Washington telegraph., 1853-11-16
pondence Of the N. Z. Journal Of Commerce. /
LIVERPOOL, Sept. 16, 1853.

LIVERPOOL, Sept. 10, 1888.
While on visit to Europe, chiefly with
the object Of relaxation, | have not been al
together unmindful Of business, and before
leaving the country, am spending few
weeks in studying tor myself the present as
pect of the cotton trade, at this side Of the
ocean. The results of my observations may
possess some interest for many of your read
ers and [ shall therefore trcspass upon you
with few remarks.
When [ reached the North of England,
some three weeks since, having been out Of
the sphere of business for some months, my
views in regard to cotton were, on the whole,
rather sanguine than otherwise Having
the strong fact before me that the demand
had taken off during the year the prodigious
crop Of last season, at a high range of pri-
ces; having long since made calculations
showing very small stock as likely to re-
main here on 3lst December next: and
seeing around me the general prosperity
whioh pegyades all classes iii this and the
near European countries, was led. in COM
mon with the generality OF those who lack
ed time or opportunity to penetrate below
the surface, and were guided mainly by
their feelings, to look forward to the ensuing
wears business with unabated confidence.
Notwithstanding some clouds in the horizon,
regarding which, the long headed profess
ed to entertain serious apprehenSions. | al
lude to the still unsettled state of the East
ern question, dearncss of money. and the
impracticability of the factory operatives,-
say [ came hither, prepared and anxious
to make as light as possible of these evils.
but regret to say that three weeks resi-
dence in this quarter, of which, consider
able portion was spent in different parts of
the manufacturing districts, has convinced
me that the worst fears are justified and
that in fact, these causes have begun to act
seriously against the consumption of cotton,
which reached its climax some six months
ago, and is now on declining scale.
The most important difficulty is, perhaps,
the food question. Every one knows that
in this country the great bulk Of the wages
of the masses goes in producing food, and
that the supply of all their other wants aud
desires is increased or diminished according
as the margin which the working man has.
after providing his family with food is large
or small. Thus, if family earn FIVE dol
lars per week wages, ard if of that, in times
of low prices four dollars would have to 90
IN food, let it advance 25 per cent, and the
whole five dollars are required to pay for
subsistence leaving them no alternative
'ut to defer the qualification OF less pressing
wants to more convenient season, ana in
the mean time to use up the stock of clothes
iald in during the time of cheap food
Hence it was, that the consumption of cot
ton increased so rapidly. during late years,
that a crop of 100000 bales was easily
disposed of as crops of 100000 were
few years ago. Food, both in this country
and France, has ruled for some years at on
y about tW0-thirds Of former average prices
II has now reverted to about the old stan
aard' and, as regards many of the minor ar
tle,es OF consumption, to prices above the
oid range; and the advance is vet greater
on the continent than here With a return
tnen to similar circumstances to those in
mnlch we are accustomed to find crops of
11,Zoo'O0O bales suffice, how can we hope to
ulSPoSe OF crop a million of bales larger,
AZ az any thlng like the price we have got for
Comcldent with the advance in bread
SUNS we have the next most unfavorable
symptom, rapid advance in the interest of
money and, even danger of an extreme
a asLlingeney Those who know anything of
Ine way the export trade of England is done,
may estimate at its true merit, the extent of
.n:S evil From the time the money is first
pa'a for cotton, till the final returns from dis
'ln' ventures are realized in cash, period
~ .p Two years often elapses; and the London
economist" good authority on such sub
''0'S' estimates the average period for which