Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1869-07-15

The Trade I'm England and America
Will Prices Advance?

| Ehe Trade In England anu Americs-
| Will Prices Advance?
The United Estates Economist (New
York; of the 10th inst, discusses the
cotton question as follows:
Advices from England show that there
is no abatement in the extreme depres-
sion that has characterized the cotton
trade for some time past. From the
commencement of the present year the
trade has been duller than has been
known at any period since the gloomy
days of short supplies during our civil
war. The prospect, amounting almost
to certainty, that the supply of cotton
from all sources for the current year
would fall below the average de-
mand for consumption, maintained prices
of the raw material, and even advanced
them to rates that absorbed the profits
OF manufacturers. The latter found it
impossible to effect sales at remunerative
prices, and were compelled to make
reduction of wages, to the amount of from
five to ten per cent, which was finally
carried after "strike' of some weeks
duration. But the reduction Of wages
was not equivalent to the advance in the
staple, and the result is that manufact>
ureis were forced to continue operations
in many cases at positive loss, with
the worse alternative of supervision of
work. Cotton machinery being so fine
and delicate, that it rapidly deteriorates
when it is disused. W lE VI
Of course this condition Of affairs could
not last forever, and the news by mail
and cable, of failures in Manchester, and
depression in the cotton trade generally,
creates very little surprise. The fact
is, the supply of cotton at the present
time is inadequate, and the usual result
of limited supplies is seen in the ad-
vance of prices. The depression must,
therefore continue until consumers of cct-
ton are compelled to yield to the neces'
sites of manufacturers. The indica> |
tons now are that the latter contingency |
is the more probable. The supply of |
cotton this year is not likely to exceed |
last years average, while it may fall be-
low it. 1t is as yet too soon to predicate
anything of the American crops. But |
unless disasters occur, it may be ex-
pected to be fully up to last years sup
ply. But the excess car hardly be ex~
pected to reach 100 900 bales. At press
ent the crop looks well, with not more
than the usual reports of disasters at
this period Of the year. July is the crit
ical month, and few weeks more will
place US in position to make more re-
liable estimates. .sl. .
The grounds for anxiety in the Eng
lish cotton trade consist in the probably
ity of only a very slight increase in
the supply Of American cotton, and
the certainty Of diminished supplies from
other sources. Moth outstanding all the
efforts of English capitalists, for the last
eight years, backed by the powerful aid
Of the government, to encourage the
growth of cotton in India, Egypt and
1ther places, the crops this year will fall
below the proceeds last year. This re-
suit paralyZes the trade, and accounts
or its depression. On the 25th Of June
he stocL Of cotton of all kinds, on hand
n Liverpool, was 3SS, 4S0 bales, against
! stock of COZ, 800 in the corresponding
period last year. Here we have re
luction Of no less than 2l8.S50 in the
stock on hand. The cotton at sea for
Great Britain, June "a, was: American,
g, 900 bales; East India, $4,000; total,
$4,000 bales. At the same period in
1858, the total amount of cotton at sea
vas 537, 900 bales. The following table
hows the changes in the market, June
2, as compared with the same date in
S6S: