Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1882-01-19
THE PRESENT ASPECT OF TRADE.

rant confidence, ana 10 give ASSURANCE OF CUT
I tnued prosperity, is clear to all who take an
| intelligent view of the present business sitn'
! alton. Notwithstanding this general fact
there are reasons why business men should
| be watchful and cautious, for, as local causes
may bring rain in particular localities while
clear skies prevail everywhere else, so in a
time of general prosperity there may be
! special points that deyiste from the prevail
| ing rule. The drouth OF the past seasons
the decreased influx of gold, the reduced
I sales Of wheat to Europe, and some other
causes, produce effects that not in con
iormity with the general course of CONNER
GiaI events, and those special causes should
have special attention, for they ere more
| liable to produce exceptional difficulties 10
commercial houses than occur at a time OF
! business difficulty, for at such a time dis
trust engenders watchfulness to an extent
rarely observed when The ordinary aspect Of
affairs ia favorable. That this watchfulness
is necessary at the present time is proved by
the frequent bankruptcies reported, not 80
much from the number of those failures az
compared with the average, as from their
occurrence, at times, in unexpected quarters.
The last number of the New York Public
has some facts and figures that are worthy of
observation under the circumstances we now
call attention to. That paper shows that the
weeks bank clearings exhibit smaller
business at New York than those of the same
time year ago, to the amount OF seventeen
Pa CENT, ~AOIUuIuS 9t~~lo. Til par-r---
tive slackening of business is not unlikely 10
spread to other quarters. The clearance re-
turns indicate that active business has been
sustained better in the manufacturing and
smaller commercial districts than at the
principal seaports. "The key of the situa-
tion," the Public points out, sis, at present.,
the foreign trade, and as long as the decrease
of exports continues there is liability OF
more or less reaction in business" The
people of this country will certainly not
consume four hundred million bushels of
wheat IN a year at high prices, when
they never took as much as three hundred
for the crop year barely cover the surplus
left unsold from the great crop of 1880;
nor will the population consume four
hundred thousand bales of cotton
more than they did last year. There
is a decrease of export of nearly that
amount since the crop year began, with no
present indication of an increase in the for
eign demand. In manufactures proper-ex-
Guiding such processes the grinding OF
grain, distillation and hog packing larger
business is doing than ever before. The
iron, cotton, wooden, glass, boot and shoe,
and other important branches are doing
markedly we'll, with striking increase in
many minor branches. Turning from actual
trade to speculative, it is probable that the
volume of trading was never more out OF
proportion to the quantity of property con-
cerned than it was last year; there was erces-
sire speculation in many departments. The
amount OF money absorbed, however, and
the support rendered by banks was less than
has been generally estimated. Bank loans
in New York were s60,00O,O0O larger in
July than at the same time the pre-
vious year, yet between August 18th
and October Goth a contraction of $40, 0O0,-
900 took place without developing any I'M
soundness in the loans that had been
made; the fact is that a great part of the
dealings was of kind not to require the use
of large amount of capital. 1t was sim
ply gambling in wheat, cotton, corn, oil, pro-
visions and stocks; that gambling, neverthe-
less, often had a controlling effect upon legiti-
mate operations. Certainly four hundred
and seventy-fve million bushels of wheat
and thirty million six hundred and fifty
nine thousand three hundred and twenty-six
bales of cotton were never actually bought
and sold, in this or any other market, in
single year. The sales were mainly OF what
is called phantom" wheat, corn and cotton.
The buyers did not want the merchandise
they purchased, nor had the sellers any of il
they could deliver. In the words of the Pub
lie: Zones can sell Trinity church spire
every day, deliverable on the floor OF the
Cotton Exchange the next day at noon, if the
people who buy agree to take a piece OF
paper instead Of the steeple. The exchanges
do agree to take pieces of paper instead of ac-
tual property and of those pieces of paper they
large number may be wanted. Jones agrees
to deliver one million bales of cotton, which
be has not got, and never expects to have,
but his one thousand contracts, ca Oh to de-
liver one thousand bales of cotton in the
market under existing rules is limited only
by the cash and credit of all the people who
are willing TO gamble on its decline 1t is
the same with grain" The actual cotton
sold during the year was three hundred and
-wenty-six thousand eight hundred and
twenty-six bales, mainly for consumption,
rifle over one-hundredth OF the total sales.
During the three later months of the year
here were sales of nine million one hundred
and forty eight thousand three hundred and |
bales; the actual delivery was
linety-six thousand eight hundred and |
bales; the rest was phantom"
The entire receipts of wheat were fourteen |
million two hundred and eighty-fve thou
and two hundred and nineteen bushels; the |
ales were over ten times that quantity; of |
pats, fourteen million seven hundred and |
twenty-five thousand and thirty-nin |
bushels were received more than |
our times that quantity was sold. |
all the cotton sold at the average |
'rice of the year, the value was SlS,600,000, |
he sales of phantom" bales amoEnted to |
], 72S, $4,000; actual wheat less than $780, |
10000, phantom wheat 100000, 900; act
lal corn $4,000, 900, phantom S133,0OO 900;
ctual oats S., 100000, phantom ST. 5000 |
Total for phantom cotton, wheat, corn and |
'ats, $21 100000 900; for actual SIS 600, OO0
Truly we are great people and this great |
country! 1t is suggested that all this sham |
business does no harm, that it is no worse |
han what is done on the Stock Exchange. |
But stocks are neither the food nor the cloth |
ng of the people, and their prices do not |
fleet the price of living, the condition of the |
aborer, nor the success of the conntry's pro- |
luctive industry; while speculation, in most
# the articles it affects, interferes directly |
md powerfully with the welfare of millions
md with the general prosperity of the
ountry.
ACCORDING to the census of 1880, Edgeield I
on nty, South Carolina, the center of the
lew immigration movement, contained
population OF forty-fiye thousand eight hun |
Z