Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1878-06-16
LIVERPOOL COTTON CIRCULAR.
Improved Prices-GmaII stocks OF Cot
tOn-America the Only Depend
eHce-Higher Prices TO
Gene,

We have received the excellent monthly
Liverpool cotton circular of Smith, Edwards
& Co., reviewing the month CT May, from
which we learn that spinners, having ex-
hausted their stocks, had bought to an extent
that improved prices. The war news then
became mere favorable, and the strikes
having caused reduction of the
stocks oil manufactured goods, Manchester
became better, and the whole tone of the cot
ton market changed, holders becoming con-
tdent and speculative feeling showing it
self, causing prices to advance. The reduced
export of goods, owing to the strike, will re-
lieve the markets abroad OF their holdings,
which will give strong tone to the cloth
market throug huut the summer. Yarns
however, suffer from the strike, and
bankruptcies are looked for among
weak houses. The report proceeds to
say: "The prospects of our market at present
may be described as struggle between an
excessively short supply of cotton and de-
plorable state of trade In Manchester. The
rise of Esd to I'D which has already occurred
has been brought on mainly by the purchase,
of spinners, foreseeiDg the dearth of cotton
which must occur in the autumn, and not by
any inlprovementof trade. No doubt the reduc
ton of stocks of cloth caused by the strike
has set at liberty some money locked up in
Manchester, and thus facilitated payments
for cotton. The question IL, how far will an
anticlpatory advance OF cotton be carried on
without producing dead lock in Manchester?
The supply of cotton is SO inadequate as real
ly to threaten a famine. No such scarcity
has been in front of US for many years, and
had there been any vitality in Man
chester we would have had a period of wild
speculation and an immoderate advance. As
things stand IN Manchester this is impossible,
but it appears to US unlikely that deficit of
300 600 to 400, coo bales In the supply available
for home consumption till the new crop ar
h.
it may be considerable advance. We must
In some way keep the consumption down to
$4,000 bales per week till November, and
that will not be done without extreme ten
sion. Looking ahead beyond the autumn it
is very difficult to see where an adequate
supply of cotton is to come from Notwiti-
standing the war and rumors of war that
have prevailed so long, and the shocking
state Of trade In Lancashire, and, indeed,
over most of Europe. we have quite over
consumed our supply of cotton this year. Ger
tainly the consumption of the world is pro-
crossing at the rate of 100000
bales American cotton. With peace
throughout the world, We will need next year
5,25O, OOO American, or else very large IL
crease from India. We fear there is no
hope of the latter, unless we have at least
one year OF high prices to stimulate produC-
ton, for it has evidently been falling off for
years past. No doubt, failure of crops has
intensified the decline the last two years, but
that is by no means sufficient to account
for the steady decrease. A deeper cause
must be at the bottom, and it seems to us
just as the high prices during the American
war, and for some years after, stimulated the
growth of cotton in India immensely, the
return to the scale OF prices that ruled before
the war is steadily pulling down the produc-
ton till most Of the surplus is now swept away
The supply from Brazil and the other subor-
dinate countries has also dwindled in the
most astonishing way, and we are left de-
pendent upon America nearly as much as be-
fore the American war. Everything there
fore will turn upon the next American crop
being a monster one, and should this not
happen, long period of high prices and
scarcity may lie before u.s."
The report then says that they
have good accounts of the American
crop, and that only a very large increase in
deed of this years crop can give an adequate
supply for next year, and any serious acct
dent to the crop will cause a speculative sea-
son. Smith, Edwards & Co. say, in conclu-
sion: Our maximum stock was touched in
all probability on the ninth of May, when it
reached 49,, 900 bales; this is, we believe the
earliest date at which the highest stock was
reached, and the supply that will arrive the
next FIVE months Will be about the smallest |
known in our time