The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1872-09-16
goods from the United Kingdom to British
India have been as follows:
Seven months ending July 81. Yards.

49,
ooo'ooo
4oO,ooo
sVo,oOo
1859 359, 800, 600
The first large increase occurred In 1871, as
| the result Of the abundant American crop
and the low price OF raw material, the exports
for the seven months then being l26, loo, 900
yards Tor 80 per cent in excess Of The aver
| age for the same period of the preceding
/ years. Heavy losses were then Incurred upon
goods previously sent out at higher prices;
and it was found that, notwithstanding the
lower values OF last year. the markets could
not absorb the large supplies, and goods were
frequently lower in India than In England.
1t was TO have been expected that, under
such an uufavorable condition of the market,
importations would have been severely reduc-
ed aud prices subjected to the stimulus of a re-
duced supply. This course, however, was not
adopted. The short American crop OF last year
Its shipments to India upon q large scale until
the close Of the year. AS it had Deen
proved that such a ratio Of supply could not
be absorbed at the reduced prices which pre-
vailed during the first half OF the year, IL was
of course ouJ of The question TO suppose that
such STOCKS could be marketed at Tue advance
necessitated by last years small supply OF cot
ion. Bnt, instead of this reasonable conclu-
| sion causing q curtailment OF shipments this
| wear, we find that, for the past seven montns,
The exports of brown and bleached cottons to
India have exceeded those of The same months
of 1871 by AZ. zoe, 600 yards, or nearly 10 per
cent. From such o course OF things, only
disaster could be- expected. Merchants In the
India trade could but lose very heavily, and 1t
is not impossible that their very losses have
helped to swell the supply OF goods; for, With
q certain speculative class OF merchants, 1t 15
by no means an uncommon thing TO cover up
their losses by the proceeds of fresh conslgn-,
ments-an expedient too easily adopted where
the business is conducted wholly on credit.
: By reference TO the well-known Liverpool
circular OF Smith, Edwards & Co., In another
column, 1t will be seen how this reckless
policy Is working ont It's necessary results OF
mischief. The failure of one of the Oldest
firms in the India trade, Mes:rs. Gledstanes d
Co., Is attributed TO this cSuse; end a condl.
ton of things which has ruined q house OF
such standing must have seriously Injured
many others. Now, the significance of these
facts lies here. England's trade in cotton goods
with India amounts to nearly forLy-1ve per
cent. Of her whole export OF that class OF man
ufactures; and If prices at home have been
sustained by q fictitious demand In such an
important market, q serious effect must be
felt when the unsound state of things In India
comes to be remedied. The testimony of
Smith, Edwards & Co. as to the effects In Man-
chester OF the Giedstanes failure sufficiently
illustrates the way in which the recovery Of o
natural condition of things In the India trade
must operate. 1t is the interference Of an I'M
natural demand which prevents the TACT that
production has at length overtaken consump-
lion, from bringing the cotton trade TO a nor
NAL condition; and we cannot but think that
those Interested in this great department OF
commerce would do well to keep this fact IN
view, rather than allow themselves TO be per
suaded that cotton Is forever to remain far
above the ante-war standard of prices.