CORNELL UNIVERSITY LIBRARY BOUGHT WITH THE INCOME OF THE SAGE ENDOWMENT FUND GIVEN IN 189I BY HENRY WILLIAMS SAGE Cornell University Library HD9881.5 .E47 The cotton.,trade of Great B^^^^^^^^^ olin 3 1924 030 128 239 Cornell University Library The original of tliis book is in tlie Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924030128239 THE COTTON TRADE OF GREAT BRITAIN. THE COTTON TEADE OF GEEAT BEITAII^. / INCLITDING A HISTORY OP THE LIVERPOOL COTTON MARKET AND OP THE LIVERPOOL COTTON BROKERS' ASSOCIATION. BY THOMAS ELLISON. LONDON : EFFINGHAM WILSON, ROYAL EXCHANGE. 1886. (All Bights Beserved.) Liverpool: printed at the "daily tost " and " echo " office, victoria street, PEE FACE The object of this vokime is to furnish our Cotton Merchants, Brokers, Spinners, and Manufacturers, with a handy Manual of Historical and Economical information about the < Commerce and Industiy in which they are engaged. A lony, practical experience, including much correspondence, has sug- gested the character of the information sujjplied, and the method of setting it forth. The staple industry of Lan- cashire and portions of the neighbouring counties, as kno\vn to - the present generation, was founded scarcely a hundred years ago by the genius of Hargreaves, Arkwright, Crompton, and Cartwright ; but for several centuries prior to the manufacture of the first piece of British calico, constant efforts had been made to produce fabrics similar to the fustians and calicoes imported from the Mediterranean and the far East. An account of these efforts, and of the success, which eventually attended them, is given in the first and second chapteis of Part I. This is followed, in the third chapter, by a summary of the mechanical inventions and knprovemeuts brought out during the present century — con- cluding with a description of the machinery employed in a modem Cotton mill. (') Then follow two chapters on the ■economical results of the invention of the ^yater-Frame, thg Mule, and the Power-Loom, and of the various improvements "thereon, down to the present day: ending with a statement of the number of Operatives, and amount of Capital, employed in the industry. After this come chapters on the Factory ^nd Census Returns; on the Supply of Cotton since 1781; on the relative positions of England, the Continent, the United States, and India, as producers of Cotton fabrics ; on the Depression of Trade in 1875-9 and 1883-5, including remarks upon Foreign competition, and on the Keciprocity delusion ; ■on the relative importance of the Cotton, Woollen, and Linen industries at A-arious periods for a century back; on the Oldham Cotton mills; and on the consumption, by the various countries of the world, of British and Irish Cotton manufactures. Paut II. contains a history of the Liverj^ool Cotton Market, and of the customs which have obtained therein, since its origin in the last centur}-. Also a history of the Liverpool Cotton Brokers' Association, from its foundation in 1811 until its amalgamation with the Liverpool Cotton Exchange, in 1882, including an account of the circumstances which led uj) to the formation of the Amalgamated Association.' In this Part, too, will be found some Gleanings and Eemini- .scences about old Cotton Brokers and their Offshoots ; being a revised reprint of a series of articles which originally appeared in the columns of the Lirerpuul Daily Post. They are by (^) The description contained on pages 38 to 46 was kindly written for ±his volume by Mr. Henry Schofield, of Oldham. VII. general request reproduced in this volume as a souvenir of the late Cotton Brokers' Association. To these sketches are added chapters on the Cotton Clearing House, on the Cotton Bank, and on Periodical Settlements. In the Appendix will be found important Statistical and other matter — bringing the history of the trade down to the latest date. This work was promised some time ago; but its pub- lication has been unavoidably delayed. The delay, however, has enabled the author to add a Supplementary Chapter on current topics, which will probably be found to be not the least interesting in the volume, Liverpool, May, 1886.' CONTENTS. PART I. THE COTTON TRADE OF GREAT BRITAIN, CHAP. CHAP. CHAP. 11.- III. CHAP. IV. CHAP. v.