Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1871-02-21
FINANCE AND TRADE.
OFFICE OF THE DAILY APPEAL, 2
MEMPHIS, February 20, lS7l J
TUE WEEK

THE WEEK
Uosas mon active markets. The de,
mand in all departments is good, and
the outlook more pleasant and encour-
aging than any we have been able TO
chronicle for some weeks. All our
railroad and manufacturing enter
prises are in a hOurishing condition,
our steamboat interest is growing, and
our trade increasing in every dlrec-
ton. The supply OF grain, iced
wheat, etc, on the market Is very
light. The grist-mills Of the city have
suspended operations; they can hardly
afford To nav 75c per bushel for corn
and sell meal at 50 90 per barrel, and
such are the wholesale prices. st.
Louis packets charge 2Oc freight, and
Cincinnati boats l5c, and therefore
shipments are light. Moreover, the
recent consolidation of railroad lines
from Columbus, k~entucky,t to Augusta
and Charleston, has diverted grain
shipments, and the Northwest is now
engaged in supplying Georgia and
Alabama. The condition OF the Mem
phis market is not known in the West;
Whenitis there be an abUndantsupply.
As to the prospect in the future and
the policy Of sail cash purchases" we
make the following extract from the
annual spring circular OF w. r..
Moore & Co, wholesale dry goods
merchants OF this city. They say:
with the increased and improved
means for the planting and cultiva-
ton OF last years cotton, we thought
we saw a rapid tendency toward l24
cents a pound for the coming crop.
We lost no opportunity to impress
upon the country merchant the great
importance Of educating his planting
customers uD to that idea. The PLAN
ters of this whole cotton section
seemed infatuated with the hopes Of
20 cents. We could not but discover
looming up in the then future, a wide
margin of financial disasters 70 every
one acting upon that theory; and we
now again beg to call notice to the
fact, in order, if possible, to arrest
the attention Of the few yet remaining
who seem determined not to profit
bv the expensive lessons OF the
past. The same dangers that, as a
consequence, befel large numbers
then, threaten many others now and
we again warn all country merchants
of the great hazard they VIII run, If
they tail to Transact the coming sea-
sons business with an eye TO low
prices for future cotton. We went
further. We urged upon merchants
the dangerous consequences OF large
purchases of merchandise on credit at
any one time, and tried to show how
IL was that frequent small purchases
for cash, OF on short credit, instead, !
would certainly inure, TO their lasting
benefit. Some of them, acting on this
theory, can now show balance sheets
highly encouraging to their sagacity
and prudence; others, who, heed
less OF it, acted in direct violation
Of these s~elf-evideut propositions, |
can now only measure their disasters
by the excessive credit and worthless
Indebtedness created through their
too sanguine and unsOund eXpecta-
lions. Feeling, therefore, the neces-
sity Of doing our share in establishing
among Us a sound and healthy COM
mercial policy, and believing that it
is often more important to fasten an
old truth than to suggest q new one,
we beg to send once again the same
circular which we had the honor 20
issue last spring. 1t reads as follows,
viz: THE decade beginning with the
present year marks "a new era in our
history. Ii is emphatically true that
s'oId things are passed away, and all
things have become new" Particu-
larIy is this the case, as applied to our
whole system of commerce. No
teacher is said to be so potent as
experience, and, recognizing his
suggestions, the wiser merchants
of the country are basing their
business transactions upon the new
fdea. and conforming as nearly
as may be to its inevitable de-
mands. The old and exploded habit
Of large and expensive semi-annual
purchases by shreWd country mer-
chants has passed, among other de-
cayed customs, among the things that
were: and in its stead has been substi-
tinted the system Of short or monthly
purchases. which enables the mer.
chant to keep his customers at all
times supplied with the constantly
changing novelties Ofthe day, besides
relieving him Of the danger always
imminent, Of loss consequent upon
large OUTLAWS in goods, always sub
ject 10 dangerous fluctuations in
value, as well as liability TO
changes in styles and deprecia-
tons, likely to arise by reason Of
wear and tear, interest and other in
cidentals attendant necessarily upon
all large investments in merchandise.
Nothing l. more observable than the
prosperity which is moving hand 10
hand with the business Of that class
Of merchants who buy and sell on
short margins, g. cOntra-distinguished
from that other class who insist upon
the old system Of long credit, invOlv-
ing, in the very nature Of things,
largely augmented risks, whether to
the buyer or seller. Suppose a mer-
chant makes, twelve times a year,
small monthly purchases, upon each
Of which he realizes a net profit Of 10
Der cent, aggregating 40 per cent,
Is he not richer at the end Of the year
than his old fOgy ueighbOr, who buys
only two stocks of same aggregate
amount. on each Of which he realizes
D per cent. profit? It is palpable
that the active shOrt-time merchant
has not only made more money, but
has supplied his customers at a rate
Tower than his old fOgy competitor.
Now. such facts as these are awaken T,
fng all prudent consumers to a much
more careful investigation of eKpendi-
fares than ia former years, and the
system Of economy which is rapidly
growing In the rejecting mind Of
this section must very 500 make
itself sensibly felt in every
merchants annual account current
ON TUESDAY, the market open :
cd quiet. with a fair demand for
the better grades, and low grades
dull. Exporters and spinners were
represented among the purchasers; !
the former 10 the extent OF about =
800 bales, principally Of the medium
OF low grades. Buyers were indif1eF-
ent during the early part Of the day,
and obtained liberal concessions on ]
fhe low grades, but were unable to OBJ
tain any reduction on grades above
Il OW Middling. Sales were 24O0 bales,
including Ordinary and mixed lists at
1OIMIIIc: Good Ordinary at l2AGl24c, 4
exceptional sales at l2Il3c; ]
Strict Good Ordinary was reported (
st I9aGI8lc. with exceptional sales I
IN 100 and l3f. Low Middling was I
purchased at 13lal3s, while Clean ]
running close upon Low Mid
iIing were reported at l24 exception
Purchases Of Low Middling were
-ep0rted at l38, and strict Low MID
ling was reported at 49, to l3s, and
at IA TO 49,; strict 10 good {
Middling was found in small lots and
purchased at l4saljc. On WEDNEs-
DAY the market was further de-
pressed by uufavOrable intelligence
Liverpool and New York, and
grades were a drug at almost any ]
price. Exporters and spinners were
.n the market early in the day for J
small lots 10 fiji orders, but withdrew +,
soon as their orders were cOmple- .
led. Prices were irregular. Ordina- ]
X was nurchaaad eft frnm 10 To- Lie. '