The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1873-01-24
ENGLAND'S COTTON TRADE.
KING OOTTON'S LESSONS FOR PRO-
TECTIONISTS IN 1879.

KING OOTTON'S LESSONS FOR PRO-
| TECTIONISTS IN 1879.
An Interesting Review.
The Manchester Guardian of December 81
contains long and very interesting "RevieW
of the Cotton Trade Of the Year 1872" II
| says:
The year which has just closed will long be
remembered for the unexampled activity
| which 1t has witnessed In the productive
powers OF The country, especially In the twin
industries OF iron and coal, and with one
cautious reservation, which ia after all but q
sign of that sobrlety of mind which belts ve-
racious chroniclers who sit In judgment on q
dying year, we may speak OF the general con-
diLlon OF trade and Industry as having been
very satisfactory. The reservation we must
make Ia large one In reference to the cotton
trade. Speaking broadly, it is certain that the
year 1872 has not brought to this traffic the
undenable prosperity which 1t has go oounti-
fully bestowed upon come other OF the leading
Industries, nor By long way 30 good as the
the cotton trade has been we'll sustained
during the past year, and notwithstanding
some recent failures there is reason tO
believe that business has been con-
Quoted with care and circumspection.
The high price OF the raw material ls the
most noticeable fact within the history of the
past twelve months. During the year the price
of cotton has ranged upwards of twenty-three
per cent. higher Than In 1871, and eghty-one
popularity known as its "normal" price, viz:
Cd per pound for mddllng Orleans. A further
cause tor the absence OF prosperity In the
trade is that many important markets were
very literally supplied with cotton goods
during 1871. The comparatively low price Vi
cotton then prevailing, and the check given
by the Franco. German war to manufactures
on the Continent, tended 10 Improve the po-
sillon of English splnners aud manufacturers,
not only by Withdrawing competition for the
then abundant supply OF the raw material,
but also by yielding 10 them freer command
of the markets for goods. This Improved po-
sition had lis natural fruit In an extension OF
manufacturing power, Induced by the pros
porous condition oil ths trade and aided by
low prices and machinery. But, as usual. the
expansive force exceeded liz due limit, and has
resulted In power to consume cotton which,
now that the Continent has resumed lib In
dustrial activity, has outrun for the moment
the productive capabilities OF the cotton
grower.
The Guardian then gives table showing
the course of transactions week by week in
Liverpool, and the quotations Of mlddling Or
leans and fair Dhollera on each Friday morn
Ing during the past two yeara, upon reference
to which 1t says 1t is to be observed:
That the first six weeks of The year were
by fur the most active period, the average
weekly transactions during that time having
been 1874, IT'S bales. This enormous.extent of
business was but continuation of simsr
feature which characterized the last five or
six weeks of 1871, and WAS stimulated by de-
creasing estimates OF the current crop Of
American cotton. The effect upon prices was
to lorce up the quotation of middllng Orleans
I'D. % b. 10 the short space between January
and February 9. In the latter part of 1871
1t was expected that the crop would reach
$500, 900 bales; but in January, 1872, not more
than $3.50, GOO were looked for, and all hope
of even that quantity disappeared with the
waning receipts at the ports during the spring
months until, at last, 1t became evident that
scarcely 5000. 900 could be depended upon.
This unexpected turn OF affairs had the
effect of keeping prices for fully four
months at the high level they had reached
in February. They did not, however, 90
forward to the more elevated range which
has been confidently predicted during the
stirring activity of January and Feorua.
ry, when I'D. per pound, and even more.
ding Orleans. In truth, the effects OF the
short crop had been fully discounted, and all
classes OF buyers had already anticipated their
requirements 90 freely that the average week
ly transactions In Liverpool during the four
months March-June reached only 75,2O6
bales AT the same time the powerful atLrac-
ton of high prices brought TO our shores cot
ton from all quarters, and we closea Inc nali O.,
wear with the largest stock OF the year 10 LiV-
rrpoo, viz 101l 900 balea against 7l3, $40 bales
AT the same time In 1871. The course ofthe
London market followed very closely that OF
I,iyprpOol, leaving q stock at midsummer oil
23l, ,9Ol bales, against 80 9l2 In 1871. Thus at
The very period when the pinch OF scarcity was
expected 10 be most severe there was actually
In the two chief ports OF this country, sur
plus of 44s, 500 bales or upwards OF Sc per cent.
In excess OF the stocks held at the same period
In 1871. Under the pressure of this accumula-
lion prices at last began to give way. and dld
not cease 10 fall, except ftfully, until
September 26. when the official quotations
marked middling Orleans at 9 l3-l6d., and fair
Dhollera at Gid. hince then prices have grad
ually hardened, closing about I'd. per 10. ABOVE
the lowest weekly quotations Ot lhe year. IL
is thus clear that Inc pinch which was ex-
pected to arise ont of the short American crop
Of 1912 about the middle OF this year has
really been thrown 10 ils close, and has indeed
come 80 late that, unless the prospects oil the
coming crops should grow much worse Than
they now are, the scarcity will be tlded over
without any such disturbance OF prices as was
feared at the beginning OF the year.
The average weekly quotations ior middling
Orleans and !air Dhollera during 1872 compare
as follows with The averages of the Two pre-
ceding years: ,,,, ,.
Orleans. Dholtera.
1870 per ID. .1u.S5d 7.6id
is7I S.79 668
IGN .l0l8 8l2
Increase ON 1871 2O5 iI6