(Manchester,] 11 December 1868 

Dear Moor, 

I return you 2 letters, the most the envelope can hold, in all 
haste; I wanted to write to you from the office, but was held up, 
and the last post will be leaving soon out here. 

Nincompoop* is extremely charming and tactful. This honourable 
gentleman appears to need to apply the snos-standard everywhere. 
When you see him, just ask him sometime if he is related to Mr 
Hersch Kriminand, and where the man lives. (This gentleman exists 
and signs himself exactly thus; he lives in Lemberg.) Then you can 
ask him what Lemberg is called. Polish Lwow, Little Russian and 
Great Russian Apsops, that is to say Lvov or Lowenstadt from 
lev’=lion. The Jews translate that as Lowenberg, abbreviated 
Lemberg. 

Here we have the finest crisis, and this time pure (though only 
relative) overproduction. The spinners and manufacturers have, 
for nearly 2 years now, on their own account, been consigning 
goods unsaleable here to India and China, thus doubly overload- 
ing the overloaded markets. This is no longer possible, and they 
are failing right and left. One of the first victims was Knowles, our 
fatty, who failed not so much because of consignments, but 
through general corporeal weakness—the 4 brothers had simply 
gobbled up the money. 

I call this overproduction relative because it only becomes 
overproduction as a result of the cotton prices, which are still 
high. Two pence difference would and will suffice to absorb the 
whole lot lying around. Cotton Middling Orleans today 11d., before 
the war 6'/. d., 7d., 8d., according to season. Thus still 60 to 80% 
above the old price. 

What you say about cotton 1860-61 is not quite so bad.‘ The 
harvest of 1860 was the largest ever, and the stock at the outbreak 

a Sigismund Borkheim - > Engels gives the Russian word aee in Latin letters. - ¢ See 
this volume, p. 179. 

of the war greater than ever before. We lived on this in 1861 and 
even 1862, and the highest prices came only in 1863. But this also 
depended on other things—the effective blockade of the Southern 
harbours, etc., etc. But there was never any question of 3 years’ 
reserve, that is enormously exaggerated. If you like, I can compile 
the things for you from the official report (i. e., the Liverroo. 
Broker Association's report), and I shall do it in any case before I 
abandon commerce. Incidentally, you will find a lot in Watts? 

I expect any day to receive the draft contract with Gottfried 
Ermen.” 

Your 
F. E.