Essex County herald. [volume] (Guildhall, Vt.) 1873-1964, 1875-08-14
IN ADVANCE.
MA 90
DUNCAN, SHERMAN & co.
The Firms Cotton SpeculntiOns and thu
Cause of their Heavy Losses.

The Firms Cotton SpecuIntions and the
Cause of their Heavy Losses.
1t has been an open secret, says the
New York Sun, that Duncan, Sherman
& Co. have been leading operators in
the cotton market here and in the South,
and in Liverpool. They have been rep
resented on the floor of the New York
cotton exchange by Mr.. John B. Kitch-
ing, gentleman somewhat well known
as the bnilder of the Ericsson hot-air
ship. Messrs. Duncan, Sherman X Co.
have been regarded in the cotton ex-
change as the leaders of what is known
as the bull party, although it is probable
that the extent of their interest i'll cot
ton has been more or less exaggerated
by the imagination or interest of other
operators. This movement is understood
to have begun early last autumn, not far
from the first of September, and was en-
couraged, if not directly based upon,
the reports of the agricultural bureau at
Washington of the condition Of the cot
ton crop at the end of August. That
report indicated a great deterioration
during the month of August, as the
effect of the severe drought which pre-
vailed in large portion of the cotton
growing region during that month. Es-
Inmates of the total crop, based upon
this report, ranged from 100000 to
3,250,000 bales; but the damage from
the drought proved to be exag-
gerated, and the crop amounted to about
3,S50,000 bales-a falling off of about
800, 900 bales from the crop of the pre-
vious year-but the deficit in quantity
has been nearly or quite made good by
an improvement in the 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, if
any, short of many yielding a much
larger number of bales. The better
quality is partly the effect of the drought,
and the same influence caused the crop
to mature early, while a frost brought
the picking season to an early termina-
ton.
The planters were in great need of
ready money, and hurried their product
to market. Down to the Goth of Decem-
Der last, consequently, the receipts were
largely in excess of the previous year,
and, indeed, ofany 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 pound be-
low those of the September previous.
Then receipts began to fall off, and by
the middle of March prices advanced
three cents a pound. Then the dull
state of trade, with the prospects of a
good planting season, caused down
ward movement, which continued, with
frequent fuctu ations, until the lowest
point of the season was touched, with
middling uplands quoted at fourteen and
three-eighths cents, against sixteen and
fve-eighths cents 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 Massachusetts,,
in refusing to accept the reduced rates
of wages made necessary by the very
low prices of cotton goods, preferring,
rather, to accept lockout. The action
of the Lancashire operatives closed the
outlet through which Liverpool expect
ed to obtain relief from the enormous
stock which she is now carrying with the
prospect of another large crop right
upon its heels.
The full effect of the failure of Dun
can, Sherman & Co. upon the cotton
market cannot be developed until some
little time has passed. It cannot be
known positively how much cotton they
are carrying, or whether arrangements
! cannot be made to prevent any consider
, able portion being sacrificed. Cotton II
, low, and money cheap, so that any ap
, DeHruDC6 Vi LII f1S" VI 'AA.
reverse, would probably stimulate al
, active speculation for rise.
On the cotton exchange the failure
the banking firm was attended by an i'm
mediate feeling of panic. Their "long
contracts and their shipments said to be
! either on hand or afoat gave the market
great uncertainty, which resulted in the
decline of the staple from three-eighths
to one-half cent. The market rallied
however, when it became known that The
firm had not at the most exaggerated
estimate more than 20, 900 bales, presen
and futures, and by the estimate Of man,
Y had not 5000 with which to infuenc'
8 the market. This gave tirmer tone tt
the market, which, however, did no
S rally wholly from the first panic, bu
closed at lower rates than the opening
price.
NisonnIipd