Nashville patriot. [volume] (Nashville, Tenn.) 1858-1860, 1858-05-11

CottOn-the hest Investment.

! Since the lst Of September last, an unusual
: number of causes have operated to drpress
! the price of cOtton-such as the great revul-
sion of last Fall, the numerous and large
failures, the prostratiOn of many manufacture
| ing establishments, the prevailing alarm of
| capitalists, the continuing restraint upon
credit and speculation, the over-estimate of
the cotton crop OF last year, and the unpre-
ccdented prospect for an immense and early
cotton crop for the present year, which existed
until within the last four weeks.
In spite of these various depressing causes
the price of cotton has not only been main
tanned, but has shown an uncomfortable ten
dency to advance.
The chief reason for this, is. that the con-
sumption IF american Cotton an FOrega countries
since the first Of September last has been at tie rate
Of about $500 bales per month!
That rate of consumption in Foreign coun-
tries is demonstrated as follows:
Since 1st of September last up to MAY 1st
"a period of eight months) the exports of
American cotton 10 Foreign countries amount
to nearly 100000 bales: and notwithstand-
ing these large exports, the stock of cotton in
Foreign countries at the latest dates is about
the same il was on the Ist of September last
Hence, it is clear, the Foreign consumption
since lst September last has been about equal
to foreign exports; otherwise the stock in For
eign countries would have materially increas-
TENDER last.
1t may safely he assumed that the rate of
foreign consumption of American cotton. for
the next four months will be fully as large as
it has been for the last eight months; for it
seems plain, that there have been more dis
cOuragements to consumption during the last
eight months, than there can probably be for
the next four months If the rate of foreign
consumption for the next four months should
be as large as that of the last eight months
that is, about 5000 bales per month-that
Of itself Will take for foreign countries about
100000 bales for the next four monthsl!!
But the total stock in all our ports, on the
1st of May, 1858, as shown by the prices cur
rent, is but little over 100000 bales; and it is
now regarded as certain that the receipts from
LIST May To LIST September, 1858, viii not ex-
coed 100000 bales. 1t thus appears that the
total supply of cotton in the United States
Gncluding all that is in the ports as well as in
the country is now about 900, 900 bales!!!
This supply of 100000 bales is not equal
to the demand for foreign consumption and for
home coHHmpionW A struggle must take
place between our Northern Manufacturers
and Foreign Manufacturers, as to the 900, 900
bales; and an advance in the price must be the
consequence
Up to the present time, capitalists have been
afraid to give very large credit to manufactu
rers, or to invest in cotton. Up to the pres
ent, the belief has generally prevailed, that
the supply of American cotton was greatly
in excess of consumption or demand. Up to
about the Sth of April, the belief was univer-
sal, that the cotton crop of this year would be
far the largest ever raised. All these things
contributed until now to keep down the price
of cotton; they have had an undue influence
in keeping down the price: they have ceased
to operate unduly, and reaction is now com
ing on. This reaction will be quickenen and
strengthened by he abundance and cheapress Of
bread, Of labor and OF money
With cheap bread; cheap labor cheap mon
ey, restoration of confidence, an inadequate
supply of cotton, quite moderate prospects
for "A cotton crop this year, and the price of
Middling cOttons in our ports not yet up to
twelve and a quarter cents. who can say (that
cotton is not n safe Investment
We are aware. that there are additional
reasons for the opinion, that cotton will ma
terially advance in price; but we content
ourselves for the present with those above
stated. If we owned any cotton, they would
makes us brave in holding for decidedly better
prices than are now prevailing.