The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1868-08-22
Liverpool Cotton Trade.

Liverpool Cotton Trade.
From Messrs. Smith. Edwards Co.'s Circular.
LIVERPOOL, August 1.-The past month has
witnessed panic in the cotton market, and
prices fell of lid. per pound, followed by raj
ly Of I'D. per pound.
! At the date of our3last report dull steady
feeling prevailed both in Manchester and here.
Middling. uplands we're quoted at 11bd., and
| fair Dhollerah, Sd. per pound. New Dhollera,
to arrive, was selling at a3d. to 82d. per pound.
Business in Manchester mad beeu very bad for
long time, still it was not expected to get
worse, and there was general opinion that
American cotton was safe between Id and
kept up, and was probably not far short OF o0.-
600 bales per week, including an unusual pro-
portion Of small Brazil bales.
During the frat few days of July steady
feeling prevailed here, and no signs appeared
Of the storm that was 80 nigh at hand, but In
the second week Of July dull uneasy feeling
crept over the market omipous Of future dis
aster-buyers Of goods in Manchester stood
entirely a1oof, and prices there declined at a
rate which left an appalling margin Of loss TO
the producer; still there was no mateEial de-
cline in the raw material till the middle Of the
month, when suddenly q feeling Of anxiety
spread among cotton holders, and one OF those
nnaccountable revelations in public opinion
took place which are too common in this
market. Ie-.,j r; ---..
Almost every one became an eager seller,
and in about ten days the staple declined :1sd.
per b representing depreciation OF about
three millions sterling on the stock in port and
amount afoat for this country. All kinds of
cotton were alike pressed. American was pro-
fusely offered, and fell to sgd. and 92d. Tor mid,
ding uplands and Orleans, with occasional
sales even lower. Surats, out Of q late import
of 60,00G bales, were run down. from 9ld. for
new Oomrawuttee to I'D. and for old Dhollera
from 82d. to I'D. Equally low. sales are made
to arrive, say at 73d for new Dhollera and
Oomrawuttee, April, May and June sailing.
The feeling was generally entertained that no
solid resting place could be found short OF sd.
for American and 81 for fair SCrat. The mar
ket has not been 80 much demoralized since
the autumn Of last year. In the past two days,
however, decided change for the better has
occurred; the low prices started business. and
the declaration Of stock, showing $4,000 bales
less than the estimate, increased public conf
dence. American C ,tton has improved fully
I'D. from the lowest point. Surats a1oat as
much, but on the'spot only i'd. per D..
In concluding. this review, it should be re.
marked that one considerable failure has
occurred IN the cotton trade, oocasioned by
the late decline, and others are apprehended,
chiefly among buyers Of Surats to arrive. Vast
quantities Of them were sold at Gid. 60 10d.per
h., and seem likely to result IN heavy loss TO
the buyers, many Of whom are little able to
bear it. This circumstance has had good
deal to do with the panic feeling lately exist
ing in our market.
In glancing at the prospects OF our market,
the first point to be considered is whether the
recent decline was justifable or not; it certain
" came in most unexpected manner, and
gave great shock to confidence. 1t is worthy
Of note, that no new feature in regard to sup
ply came to light during the past month; we
knew at the beginning Of July all that we
know at the beginning Of August; the great
amount OF East India cotton afoat, which e3-
cited 30 much apprehension lately, was all
known by telegraph month ago, and yet there
were then confident buyers OF distant ship
ments at 83d., whereas q few days ago the
best price obtainable was ID, and many were
afraid of fall to Cd. per b. = - q. .f'-
The only. fact brought to light during the
month Of July vas the extreme weakness Of
Manchester; buyers Of goods would not take
off at remuneratiye prices the production made
out OF American cotton at lid. to 119d. per h.,
and in consequence manufacturers had to re-
ducs their prices to point that tempted busi-
nees-that point was about 1ad. per lb. under
the prices ruling month ago. 'iE
ness Of Manchester was chiefly the natural re-
coil from the exaggerated speculation that pre-
vailed at the opening Of the year, when Ameri-
can cotton was pushed up to 18d. per lb. There
is. no reasonable doubt now that this advance
was excessive and uncalled for, and upon re-
Prospect it seems extraordinary that public
opinion should then have been so unanimous
in looking for 15d. per ID. The effect Of these
inflated prices was to close the natural outlets
for goods The retail buyers both at home and
abroad refused to replenish their stocks at such
exorbitant prices. Foreign markets never re-
sponded to the advance in Manchester, and so
when the speculation in cotton subsided, the
manufacturing interest was left in wretched
state. Their hands were full Of dear cotton and
dear goods, and they never could free them
selves Of these till o ruinous loss had taken
place. This state Of things destroyed conf
dence, and led to exaggerated views OF the
probable decline in prices; the public mind, as
iB its wont, rushed from one extreme to an
otheY> and those persons who had been believ-
ers in 15d came to think 3d.. scarcely safe
price.
We incline to think the late panic was excess
siye and unreasonable. The scale of prices now
ruling is very different from thoss ofAprli, and
we see no reason why the consumption OF cot
ton at 10d. for mid Ling American should not
be kept up at full figure tor the remainder OF
tho year.
The news coming from the Calcutta and Bonn
bay markets about goods is decidedly encoura-
ring; the vast exports rom tnlS sue III tne
spring mouths are now arriving, and arc being
readily takon of without any decline in price,
Notwithstanding tho depressing news from this
side. This proves that Tie consuming power
of these great markets hos not been overstraln-
ed, and Us the shipments for some months
past arc moderate, there soems Likelihood OF
better prices being established in India later IN
the year. We believe that at the prices now
ruling in Manchester there will be q continu-
Gus good demand for the East. 1t may be
said, however, that similar good demand pre-
vailed during the latter half Of last year, which
did not prevent American cotton declining to
I'd. in December; but VIC believe that the home
and European demand will considerably exceed
that of last year as soon as cheap food acts on
the laboring population. All throughout the
continent Of Europe the crops this year are ex-
cellent. There is less political uneasiness than
there was last year, and manufacturing trade
ought to be, and will most probably become,
moro active than we have seen it for o consid-
erablo time. Furthermore, it ought to be re-
membered that the decline in prices last year
went to most unreasonable extent, and was
owing to an extraordinary concurrence OF cir
cumsfance ces that is very unlikely to occur again.
AS soon as confidence is sre-establshed, there
must be O great development OF the export de-
mand for cotton. Spinners on the Continent
have bought amazingly little for q long time,
and have, we believe, completely exhausted
their holdings. The stock in Havre is but 49,
600 bales, agaist SO 900 last year, though there
is an excess Of that afoat ttaking American
and surat together) Of 64, 900 bales. This sup
ply is almost the only one open to the Cont-
nent till December, excepting our market, and
,,,o l. A va mn doubt that O IarOa and continuous