The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1867-12-14
AicI1mond nispatth,
SATURDAY ...... DECEMBER IA, 1867.
Correspondence of tho Richmond Dispatch.
Business Depression of the Cotton Market
Speculations OH the Future Price Of Cotton.
PETERSBURG, December y, 1867


PETERSBURG, December u, 1867.
While business, at the best, has not been
very active during the week, wet, dis
agreeable change in the weather has rather
an uRavorable effect on the market to-
dav.
The transactions in cotton have been
very brisk for several days. Planters VINO
send 1t in want the proceeds at once 10
enable them to pay Off their iaoorerS ana
meet other pressing demands. IL Is 'nere-
fore sold about as fast as IL Is received.
The market for week past mas oecn very
variable, having vibrated two or three
times between the extremes OF IA and
1872. At the present moment 1t is at the
minimum figure but none can say how
long it will be before there is another
REACTION. From past experience II may be
looked for at any time.
The opinions of sagacious men vary not
little as to the future prices of cotton.
1t may not have reached its lowest point,
owing to adventurous causes, as for in
stance the general depression Of cotton
fabrics in all the markets Of the country.
Viewing the matter in this light, We may
expect that general revival Of trade will
be accompanied by al important advance
in the price Of this staple; and there are
certain statistics which render this result
extremely probable. The only serious
competition which the southern States
have to encounter is in the productions of
India and Egypt. According to official
statements made by British authorities,
the cost Of every pound Of India cotton
landed in Liverpool is twenty-six cents.
This results from the fact that the growth
has been stimulated in that country re-
CARELESS Of expense, in order to get 1t es-
tabliShed, and thus render the British en-
pire independent Of other countries. And
even this cost is great reduction on the
cost previous to our late war, when it is
stated to have been f(ty-four cents per
pound. If these figures are correct,
American planters have q pretty fair basis
on which to speculate
According to the estimates of De Bow
and eminent southern planters the cost of
production in the southern States before
the war was &C. per pound, gold. In the
years 1858, 1859, 1860, the average price
of cotton in all our ports was l3c., gold.
The crop then was about 100000 bales.
The cost of production now cannot, by any
fair calculation, lie less than dOuble-that
is to say, l2c., which, in currency, would
be about l6c., and with the tax superadded,
1870. The heavy losses therefore On the
present crop may be seen at glance; and
the conclusion is irresistible that cotton
cannot be cultivated at present prices.
Not less than from 22 &c. to Csc. would ne
fair remuneration TO the planter lnclu-
ding the burden Of taxation.
Now, since American cotton, even I'M
der our present adverse circumstances,
can be placed in Liverpool at less cost
than that from India and since, moreover,
it will always command higher price,
being q much superior article, 1t IS argued
that the culture Of it must survive the
present depression; and as the stock on
hand is gradually exhausted, the price
must inevitably advance. So imposing is
this statement 10 the minds of some OF our
leading merchants that they would be
willing to invest any amount of capital in
cotton at present prices, so far as they
could afford to lay ont of the use of it FOR
an indefinite period. They insist that
there is more money in il than in anything
else now in the market. >.