Savannah morning news. [volume] (Savannah) 1868-1887, 1882-01-26
ESTABLISHED 1850.
Why Doesn't Liverpool RespOndG

The falling off in receipts of cotton at
United States ports-4A 800 bales for the
past week compared with the same pc
riod last years. forcing conviction in
all quarters that the cotton yield for the
year 1881 80 will be much shorter than
was generally admitted some four weeks
ago. That short crop was believed in
by well informed interested parties for
perhaps six weeks or two moeths past,
is now scarcely doubted; but it suited
the designs of operators to give cur
renCy to reports that the crop
was much larger than was literally be.
lieved. The period has arrived when
port receipts must tell the tale, how
ever, and when speculation and conjec-
lures are no longer available in keeping
up the delusiOn as to q crop of 6, 900, 900
to 6 6750.000 bales. A question now
very frequently heard in cotton circles
is, why doesn't Liverpool respondf
Even buyers in the interest Of Liverpool
houses, who appreciate the situation,
are puzzled at the phenomenon of a
somewhat weak position for the staple
in that market, in face of almost posi-
tive evidences of exhaustion of the crop
What is meant by exhaustion is this,
that the movement is legitimately
checked to such an extent as to indicate
that only fractional reserve of the crop
remains on hand. Ellison, an undoubted
English authority on cotton supply and
demand, has already estimated that the
crop of the United States will have to be
equal to $3.50, 900 bales to give that
country and the continent all that is
required for the present years prospec-
tive consumption. The belief has been
stubbornlY adhered to on the other
side of the Atlantic that the present
years American cotton crop would
reach anywhere between 5000, 900 and
$3.50 600 bales. On this side the true
facts in the case were better understood.
1t has suited Liverpool, however,
to stick to the long crop theory,
and now that this position can no longer
be maintained, the want of activity in
the Liverr ool market presents an enigma
A resume of the position Of the staple
may not lack interest The price of low
middling cotton in Liverpool this day
last year was esd. against 9 16d at the
present time; the same grade of cotton
in New York commands this day life,
against 11Ec same day last year. 1t will
be observed that Liverpool 10 not
on a parity with New York in
regard to prices, and that neither
market has advanced in ratio of prices
compared with ratio of decrease in the
crop. When Liverpool fully realizes
that the present years cotton crop OF
the United States will be over 1000, 600
bales short of that OF last year, it is an
ticipated that an increased vitality will
be shown. There are several matters to
be considered, however, in this relation.
The facts must not be overlooked that
cotton now commands fair price, even
on the basis Of $500 900 bale crop;
that the Indian and Egyptian move
ments are turning out larger than
we're expected; that the stocks at the
ports are comparatively full; that less
cotton is going into consumption than
this day twelve months ago, and that an
extraordinary factor remains to be con-
fronted in the large stocks of manufac-
tured cotton goods now on hand at
manufacturing centres. When provis-
ions are high, as they are at present, and
have been for two years past, the con-
sumption of clothing material suffers in
consequence. The stomach is fed at the
expense of the back. In these curt facts
may be found the reason why Liverpool
does not respond, although it is almost
certain that when the shortness of the
American crop is fully understood in
that market-no financial convulslons
intervening tendency will be toward
an appreciation in prices. The next four
weeks will demonstrate the correctness
of this conjecture, unless Mr.. Ellison
missed it very badly when he estimated
that Europe would readily take all
American surplus on the basis of a
5000, 900 bale crop. The ability of
America to hold all actual stuff in sight
is understood, and Liverpool must pay
the figures, if the hypothetical condition
is verified that Europe requires the raw
material This is neither 'bull" nor a
"bear" article, but is simply rea sonable
and literal statement of the position of
the staple.