The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1866-12-19
THE COTTON TRADE,
REoULAr1oNs OF THE GROWERS AND DEALERS IN
INDIA.


aPEoULArIoNs OF THE GROWERS AND DEALERS IN
We take the following from an exceedingly inter
estng editorial in the Times Of India, Of October
10, published at Bombay:
In the slightly removed firmness observable in
I the Liverpool market there is a er9mb OF comfort
but we trust there is no danger Of any European
merchants being thereby deceived in regard to any
dealers they must be left to feel the smart from
We notice ,u in our weekly on
has continued very strong during the past week.
Prices have gradually hardened and to-day close
about 40rs per candy higher than on last Satur-
In accordance with this remark, Dhollera is
quoted 2soTs; Per candy (95d in Bombay) and
it must be evident to any fair position for
estimating the prospect Of the cotton market at
twice the figure which is safe for shipments around
the Cape. It is, OF course, possible that cotton
may I 5ajn g t. 12d pSt teKs f thst ADVANCE
compared With 12I. are about twenty to one.
no man worthy the name OF merchant would dream
Of doing 50, or Of sharing the risk with any
b5 Or desk9ss On notn that the market
had been done-We were curious to know what
class Of persons had been venturing their
same report We ind it ated that Esconsid- i'd
as7S HIT saS m snss Bss
yet steadily refusing to meddle with cotton
at the present dangerous prices. Tho little trade
Being Afforded BY T bankors But We @ that
f6 to f8 per bale is the utmost rate that is now
being advanced on document bis-a rate which,
against the chances Of the cotton market at the
possible time Of realization, four months hence.
The banks M having ceaaed from their race to
abroad their capital and deposits, are desrous
OF leaving themselves an ample margin on docu-
This being the attitude Of the commission houses
and the banks, the native dealers in Bombay must
be left to ship on their account, if they have
confidence n the absurd prices they now ask
ing. No one can object to tlls, and even if some
Of the up country dealers were to setake them
selves to exporting. cotton on their own account
it would probably be the comm menoement Of a far
more healthy state Of things. the extravagant
prices that have been current in Bombay ha We
petition between commission houses themselves
and the high scale of advance on document bills
by some Of the exchange. banks, though this poll
-cy has been backed up in many instances by Sc
riously mistaken advice from home All European
houses and bankers are, however, now 80 thor
oughly convinced Of the serious risk involved in
committing themselves to engagements based on
not likely to be enticed from their resolution 5y
long as there is any uncertainty respecting the
American crop Bombay commerce can never
refuse to be influenced in any way by the irnagina-
tive views IN which up country dealers may choose
to indulge respecting the prospects of the cotton
mon sense soon or SO efectualy as for the mer-
chants to stand asideas Just for the present they
selves take the risks Of the Liverpool market.
Hitherto the chief profits or the recent magnia-
cent cotton trade have gone to the dealers and the
Tyots and it would only be fair for those classes to
have their share of loss.
Although we think that the prices just now ask
ed sg 1g oten sa Il 81 pnt RsRag ess Rog
who buy, we would not by any means be under
stood TO support the notion that the cotton trade
ly that the shares in it's profit and loss have been
1nequally distributed. # Bombay cotton fetches
Cd. per pound in Liverpool, that price Will leave a
largo part Of the presidency and central provinces;
but the ryot must be content to take such price
exportatioa. No doubt tie ryot himself ms T would I be
cc1tent with q price equal to 120rs. to 150rs. in
Bombay; but it is the intermediate dealers who are
men. These are the men who strive to get larger
share than any one else through whose hands the
cotton passes T is this who, just when the
Of business should open again, are rendering
sound trade impossible. European merchants are
very little nearer the cutiyator now than when the
profits have gone, they must contri7e to open up
more direct communication with the producer.
The mlddlemen dealers have all the shreWdness
and cunning which consorts with keen aYarice, but
none of the Judgment by which good business men
foresta1 the worst losses incident to q falling
market. II they can be left to hold the present
stock Of cotton for two or three months longer,
they will in all probability be cured for a time ;but
the merchants here should in future take every
likely means to enable them to dispense with these
Dealers whose profession it is to squeeze the ryot
and;deece the Bombay merchants. The circum-
stances Of the cotton trade in Western India are
likely to be such as must call for the exercise of
much more economy and care than ever has been
needed before We do not by any means share the
opinion that the cotton trade between India and
Europe must be an Improbable one, because prices
will be much lower than during the LAST three years.
But the question now is between Bombay and the
Mofussil and as to how the Legitimate profits shall
be apportioned. It is possible that next year the
ryots in many districts may find oilseeds pay them
better than cotton but there is already o great
breadth eown this year, and before it is gathered
or brought to market it would be an advantage for
Bombay merchants to signify that they do not in
tend to give speculative price for it. BY diRA of
improved communication, greater care in cultiva-
hon, and increased means for pressing up-country,
the production of cotton in Western India may yet
be extended with advantage to every one concern
ed. We do not deem it needful to 20 into any
elaborate argument to support the proposition, that
cotton far more likely to go down than it is to
remain at the present high prices that asked in
Bombay. DR.. Forbes low estimate OF the Ameri-
can crop is already designated on every hand; the
Egytan crop is likely to be larger than ever it was
before, and the Brazilian and Turkey crops will also
materially decrease .6urats also form more than
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