Savannah morning news. [volume] (Savannah) 1868-1887, 1881-03-22
The Real Position of Cotton.

Correspondence Louisville Courier-.Jour7ldl.
In the communication you published
on the 9TH inst, | endeavored to show
that, notwithstanding the full receipts
and the probability of a crop of cotton
fully as large, if not much larger, than
that of last year, there would, neverthe
less, be q positive scarcity of the better
qualities; and, in fact, there was very
great probability that inferior, damaged
cotton would have to be used, as an abso-
lutte necessity, from sheer inability to
procure better grades. / pointed out the
fact that English buyers had been quietly
absorbing all the first pickings, which
were the finest and best grades of the
whole crop, and had allowed the refuse,
or stained ard damaged cottons, to accu-
mulate in stock, and that our American
spinners would find out, when too late,
that they would have to take these
damaged cottons as the best they
could get. These facts were suggested
and at the same time it was stated that
their proper influence upon the markets
was not appreciated; for had the real
condition of cotton been better under
stood, prices would be materially higher
than they now are. The "bear" infiu-
ence has been severe and crushing, and
has carrid prices so far edoaoR 6eyoao the
actual cost Of production that all the news.
papers throughout the South are unani-
mously urging the planters to abandon
cotton culture for more diversified
farming on all the uplands; and on the
bottom lands it is proposed that the
planters grow corn, hay and hogs for
their own consumption, and plant cot
ton only as surplus crop These sug-
gestions will be very generally adopted
IN cropping this season, particularly as
the season is very backward, and the
planters are more or less embarrassed,
owing to the low prices for their crops;
and also owing to the fact that they will
be unable to obtain as much assistance
as they need from their merchants, who
have large balances due to them on last
seasons advances.
1t astonished me to find that the &C
tual condition of affairs in regard to cot
ton seems to be so little understood or
appreciated by business men, and that
they are so Indifferent in regard to the
poor quality and worthless condition of
much of the cotton which is relied on as
being available for consumption in goods
and yarns, which require high grades of
cotton.
1t is somewhat singular that at the
very time the communication referred
to was penned. say on the I'd of March,
Smith, Edwards s. Co., Liverpool, issued
a cotton circular embodying very similar
views in more cautious and modified
form; but still sufficiently explicit to
Justify in full the conclusions reached
by your correspondent, in regard to the
pending scarcity of the better grades of
cotton and the prospective advance IN
prices thereof; and also that American
spinners, in relying too much in getting
supplies by buying futures, would be
disappointed, by having trash cottons de-
livered which would be wholly useless
to them.
The following extracts from the Liv-
erpool circular may be taken as fair
indication of the probable future course
of the cotton market:
cat the same time we must report that,
owing to the great Eastern demand, the
trade of Lancashire is at present in a
healthy state; there are hardly any
stocks, and producers are still well en-
gagged, and we think that business on a
considerable scale would be resumed if
cotton was seen to have fairly touched
bottom for the season. The prospects
of Lancashire, with cotton ranging about
present prices, are by no means bad.
ut must not be forgotten, however,
that much of this crop is of very poor
quality, and will hardly be consumed
till late in the season, and only when
exceedingly cheap. The standard CT
quality for goods and yarns was nev,r
higher than it is now in Manchester
and spinners will continue to use the
better grades until they are comparatively
scarce and dear. 1t is therefore not i'm
possible that the middling grades may
be pretty well supported under our con-
tract system, which gives wonderful
power to large operators at certain sea-
sons of the year, and if our hopes of a
successful issue of the silver conference
be justified, we may have such prospects
in Lancashire as to make present prices
for cotton seem reasonable. Though
the visible supply of England is now
100000 bales above last year, we must
not forget that spinners hold much less,
and under sufficient inducements might
become large buyers for time" K.
Mdrch'16.