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630 The King of Commerce. 
overstock of cotton manufactures had never before been 
entertained. It was only the stock of the raw materials 
that had hitherto formed the basis for mercantile calcu- 
lation. It was proper enough during the early days of the 
trade, to make use of the word “consumption” when bags 
or bales of cotton were converted into yarns and goods, 
for in those days the article passed directly from the « 
“spinster” to the manufacturer, and then almost immedi- 
ately to the consumer. But as the trade grew in strength, 
scores of middle-men came into existence, and the word 
“consumption,” when now applied to cotton, has become a 
misnomer. Our Liverpool friends should invent some new 
word to take its place. The actual consumption of cotton 
by the inhabitants of the globe, who use machine-made 
goods, is about 5,000,000 bales per annum. As the quantity 
of cotton that has passed through the lcoms on both sides 
of the Atlantic, since the surrender of General Lee two 
years ago, has averaged very nearly that rate, it follows 
that the stocks of cotton yarns and cotton goods now in 
existence must be about equal to the stocks then on hand. 
So, if the receipts of cotton at the consuming points from 
all countries for the coming twelve months should be more 
than 5,000,000 bales, prices will decline; if the yield of 
cotton should be less than 5,000,000 bales, prices will ad- 
vance. If manufacturers increase their production of 
goods, they will exceed the real wants of the world, and 
thereby increase the stocks of goods; whereas, if, on the 
other hand, manufacturers diminish their production of 
goods, the present stocks of cotton manufactures will be 
reduced. In former times, when there were stocks of cotton 
in the raw and manufactured state at the consuming points 
equivalent to three years’ requirements, the question of a 
fluctuation interest made an important difference in market 
quotations. Now, however, when the stocks of the raw and 
the manufactured article combined are brought down to 
probably the smallest reserve consistent with safety, the 
“rate of discount,’ when fluctuating, does not cause a 
variation in values. It takes twice the amount of capital 
“to carry” cotton it formerly did. Three per cent. interest, 
therefore, affects the cost of a pound of cotton as much as 
six per cent. did previous to the American war. 
The expression “famine,” like the expression “consump- 
tion,’ when applied to cotton is a misnomer, for there is no 
“cotton famine.” It was a cotton plethora. There never has 
been a raiment famine. Will there ever be one? The cotton 
