Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1871-03-08
FRANCE AND TRADE.
OFFICE or THE DAILY APPEAL,
MEMPHIS, March =, 1871,
THE COTTON GOODS TRADE.

MEMPHIS, Natcn D. l6tit
THE COTTON GOODS TRADE.
The New York Bulletin Of the 1st
says: There appears to be some
hesitation among merchants from the
interior about buying cotton goods,
from the idea that prices range higher
ihau the value of raw material war
rants. There is some ground Tor this
lael.ug, and yet, on the whole, it is,
perhaps, "a mistake. There can be no
question that there is an unusually
wide margin between the prices OF
goods and the price of cotton. This
viii Bee So generally conceded that 1t
Dis unnecessary to 90 into figures TO
prove DO. buj, at the same time, the
stock of C0tTOn goods, with some
CepG0us on brown staples, is very uu-
usually iI-Ht. The severe and uTB-
trtg.ed drought of the autumn and
early winter has kept a large amount
OF cotton machinery idle, the mills ia
some districts not having run to one
half the extent of their capacity; and
as the result there are large lines Of
goods which cannot be supplied to
meet the present demand, and the
production of which Is engaged for
some weeks ia advance of delivery.
When the demand is thus i'm advance
Ofthe supply the markets. in the CON
lrgl of the manufacturers, and con-.
-ImErs have no alternative but to pay
the prices demanded or 90 without
the goods. 1t is useless i'm such a case
60 complain of high prices OF to refuse
30 buy; although IL is "a condition of
things i'm which to purchase with
moderation, Naturally, however, a
deficiency of supply and high prices
stimulate production, and hence
manufactures are now putting cut
their lulI power. They have, how
ever. before them three months of the I
most active demand of the year, ana
DO is not likely that during that time
they can do more than keep up with
the wants of the market; but when
the spring trade begins to fall of and
the mills lreslii kept Tunmiuga al their
luil capacity, goods may be expected
10 accumulate rapidly, with the result
possibly of an extreme fall in prices,
which may involve some heavy de-
auclIUns from the liberal profits which
the manufacturers are now making.
AT best, however, the present Coudi-
ff.l of the market is an unsatisfactory
one. However good reasons may be
assigned for the present high prices
merchants viii look to the possibility
of an ultimate fall with consequent
losses on goods in stock, and they
therefore buy sparingly and business
has 8 dragging, unhealthy aspect.
The true policy for manufacturers is 10
be moderate i'm their prices during the
short supply and 10 be careful against
running into the extreme of an Ulti-
mate over-pr0ductiOn. We are aware
ol -Le difficulties in the way of the
adoption of such a policy; at the same
time, could 1T be followed, there
would doubtless be q healthier move
menJ and better average profits to all
parties. There are some classes Of
cotton goods, especially brown sheet
IHg. which are not sustained by any
real scarcity and which may be rea-
sHuabiy expected TO yield i'm price be-
fore those which are actually Ina short :
supply. There IS nothing in the pres
ems condition of prospects OF the cot
tom trade that warrants any other eN-
p-efatIon than a slow, steady settling Z
down Iu cotton fabrics to still lower
prices. Even Southern authorities {
unH allow That the crop Will reach
1000 bales; which may be taken y
as meaning that Do will range between p
t.l1t figure and 100000 bales. And
Iu srlta Of aIl tle advice TO planters TO
reduce their production, and Of the !
complaints about cotton growing not
paving. the preparations for the next 4
crop leave iftier0om for doubt that il !
EIil equal that al present being mar !
Ealed. When the crop has been thus 0
90 IFS old dimensions, there
should DE some correspondence in the
ui goods with those which ruled 7
l aute-War times, due allowance !
being made for the depreciation OF the y
rrr.lgy and any difference in wages e
..-weau tine two periods. But while
Bee prices of cotton goods may be eX- s
Gu thus gradually decline, the I
-Ialll De So steady and cOmpari- q
H".r slight as not to amount to any
consideration with merchants Il
Dr. .ug their seasons supply Of /.
goods. should, however, be re- o
rHIial boy manu-. ClureTs as "a perma-
lala argument against their endea- .
-gring 20 force prices I'm their favor. !