Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1878-07-16
BRITISH COTTON PROSPECTS.
Smith. Edwards n Co.'s Liverpool Cir
cuiar-EHect of the Cotton strikes
Yarn in it's Worst Position
Manchester Never SO Gloomy
A Cotton Scarcity In
PrOspect-Prfce Spurts
Looked for.

We have received the valuable circular of
Smith, Edwards d Co, of Liverpool, from
which we have the following information of
the course Of the cotton market there during
the month of June: At the end of May the
strong statistical position of cotton was at
tracing great attention and further advan-
ces were expected. In the middle of June
The resumption of work by the strikers
made the Manchester market heav-
Ter, while tidings of the forward
state OF the American crop relieved
fears as to possible cotton famine be-
| fore the new crops appearance in market.
| The stocks of goods held in Manchester
must have been very heavy for the void
caused by a nine weeks strlke-perhaps
| equivalent to one hundred thousand bales of
cotton, caused only slight rise in prices, nor
| were the shipments reduced as much as had
| been expected. The position of yarn at the
| end of June was worse than at any time of
| the year, the strike having affected it less
| than it did cloth. Take Manchester as a
| whole we have never known trade SO bad or
| the outlook so gloomy. The famnes in India
| and China have impoverished these countries,
and all our European customers are In as de-
| pressed state as we are. There seems to be
chronic overproduction in Lancashire, and
| judging from present appearances one may
| doubt whether any amount of short time that
" 49, sD Us..s5 I.t.o ~
has had no perceptible effect in mending
matters, and If trade does not improve there
Will likely be further attempts made 20 lessen
| cost. One circumstance has added materially
| to the loss in spinning this year-that is the
| extraordinary less of weight of American cot
ton-we know of cases where it amounts to
nearly tour per cent more than usual-po
doubt this is owing to the wet state in which
last crop was picked, but the virtual effect Is
to pay the grower so much more than the
real value Russia is the only country in Eu-
rope where the cotton trade is active, but it
will be followed by Il painful reaction; the
rest OF Europe Is suffering kind of paralysis
Ihe prospects of our market have not ma
terlally altered since our last issue--the SUD.
ply available for consumption till next crop
arrives still shows very great deficiency, but
the portion OF it falling on England has been
slightly reduced-looking at the visible fig
ures 1t Is difficult to see how we can tide over
the autumn without a severe pinch, and were
trade IN anything like a satisfactory state a
considerable rise would be certain This side
OF the case, however, has to be qualified bv
what we have already SAID of Manchester
the deplorable state of trade there presses
down the new material with about as much
force as the short supply tends to raise it
equilibrium will be reached at the point when
the one balances the other, and from present
appearances that point may be nearly reached
already. Inc new crop Is promising well,
and is said to be ten days earlier than last
and we may expect large shipments by steam
IN October and November, and liberal arriv-
ais here before Christmas. and apparently
the Americans are willing to contract ahead
tor large quantities at present prices During
the dull time when the trade are out of the
market, these considerations press with much
force upon US, and damp the speculative
feeling, and the expectation of a rise to seven
pence, which was pretty common a month
ago, has nearly passed away. But on the
other hand 1t must not be forgotten that we
have actually two hundred thousand to three
hundred thousand bales less to feed consump-
ton till the new crop arrives than we had
last year, and we only escaped a severe pinch
last autumn by extensive short time We
doubt If consumption will be reduced much
below last year, and thereforewe expect that
the fear OF scarcity will return during the au
tumn and cause at least temporary squirt
In these calculations we are always assuming
a large American crop, but it will be unusual |
ltswe pass through the autumn without an
outcry. Our market is usually shut I'D at the |
start OF the American crop by some such ru-
mors. The stocks in the world are then So |
light that they are easily controlled, and by |
autumn they will be more nearly exhausted |
than tor many years past consequently we |
will be liable to sudden impulses from Amer |
lea, and merchants foreseeing this are likely |
TO hold their stocks firmly, and stiff.n prices |
splnneIs enter the market freeIv