The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1872-04-15
THE COTTON PROBLEM.
COURSE OF TRADE 1T MANCHESTER
Short Supply OF American Cotton
Importance OF a Large Crop.

u luO LuVLO uON~A ASSu SSSAd oJ wv
tivity of demand throughout the month-in
Eastern cloth especially 1t has never been pos
slble to sell except at q great sacrifice; short
lime has been spreading among looms, espe-
cially In the Blackburn district, and a rather
considerable quantity of machinery is nOw
standing idle or only partially employed. The
movement, however, mas not reached SUCH
trade materially, either In the way of relieving
the Manchester market or OF seriously forcing
down the price Of yam; though the demand
for 1t has been very slack of late, and spinners
find difficulty In selling, yet the existence Of
old contracts has sustained the market mod
erately well, and the spinning department has
not yet become 80 Improbable as to lead to
any stoppage of spindles or any material re-
duction of consumption.
The higher counts Of yarn are still much
more probable than the medium and lower,
and this has a tendency to prevent the trade
going on Surat cotton TO any great extent, and
we cannot report as yet any serious change In
lleve the trade are still using fully $4,000 bales
per week of American cotton, and not more
than IL, 900 to IA, 900 bales East Indian.
The accounts from the Indian markets keep
poor and disappointing, but from China rather
better accounts are to hand; the demand there
has revived, but prices have not as yet i'm
proved enough to cause much inclination to
purchase In Manchester. In no department.
of the market is there heavier loss than In
China shirtings; 1t can hardly be put at less
than Id to lAd per h..
The export demand of yarn keeps moder-
ately good; indeed this Is the healthiest de-
partment of the market, and as 1t Is chiefly
for the Continent. 1t shows that business there
must still be profitable.
We cannot report any material change In the
prospects of our market since our last issue.
We then stated that the supply OF cotton for
this gear promised to be poor and scarcely
sufficient for the consumption, even granting
that all the inferior kinds we're brought into
play; while viewing American and other long
stapled cotton by Itself, the position appeared
much stronger, and indeed gave cause for con-
siderable anxiety to epinners.
During the past month any changes that
have occurred In the prospect of supply are
rather In the direction of greater scarcity.
The American receipts have dwindled faster
than any one expected, and three millions are
now looked upon as an extreme estimate OF
crop. Considering that %splnners In America
stiff require to buy a considerable quantity Of
their years supply, It ls clear that In q few
weeks the export to Europe must become
very email, and we calculate that from the LIST
June 10 lst November very little cotton In
deed can reach this country from America.
We cannot see how our s%pinners can get more
than $4,000 or $4,000 bales of American per
week from now till November, aud even
granting that they have still q surplus stock
OF so, 600 to 100, 900 bales American, 1t is clear
that their consumption Of this class must be
largely cut down. We-do not yet see that re.
adjustment Of consumption taking place which
Is so necessary. The demand runs upon the
better classes of cotton just as It runs upon
the better classes of yarn, and 1t Is evidently
going to be q difficulty matter to throw the
trade sufficiently upon Surats.
Upon the solution OF this problem no doubt
depends in q great degree the future OF our
market. Taking all kinds of cotton together,
sumption, q small export demand and the
using up OF all surplus stocks. there may be
about enough cotton to enable us to pull
through the year; but should the consumption
continue for some time longer on Its present
footing. there will obviously be a severe pinch
In the latter part OF the year tor American
and all long stapled cotton. The stock then
would mainly consist of Bengal, Madras, low
Surats and other unstable Kinds. It'll clearly
going to be The most difficult matter to get the
poorer sorts of East India cotton into con-
sumption this year, and therefore the figures
OF supply, taken In the aggregate, are decep-
tive, and glvetne impression of greater abun-
dance than Is really the case.
1t Ia n~eedful. however, TO give full weight
to the depressed state of trade lin Manchester.
The change there In the last Two months 10
surprising, and almost unaccountahle to those
who remember the buoyant tone that prevail
ed even up to the beginning of February. 1t
Is quite clear now that much OF the business
done 10 January was very speculative IN char
acter, and based either upon an expected
great rise In cotton or an Improvement IN tor
eigu markets, which has not taken place. For
nearly two months now the volume OF busl-
ness passing has been very small; and were 1t
not for the large contracts held by the trade
at the beginning of the year, q heavy fall IN
prices all round must have occurred. AS II ts.
summers have not suffered seriously as yet.
and the strain has come almost solely on man.
ufacturers. 1t remains TO be seen Whether
the producers of yarn will have to divide the
loss with The makers OF cloth. rfSo long as the
spinner can work without serious loss there
will be no material reduction In the consump.
ton Of cotton, and we incline to think That The
point is still somewhat distant when spindles
will be put on short lime-lndeed, we DOUBT
II there will be any short time OF moment this
year, provided cotton does not rule higher
than 1t Is now.
The situation then seems to be that with an
insufficient supply of cotton we have to face a
dull, dragging state of trade, and at the mo-
ment the two forces ABOUT balance eacn
other. Should any Improvement occur IN
Manchester later on, q rise IN cotton WILL pc
Inevitable; should The depression last all the
wear and the trade act cautiously, lt may De
STAYED off, but the position will De critical aud
consumers will be kept anxious, at least TIL
the prospects of The next American crop as
ume q definite shape. "
No DOUBT the position of our market In the
summer and autumn will be affected materl-
ally by the appearance of the growing crop:
If it gets a good start, and opinions run In
favor OF high estimates, business Of all kinds
win be reduced to a minimum, and a+a sRlnn sns
will be content 10 work without STOCK, anu
our supply will lengtnen out surprisingly; but
If any accident should happen the next crop,
the position would be very ,e yS CRITICAL sn for .b snsTe
SINNERS he frightened into buying largely in
the autumn, a very serious rise of prices
might ensue.
tbat the next American crop should be both
large and early. OF one thing we may feel
certain, planters will DO ',t their en,v utmost 'nst,ar to to
| uncertainty will be the season, which Ia, how
ever, the most important element In the ques-
ton.
CROP NEWS,