Washington telegraph., 1853-11-16

cash is locked up in each operation in that
trade, at from twelve to eighteen months
This trade was vastly stimulated last wear
by the abundance and cheapness of money,
which was so remarkable that good bills
were freely discounted at l IL per cent.
per annum, and ION call' it was difficult.
and sometimes impossible, to get l per cent.
An absolute plethora Of cash was the chief
thing dreaoed, and the banks took every
meaHs to force out their money Thus were
shippers led to extend their operations till
every market in the world was well supplied
with goods, and many of them over supplied,
keeping up the demand in Manchester on a
scale commensurate with the large crops of
the raw material of the past two years. So
filled, however, is every channel with goods.
that with so much cause as now exists for
the adoption of cautious policy, foreign
shippers may almost keep out Of the Man
chester market for large portion of the
ensuing winter. How different our position
in both these respects from what it was last
year. Instead of forcing out its money,
every bank in the country is now drawing
it in, and merchants are becoming more and
more shy Of increasing their engagements,
devoting their attention mainly to circum-
scribing their scattered business, as the pru-
dent mariner shortens sail, at a sign of COM
ing squall.
Thus is the prospect anything but hopeful
eithel as regards the home or foreign trade,
and how crop anything like equal to that
of either Of the past two years, is to be dis
posed of, | am at a loss to discover.
Besides these grave considerations, such
secondary ones, serious though they be, as
the Turkish difficulty, factory strikes. &c,
are comparatively unimportant; bat it may
be understood that a general turnout
throughout the county of Lancashire, such
as that which occurred and caused so much
distress in 1912, is considered imminent :;
competent judges going so far as to say that
they can see no other solution of the differ
ences between employers and employees
which are now Of daily occurrence With
the spinners entirely out of the market for
month, to what price would the necessities
Of holders who must sell, bring the market?
This is grave question.
1t is a fact that the consumption is al-
ready considerably affected by the action of
the causes | have alluded TO- Sometime.
since. it was believed that the consumption
of American cotton for the year, would
reach $1,000 bales per week, an increase of
2 800 bales per week upon last year; but, it is
now found that the deliveries to spinners
from Liverpool, so far in this year, instead
of presenting an increase, actually show
decline Of 500 bales per week on same
period, last year; a portion Of which, how
ever, may be accounted for by reduction
in spinners' stock.
Under all these considerations it is clear
that the only chance for safe cotton bust
ness this year, should the crop be good
one, is for buyers in our markets to hold off
till prices have found much lower level
than anything we have lately seen. Our
planters cannot hope to obtain such prices as
those which have prevailed during the past
year, for another 100000 crop If they
can get fair remunerative profit (Which Z
or cents would give them) in the face Of
such difficulties they would be very wrong
to refuse it; and should they do so. the con-
sequences may be disastrous With the
gloomy prospects existing at this side, short
crop intelligence will have little effect. 1t
is looked for as matter of course.
Your obedient servant
An AMERICAN CoTToN MERCHANT.