THE COTTON QUESTION-THE SUPPLY-A SUBSTITUTE.

THE great distress experienced in the manufacturing districts of England and France may be said now to have reached a point from which improvement and gradual relief can be anticipated. We would not be understood to say that there is soon to be an abundance of cotton again on the market, but only that the worst phase of the present crisis is passed, Proof of this will be found in these two facts: 1. That the consumption has been so reduced as to be less than the supply, and we may therefore look for an increase of stock. 2. Every month must increase the productability of the new sources of supply now in course of development.

As to the supply, the following table of the movement of the stock at Liverpool since July 1st, with the corresponding periods of 1860 and 1861, is of interest in this connection, showing, as it does, that there is even now a rally in the amount on hand :

In addition to this amount now on hand, it is estimated that from 500,000 to 600,000 bales are expected to come to hand before the close of the year. At the same time, the consumption in Great Britain has been reduced to a weekly average of from 20,000 to 25,000 bales, as compared with a weekly average of 46,240 bales last year, while the export has been reduced to 8,740 bales per week.* Hence, if these estimates hold good, and they are made by the best authorities, there must be an increase of

* This reduction in exports did not take place till September. Prior to that date the amount was wonderfully large considering the high price. The following table shows the weekly export for the first eight months of 1862, compared with 1859, 1860, and 1861:

stock at Liverpool the next three months. We trust, therefore, that we have seen the worst of this cotton tamine.

As to the efforts now being made to find a substitute for this remarkable staple, we have but little faith in their success, and yet such an event of course is not impossible. England is at the present time agitating this question earnestly, and if a will can always find a way, we may be hopeful. We do not propose at this time to discuss these various new undertakings, but merely to call attention to the following, showing the nature of the most

of them:

1. It may be remembered that some years since, Chevalier CLAUSSENwho we regret to learn is now in a lunatic asylum-patented a number of schemes for improving the preparation and bleaching of flax, among which was one for cutting up the fiber into fitting lengths for manufacture on cotton machinery. The material, thus prepared, was tried by several manufacturers, but it never succeeded in making its way into general consump tion, or even into general publicity. Whether, however, its failure was owing to its inherent unsuitability for the purpose intended, or to the fact that, as cotton was then tolerably abundant, it could not compete with it in price, we are unable to state positively. Probably the former; for even during the recent scarcity of cotton we have heard of no attempts to revive the Chevalier's invention.

2. Flax waste, however-the short fibers of that article which are unfitted for the linen manufacturer, and which are separated from the longer ones in the early processes-is capable of being mixed with either Orleans or Surat cotton in the proportion of one-fourth or one-third; and as far as it goes has been, and is now being, used for this purpose with advantage and without impairing the value of the fabric. But as the quantity available is of course only limited, any general demand for it would so raise the price as to make it no longer profitable. It is a resource for individual manufacturers, therefore, but scarcely for the trade generally.

3. Jute-a species of hemp, which already goes to England in great quantities, and the growth of which in India might be increased to almost any extent, and which could be supplied at a reasonable rate-is looked to with much hope by many, and Mr. THOMPSON has recently effected and registered in England some improvements in the preparation of it, which it is hoped may render it capable of manipulation on cotton machinery. The article produced is promising, but at present it is long and somewhat coarse in fiber, and appears more similar to, and more fit for mixing with, wool than cotton. It may possibly in time be adapted for cotton machinery, but is not so yet.

4. In the United States there is a patent in operation for making flax fiber at once into a substitute for cotton; but it is, we believe, a rude substance and not superior, for practical use, to the waste flax already mentioned. It needs, moreover, thirty or forty per cent of American cotton to work with it.

5. A Frenchman has invented or discovered a very neat article, which is reported to be promising. He has forwarded samples to Manchester, on the faith of which a large order was sent him, which, however, he declined to execute. It seems probable, therefore, that the article is not one which, at present at least, can be furnished in adequate quantities. Moreover, he

declines to tell h's secret without very handsome preliminary remuneration.

