The weekly Union times. [volume] (Union C.H., South Carolina) 1871-1894, 1879-11-07

general rid & vSlaes &c all commodities be-
gan. It So 70 sbepretty generally con.
ceded that bout the time OF the outbreak
OF the rete on, cotton. which had been
about the " article Of commerce which
bad held it1 Fh after tho panic of 1867, be-
gan to sb signs OF weakness, helped
doubtless t NE astounding crop Of 1859,
and that nd ing but tha beginning of war
saved it frol d severe decliue, The impe-
tus thus i'm kfted to it continued till the
average top ks reached ID 964, from which
point it has brtinued TO steadily drop, and
which droR. Utipg the ,past few years has
been, in u3AmGi degree, helped by our
panic of 1873 caused just as the one of
1919, by oh{ fctitious aud inflated paper
currency. hcts. are certainly not wanting
to justify yds eorrespondest intimating that
America e y snad dsaue waye Of pros.
'pcsstE ad6that England and Europe must
soon participate in it; and the question as
to the value of cotton is therefore natural
and pertinent one. While granting that
consumption of raw cotton overlook produe-
ton, the actual spinning requirements of
English machinery of 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 artifcialy 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 supplr remains, and thi.
feature to many is an alarming one; but
We must not forget, 1st, that the late Egyp.
tian and East India crops were very def
cient, and ID, that the Introduction Of ca.
bles since 1866, the greater facilities cxtcn.
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 eauali-
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
tor 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
half 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, cirnYl~.:-
haps of Engl.sd, 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 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
evitably assert itself. Whether an Ameri.
can crop Of 1S79-S0 for over say $500 900
would bo sufficient for the wants of the
world with improving trade, is one side of
the question that we are at the opening Of
a season with less than 100000 bales re-
ceved or marketed, and with likelihood,
as at present indicated, of an average
weekly receipt of 100000 bales or more for
eight weeks, is the other side If spccula.
tors choose to Pun away with sentiment
alone as guide, they must not be surprised
if their great "boom" should by some pos
sibility be transformed into boomerang.
II. S. +.