Savannah morning news. [volume] (Savannah) 1868-1887, 1882-06-29
THE GREAT STAPLE.
Review of the COttom situation
Ehscs OF the Kgypfian Tronblea--
"a Corner, and Higher Prices
Predicted.
Correspondence Neso York Sun.

Egyptian affairs created last week mo-
mentary Doom In our cotton Market but =
| the movement was speedily fquelched bV
one or two big manipulating films, whoAa
aim is to keep prices down, and, II possible.
| to create short interest before they have
accumulated all the cash cotton they want.
The movement was, however, sufficiently
| pronounced to interest outsiders, and TO
dispose them to take flyer on the bull
| sl0e. speculation 10 cotton has, IN the eyes
OF scrupulous men, the advantage over
| speculation in grain and provisions, that &c
| does not enhance the price OF the poor
mans food at home, but merely tends 70
result tn higher prices for the produce Of
American soil abroad. That under the
present circumstances cotton has q fair
chance for a considerable advance seems TO n
be evident frcm the following facts and
| figures:
The average Egyptian crop Is 425000
| bales of 629 pounds per bale, which Is eeual
to 100000 American bales c. 40 peN.
This cotton rules In the European ma e
about cent per pound higher than
| American cotton. How much Of the Egg
tian crop Will be saved from destructl6x
this year 1t Is difficult to tell, but cabIkV
! dispatch from Aiexandris announced on
Wednesday last that "the cotton crops ok
Egypt are ruined and that It is difficult to n
see what can prevent famine.n Leaving
the sea Island crop, at all times but vefr
small one, out Of consideration, our gulf
long staple is the best substitute for the
Egyptian cotton. Some of the Lancashire
factories work only the long sta
pie cotton, and will have TO shut y
al n total loss, or our supply is
not large or fine enough. The supply from
the East Indies shows an increase OF S70,O00 q
bales over last year, but East Indian cotton n
cannot be worked at all by the European
machinery without an admixture OF at least
Tnr mt nf ANA a 4
from the short staple India cotton is upask
Die. The worlds consumption OF coon 90
steadily increasing. The Europeaf cYnsg
sumption alone was lis. 900 bales of fdin&
ent kinds Of cotton par week In %.
1O0, 900 per week&n 1880
These facts indicate -
American cotton th VI
greatly increased, VII
that the supply is Ike
The visible supply on b
inst. amounted to. -.
Estimated receipts up to S,
Probable receipts in Septe}S
from new crop Qf the weatE
is normal) ....... ......,.,....
The estimated consumption of
American cotton in Europe
during 10 weeks at 20, 900 bales
per week makes .............. -
The consumption in the Unieaauza..
States and Canada amour
10000 bales per week. wIl
reduced by the present hoiI
ings of the spinners, is esti-
mated to require at least 20, 900
bales per week, or in IS weeks.
Total probable demand .i,SI
This would .eave the United
the 1st OF October next with q
hand OF 237 $50 bales, against a stock
hand on the same date last year OF /, ,287 a.
bales. Our supply must accordingly show
this year shortage OF over LOCO, 600 bales
even ii no unfavorable influences affect the
cultivation between now and the close OF
the season.
AS far as the prospects OF the crops 20, IL
must be borne In mind that the spring floods Z
in the most productive sections of the Gulf
States reduced the acreage and delayed the
planting for three weeks. The cold weather
following upon the floods retarded th
growth of the plant throughout the whole cc~
ton belt, rendering replanting in many sec,
uons an absolute necessity. Good crops r.
quire the plant to start with a good sta
early In May. The tardiness of the press an
season exposes the plant to further dang
of drought and early frosts.
Although cotton has occasionally S.
late as low as 10 cents pound, it Is never
considered dear nowadays between IL and
II cents, according to the length of options.
In 1870, Morton q Bliss put 1t as high as %
cents. The highest figures the advance OF
last week put the cash cotton to was 1915
cents, but half cent was lost at the closa
of the week.
All the indications are therefore that
American cotton must command higher
prices in the near future. But this produce
of American soil is quite as much subjeck
to speculative manipulation as are grain and
provisions, and it appears that the manipu-
lators in one case are as strong and unscru-
pulous as they are in the other. A leading
firm Of this city, practically controlling the
American as we'll as the English market, Is
known to hold over 81, 600 bales Of actual
cotton in storage. Yet it's representatives
are talking bearish, are hammering the mar
ket down all the time, md are advising the
spinners in Europe, and especially
in Germany, to wait for lower prices. The
purpose OF the game is evidently to create q
short interest and to accumulate more STUN
at low figures. When this is accomplished,
when the shorts rush In to cover, when The
German spinners come for their yearly stock
and when the Lancashire factories disclos
the exact shortage in Egyptian supplies, "a
New York Cotton Exchange is likely to se7
as lively times as the Chicago Board of
Trade recently enjoyed.
Last summer IL was predicted IN theel <
columns that stocks would have to 90 dow
and grain and provisions up. Both predic
tions were realized. 1t would be curious II
the predictions in regard to cotton should
turn out to be correct too.