The Milan exchange. (Milan, Gibson County, Tenn.) 1874-1978, 1878-06-27
LIVERPOOL COTTON CRcU-
LAR.
Improved Prices--SmaIE stocks
of COftOn--An1erica the Only
Dependeuce--Hig Prices
10 Come.

of CoffOn--AReric the Only
Dependeuce--Hig Prices
10 Come.
We have received the excellent
monthly Liverpool cotton circular Of
Smith, Edwards d Co., reviewing the
month of May, from which we learn
that spinners, having exhausted their
stock, had bought to an extent that
improved prices. The war news then
became more favorable, and the strikes
having caused a reduction of the
stocks manufactured goods, Manches-
ter became better, and the whole tone
Of the cotton market changed, holders
becoming confident and a speculative
feeling showing itself, causing prices
to advance. The reduced export of
goods, owing to the strike viii relieve
the markets abroad of their holdings,
which will give strong tone to the
cloth market throughout 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 describ-
ed as a struggle between an excessive
ly short supply of cotton and deplor.
able state Of trade in Manchester.
The rise of Sd to I'D which has al
ready occurred has been brought on
mainly by the purchase, of spinners,
foreseeing the dearth of cotton, which
must occur in the autumn, and not by
any improvement of trade. No doubt
the reduction 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 is, how far will an antic-
ipatory advance of cotton be carried
on without producing a dead lock in
Manchester? The supply of cotton
is so inadequate as really to threaten
a famine. No such scarcity has been
in front Of us for many years, and had
there been any vitality in Manchester
we would have had a period of wild
speculation and an immoderate ad-
vance. As things stand in Manches-
ter this is impossible, but it appears
to us unlikely that a deficit of 100000
to 100000 bales in the supply availa-
able for home consumption till the
new crop arrives can be got over with
out a further, and it may be consider
able advance. We must in some
way keep the consumption down to
$4,000 bales per week till November,
andthat will not be done without ex-
IRENE tension, Looking ahead be-
yond the autumn, it is very difficult
to see where an adequate supply of
cotton is to come from, nOtwithstand-
ing the war and rumors of war that
have prevailed SO long, and the shock
ing state Of trade in Lancashire, and,
indeed, over most of Europe, we have
quite over>consumed our supply Of
cotton this year. Certainly the con-
sumption of the world is progressing
at the rate of 100000 bales Ameri>
can cotton. With peace throughout
the world, we will need next year
5,250,000 American. or else a very
large increase from India. We fear
there is no hope Of the latter, unless
we have at least one year of high
prices to stimulate production, 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 suffi>
cient to account for the steady de-
crease. A deeper cause must be at
the bottom, and it seems to US ust as
the high prices during the American
war, and for some years after, stimu-
lated the growth of cotton in India
immensely, the return to the scale of
prices that ruled before the war is
steadily pulling down the production
till most Of the surplus is now swept
away. The supply from Brazil and
the other subordinate countries has
also dwindled in the most astonishing
way, and we are left dependent upon
America nearly as much as before the
American war. Everything therefore
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 us.
] he report then says that they have |
good accounts of the American crop,
and that only very large increase
indeed of this years crop can give an
adequate supply for next year, and
any serious accident to the crop will |
cause a speculative season. Smith,
Edwards d Co. say, in conclusion
% Our maximum stock was touched |
IN all probability on the ninth of
May, when it reached $685. bales |
his is, we believe, the earliest date
1t which the highest stock was reach
I'd, and the supply that will arrive
he next FIVE months will be about |
he smallest known in our time. -
Memphis Appeal.