The Grenada sentinel. [volume] (Grenada, Miss.) 1868-1955, 1894-09-29
WHY COTTON HAS GONE SO LOW,
English Buyers on the Memphis Mar.
ket State Their Views.

Memphis Commercial Appeal Sep. s6.]
Cotton continues to be quoted lower In the
Memphis market than ever before in the his
tory OF this exchange. In New Orleaus the
price is still lower. having gone below cts,
while the Memphis quotation stands ut 6 IL
cents.
Several representatives. Of Liverpool ex-
porters have returned In the last week from
England and resumed their places In their
offices and on the floor. ready to meet the
movement OF the present cotton crop. Three
OF them were seen yesterday and each talk
ed Of the feeling in Liverpool and the gen.
featuring district
The general impression seems to be that
the staple has not reached It's lowest mark.
but will fall still lower until the Memphis
factors will be forced to q quotation below i
cents. Another fact developed by the inter.
view is that America has not alone been de-
pressed. but that England has been touched
with IA 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.
& Co., reached the city from Liverpool on
yesterday. When asked to express an En-
glish view ofthe cause OF the low price Of
cotton, he said: Trade in Lancashire lis
very dull, and has been for many weeks.
You See, Lancashire Is the chief seat OF all
the English spinncrs and depression of
trade there must affect the price Of cotton.
| for 1t decreases the demand for the staple.
The spinners are compelled to sell their
| yarn at such a low price that absolutely no
profit Is made. Consequently to secure a
profit the cost OF the raw material and of
manufacturing must be reduced as far as
possible. Then, the city Of Liverpool holds
more than 860, 600 bales OF cotton Of last years
crop. This fact. together with the crop com.
ing upon us, has reduced the price. Oul
people have great confidence in the crop es-
innate OF Mr. Neil. OF New Orleans. He
missed it last year but Il few thousand bales
and our people are relying upon his 5000,
OO0bale 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 ir
Lancashire, the large supply Of old cottor
on hand. and the estimate OF a 9,O0O,0O0- bal.
|
sections OF England especially the spinners.
| J.H. Pitney, another representative O
Liverpool exporters. sailed from that cit,
on the 9th instant. When seen by tn
reporter he said: The houses In Englan.
have received for many weeks very tatter
ing reports from the American cotton cror
These reports and the fact OF very larg
supply OF cotton already on hand hav
served to reduce the quotations and max
the buyers Indifferent about making pul
chases. Doubtless the long delay in an,
agitation Of the tariff legislation had >ou
slight effect. and the progress Of the China
Japan war has also aided in weakening th
market. China Is one OF the principal buy
ers Ut English cotton yarn and manufactur
es and the prospect of the demand fron
that source being decreased has had its ba'
effect. And do not think that price ha
reached its lowest mark Two Mancheste
spinners came over with me and they wer
Of the opinion that the Liverpool quotation
would reach 3 pence before any upwar
tendency would be manifested. The great
ly increased receipts at the several Ameri
can ports particularly ut Galveston. serv
to make that view correct and substantial
the earlier predictions OF the greatest err"
on recOrd.'
Another representative OF foreign g,
porters was seen, but he preferred tina
his name he not used. He also has jus
reached Memphis from Liverpool. He talk
ed as follows: The English buyers hay
been figuring for some months on 100000 zoo
bale crop in this country. and yet the
have In Liverpool 100000 bales from las
year. at least q three months supply fo
the short time demand Of the factories. as
now the case. So those who regulate tn
price reason that it would be folly IN thel
to maintain the former price when there
already on hand this great lot OF old cotto'
and there is to follow Immediately durin
the next three months the very heavie'
movement Of American cotton. represent
ing the bulk OF q 9.OOO,0O0-bale crop. Liver
pool exports about 6or 10 per cent. OF til
cotton received In her port. and the rt
mainder Is used in England. Oh, yes IN
English manufactures and business gener
ally has suffered much during the past tw
years. and trade there now Is by no mean
"a.