8 



In 1840 the largest croj) ever made up to tliat time, and the largest accumulation 

 of stocks ever witnessed in Liverpool, caused a decline to the lowest average for the 

 ten years. The 'New York Shipping and Commercial List says that in December, 

 1840, prices were reported dull in Liverpool, owing to the large stock on hand 

 unconsumed. This was the beginning of tlie heavy accumulation of stocks in Europe 

 during the next five years, which led to an extraordinary decline in prices. 



Table VI. — Shoiving supply and consumption of cotton in the United States and Europe — 



surplus stocks and prices. 



[In bales.] 



Shepperson quotes middling cotton as low as 4 cents in 1845. 



1841. — Great depression in the Manchester cotton trade. 



184S. — This year witnessed a panic in prices in this country and abroad. 



1843. — Large increase in cotton manufacturing in the United States and trade in 

 raw cotton and cotton goods with China. 



1844. — Morse's electric telegraph successfully operated on a commercial scale for 

 the first time between Baltimore and Washington. 



1845. — The lowest prices on record for raw cotton brought a harvest to manu- 

 facturers; all the mills in Europe running on full time, with orders in advance of 

 production. Duty on raw cotton in Great Britain removed. 



1846. — Remarkable ravages by cotton worm. Spindles at work in Great Britain, 

 17,500,000. 



1847. — Great destruction to crops by the caterpillar, and the shortest crop for 

 years. Business depression in Europe. 



~ 1850.— The number of cotton mills in the United States, 1,074, with 3,633,693 

 spindles. 



Prices. — So far as prices are concerned this was the most remarkable decade in the 

 history of cotton planting in this country. Not only were the lowest prices on record 

 reached in the United States, but it was the longest known period of continuously 

 low prices. It was remarkable also for unprecedentedly large crops, with one or two 

 exceptions, and for the enormous accumulation of stocks in Great Britain, clearly 

 indicating that production or supply had exceeded the demand. In 1842 middling 

 to fair cotton reached as low as 4^ cents per pound in New Orleans, and there is 

 on file in the Department of Agriculture a letter showing that a Marengo County 

 (Ala.) planter sold this year 17 bales of cotton in Mobile at $i cents. The market 

 reports of the day quote middling to fair cotton in New Orleans in 1845 as low as 

 4|, and in Mobile the same year, 3^ cents per pound. As to the cause of low prices 

 during this period. Hazard's Register, an authority of the time, said: ''The causes 