6. China grass is said also to offer a very promising substitute, not unlike Manilla hemp, but its working qualities have not yet been experimentally ascertained. Like all the other fibrous materials yet proposed, it can, we understand, only be worked in conjunction with a large proportion of real cotton. Moreover, this and all the other materials yet suggested, flax included, are woody fibre, and as such essentially and incurably different in nature from cotton, and devoid both of the elasticity and the smoothness which render it so valuable. They may, therefore, cheapen linen or woolen goods, but can scarcely supersede or supplement cotton.

7. The latter part of September a gentleman of the name of HARBEN explained to a party of competent manufacturers in Manchester his plan for meeting the want of cotton. This consisted of the adaptation to machinery of the fibres of a sea plant called Zostera Marina, found in large quantities on the coast in many parts of the Kingdom. In fact it is a very common ribin-like substance, usually regarded as a sort of sea weed, though said to belong to a different class botanically. It is said to have been already applied with some success to the manufacture of paper. The specimens of the article, however, which Mr. HARBEN submitted to the committee of investigation were so exceedingly scanty and inadequate, that it was impossible for those who examined them to form any opinion from them of the suitability or availability of the material; nor had Mr. HARBEN made any experiments with it to ascertain whether it could be made fit for spinning on cotton machinery; nor was he prepared with any calculations of the cost at which it could be furnished in a workable state. Under these circumstances, of course, it would be premature either to pronounce respecting it, or, we fear, to hope much from it.

8. A client of the Messrs. PHILIPS of London announce the invention of a substitute, as stated in the last number of the Merchants' Magazine; but the nature of it has not yet been made public.

9. A plant called the conserva bullosa, or craw silk, has also been proposed. In LIGHTFOOT's Flora Scotica the following account is given of the uses of the conserva bullosa: "It is of soft substance, and in pure water, where the threads grow long, resembles tow. But in muddy water, where they are short, it is not unlike cotton; which, being carefully collected and dried, turns whitish, and has (according to DILLENIUS, WEISS, HALLER, BOMARE, WITHERING, and other authorities,) been used instead of cotton."

It

may be met with in great abundance in almost every ditch and pool, especially old clay pits and slow streams. In cold weather it is always below the surface of the water, and forms a mass of yellowish green fibers, very fine, and interlacing each other in every direction. In summer it rises to the surface in large fleece like masses, commonly of a deep green color, and a spongy texture. If raked out of the water, and exposed for a few days to the sun, it loses its green color and becomes bleached.

The above embrace about all the substitutes as yet proposed. Time alone can determine their value. This list forms an important part of the commercial history of the times.

JOURNAL OF MERCANTILE LAW.

1. AUCTIONEER CONTRACT WITH BIDDER -HOW FAR AUCTIONEER IS BOUND TO ACCEPT ALL BIDS INDISCRIMINATELY. 2. TRANSFER OF PROPERTY IN A SHIP. 3. WHAT IS SUFFICIENT EVIDENCE OF THE CAUSE OF DAMAGE TO CARGO. 4. THE PETROLEUM OIL ACT OF ENGLAND.

AUCTIONEER-CONTRACT WITH BIDDER-HOW FAR AUCTIONEER IS BOUND TO ACCEPT ALL BIDS INDISCRIMINATELY.

We find reported in the Law Journal of Canada the case of HOLDER vs. JACKSON, in which the court holds that an auctioneer is not bound to accept all bids, as a matter of course, from persons present at his auction; and that, therefore, an action will not lie for refusing to accept such bids unless by reason of some special conditions or terms of the sale.

