The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1870-08-22
Smith, Edwards IL Co.'S Monthly Cotton
Circular

Smith, Edwards ~ Co.'S Monthly Cotton
Circular.
LIVERPOOL, August 1.-The month OF July VIII
long be remembered as one OF intense panic anu
rninous loss to many engaged In the cotton trade
The depression on our Exchange has NOT been eN
ceeded in any period within our recollectioi' aUl
even that disastrous week IN the spring o! !eoo
when owe: end, Gurney Co. failed anu cT.s9n ~
Seii ii ner Mound ar one bound. The price OF
American was then lSd ana tne IAN Was W ao. raa
INT the proportonate fall has been qullS as eoeai
on this occasion, being on the average ~ " .Su
per 10 for the month, or aoout - per een' oA WI
Al the date Of our last circular heavy. langnid
tone prevailed, and tile market was uroopihg un
der the weight OF supply maGn M ,se seose Nssr MIDI
ding uplands were quoted 97s ana lalr Dnoi!eI Il, gu
SJ,d; and the general impression was tnat at ",
to I'd for American Substantial lmproSemenii
would SCI In most people being OF opinion. anu
we think rightly so that cotton on It's merits was
safe al those prices, aud not likely to RUE lower
| for the remainder Of the year. Even thel .me
loss on imports was severe, as most oi ihe a!nei s
iccn cotton arriving cost l1isd 10 sell lor mla.
ding Orleans. and o3.d for fair Dhollerah. The
actual STOCK was counted and given OUT on the
lst JULY and proved 10 be g. 000 DaleS less .Han
the estimate owing IN par, ,rO,n ssiua side NOT
reported to the brokers' TINS discovery s sto
Transient gleam 10 The market, but II was I'M
| mediately lost. .ha row,
no great pressure 10 sell occurred Tor TWO or tTee
days, but on Monday, the 18th ult., regu!ar pau
ic set in; all sorts Of Wild reports were set anUa.
such as that Russia had declared war agalns' i,s,
France. and the fear became general tnat uni, a
| versal upheaving OF Europe was at manu-. ~ way
| believed that Russia would seize the cnance 0i
| pushing her designs or Turkey, anu tnat Austtia
! would seek revenge for her recent ueleat oy
| Prussia. Our Stock Exchange became the scene
| o" Wild and ungovernaole panic, auo secuIi.ies nc
OF all kinds, but especially OF foregn g0TernneuV
STOCKS were depreeated enormously. ,u,s osna.i
| VOL hrci generally.
| ally on the cotton, which gave way 10 tWO days
Id per ID, say from 91:d to Shd for mldullne Or,
| leans. Failures now began 10 be announces, anu
for each name that was given zen were suspeGu
| ed the heavy losses coming on weaA comlnu'
| nity, eXacted universal distrnst. IL was hHon II
that an enormous business hau oeen no none ,ha ta
arrival cotton, and IL was thought that, Mhe Tue
| large shipments OF May ana June arrIIeo' !loi. ~
| bombay showing loss OF 3d per 10 or more. u
would be impossible 10 settle the coh!tacls MIL. Mill
out ineXtricable confusion All .nOss ieal5 .l, ,
crowded together al once Oh tue luoI IiiiLu, IL nu
| the gloom on our Exchange became in!escrloa
The positlon Of our market just now is a most
| extraordinary one; il has been beaten uoWl 70
the ground by panic OF tne most va,eI. aaa aa
been lost to an extent scarcely ever Wilnssse1
before on our Exchange. Prices nave oeeu lorGe.l
| down daily at an astonishing rate, general!y
| through the pressure OF sellers, anu that az Il
| fine when there was no real strlngency IN tue
/ money market. The magnllude anu com PHca1eu U
nature OF arrival contracts have greatly au9eu 10
the alarm. as peoples commitments ,inr',,. .
| nitely enlarged, IN consequence oi the numerous
! failures OF intermediate buyers. lnucco, tnese
contracts have operated like nightmare. anu
caused far more apprehension sh;lh II dh elIai
amount or cotton had been thrown on tie iIar. il.
ket on the spot People have lost sight OF me TACT
that after all the loss Is confined TO 400 wv paies
afoat OF which perhaps nearly one-hal are naive
consignments from Bombay MOI sou, 10 urrne' TN
So that the real pressure is limited TO ABOUT 10y,
600 bales spread over three menths. NO douo! inc
loss on this Is very great. sill the vast NUMBER o
hands through which the contracts nave passed.
rninimiSeS the loss to each aud renders IL more
bearable, and We believe an exaggerated luea
prevails OF the difculty that VIII oe encountered
| In settling these contracts.
we believe that the pauic in our market mas pro-
! ceeded 70 a poin, which Is unreasonable ana lnat
| the excessive and exaggerated decline WILL beget
| powerful reaction belure many months are over.
! We think the effect Of the war on our 'raue mas
been much overrated we 40 noi ueiese nf ana ~
| will permanently injure the business OF tansu ;.,
shire: indeed we think II prohaDie tnal II wiz
| bring an accession Of business IN consequence Vi
| The waste of armies and the partial Suspension '
Of spinning and manufacturing IN "efay
| only way in which We can see that cohiintuIai
| war directly Affects our cotten lhaIkeL L III IS
lucng our export Of cotton. NO uouol tlere VIII VII
| be little cotton shipped TO Germany wnie hosllli'
| ties last but we lhink :hi5 VIII he quite compeA'
satet by the general cessation Of exports 10 Eng
| land from America, India anu all proauGins
| countries while the panic coEtliiueS we oei!ese
| that. If present OFFICES RUE tu OC"ppeI' nc via
reduce our import In the secund half OF this year
| by a5OG00 bales. and this VIII luily connteroa!-
| ance the fa!lin. OF In or export demand, leav-
ing ,,s with no more stock at the emu oi the year
| than We would nave had without continental
| trouble. 49,,
Our home consumption must increase. and
that materially, under the stimulating iunuence
Of these low prices. IL makes immense dliierehce
TO spinner Using american cotton ut "a 10 sd
instead Of lid TO I'D VI Surat at 5d % Gu III place
OF 9d TO 1od, and we are quite prepared ~ sec
| our deliveries to the trade exceed %, 9aioS p't
week for the remainder Of this year we expect
| before long very large business VIII SET III ~
| Manchester fur the Eastern markets; tue prictS
now ruling for cloth afford suci, an lndncement
10 the shipper as he has not had since January,
1868; SIlb shirtings then toucli.d SIS 9 now t!lsy
are at ys Sd, and with that single exception tlih
present price is lower titan has ruled since lsuo o
| the other hand The account roin lnu!t "ie very
| promising for q gOud tr4dc next year: the mon-
soon has baen excellent Thus lar, ana Eoou mar
vests are therefore pruUahe. AMI we beleIe llle
or tax. Of India next -c;ison VIII he very large
| We have NO doubt that about the present currency
| strong demand for India VIII SOON icgln IN
Manchester and IA the tra'c come uhtef con-
tract, they will cover with cotton at It's present
depressed price, II IS important III t!lls couliec
ton 10 observe that Liverpool is the only marke:
| where trade can now buy the raw naieflai l!ie
A