Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1870-01-07
COTTON.
Review Of the American Cotton Eanuiae-
turing interests of 1863.

The Boston (Mass.) Advertiser of
January LIST says: During the year
ending December 81, 1869, 936, 900
bales of cotton have been sold in New
York for export, home consumption,
etc, at an average price equal to
twenty-nine cents per pound for mid
dling-other grades in proportion Gf
reckoned upon the actual and varying
quantities sold and the prices paid in
each week, or thirty cents for mid
ding if averaged only by the price of
each week as they would be paid by a
consumer buying only a weeks sup
ply at one time)-the proportion
thereof taken by our manufacturers
having cost at the mill t~Wenty-nine
and a half cents by the former and
thirty and a half cents by the latter
average. The prices in Southern
markets were relatively higher at
even date through most of the year.
The cotton goods p%roducedin north
ern factories during the same period,
with few and small exceptions, were
sold at prices which, in their average,
did not leave thirty cents per pound
net for the raw material used in the
hands Of the manufacturers. In other
words, cotton mills that were supplied
with cotton from week to week a re-
duired for use, at the market price of
cotton for each week, and sold their
goods as produced at their market
value, all, with the special exceptions
above mentioned, either lost money
on the years operations, or barely
escaped loss. Many mills show in
their balance sheet a resulting profit
made during the year, from which
they are making the small dividends
of the day. This, however, was
speculative profit accruing to those
who had the Sagacity or good luck to
buy at the best time, and from cotton
bought when the prices were below
the average of the season. The fact
remains that under the system of buy
ing cotton as wanted, and selling goods
as produced, the manufacturing busi-
ness generally has been a losing one
during the past year. Those who laid
in stock early got the best qualities at
the lowest prices, ands other things
being equal, made the most money of
all that was made. The results to
those who followed the opposite policy
are patent to all, and need not be
stated. 1t is not to be assumed, how
ever, that what was good policy one
year, under one set of circumstances,
would be good policy another year
under conditions very different, if not
quite opposite.
Last year the season began with
nearly all u spindles in full work,
their production, especially Of heavy
goods, being insufficient for the de-
mand, and for some months they
worked up about $4,000 bales of cot
ton per week; by October /, 1868, we
had learned the significant fact that
the consumption of cotton in the
world had so Outrun its production
the year that it had drawn
down the surplus stocks in market
about SOC, 900 bales IS compared with
October l, 1867; and it was known
early that Jul crop was turning out
much less ginned cotton than It's
appearance in the field and its
gathered weight of seed cotton had
promised, for it was a wet season
crop, always a small one, while the
and December reports from -
India told of the partial failure of the T
crop there-tOgether showing a GER
-aiaty that the supply of the world :
'Or 1869 would be inadequate unless
consumption should be curtailed by
advanced prices.
This year, the season began with I
.Wenty per cent. of our spindles idle, =
)r changed off from heavy to light
equivalent to s. reduction of
Wenty per cent. or more in the con- {
umptiOn of cotton, say to $4,000 bales :
NV nr~aaL- q rafa not nZ-nan1a1 -, IL
average since June last, and the de-
nand for cotton goods hardly enough y
o take off the diminished production
wen at the low and improbable -
,riceS Obtainable. By October l, 1869, !
We had learned that Notwithstanding :
he reduced supply Of cotton during
he year, its consumption had dimin-
shed pOFi pdSSu, under the restrain
ng power of high prices, leaving the c
urplus stocks in market about the
anne as in October, 1868. And now it
known that our present crop is ,
urnlng out month after month an IN N
expected increase in bales, and much
lore ginned cotton than the appear m
nee of the fields, and the gathered
of seed-cOttOn promised when
ldged under the experience of last
III NLAo ndo a ulJ oCdSOu CLOpt :
ways a large one, while the NOvem- c
er and December reports from India :
ell Of the promised abundance of the :
rop there-tOgether giving the world 6
lir assurance of an increase in the s
ears supply of cotton not less than O
O0,0 0 and probably 1000, 600 bales. :
Our prices now, by gold standard, c
re above the average of last year, in :
he face of a supply promising to be :
, TO % per cent. more than the world c
Ould consume when prices restricted
Sc within the smaller supply of that s
ear. As these actual and prospective {
Citations of supply and demand shall =
visible in Europe, and when :
he replenishing of their local stocks 2
hall have given tangible evidence of :
Ipply at hand, prices there, already :
)wer to consumers than ours, may c
their true relation in further de- s
line. The comparison that we have q
resented of conditions last year and
lis year, suggests the expediency ola s
Olicy how opposite to that which was :
lost successful then. When the ex- =
ort trade shall have glutted itself at :
ne present prices, or those two or three q
ents lower Ito be on a parity with =
iverpoOD, doubtless an ample supply
18th no lack of better qualities viii
main Tor the largest possible home =