Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1870-08-10
THE FUTURE OF Colt ON.

even the President.
THE FUTURE OF COTTON.
1t seems to be taken for granted that,
in the event of a protracted European |
war, the effect upon cotton will be disas-
trous, for the reason that manufacturing
industry on the Continent will be largely |
suspended. There are nearly thirty mil |
lions of cotton spindles in Continental
Europe, large proportion of which are
located in Germany and France. With
the spindles in those countries idle, and
the Germans and French impoverished by
war, the consumption of goods, it is as
sumed, will be materially curtailed, with
the result of marked depreciation in va
lues. But the fall in prices may stimulate
consumption in peaceful countries, and
thus, to some extent, counteract the de-
pressing effects of war. The New Or
leans Picdyur1e, excellent authority,
takes a very gloomy view of the situation.
We quote:
Fortune favored the planter last sea-
son, and blessed him with an abundant
yield. Every artery of our commercial
system had new life infused into it, and
our people began to hope for the halcyon
days of old. The country tributary to
this market seemed warmed into more
vigorous action by past success, and
promised to the city future full of pros
perity. Every hand has this season
labored arduously, and July sun is de-
veloping to maturity such broad acres of
the tieecy staple, as have not been seen
in the South since the days of slavery.
But suddenly, war cloud looms up
across the Atlantic. Though four thou
sand miles away, it has cast dark gloom
over the cotton growing States of Ameri-
ca. The civilized world is so locked to-
gether by the hands of commerce, that
the clangor of arms has sent thrill
through all lands, and shook every finan-
cial system to its centre. The cotton
trade is peculiarly susceptible to the in
f1uence of war, for in the midst of arms
the loom and spindle lose their wo nted
activity.
''The great centre of the cotton trade,
Liverpool, has reeled and staggered under
the blow; prices for cotton have declined
some thirty-fiye per cent, and many fail
ures have occurred. Half time in Man
chester is spoken of, and a general distrust
of the future, both mediate and immedi-
ate prevails. The effect upon the
cotton trade on the continent has been
no less disastrous and instantaneous. This
state of affairs in Europe has been re-
Elected back upon the home markets, and
were it not for the limited sales to New
England manufactures, who have been
tempted into purchasing by low prices
and scant supplies, the staple would go
begging. This enormous decline, when
coupled with the prospective heavy adj
vance in breadstuffs and provisions, must
tell seriously upon the whole South, and,
should not affairs assume brighter
aspect, no profit whatever will be reaped
from the crops of 1S70-71, and in all
probability there will be dead loss, for the
cost of production has not been less than
twelve cents per pound"
The South committed q grave error this
season, says the New York shipping
List, in deYotiRg all its energies to the
great staple, to the neglect of food crops.
If it had added five per cent. to the in.
creased acreage instead of twelve, and
devoted seven per cent. to cereals, its
prospects now would doubtless have been
better. Three millions of bales, at one
hundred dollars bale, are worth more
than five millions at sixty dollars, for
there is a saving in bales, freight and
labor, as well as difference in price, be-
sides a reasonable diversification of indus
tries is at all times desirable. October
contracts have been made in the New
York market during the past week
at 16 and 16i cents, or nearly four
cents below the quotation for
current delivery. Should these
figures prove to be a correct forecast, the
planting interest will indeed have received
a severe blow, as it would require all of
their lessened profits, or, in default of
profits, portion of last years savings, to
pay for the food they will, of necessity,
have to buy. But this forecast may
prove totally incorrect. The war may
end as abruptly as it commenced, or, if
not, the cotton manufacturing industry of
the belligerent nations may be transferred
to England and the United States, while
the Indian supplies may be subject to a
material curtailment. In such an event,
the converse of the Picayune's article
may be presented. At all events we hope
for the best, for should-extreme low cot
ton prices prevail, the whole country
would feel the influence of the pause in
the progress of the South towards ma
terial prosperity.