Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1870-08-21
Cation Mt LixerpooI.

We are indepted to W. G. Watts & Co.,
Of Liverpool, for their circular Of the 10th
July, from which we extract the following;
We are now in the midst of the most
fearful panic we have ever witnessed.
Panic means unresson, and so long, there
fore, as the panic lasts, there is no use of
reasoning as to the probable course of our
market; what we want more particularly,
in order to arrest the downward tendency
of prices, is the restoration of something
like ordinary confidence. To bring this
about, we must have some assurance that
under no circumstances likely to arise will
this country be drawn into the continental
struggle. Another week or two will prob
ably determine this point, Others are
alarmed as to the course of the money mar
ket, and think it not improbable that the
bank rate will soon be advanced to 10 g
cent. Upon this point we can only ex-
press what seems to be the prevailing
opinion at the moment in financial circles,
namely, that already an apparent check has
been given to the flow Of coin to the conti-
nent, and that, provided this country re-
mains neutral, the tide is likely soon to
turn; and, as was the case during the war
between Prussia and Austria in 1866, flow
back to this country, and further, that
there are now some e, 800, 900 on the way
from America, and perhaps more to follow,
which will restore the equilibrium and pre-
vent any further advance IN the rate of
discount.
AS affecting the course of our market for
cotton even the war on the continent and
the hank rate are, however, perhaps less
talked about than the difficulties and COM
plicatioDs likely to grow out of the sales to
arrive of very large proportion of the
cotton now ahoat from India The losses
will undoubtedly be enormous, and some
suspensions may be the result, but it strikes
us that these difficulties, like all others not
yet faced, are exaggerated. As bearing
upon this point, we would call attention to
the fact that our export demand for cotton
is not entirely cut off. The sales declared
for export during the past week amount to
4,690 bales, against /, $50 the week before;
and now that both France and Prussia
have signifed their intention of abiding by
the treaty of Paris signed in 1856, it fol-
lows that neutral ships viii not be detained
on the plea that they are carrying enemies
goods, unless contraband, and as cotton
seems nat to be considered by either of the
belligerents as contraband, we can see no
insurmountable difficulty in the way of
our supplying any of the continental pow
ers, even those engaged in actual war, with
what cotton they may require of us.
We would again repeat what we said IN
our last report, that in the midst of the
present excitement little or no attention Is
given to the advices from America or from
India. In our circular of the 18th inst, we
expressed the opinion that the war in Eu-
rope and low prices here would soon cheek
shipments to this country from all quar-
tiers; since that date the clearances, both
from America and from Bombay, have been
moderate, and composed, we suppose, al
most entirely of cotton out on shipboard
before the announcement of war, but from
now on we look for a more marked falling
off.
American cotton continues relatively
cheoper than other descriptions, and du-
ring the past six weeks the deliveries of
such to the trade have averaged 65 . cent
of the whole 1t will also be seen from our
table above that since the beginning of this
wear the deliveries of American from this
port have averaged 80, 523 bales CTS, $40 to
the trade and 1888 exported), at which
rate the entire supply here and afoat would
be used up in less than twelve weeks.
In calling attention to the visible supply,
as shown by our table above, we would add