The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1865-11-05
The s1.intenance of High Prices.


Of consumption display themselves
Just now in various aspects. An ac-
tive speculation is going on, based
not only upon the immense paper
currency system, but upon combine
tions in various articles of prime ne
cesslty, and also as regards one most
important commodity, that is, cotton,
upon the indications of short supply
IN the near future. There has been
an advance of ten to twenty cents per
pound In cotton since July, and all
articles of cotton manufacture have
risen accordingly within that period.
The disadvantage to the community,
resulting from this, is seriously felt.
Much cotton has been coming forward
from the South, but it is said to have
been rendered evident to those whose
interest it is to be informed in the
matter, and who have sent agents to
explore the Southern country, that
the bulk of the present supply is al
ready IN the market, and that the
prospect for a future crop is not at all
encouraging. An intelligent gentle
man, entirely disconnected with cot
ton purchases, who has lately returned
from an extensive tour in the Caro-
hnas, Georgia and Alabama, was
struck with the fact, in the disorgan-
lied condition of labor, that there
was as yet little or no resumption of
industry upon the landed estates, and
the next years crop must therefore
be, comparatively, very meagre. The
cotton on hand in the farther South,
like the tobacco in Virginia, in what
ever quantity the inhabitants possess
ed it. has been their main, and in
most instances, their only resource
for relieving their pinching necessi-
ties, growing out of the late war. It
has, consequently, been sold as rapid
" as possible for gold, the heavy cost
of transportation often leaving but
small return to the owner. The ope-
rators at the central points have gen
orally, however, made much money,
selling only at a large advance, or
holding for future rise. The Gov
ernment of the United States pursued
this latter policy, and only last week
sold in New York 5000 bales, which
had been kept back, middling bring
ing AA cents, at gold rates, and re-
aizing an aggregate of 81, 200, 900.
The whole amount realized from cot
ton sales by the Government, it is
stated, during the past year, is six or
seven millions in coin. Very large
amounts of cotton at high rates, be-
ing now in private hands, of course
absorbs much capital to carry it. The
same is the case with breadstuffs, the
heavy speculative holding of which,
in the West, to control the market, it
is indicated must nov soon give way.
It is earnestly to be hoped that this
expectation will be realized, some de-
clines being already felt.
Under these great speculations
money is growing tight at all the
great centres, and the banks at New
York and in other Atlantic cities are,
it is said, now forced to require pay
ments of Western advances to meet
calls from their depositors This
may force into the market the stocks
piled away on bank loans. This
diversion Of bank accommodations
from the legitimate purpose of aiding
useful enterprise, is one of the evils
of banking, though it is n nice point
to determine where useful enterprise
leaves Of, and injurious speculation
begins. To whatever degree the
prices OF two leading staples, as cot
ton and breadstufs, are supported,
by this policy, do injurious effects re-
suit to the community. Not only are
they felt in these articles, but in others,
as prices of all other commodities
are more or less regulated thereby.
Another sale of 1900 bales of Gov.
ernmeut cotton was made at New
York at the close Of the week, and
some decline has taken place, the
rates being 55057 in currency fol
strict middling. The banks and
money lenders have suddenly become