stocks on hand are lower than they at the be-
ginning OF the year, with decrease the amount
produced, below the wants of the manufacturer,
prices necessarily arise above the average, until
the high rate OF the raw material lessons the
sumption, and brings the demand within the sup
ply. In considering, therefore, the probable sup
ply and demand for the present year, the calcula-
tons must be based upon high prices. This will
increase the shipments from India, and, by encour
aging late picking, increase the production of the
United States Ii will, at the same time, discour-
age consumption, generally, and especially in
England. Already have the spnners at Manchcs-
ter commenced working short time, and this is not
10 be regarded combination To prevent the rise
In prices, but the necessary consequence of short
crop. diminished supply of cotton causes adj
vance IN the price, and a diminished consumption
the manufactured article. In this way, the equili-
brum between demand and supply is established
and price must be considered, before either the
supply or the demand can be properly estimated.
He then proceeds TO analyze the crop as far as
possible. The whole consumption in Great Bri-
tain of 1913, was $4,000 bales and in 1915, il
was ,574 900. For the present year. II will pro-
badly reach 600 900 bales; but for 1850 it cannot
safely be estimated at hi CHER than ,450 900.
In France the consumption is now largely in ad
vance OF last year, and up TO the LIST OF August it
exceeded the amounts of 1916 and 1916. The in
creased stability of Louis Napolccn's government
for the last half of the present year, promises that
this excess will be maintained, and that the close
of the year will witness the largest delivery of
American cotton made. The whole amount
of American cotton consumed in France was
35l 900 bales, in ls45, and 277 900 in lSiS. For
1919, IL will probably reach 400 900 baes and, UNI
ess political troubles, not now foreseen, should in
ure the prospects OF trade the high price Of cotton
will not bring the demand for 1850 below $50, 900
bales
On other parts Of the continent, besides France
the consumption Of cotton has been regularly in
creasng. The average demand, for the last five
years, has been 442 900 bales, and this period in
cludes the disastrous harvest of lS47 and the rev.
dictionary excitement Of l54S and 1919. The de-
mand for 1850 cannot fall as low as this average.
IL will be almost certain 10 exceed 100000 bales,
even If the present advance in prices il sustained
We have thus a total demand Of 100000 bales,
which exceeds the supply 100000 bales. As the
stocks were lower in January last than they had
been for the last ten years, and they now
lower than they were year ago, this deficiency of
the supply must keep up prices much above the
average. They are now 80 or 40 per cent. above.
This advance must be maintained, unless the late
Of the frost should carry up the United States
crop above 1850 900 bales, unless serious poi-
cal troubles should arise in Europe, 70 darken the
prospects OF business. Some tables arc appended,
from which we gather the following facts: