Year: 1865

If there is any creature really existing which
ius;ifes the celebrated description Of the myth
whose head and tail were each where the other
should be. and whose head ana tail went IN
contrary directions when il moved. although II
had neither head nor tail, that creature must
be ,he Panic. Nothing else iorgets aA prece'
dents, runs steadily into the same Ere where It
was burnt before. moves 10 opposite directions,
ana utterly 6efies all the usual governing prln-
ciples Of action.


The Panic fods It's gala tine in such war
as the present aud the trade Panic naturally
appears in the commercial centre Of the country.
There was an example 10 New \ NoTk. last week,
when the domestic trade suddenly lost Its bal
ance, and dealers went hone 90 Saturday night
to a Sunday which 10 many was not day OF
rest. Tbs expectation Of 4 rev influx OF cotton,
which may not come in any considerable quau.
ti,y for months yet depressed the market and
set it Wild with excitement out OF which. as
always happens. the coolest and shrewdest
parties only had the opportunity to proht, and
probably improved il. Indeed, Panic IS a prl-
vaie servant, in many cases, aud Is let cut by
lis keepers 10 order 10 start dus, and Confusion
for the quiet furtherauce Of their own plans


The market experienced a sudden depression,
but that very suddeuneSs means partial
retarn, which is already seen; for when the
bottom is once touched rebound follows I'M
medialely. There is all reason for decline IN
cotton goods; there is 10 wellfonnded reason
for sudden plunge downward, and there is no
escaping a return from such a plunge, leaving
as its effect an unsettled feeling which damages
trade, and gives q chance OF gain to the few
who will not be frightened. The reason on
which we base our expectation that there VIII
not-most certainly there need not-be con-
mercial wreck at the end OF the var, are. that
the business of the country government deal
ings excepted. is so largely transacted upon
cash basis. and that productive industry never
had so great a demand upon il as now. This
demand is only increased by the prolougaiion
of the war, and the destruction which the war
makes cannot paralyze and destroy industry
until it has dragged itself out to length for
which there is now neither necessity nor excuse.
The idea Of an increased prosperity IN conse-
quence of the war; and as compared with peace
times, is q hollow one, as we have before
attempted to show but the prosperity of the
country. compared only with itself. is substan-
tai and real. Everything which human con.
sumption requires viii be in immense demand
upon the return of peace, and, doing business
so nearly upon the cash basis as at present,
trade need not be overturned.


These considerations, il just and practical at
all, apply with especial force TO the market for
domestic goods 1t is our firm belief-and will
be until events disproye it-that there will be
remuneratiye market for all the cotton which
can be grown, and all the cloth which can be
woven, for several years TO come. For not
only have our people to be supplied-and the
consumption of cotton goods during three years
past has been reduced to very low figure by
the high prices-but England and France viii
both look to this country again for an increased
supply of the raw material. Egypt and India
cannot yet compete with the South in quality
Of FIBRE amount of yield, cheapness OF culture,
and ease of transportation and even If they
could, England will prefer to buy here with
merchandise rather than in the East with hard
gold. The checks which supply and demand
exercise upon each other will be seen 10
marked degree in the cotton trade; aud aside
from our own demand at home, the Eng glish
markets will thankfully take all the cotton that
can be spared, and will thereby ease the decline
to the old basis-U S. Economist.