“The position of the market, as indicated in our last (monthly) circular, continued for about ten days afterwards gradually acquiring greater force and depression, and accompanied with a decline in the value of many descriptions of cloth and twist. At that period, from a very prevalent belief that the commencement of the new year would be characterised by improvement, an active and vigorous demand for export and the home trade ensued, which has, notwithstanding the interruption of the holiday season, continued up to the present time, rendering the stocks of all kinds of light goods, as well as of some numbers of mule twist, exceedingly light, and placing many manufacturers and spinners under contract for some time hence.” Another authority, Messrs Hollinshead, Tetley, & Co., an old-established cotton firm of Liverpool, who are generally in the possession of the best information, remarked upon the prospects of the district in their circular of the first of January as follows:— “Prospects for the general trade of the country, at least as regards the principal articles of export, more particularly cotton fabrics, were perhaps never more promising; and it is evident that the late disturbing causes, political and social, in Europe and India, with the effects produced upon other countries, reducing the consumption of cotton to 22,230 weekly in 1847, and 27,602 in 1848, (previously upwards of 30,000 bales weekly,) created a vacuum which has not been filled up by the increased consumption of 30,512 bales weekly in the present year; indeed it would seem that this large quantity (and it has been proportionately great in other cotton manufacturing countries) has only been sufficient to supply the increasing wants of the world, as we no longer hear of glutted markets, but the report is of light stocks almost everywhere. And when we take into consideration the low price of all articles of food, corn particularly, (a questionable advantage, perhaps, when unnaturally low, if the home market is to be considered of any value,) the great abundance of money, its low value, not exceeding, perhaps, 2½ per cent per annum in the London market, with a larger amount of gold, &c. (£17,000,000) in the Bank of England than was ever known before, it is evident that a great stimulus may be given to the trade of the country, and that with the disfavour shown to railway property it is most likely the usual effects will follow—viz., extensive speculation and greatly enhanced prices of all articles of import, and of cotton in particular.”