The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1872-07-05
THE. COURSE OF COTTON.
A New York View OF tho Prospective
Price OF the Staple.

E.J. Donnell, the New York cotton broker,
In bis circular, issdea on Tuesday last, says:
Just now Speculation Is almost wholly sus-
pended. The cotton market is left TO Itself, to
flnd It's basis IN the average opinion and f1nan-
Gal strength of holders.
The situation is peculiar, almost une1ain.
pied. Last season the amount Of cotton ahoat
lor Europe continued large all summers. this
season it Ia certain IL will soon dwindle down
10 mere trthe. nfact nearly all the supply
Europe can expect In the next four months ls
now in signt. The thres to tour hundred thou
sand bales Of useless cotton held In Liverpool
aud London are counted as stock, aud, ior the
moment, because people are In the mood to see
exLernale only, they have great moral effect.
The mood will change and then ft will be
viewed differently. ,~
One thing seems to be admitted on all hands:
we will commence the next season With very
scaDt supply ot American cotton everywhere.
The stale OF opinion In Liverpool. as 10 the
Iuture, is shown by o sale reported to-day.
even In the present depressed condition. OF
that market, Of Orleans, for September deliv-
cry, at III pence.
at the same time It ls quite natural that our
Southern fflends should De tree sellers OF the
growing crop, alter The many disappointments
they have had. I think they do not coUpre-
bend the cru of expansion ID which we are
living, and which seems to me to be only IN its
oomlnencemrnt. There are certainly no Signs
OF Its having culminated, or even having
arrived anywhere near its elimination. What
ever pauses or temporary reaction may take
place, 1t is morally certain that we are to haye
more than one year yet Of great activity and
still higher prices in most ARTICLES of trade and
speculation. In Northern Georgia at the
present time, piy iron tnat COSTS SIT per toH,
put on the railroad cars. sells freely 10 Clncln-
nall for $50 per ton; cost of transportation 50
per ton. OF all the productions of human In
dust: y, there Ia none 80 true an Index 10 the
condition of trade as Iron. That ls my reason
for mentioning the above fact, and also
because It is 10 the immediate neighborhood
of the cotton planters and probably known
fact with which they are probably
more familiar; mean the enormous profits
realised by the cotton factories OF The South
during the past two years. These profits are
uRexampled, yet they are by DO means acci.
dental, but on the contrary the natural fruit
of condition Of trade and finance just coming
10 maturity and producing Its fruit, to-day IN
one direction, tomorrow In another. These
observations of course refer to the future and
to the general course OF events. For the time
being The price OF cotton must depend upon
the activity or Inactivity of speculation. So
much is this the case that people have no
patience with legitimate trade. Wnen an
article is left TO legitimate demand and supply
nearly everybody lires OF 1t and wants 10 get
out Of 1t. How long the present relaxation
may continue in the cotton market 1t is tm-
possible to predict. The exeiled upward
movement commenced more than month
ago, continued until the shorts we're all tor.
tured Into covering; on the same principle
suppose the speculative long holders must pc
tortured ont OF their holdings. That Is the
usual course in such fluctuations.