The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1873-03-21
THE COURSE OF COTTON.
ASPECTS OF THE BRITISH COTTON
TRADE.
Latest Circular of Smith, Edwards & Co.

Latest Circular Of Smith, Edwards & Co.
IIyERPoeL, February 70, 1873.
We are happy to report that the Manchester
market has shown signs Ct decided improve
ment during the past month. For the first time
during nearly two years it has remained hrm
In spite OF declining cotton market, and the
margin of spinners and manufacturers has I'm
proved TO nearly the extent of the decline IN
cotton. Various causes contribute to this.
Among these we would mention the increasing
scarcity and dearness of coal, which is causing
great anxiety to the trade. Prices have ad-
yanced considerably since the beginning OF
the year, and, compared with the cost TWO
wears ago, the average advance must repre-
sent one hundred and f(ty per cent. or more;
Taking This into account, as also the Increased
cost oil labor and nearly all articles used IN
mill, 1t may be asserted that The cost OF pro-
duction has Increased BY ID. per pound IN me-
dium counts of yarn, and ID cloth by Sd. TO 4d.
per piece. Producers have discovered that
| tney rlnder.eslimated the cost Of working lust
wear, and the results of business were found
| TO be 30 bad at STOCK taking that they are gen.
orally holding out for higher prices 10 relation
to the cost oil cotton thun tney oio Iasi M year, eur
There Ia also not little anXle:y lest mills may
have TO STOP for absolute want OF fuel. lt Is
not 30 much the excessive price as the great
| difficulty of obtaining 1t that causes uneasl-
ness, and this makes producers averse 10
| taking contracts, and renders buyers at
The same time rather anxious 10 place
orders. We are glad to Say, however,
that there is more bona hde cause
of strength. The great Eastern markets
for goods are better than they nave
been ior a long time; Calcutta especially has
| improved materially, and China Is following,
| though ut some distance. The heavy stocks
| of goods In the East have been reduced 10
| moderate compass; the diminished shipments
of last wear have at last told tale, and the
trade has got into healthier state than for
wears past. This has caused strong demand
10 Manchester for shlrlings, and as many
looms had ceased 10 produce lhan real
scarcity is found, and makers have succeeded
iu advancing their prices materially. lndeed:
Iqhe production, as whole, is now taken on
without difficulty, and apparently IN conse,
uuence of bona f1ue consnmptiVe demand, and
the trade Is becoming slightly pref able, and
promises 10 continue 80 II cotton does not ad-
vance. This is cheering change from last
year. during which most manufacturers were
working at ruinOus loss. We trust II Will
continue, for 1t is sorely needed. NO class 10
this country has shared 80 little In the general
prosperity as the miil-owners oil Lancashire;
We find the general opinion 70 be That the
consumption OF cotton ls scarcely larger than
last year, owing to the large production OF
fine courts OF warn, and some are disposed 10
put It o aly at go, 900 bales per week for Great
Britain. We reduce our estimate TO 62,UVU
bales, including $1,000 bales OF American,
whlca represents slight Increase OF weight
on lhs average OF the last Two years. Very
little addition is now making to the machinery
In the cotton districts, with the exception OF
6ne spinning OF Bolton, which does not per-
ceptlbly Increase the quantity used.
The excessive price OF iron Ia almost pro-
hIbitory of additional building, and II is gene.
| rally calculated that mill cannot be con-
slructed now and brought Into work at less
than s2 per spindle, as compared with fl at
| tne lime materials were cheapest. We be.
| lIeve the check 10 expansion consequent upon
the excessive cost of building, and the long
continued depression OF the trade, o1er the
best guarantee for mnre prosperous trai at
tine same tims 1t Is perfectly clear that an ade'
quale supply OF cotton IL Indispensable TO OBJ
tain this, and only the favorable development
of the American crop has enabled us 10 lake
this more fopelui view Of the future Oh the
trade. .--,
The prospects OF our market are assuming
more defnLe character tnan they presented
at the beginning of the year. The develop
ment of the American crop has all been In
favor OF the large estimates, and we snouo
| cav that the commercial commuGlty, eOln IN
| america and in this country, mas settled Win
toi.rabe uDanimity on 81 millions, total
growth. II Is now pretty clear that Inc re-
ceipts at New Orleans were unusually delayed
| from the low water ID the tributaries, as We'll
as interrupted navigation from ice, the winier
having been excessively severe IN America;
and the accounts now reaching us from that
port are to the effect that considerable qnan
Iity Of cotton still remains In the interior, ana
| that with good navigation liberal receipts may
be expected for some lime To come. rhrre
| nrla Qrp a..
posed to estimate Tie crop at 3, 100000 10 4, /.
OOO 600 bales; but against this II has 10 be said
/ that the Atlantic States are now yielding small
| receipts and 8howlng apparent signs OF e8-
hauslion; and remembering how much dam
age was undoubtedly done from caterpillar In
| t6ese States, we have difficulty In believing
that the crop can materially exceed 34nilllons.
AT the same time II seems hardly likely that
| IL will fall much below 1t. though there re-
main few who still believe in 36O0,OOO bales
or less. We think that the prospects OF the
crop are now narrowing, and the extreme lln.
| certaiuly Of the earlier estimates is passing
away.
| A considerable deduction, however, must be
made for the poor quality oil the crop-aready
q scarcity of the better grades is showing It.
self here, and In America they are unusually
scarce. We understand that great proper
| ton of the crop is sandy and mixed ln color,
and of low grade, and IL would appear that
our STOCK In Liverpool will alter awhile largely
consist of these sorts. On the other hand, the
| consumption is running almost exclusively on
| clean cotton. Whether IL bh that The diflcnliy
| is with the workpeople, or that buyers Of yarn
pay more regard 10 quality 'dan To price, IL ID
| certain hat spinners were seldom 30 aVeree
| TO use inferior cotton We therefore think 1t
probable that, as The year advances, the dis
parity between the middling and the lower
| grades will become Very great.
Looking at the supply az q whole, there Will
not be too mucn cotton tor European con.
sumption; We hardly expect that crop OF 81
millions will furnish more than "a millions tu
/ Europe, and We estimate that tue average
| consumption OF the past Two seasons, encing
| lst October, was 1850. 600 bales or American
cotton. Then the Brazil supply Is turning out
extremely ort-the crop ls said tO be scarce
| ly half last year'5-and the import into this
port 80 far Is only 81, 900 tales, against l2s QUO
bales last year. 1t seems prubible that on a
4OO. 600 bales less Brazil cotton than last year,
equal to l5O, 900 bales American; the excess OF
the Egyptian crop may nearly compensate for
this. but taking tue whole supply OF long staple
| cotton we cannot see greater supply lor all
Europe than the average Of the last Two
seasons, and the consumption 1s running
fheavily upon That class at present. We
include under the general designation OF long
staples, American. Brazil and Egyptian cot
ton. grouping East India, Smyrna and other
kinds generally as short staples. OF these
latter II seems that the mport into Europe
will also be materially less Than last year. The
Bor,oay crop is moving slowly, and though Ii
is reported large, and The land under cultlVa'
tion as 50 per cent. more than last year, 1t is
doubtful II more will be shipped before the
monsoon. The dull state of our market dis.