The southern press. [volume] (Washington [D.C.]) 1850-1852, 1851-03-19
Cotton Panic.


The following observations addressed to
g Cotton Planters" by Commission Merchant
Of New Orleans, we'll describe the process BY
which Cotton panics are created by the English
manufacturers enabling them by means thereof
to lay in their supplies at reduced rates, to the
great loss of the planter and American Cotton
Merchant. There can be no doubt that the same
game has been played year after year. Still the
planters refuse to learn wisdom, and save them.
selves by holding back their crops.
Gentlemen: You have lately witnessed mr.
almost unprecedented decline in your great sta
pie, Cotton. For this decline, assert without
the fear Of rational contradiction there exists no
good and sufficient cause. There is but one
apparent cause.-the increased receipts up To
this date but there is no man pretending to
the slightest knowledge Of the subject, who
will say that there is anything in this fact SIM
ply, to indicate larger crop than the almost
universal estimate made some sixty or ninety
days since Of 81 or $4,000 bales.
What, then is the cause of this decline! It.
in my opinion, results from a regular and sys-
tematic combination on the part Of the English
manufacturers, and their aida, to depress the ar
ticle-which is the most desirable object in the
world to them--and for this opinion ! offer the
following reasons Judge, then, for yourselves
II is believed by many, even in Liverpool
men qnite as honest as those who are intrusted
with taking an account Of the cotton there on
the first Of January--that the stock was falsely
reported, and not to be relied upon; in plain
words, that il was not as large as il was given
out to be.
Having got thus far, the manufacturers, aided
by the bank, (for cotton 10 the life blood of Eng.
land and the cheaper the more nou,ishino) and
others interested proceed to effect their purpose
of lowering the price of cotton in this manner
It is known that they are literally without
stock; in other words, that they are working
from hand to mouth, but they report stock OF
five thousand bales in Liverpool and then, in
stead Of purchasing their supplies there, they
leave that market to sink By its oson height, and
send here to buy just bare enough to keep their
mills going. The effect of this course il plain
and certain. The holders Of cotton In Liver
pool--speouatora and shippers-fnd no demand
for it there, and Of course the article rapidly de-
clines, and is followed by a still more rapid de-
cline with ms. Having gotten up this decline,
and panic, from which il is hard for us to re-
cover, they have from so to 30 days to purchase
the bulk of our cotton Mt low prices, which thew
generally succeed in doing; and thia is repeated,
year after year, as it becomes necessary.
And now, gentlemen, is there man amongst
you so dull ms not to see the keen art and terri
BILE potency of these tactics, and the entire prac-
ticability of carrying them into effect by such a
body as the manufacturers of Manchester You
have felt and feeling their effects to your hearts
content. Nor can any man give you any other
reason why cotton, that WAS worth thirteen
cents sixty days since, should now be worth but
nine and half cents, and which will be worth
thirteen three months hence!
Gentlemen, ] have given you but one speci-
men OF legerdemain; many more could be pro-
duced