The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1872-10-18
THE COTTON SUPPLY.
an ENGLISH YIRW OF THE P1AN11YG
SITUATION,

LII ~
an ENGLISH TIEW OF THE PLANTING
SITUATION.
The State OF h Market and the Pros.
pect for Good Prices-A GIance over
n Field, and a Guess at the Result.
From Aessrs. Smith, Edwards Il Co.'S. Circular,
LIVERPOOL, October l. 6
The past month has again been one of great
depression In our cotton market, and we have
to note an average decline Of about ID. per Id.
A 1.-The date Of our last report q slight I'M
proVement had taken place, caused bythe re:
ceipt of many kilograms from the South re-
porting unfaVorably of the crop. 1 MIduling
uplands were quoted 10d., and fair DholIeraR6
SGD. per ID. For the first few days In Septem-
Der quite q strong demand was experienced,
owing to a continuance Of bad reports, and
prices further improved I'd Ito 3D. Modelling
uplanos on the spot touched 10 3-l6d., and
iair Dhollerah I'd. A very decided change
came over public opiplon about the proaneela
OF the crop, aud the very low ideas of price
came 10 oe generally abandoned. The course
OF Manchester, however, caused great disap-
pOintment, buyers OF goods refused 10 respond
to the advance here, spinners Withdrew from
our marker, and a sudden relapse into de-
p~ressi0nHt0ok place, and In a few dayss all the
advance WAS lost. New sources of u1essineas
sprang up. Rumors of approaching failures
ON q large scale got into circulatIon,t ant! there
was great pressure to sell in our market,
owing apparently to financial weakness. This
applied chiefly to East India cotton, which
was slaughtered In an unmerciful manner.
The receipts at the American porLs were also
much larger than had been expected, and
prices In America fell so rapidly that 1t caused
people to distrust the short estimates OF crop
which had lately been coming. To add to
this, the money market began to harden, and
q fear OF dear money spread through COM
mercial circles.
The gloom In our market kept increasing
till about the 2lsL ult., and the lowest poiaL
touched was 95d. for middling uplands on the
spot. 9td. for distant shipments, aHd Gid. for
fair Dhollerah, October delivery. At this point
rather 8 frmer tone Jane over the market,
quotations from America steadled. and began,
henceforward, to tend slowly upwards. The
trade having got entirely out of stock, began
to buy more freely, and the excessive pres
sure to sell abated; still, the Improvement
was very feeble, and was suspended for g day
or two by the rise Of the bank rate to Al per
cent, and renewed uneaslness about monetary
matters. Upon the whole, however, there Is
no doubt that q healthier tone has come over
the market the past few days, and cotton In
all positions has improved I'd. to i'd. from the
lowest point, closing quietly at 8id. for fsiE
Dhollerah, and 9 9-l6d. Tor mlddllng uplands
onlhe spot, andis5d. for December shipment
Of new CROP, e-o.,- ,sf, -.
The Manchester market has been constant
ly depressed all through the past month, spin
ners and manufacturers have alike done q
losing business, aud great complaints are
heard of the wretched condition of the trade.
There has never been any degree OF activity
In the demand, aud buyers have held of till
they could get goods on their own terms. The
great iallin COLON has, so far, scarcely 6ene-
flied Manchester at all, and there is no doubt
that a large section Of the Trade Is being car
ried on at q dead loss. dsl. 2Hj t'f'
The deliveries Of, cotton to splnners con.
tlnue amazingly small, and strengthen us 10
the opinion we put forward in our last circu.
ler that the consumption has greatly fallen of,
and We incline now 10 put it at $4,000. bales
for the Kingdom, including a great proper
lion of small bales, and equal Ia weight to
So, 900 bales otsthe average consumed last
year. As 1t was generally computed that the
consumption last year was 10000 bales per
week, this indicates a falling of OF about IL
per cent, and It has arisen, not from the
sto2page OF spindles (ior there Is very little
short tfme,) but from great economy and the
resort to high numbers OF yarn. -
At the same time we must remember that
splnners have now rnn their stocks not only
In this country, but all over Europe, to the
minimum point compatible with working
their mills, and they have no longer the power
of holding off from this market; their con-
sumption, we believe, canuot be reduced
lower, for WI have little faith In any extern.
sive resort to short lime, and any improve
ment In trade will increase It. All calcula-
lions of future consumption made just nov
are apt to BIZ on too low q scale, JusJ as they
were on too large a scale at the beginning of
the wear. The pendulum has swung round,
and from an exaggerated degree oil %buoyancy
we have reached an extreme degree OF hope.
lessness, and everything is measured by THIS
depressed standard. IL is marvellous how
the statistics of cotton ard Affected by the
make allowance for this ''devlatlon or the
compass In all our calculations. '
The accounts from the Eastern markets still
continue very poor, and since the failure OF
Gledstanes there has been no life In the de-
mand: the distrust It has engendered seriously
interferes With business, and limits IN q
marked degree the buying powers OF opera
tors for the East. We Incline, however, 10
think that matters have about seen their
worst In Manchester, and that some improve
ment In demand is not lar distant.
The money market has decidedly tightened
during The nast month, q the rate OF did,
count has advanced from 81 to a. per cent,
and there has prevailed an uneasy feeling lest
the rise should 60 further. The position or
the Bank of England Is still q very SOUND one,
but our heavy food requirements, owing to
the efficient harvest, must tell on our bullion
reserves, and necessitate stiff rates Of interest,
and we incline to the opinion that still higher
rates are before us, at the same time we see
no cause for anxiety about money matters;
Trade generally is sound, 9 cautious feeling
prevails, and we are we'll prepared for a
moderate degree of stringency. :Notwtth-
standing the rumors of failures that have been
living about II, It cannot be doubted that COM
mercial and banking circles have on the
whole acted cautiously since tne panic Of lS6o.
and the accumulations of profr for the last
three years mus. have been very great. We
think we, are still Tar from the period when
any crislsin monetary affairs can reasonably
be expected, and q tine Of moderately dear
money! would have q wholesome enect III
checking unsound expansion; .ho
The prospects Of our marKet are az JUG
present time balanced Geo as Ma ~ %esn ~ These
noies of attraction influence 1t IN Opposite
6irecrIons. and 40 the moment just ABOUT
consterbalance each other.
We have to report that q great change has
come over crop prospects In America since
the end of August. At one time the most
sanguine Views prevailed, and estimates OF
four millions were freely INDUCED In. THIS
was founded upon the luxuriant aspect Oh tne
plant up I'LL the middle OF August, o9s 70
wards the enc of that month 8 severe vista
lion of xorms occurred In Alabama and South.
vuest Georgia, and more or less IN several
other tracts OF country, and large quantities. OF
cotton were stripped bare OF foliage, and The
Growth of the plant stopped. At the same time
an eonal or Even greater amount OF injury
was done from ''rust." This arose from long