The Daily Texarkanian., 1894-09-29
WHY COTTON is so LOW.
ENGLISH BUYERS ON THE MEM
PHIS MARKET STATE
THEIR VIEWS.
Gentlemen Recently Returned from
Liverpool Tell of the Conditions
that Obtain Over There that
Go to Bring Down the
Price of the Staple.

Cotton continues to be quoted
lower in the Memphis market than
ever before in the history of this ex-
change. In New Orleans the price
is still lower, having gone below 6
cents, while the Memphis quotation
stands at 6f cents. Several repre-
sentatives of Liverpool exporters
have returned in the last week and
resumed their places in their offices
and on the floor, ready to meet the
movement of the present cotton
crop. Three of them we're seen re-
Gently and each talked of the feel
ing in Liverpool and the general
state of trade in the Lancashire
manufacturing district.
The general impression seems to
be that the staple has not reached
its lowest mark until the Memphis
factors will be forced to a quotation
below 6 cents. Another fact de-
veloped by the interview is that
America has not alone been depress-
ed, but that England has been
troubled with a dullness of trade,
strikes and hard times. While the
depression has not been so severe
there as here, it has been sufficient
to be sharply felt.
John Patton, representing John
Sherwood & Co., has returned from
Liverpool to Memphis recently.
When asked to express an English
view of the causes of the low prices
of cotton, he said: ''Trade in Lam
cashire is very dull and has been
for many weeks. You see, Lanca-
shire is the chief seat of all the
English spinners, and depression
of trade there must effect the price
of cotton, for it decreases the de-
mand for the staple. The spinners
are compelled to sell their yarn at
such a low price that absolutely no
profit is made, consequently, to Sc
cure a profit the cost of the raw ma
terial and of manufacturing must
be reduced as far as possible. Then,
in addition to this, there are in the
city of Liverpool alone more than
$50, 600 bales of cotton of last years
crop. This fact, together with the
crop coming upon us, has reduced
the price. Our people have great
confidence in the crop estimate of
Mr.. Neil, of New Orleans. He raised
it last year but a few thousand
bales, and our people are relying
upon his 5000, 600 bale estimate for
this year. You may sum the causes
of the low price up as these the
very dull trade and low price of
yarn in Lancashire, the large sup
ply of old cotton now on hand and
the estimate of a 100000 bale
crop for 1894-5. People are very
blue in England, especially the spin
ners."
j. H. Pitney, another representa-
tive of Liverpool exporters, sailed
from that place on the 9th inst.
When seen by the reporter he said;
''The houses in England have re-
ceived for many weeks very hatter-
ing reports from the American cot
ton crop. These reports and the
fact of very large supply of cot
ton already on hand have served to
reduce the quotations and make the
buyers Indifferent about making
purchases, Doubtless the long de.
lay in and agitation Of the tariff
legislation had some slight effect,
and the progress of the China-Japan
war has also aided in weakening
the market. China is one of the
principal buyers of English cotton
yarn and manufactures, and the
prospect of the demand from that
source being decreased has had its
bad effect. And ] do not think the
price has reached its lowest mark
Two Manchester spinners came over
with me, and they were of the opin
ion that the Liverpool quotation
would reach 3 pence before any up
ward tendency would be manifested
The greatly increased receipts al
the several American ports, partic
ularly at Galveston, serve to make
that view correct and substantiatC
the earlier predictions of the great
est crop on record, memphis