The weekly Union times. [volume] (Union C.H., South Carolina) 1871-1894, 1879-11-07
DOMESTIC aah s md M current tas & rs


general ril Stlaes of al commodities be
j. gan. Il 81 10 Ie pretty generally con
ceded that bout theltime oi the ouibrca,
of the rel on, co.ton,. which had ,beer
about the article OF COMMERCE wficl
had held it M aftcr she panic ef 1867, be
gan to s6Q signs OF weakness, helped
doubles. No astounding crop of 1859
and that a bog but the beginning of wal
saved it fro ssyefc dscliue. The impc
tus thus in hrted to it continued till Che
average top IS reached id 1 S64. from which
point it hes p1tinued to steadily drop, and
which drof hItipg the past few years has
been, in uQ;sEafi degree, helped by our
panic of 1873 caused inst as the one of
1919, by ot Rctitious aud inflated paper
currency. &sts are certainIy not wanting
to justify ydf fsorrespondees intimating that
Ameerica e adyas wape of pros.
tf'esfex sahctRat Eng Hand and Europe must
soon participate in it; and the question as
to the value of cotton is therefore natural
and pertinent onc While granting that
consumption of raw cotton overlook produe-
ton, the actual spinning requirements of
English machinery vf the past three years,
averaging 10000 bales American per week
as against 10000, would seem to indicate
that such rapid conversion of cotton into
good was uncalled for and artfcially brou .ht
about by the large profits made during the
war, and therefore that the production of
cotton was adequate to the consumption of
goods. True, the continuous decrease in
available visible supply remains, and thi,
feature to many is an alarming one but
we must not forget, 1st, that the late Egyp-
tian aud East India crops were very def
cient, and I'd, that the introduction of Ca
bles since 1866, the greater facilities extcn.
ded by the better understanding and moro
general use Of telegraphs, the increasing
use OF steam navigation, and last though
not least, the opening Of the Suez Canal in
1869, have brought about general equai-
cation in supply, and therefore in values,
which could not previously have been ex-
pected. Take tho Suez Canal as an instance.
Where previously it took say four months
for the shipment of the raw article and four
more for the return Of the manufactured
goods. about half that time now sufices.
bringing the supply to that extent in more
available shape, besides giving the extra use
Of the tonnage to the extent Of the other
halt OF the time.
Two other factors remain, which can by
no means be ignored. One is the fact that,
owing to poor cereal crops in Europe, the
exchanges arc ruling in our favor, and thus
producing poor home trade and secondly,
that the very influences at work in this
country to produce our joyously hailed
boom in prices, caused by the inflow of
gold. necessarily contracts the S55iIfaSrIi ncr
haps of Engl.ad, to that extent, and which
facts will tend 10 compel the Bank of Eng.
land to raise her rates Of discount, out Of
self: defence.
In no possible way do l wish it to be i'm
piled that am arguing in favor of low
er prices. While admitting that 'scnti-
ment," especially the speculative one, is
powerful factor in determining momcntury
valaes, the universal and ever constant law
Of supply and demand remains and will in
cvitably assert itself. Whether an Amcri.
can crop Of 1S79-S0 for over say $500 600
would be sufficient for the wants of the
world with improving trade, is one side of
the question I; that we are at the opening Of
a season with less than ,000, 600 bales re-
ceived or marketed, and with a likelihood,
as at present indicated, of an average
weekly receipt of 200, 900. bales or more for
eight weeks, is the other side. If spccula.
tors choose to tun away with sentiment
alone as guide, they must not be surprised
if their great "boom" should by some pos
sibility be transformed into boomerang.
r. s f.