The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-12-12
THE COTTON TRADE.
spccuintions OF the Growers and Dealers in
Indin.

Indin.
From the Times OF India, Oct l01
in the slightly renewed lrmness observable in the
Liverpool market there a crumh OF comfort for credi
tors and the holders of document bills; but we trust
there IL no danger OF any European merchants being
thereby doceve4 In regard 70 prospective business
in cotton As u the native dealers, they must be left
TO feel the smart from the rod they laying in pickle
for themselves. We notice, in our weekly oontempo
rarys report on the export trade, the remark " Our
market here has continued very strong during the past
week. Prices have gradually hardened, and to-day
close about 40rs. per candy higher than last Satur-
day" In accordance with this remark, Dhoilcra
and sawginned Dharwar s05rs ts,Ed.j Now, we think
it must be evident to any fair position for
estimating the prospect Of the cotton market at home
that the prices in Bombay just about twice the figure
which is safe for shipments round the Cape II IT, OF
course possible that cotton may again 60 TO but we
hsre as compared With I'D arc abou. twenty 70 one
man worthy The o. msrh.a, would dream 81 doing
So sharing the risk with any blnd or reck
iesa On noticing that the market had "hardsued an
indication that some business had been done-we were
curious know what class Of persons had bsen ventur
ing their rupees in such iesky craf On turning to
parcels continue to 90 forward on tive account and
from other learn that European merchants
are, yet steadily refusing to NEEDLE with cotton
at the present DANGEROUS prices The little trade
there is cannot wen 20 on without some facilities
being afforded by bankers but we understand that
GO TO fS per bale is the utmost rate that Is being
advanced document bs--a rate which so far as we
Judge very liberal to against the chances
the cotton market al the pOSSDie OF realization
four months hence The banks having ceased from their
which Yf them could the shortest period
spread abroad their capital and deposits DESTROYS
OF leaving themselves ample margin document cot
ton bills for tho contingency OF low prices This being
the attitude of the commission houses and the banks
the native dealers IN Bombay must BIO left to ship on
their own account II they have confidence In the alb.
surd prices they now asking No object
This; and even II some Of the up-country dealers
betake themselves to exporting cotton their
account it would probably be the commencement
OF far more healthy state Of things The extrava-
CANT prices that have been current in Bombay have
been due in great measure to the reckless CON-
petition between commission houses them selves
and the high !, scale Of advance on document
has been backed in many instances by seriously mis-
taken advice from home All European houses and
bankers are, however thoroughly convinced of
the serious risk involved In committing themselves
engagements based the high prices ruling in Bombay,
that they are not likely be entced from their reso
ton by the few tempting kilograms which may come,
long there Is uncertainty respecting the American
crop Bombay commerce can never right itself until tho
merchants here determnedy refuse to be Influenced in
any way by the imaginative views In which up country
dealers may choose TO indulge respecting the prospects
of the cotton market Nothing will bring the dealers to
common sense so soon or so eectuay as for the mer
chants aside-as just for the present they
dong-andIe tho Bhattias and Bunnas themselves take
the risks of the Liverpool market Hitherto the chief
profits of the recent magnificent cotton trade have
the dealers and the yots and would only be fair for
those classes to have their share of loss
Although think that the prices JUST asked for
cotton Bombay Green purely speculative, and all
hut certain to bring "grcf' those who buy would
by any he understood 10 support the notion
that the cotton trade OF Western India is in itself
sound 1t Is merely that the shares in its profit and loss
have been unequaly distributed. II Bombay cotton
fetches Cd per H. in Liverpool that price will leave
good margin Of profit TO tho cutivator very large
part the presidency and central the Provinces but the
ryot must be content to take such price will leave the
necessary margin for the risks Of expectation No doubt
the ryot himself would be content with price equal to
120rs to l50s in Bombay butt Is the intermediate deal
who not content with the reasonable profits of
middlemen. These the men who strive to get a
larger than any else through whose hands the
cotton passes II Is this class who just when the
season of business should oren again. are render
v"rv little nearer to the eultiyaor now than when the
American war began but seeing that speculative profits
have gone. they must conrve TO open mp more direct
communication with the producer. The middemen
dealers have all the shrewdness and cunning which
sorts with keen avarice but none OF the judgment by
dent TO a falling market IT they be left TO hold
the present stock or cotton for two three months
Ion, they will 70 =. probability 90 cursa 70. time
likely means TO enable them to dispense with these
Dealers whose profession Is to squeeze the ryot and
fleece the Bombay merchants The circumstances Of the
cotton trade IN Western India likely TO be such
must call for the exercise OF mach economy and
than has been needed before. We do mot by
any share the opinion that the cotton trade be-
tween India and Europe must be an Improbable one,
because prices will be much lower than during the last
three years But the question now Ia between Bombay
and the Mofuss and TO how the legitimate profits
shall be apporoned II IL possible that next year the
better than cotton; but there 10 already : sreat
breadth sown this year. and before II n gathered
or brought " market IL would DO an advantage Tor
Bombay merchants 10 signify that they 40 not intend
TO give speculative price for It. BY dInt OF improved
communication greater In cultivation, and increased
for pressing upcountry the production Of cotton
In Western India may yet be extended with advantage TO
every concerned. We do not deem II necdfu to 20
into any elaborate argument to support the proposition
that cotton s far more likely 10 go down than to
remain at the present high prices that asked In Bonn
bay DR. Forbes low estimate Of the American crop II
already discredited every hand the Egyptian crop s
likely 10 be larger than ever before, and the Bra
lillian and Turkey crops wiz also be considerable The
stock In Liverpool does not materially decrease Surats
alone form more than half It's bulk, and nearly three
hundred thousand bales from Bombay yet
the From these and other obvious considerations
It seems evident that the prices asked In Bombay
far above what prudent firm would commit itself
TO, or counenance In any way. The advance In fair
Dhollera reported In telegram to-day has evidently
been caused by the comparative lowncsso that parcu
lar stock In the market at the time the great feet OF
Bombay ships that nearing Liverpool viii alter
that
THE TRADE OF FRANCE.
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