The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-03-08
ALMOST A PANIC IN COTTON.

The Lowest Price On Record Has
Been Reached In the Last Three
Weeks. and Brokers Are at Their
Wits End.
From the Ne,O York Herald.
LIVERPOOL, March 5.-Cotton men are
at their wits end. Cotton has reached the
lowest price on record, and in the last three
weeks the members of the Liverpool Cotton
Exchange were compelled to find &l.500.-
600 to settle the difference on the wrong
side
The cotton trade has been completely de-
moralized by the heavy fall in prices of raw
material. Many large Lancashire mills
have incurred serious losses as the result Of
their operations during the past three
months. In the case of the Star mill, 10l,-
3SS spindles. the deficit was "a, 096, while
that Of the Woodstock, "a. sos spindles, was
EOS.
SPECULATION IN FUTURES.
A considerable percentage of these losses
may be set down as due to speculation in
futures on the part Of the directors who did
not foresee the downward movement, which
has resulted in fall Co the level Of prices
in 1S45. when middling New Orleans was
quoted at 3A pence and the stock in Europe
reached $4,000 bales, or 207 weeks con-
sumption.
M. Pasch, well known here as an au-
thority, thinks the cheapness of American
will drive other growths out of the market
and deal a crushing blow to the Indian
cotton trade, which Is now worth about
e5, 000. 900 year against over ESQ, O00, 900.
which represents the value of imports from
the United States. In the '40s such result
was produced, but it Is not now believed
that Egypt and India-already serious
rivals of the United States as cotton pro-
ducing countries-will be permanently af-
fected.
CROP ESTIMATES.
Considerable difference Of opinion exists
in the trade as 90 the probable future course
OF prices. Everything. Of course. depends
vergent. Charles Williams, of the firm
of Charles & George Williams. cotton
brokers, represents that section Of the COM
munity, whose views are that the crop will
| not exceed 8 ,l00.0 900 or 1900. 900 bales, and
that the highest estimates are exaggerated.
FEARS OF A PENIC.
Liverpool men have suffered terribly
owing to the fall. as much as 9400, 900 hav-
ing been paid in differences during a single
week. Fears of panic are entertained by
many should the bears continue to squeeze
their opponents as they have been doing.
One of the oldest brokers on change said
founded at the magnitude of the crop, COM
ing as it does upon the heels Of one which
in itself topped previous records. The
striking day is looked forward TO with
anxiety each week, and l think we shall
have further fall before Easter"
- Richard Marsden of Manchester thought
the crop would be 9.OC0.O 600 bales.
COTTON AVERAGES.
"How do you account for the present con-
dition OF affairs in the trades" he was asked.
"Simply by rapid increase Of tho cotton
| average throughout the world, which for
| the first time in thirty years has overtaken
| the consumption. The production of cottons
| is now more in line with that Of yarns aud
| cloth, and spinners and manufacturers
| should have a chance of making little
| legitimate profit instead of having to rely
| upon speculative buying and selling.
MORE MILLS GOING UP.
Eighteen new mills, representing $50,
| 900 spindles, are in course of erection in
Lancashire. Notwithstanding the depression
in the spinning trade, we now have over
4, 900, 600 spindles on cotton alone, chiefly
| i'll Lancashire, and if mills are TO be built as
| rapidly in the future as In the past the con-
sumption may very rapidly overtake the
production Of raw material required to feed
| these myriads of hungry spindles"