The facts of the case, and opinion of the court, were in substance as follows:

The action was brought by the bidder for damages. The declaration charged the defendant with wrongfully, maliciously, and without reasonable or just cause refusing to accept plaintiff's biddings at an auction for articles offered for sale, when the plaintiff had already been the highest bidder for, and had certain cther articles knocked down to him as the purchaser thereof. The inducement laid was that plaintiff was in the habit of buying at auction for himself and on commission for other persons, (not averring notice thereof to defendant.) That defendant, as an auctioneer, was holding a sale at public auction on the following conditions: every article to be taken as it may turn out to be good, bad, or indifferent; any lot in dispute at the time of being adjudged to be resold to the highest bidder. Terms of payment, cash, prior to the goods being removed or delivered, which was to take place after the sale was closed. Any articles remaining unsettled for agreeably to the terms of sale to be resold on account and risk of the purchaser. Persons purchasing to the extent of £50 or upwards, can have a credit of three months, by furnishing approved endorsed notes. Plaintiff did not assert that he was the highest bidder for any article which was not adjudged to him, but that the refusal of his bids prevented his becoming the highest bidder. Nor did he aver that he purchased some articles with intent to buy others, enough together to amount to £50; so that defendant's refusal to accept subsequent bids prevented this, whereby he was obliged to pay cash for what he did buy. This, we say, the plaintiff did not state; but his claim rested on the assumption that an auctioneer at a public sale must receive the bidding or offer of any and every person present, and does a wrong to any person whose bidding or offer he declines to notice and receive.

The judge said that he could understand that possibly an auctioneer may do a wrong to a seller by refusing bids. As he is agent for the seller ab initio he has the right to settle not merely the terms of sale, but to regulate the biddings; as for example, to say he will not receive any bid which does not advance a given sum upon the last preceding bid. He is under no contract with the intending purchasers, unless it arises

from the expressed terms or conditions of sale, until by accepting their bids he becomes bound to complete the sale according to those conditions. As, in case his conditions state the sale to be without reserve, he is bound by a contract to sell to the highest bidder who is not the owner or agent for the owner. A bid, therefore, by or on behalf of his principal is contrary to the contract to sell without reserve, and the auctioneer cannot receive it to the prejudice of the last preceding bidder. WARLow vs. HARRISON, (5 Jur. N. S. 313, and 6 Jur. N. S. 66.)

But in a sale such as it is stated in this count, I do not understand on what ground any person can claim as a right to be allowed to bid-to offer to become a purchaser. It will be going beyond any authority I have seen to hold, that by holding an auction under such circumstances there is an implied duty or contract to deal with any person who presents himself, and that the auctioneer, with due regard to his responsibilities to his principals has not a right to refuse to deal with any particular person. The principal might refuse from mere caprice to sell to A, B, or C, and might direct the auctioneer to refuse to sell to certain parties, and I can see no reason why the auctioneer (the agent) is bound by law to accept offers or bids, any more than his principal would be. There are no special circumstances shown to prevent his exercising a discretion, which may be very necessary under circumstances easy to imagine. The court, therefore, gave judgment for defendant.

TRANSFER OF PROPERTY IN A SHIP.

The Statute of Registration provides, that, "in every case of sale or transfer, there shall be some instrument in writing, in the nature of a bill of sale, which shall recite at length the said certificate; otherwise the said ship or vessel shall be incapable of being registered anew." It follows, therefore, that a merely oral transfer, although for valuable consideration, and followed by possession, gives the transferee no right to claim a new register setting forth his ownership. But this is all. There is nothing in this statute to prevent the property from passing to and vesting in such transferee. It is, however, unquestionably a principle of the maritime law generally, that property in a ship should pass by a written instrument. And as this principle seems to be adopted by the statute, the courts have sometimes almost denied the validity of a merely parol transfer. The weight of authority and of reason is, however, undoubtedly in favor of the conclusion stated by Judge STORY, that "the registry acts have not, in any degree, changed the common law as to the manner of transferring this species of property." It would follow, therefore, that such transfer would be valid, and would pass the property.

The English registry act provides, that "when the property in any ship, or in any part thereof, shall, after registry, be sold, the same shall be transferred by bill of sale, or other instrument in writing, containing a recital of the certificate of registry, or the principal contents thereof; otherwise, such transfer shall not be valid or effectual for any purpose whatever, either in law or in equity." Our registry act contained no such provision. Perhaps this important omission arose from a doubt whether legislating concerning the transfer of ships at home, as property, could be considered as a regulation of commerce; for if not, it was not within their constitutional power.