Of course in this great mart a large variety of types is to be found and the members fall into some kind of rough grouping. Export buyers, attended by salesmen, are commonly more or less stationary and prominent; Burnley manufacturers abound in one locality and spinners of Egyptian yarns in another. The importance of the Exchange as a bargaining centre is fairly maintained, though buyers are assiduously cultivated in their own offices, and the telephone has done a good deal to abbreviate negotiation. As to the amount of business transacted on the Exchange there is no record. The market reporters make some attempt to materialize the current gossip, and doubtless catch well enough the great movements in the ebb and flow of demand, but the sum of countless obscure transactions cannot be estimated. Some few years ago an attempt was made to mark more clearly the course of business in Manchester, and a scheme was prepared for the recording of daily transactions. This could only have been a somewhat rough affair, but its originator maintained reasonably that it would be of interest if some indication of the daily movements could be obtained. For some time a memorandum of the total of daily sales reported was posted on ’Change, but the indifference of traders, together with the distrust that makes any innovation difficult, caused the scheme to be abandoned.
It would be difficult in any attempt to estimate the volume of British home trade to distinguish what may be called the effective movements of goods. There is a considerable amount of re-selling both in yarn and cloth, and, though the bulk of cotton goods finds the way through regular and normal channels to the consumer, these channels are not always direct. A good many transactions on the Manchester Exchange are intermediate, without fulfilling any useful function, and could be accomplished by the principals if they were brought together. Agents, of whom there are many, sometimes occupy a precarious position, but they are protected in some degree by law as well as by the custom of the trade and the point of honour. Points of honour in the Manchester business may seem to be arbitrarily selected, but they are an important part of the scheme. An immense amount of business is done without any apparent check against repudiation. It is, of course, the verbal bargain that binds, and large transactions are commonly completed without witnesses, though before the contract or memorandum of sale passes the fluctuations of the market may have made the bargain, to one side or the other, a very bad one.
(A. N. M.)
[1] It is related that in the year 1784 William Rathbone, an American merchant resident in Liverpool, received from one of his correspondents in the southern states a consignment of eight bags of cotton, which on its arrival in Liverpool was seized by the custom-house officers, on the allegation that it could not have been grown in the United States, and that it was liable to seizure under the Shipping Acts, as not being imported in a vessel belonging to the country of its growth. When afterwards released, it lay for many months unsold, in consequence of the spinners doubting whether it could be profitably worked up.
[2] Taken with some modifications from the Agricultural News (1907), vi. p. 38.
[3] Cotton Production 1906, U.S.A. Bureau of the Census, Bulletin No. 76.
[4] Cotton Culture and the Cotton Trade, p. 298.
[5] The Cotton Trade of Great Britain, by Thomas Ellison, p. 186.
[6] See article on “Dealings in Futures in the Cotton Market,” in the Journal of the Royal Statistical Society, vol. lxix, p. 325.