The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1875-07-20
COMMERCIAL MATTERS.
An English View of the Cotton Trade.

An English View of the Cotton Trade.
=. Messrs. Smith. Edwards & Co.'s Liverpool
circular OF June Both, thus discusses the
prospects of the cotton trade:
Inc prospects of our market have altered
most Unexpectedly in the last month When
we wrote our last circular, we were influenced
"a some measure by the bureaus report of
decreased acreage, which turned out after
wards to be mistake made by Renter and
we were quite unprepared for the com mercial
Crash that was about to take place in London
Inc day after its issue, Sanderson & Co. s sus-
pension occurred, and that was the signal for
long list of extraordinary bad failures.
Had we been few days later of writing, it's
tone would have been entirely different /; mat
tiers must now be looked at from different
standpoint altogether. The question of sup
ply has been Cverridden by more pressing
considerations, and the future of our market
depends for the moment more upon the resto-
ration OF confidence in the financial world
than upon anything else. We need not re-
peat what we have said above upon that head
it is hard to tell whether the collapse in credit
has yet spent its force. 1t will probaby be
some time before the weak places are
fully exposed, and there will continue to
De nervous feeling of anxiety, lest other
disclosures should take place; at the
same time We think the air is clearing
nothing of moment has occurred for
the past ten days, and if we have a few weeks
OF respite from serious failures there will
likely be general recovery of confidence. Il
IS IN Manchester that we must look for the
nrst symptoms OF improvement that market
has suffered most the wheels of business are
still clogged, and the large stocks Of goods
and yarn held prevent spinners buying cotton
with any freedom. These stocks must Re
cleared away before strong demand can set
IN here, and at the moment there is want of
financial power to move them. Probably a
solution will! be found in such low prices being
taken as will shcw good margin of profit on
foreign markets. and bring in demand from
old and wealthy houses that have forsak en- the
trade on account of the ruinous competition
that prevailed.
1t is very evident that lower prices must
rule both for cotton and its products than we
all thought safe short time ago. 1t has be-
come apparent to the whole community that
we have been trading at too high prices. Cot
ton has been turned into cloth at cost that
has not been recovered from foreign markets
for several years past Some one in the chain
has always been losing money, and it was long
mystery how the trade was kept going; but
now we see that in reality the losses were
paid by the money Of the London banks
This stage of things must come to an end.
The trade must be made to pay, and by the
law of average period of low prices must
succeed one of high prices. The present out
look is that if we have a sufficient cotton
supply in the future it will have to be sold at
low prices. Nothing but cotton famine will
draw US up to high price again, and prob
ably we will look upon Sd as high price in
the future, just as last year we looked upon
Sd.
We think at present prices-say in the
neighborhood of I'd. for Middling Uplands-
the trade of Lancashire can be conducted
proftably; but SO great is the weakness and
Encouragement that it is impossible to say
what the lowest dip of the market may be. At
the moment the elements Of a rally are want
ing. The market is depressed by the tender
ing of high-priced contracts to weak specu-
lators. These parties are constantly obliged
to force sales, and nothing will really
strengthen the market except good sus-
tanned trade demand effectually relieving
weak holders. Fortunately we have lad no
failures thus far in this market, which is very
credltable considering the severe losses; but
there is an uneasy feeling about the future If
a rally does not soon come The great point
in favor Of the market is that spinners are
bare of cotton. Whenever good business
sets in at Manchester there must be strong
demand here, and there is no doubt that if
bad crop accounts come from America the
whole face of the market would change.
The Business Outlook.
FAILURES FOR THE FIRST SIX MONTHS OF 1875
The semi-annual circular of the mercantile
agency OF Messrs. r G. Dun Il Co., affords
much food tor reflection.
The figures which the agency presents as to
the failures for the first six months OF the cur
rent year, are important as showing that,
Notwithstanding the severe and universal de-
preston, the casualties in business have not
been excessive. The total number of failures
in the entire Union are stated to be only
1877, which is a very small quota in view OF
the large number in business-reportedb by
this agency at over $4,000. The total amount
of liabilities due by the parties who have
failed is stated to be nearly $4,000, 600.
Accurate comparison of these figures for the
same six months in previous years is impossi-
Bile, owing to the absence of previous semi
annual returns, but dividing by one-half the
number of failures for the entire twelve
months of previous years, the following will
show a comparison sufficiently near the mark
for all practical purposes
Total fail. Onehalf To al liabil One-haf OF
ures for Of tiles for Same
Year. Same. Year.
1872 4O67 2037 S'2l, 056 600 s6O,525 0O1
$50 1s1 5gl DDS 4g9. 900 ia DAB 90