production had reached its limit and that tlie demand was greater than the supply. 

 It was a current report tliat one hundred millions sterling had been rai.sed hy cap- 

 italists to buy up all cotton in sight. But one thing that no doubt led to this specu- 

 lative movement was the small stock on hand in Great Britain. Prices declined 

 toward the end of this decade as the crops in the United States increased. 



Table V. — Showing supply and conHumption of cotton in the United States and pAirope — 



surplus stocks and prices. 



[In bales.] 



1831. — Number of cotton mills in the United States, 801. First railroad built in 

 Alabama, from.Decatur to Tuscumbia, also the first in Louisiana. 



1S3S. — First railroad built in Georgia. First cotton mill built in Alabama, near 

 Huntsville. 



1835. — Extensive purchases of land in the South to produce cotton. 



1836. — First mill built in North Carolina, at Fayette ville ; also first railroad built. 

 First railroad incorporated in Mississippi. The first ocean steamshij) that crossed the 

 Atlantic, except on a trial trip, built for the cotton trade by Savannah merchants. 



1837. — Number of mills in Massachusetts, 282, with 565,031 spindles. 



1838.— In Great Britain, 1,815 mills. 



1839. — Long drought and cotton worm shortened the crop. The famous cotton 

 planters' convention held at Macon, which led to annual conventions at other places, 

 some of which made remarkable proposals for improving and controlling the price of 

 cotton. 



1840. — The number of spindles in oi^eration in the United States, 2,285^3.37. 



Prices. — Although a great financial panic occurred in 1837, prices were well sus- 

 tained during this decade until 1840. Prices advanced considerably in 1835 on account 

 of exaggerated reports of great destruction to crops by excessive rains. 



The advance in prices in 1835 is thus accounted for by the Democratic Review 

 (1838) : 



''Throughout the year 1835, and a portion of 1836, the liberality and even profu- 

 sion with which the Bank of England, and the other banking establishments of that 

 country, lavished accommodations upon merchants, manufacturers, and speculators, 

 infiated the paper currency to such a degree that all kinds of merchandise rose to 

 extravagant prices. The common qualities of cotton, which had never, since 1819, 

 exceeded a shilling sterling per pound, and during the most part of the intervening 

 period had sold at about half that price, actually went up to thirteen pence. This 

 adventitious prosperity was not confined to cotton, but was extended to most other 

 commodities. The consequence was, the English markets were soon flooded with. 

 the productions of other countries." 



