The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1886-09-01
THE SURPRISING INCREASE OF
RECEIPTS OF THE STAPLE
At This Port During the Year 1885,
1SS6-FigRres That Indicate
More Graphically
THAN WORDS THE RAIE OF
PROGRESS
That Memphis Is Making as Mar
ket of Unequaled
Facilities.

is about to begin. Inc olu year
peace to her ashss-has been laid
TRANQUILITY away, and all eyes are now
turned withseager expectation TO its
younger and, seemingly, more pros
porous successor. The new year
promises hopefully, bat ere starting
out on our commercial pilgrimage
for the ensuing twelve months, we
think it will be well to review the
past-the situations which have dis
closed themselves from month to
month, and the results which fol-
lowed. The history, though not
pleasing one, is not altogether bar
rem of bright spots, and its recital
may serve to point moral and in
calcate lesson to those who
stranded, and those who nearly went
down amid the rocks and breakers
which inevitably beset the paths of
reckless speculation, an over con-
fdent venture. The cotton sea-
son of 1886 was born amid
gloom and disaster. Oldham had
been shut up for four months-the
hum of her busy wheels was silent,
her work rooms tenantless. Fall
River was likewise closed, or partial
ly 50, as we're also many Of the prin-
cipal cotton factories both North and
South. Dismal forebodings as to the
future were freely INDUCED in by the
pessimists, and general apprehension
was the order of the hour. These
forebodings were not destined to be
entirely realized. As the season
progressed, affairs b gan to improve.
Trade in America sprang up as if by
magic. Stocks of dry goods disap-
peared rapidly and idle spindles re-
commenced work in every direction.
Tidings came to us from Lancashire
of large sales of cloth ana increased
prosperity among weavers, though
English spinners we're said to be doing
badly and losing money every day,
This cry had been chronic so long,
however, that many disbelieved it,
and others thought that the trade
would regulate itself as the sea-
son advanced. 1t was hard to
realize that one department of the
industry should be reaping golden
harvest and the other mourning in
sack cloth and ashes. At all events
the situation was full Of promise, and
the world Of traffic was sanguiue as
to the future. Cotton, strange to
say, did not share in the better feel
ing which seemed to pervade all.
other departments of trade. On the
contrary, niddling uplands, which
opened III New York September LIST
at 10ic and 10 Liverpool. at 54d, grad
ually shrunk in value until the de-
cline eliminated the 9th of Febru-
airy at s ID 16c for middling
in New York, and 4 11-16d
in Liverpool-the lowest points
attained either since or many
years previous to the American war.
A variety of causes transpired to
produce this unnatural and extreme
low range of prices, though nothing
in the situation warranted it. The
wall of the English spinner; his
hand to mouth policy OF buying; the
enormous aud unwieldly stocks of
cotton piled up in the South in con-
sequence thereof; the Anglo Irish
political imbroglio resulting in dis
solution of Parliament; a general
election and change Of party SUI
premacy; the steady and un-
precedented decline in silver, and
the constant and increasing raids of
the bears who used every hammer
available to beat the market down,
each and all contributed their quota
and the result was obtained. How
far this silver problem will continue
to affect the market remains to be
seen. Should the decline go on, its
effect on cotton would soon reach the
Teductio ad dbSurdum. For instance,
if the value of silver bullion should
by any chance shrink 30 per cent.
more, cotton, in the proportion
which recent declines have affected
it, would be worth nothing. Indeed,
the freaks of trade lately invoked by
this factor Of constantly declining
silver have been almost groteslue.
To exemplify Trade from India and
China has been very good in Man
chester. Large sales of cloth were
effected. To repay themselves, the
weavers had to draw on Calcutta,
Bombay and other points. The ex-
change was of course payable in sill
yer, and when offered had the same
effect as throwing so much
bullion on the market. I'm
der these offerings silver de-
cliped, cotton in sympathy declined
with it, and the world was treated to
The novel spectacle OF good trade
forcing cotton down. This situa-
ton of affairs is anomalous and un-
natural and goes to prove that the
decline in silver enters more largely
into the value of cotton than is
either natural or justifiable, and we
think another season will regulate ii.
II the Orient persists in using de-
based currency she will simply have
to pay higher price for her goods.
Anyhow, India exports more than
she imports, and as she collects for
her exports in gold she can well at
ford to pay a premium on her i'm
ports. But we have digressed from
our subject. During the heavy re-
auctions in values which we have
alluded to Memphis declined from
93c for middliDg to Sic. Recogniz
ing the utter absurdity of the price,
in face Of the situation Memphis
factors determined to quit selling.
The responsibility was great, but
they resolved to take it. Many Of
them covered up their tables and
locked up their cotton rooms. To
buyers who had sold for delivery