Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-07-31
HOW THEY WERE CAUGHT ON
COTTON.

end of August. That report indicated
a great deterioration during the month
Of August, as the effect Of the severe
drought which prevailed in a large
portion of the cotton growing region
during that month. Estimates of the
total crop, based upon tai, report,
ranged from 100000 to 3,25O,O0O
bales; but the damage from the drought
proved to be greatly exagger-
atei, and the crop amounted to
about 3,S50,O0O bales. This is a falling
off of about 100000 bales from the
crop Of the previous year, but thedefcit
IN quantity has been nearly or quite
made good by an improvement IN tie
quality. The crop of the year now
about closing is one Of the highest In
grade that has ever been grown; and,
therefore, in cloth producing capacity
falls little, Il any, short Of many yield
ing a much larger number Of bales.
The better quality Is partly the eject
OF the drought, and the same influence
caused the crop to mature early, while
a frost brought the picking season to
al early termination.
The planters were Ia great need of
ready money, and hurried their product
t. market. Down ID the 10Th of
December last, consequently, the lie.
esipts were largely in excess of the
previous year, and, indeed, Of any
year. The discredit thus thrown upon
the short crop views caused a material
decline IN prices, and in the latter part
Of December current quotations
were two cents a pound below
those Of the September pre-
vious. Then receipts began to fall off,
and by the middle of March prices ad-
vanced 8 cents a pound. The dull
state Of trade, with the prospects Of
good planting season, caused a down
ward movement, which continued, with
frequent fluctuations, until on Tuesday
the lowest point Of the season was
touched, with middLng uplands quoted
at l42c. against 16ssc. last September.
1t Is probable that the bull party
would have weathered the storm but
for the action Of the operatives in the
cotton mills of Lancashire and Massa-
chusetts, in refusing to accept the re.
duced rates Of wages made necessary
by the very low prices Of cotton goods,
preferring, rather. to accept a lockout.
The action Of The Lancashire opera
tIyes closed the outlet through which
Liverpool expected 10 obtain relief
from the enormous stock which she IS
now carrying, with the prospect of
another large crop right upon its
heels.
In connection with the recent failure,
the Nclr York IFoTd recalls that most
notable speculation Of IS39-fO, in which
Nicholas Biddle, the cx-president Of
the United States Bank, was engaged.
It was very disastrous. The crop had
increased from 720,Oo0 bales to $780,
900 bales The cotton market had
been very much depressed on account
If the unfavorablc news re-
ceived from Europe. The price
oF cotton fuctuatsd on a
margin Of from 1 to q cents per
pound. The Bank Of the United
States at Philadelphia endeavored to
control the article. On the 9Th Of June,
1889, Messrs. Humphreys & Biddle is.
sued q circular announcing that "an
arrangement had been made by which
an advance Of thrce-fourths on what
may be estimated as the present mar
ket value of cotton, say II cents per
pound, viii be made on every bale of
cotton IN the country at eli the
shipping ports, to all holders, the con.
signmeuts to 80 forward to Hum
phreys & Biddle, VINO, sustained by
adequate means on both sides Of the
water, viii be able to hold on until
prices vigorously rally" The effort |
was fruitless as prices continued to de-
cline, and before the close Of the crop
year fell off from 8 cents to ST cents |
per pound. In May, previous to the |
issue Of the circular, cotton sold at Il |
cents per pound, Gbu5 1t i-s date it had |
declined to l23 cents per pound in |
September following 1t had dropped to |
9E cents, and in February it was quoted |
at = cents.
In lS50-5I a disastrous short-croP |
speculation occurred IN New Orleans.
Early in the season the cotton factors
at New Orleans had made their esti-
mates of the crop, but at 10 time did
the crop reports justify the small esti-
mates made at New Orleans. The
leading cotton house in New Orleans
was that Of Hill, Mclean & Co., and Mr.
Hill was the leading spiri5in the specu-
lation. His Judgment was considered
almost infalible, and many trusted
him. Factors and spectators refused
a moderate advance, but shipped their
cotton TO Northern and European
markets. in July, 1851, Mr.. Hill sold
middlng New Orleans in New York at
G. cents, which had cost him 49, IN
New Orleans. One lot shipped TO
Liverpool melted $50 less per bale. }