— CHAP. VI. CHAP. VII. CHAP. VIII.- CHAP. IX. CHAP. X. CHAP. XI. CHAP. XII.- CHAP. XIII. -Historical Sketch clown to the opening of the Eighteenth Century 1 -The Era of Invention ... ... ... ... ... 14 -Progress of Invention since 1800 ; Description of a Mfodern Cotton Mill (see also page 338) 30 The Economical results of the Invention of the "Water-Frame, the Mule, and the Power-Loom, down to 1815 47 Economical results of the Mechanical Improvements introduced since 1815 (see also page 338) ... ... 57 -Factory and Census Returns (see also page 325) ... 71 -Cotton Supply, 1781-1883 80 -The relatiA'e positions of England, the Continent, and the United States since 1801, and of India since .- 1861 (see also pages 318 and 324) 97 'The Depression of Trade, 1875-79. The Reciprocity Delusion (see also pages 297 to 324 on the Cotton Industry in 1883-1885) 106 -The relative importance of the Cotton, Woollen, and Linen Industries, 1783-1883 (see also page 339) 1 17 -The Oldham Cotton Mills 133' -The Production and Consumption of Cotton in the World 141 The Distribution of British and Irish Cotton Manu- factures 149 SuppLEMEN'TABY CHAPTER. — I., Depression of Trade, 1883-85 (297).^ II., Profits and Losses, 1871-85 (306).— IIL, American and Continental Competition (313). — IV., East Indian Competition. (317).— v.. Factory Returns (325). PART II. HISTORY OF THE LIVERPOOL COTTON MARKET AND OF THE COTTON BROKERS' ASSOCIATION. CHAP. I.— The Cotton Market in the last century CHAP. ' II.— The Cotton Market in the present century CHAP. III. — Gleanings and Reminiscenses about old Cotton Brokers and their Off-shoots CHAP. IV. — Intermediate and Closing Developments CHAP. v.— The Cotton Clearing House CHAP. VL— The Cotton Bank CHAP. VII.— Periodical Settlements 165 174 187 272 281 288 291 APPENDIX. I., Movements in Great Britain, 1884-5 (331).— II. , The American Cotton Crop and its Distribution (335). — III., Exports of Cotton from India to Europe (336).— IV., The Egyptian Cotton Crop (337).— v., Cost of Producing Yarn (338).— VI., Cottons, Woollens, and Linens (339).— VII., The Continental Cotton Industry, 1884-5 (341).— VIII., The Cotton Industry in 1769 (350).— IX., The Members of the Cotton Brokers' Association (352). STATISTICAL TABLES. I, — Imports, Exports, Home Consumption, and Stocks for Great Britain, in Bales and Pounds, and the Annual Average Prices of Uplands, Pernam, and Dhollera, 1811-84. II. — The Quantities and Values of Yarns and Manufactures Exported from the United Kingdom, and the Quantities of Cotton Imported and Exported, as per Board of Trade Returns, in 1,000's, since 1821. IIL — The Extent and Distribution of the Cotton Crops of the United States since 1826-27. IV. — Import, Export, Deliveries to Consumers, and Stocks for Great Britain, 1871-1884. • V. — Import, Deliveries to Consumers, and Stocks for the Continent, 1871-1884. The particulars for the year 1885 for each of the above tables will be found in the Appendix. , PAET I. THE COTTON TRADE OF GREAT BRITAIN. PART I. THE COTTON TRADE OF GREAT BRITAIK CHAPTER I. HISTORICAL SKETCH DOWN TO THE OPENING OF THE EIGHTEENTH CENTURY. Introduction of the Cotton Industry from India, its birth-place, into Eastern, and eventually into Western, Europe. — In England preceded by the woollen manufactures originally introduced from Flanders. — The term ' ' Manchester Cottons " first applied to imitations of certain fabrics imported from the Mediterranean. — Position of the industry in the seventeenth century. — English Woollen manufacturers jealous of Irish competitors and of foreign imports. — Agitation against imports of Calicoes from India. — Legislative protective enactments passed at the close of the seventeenth and opening of the eighteenth centuries. — The popularity of the Indian goods leads to imitations composed of Cotton Weft and Linen Warp, and suggests the desirability of such improvements in the existing machinerj' as would enable our Spinners to produce a Cotton Yam suitable for Warp, and so render it possible to make a nearer approach to the Indian article. India is undoubtedly the birthplace of the cotton manufacture. It is known from the sacred books of the country that the in- dustry must Jiave been in existence there, in a high state of perfection, three thousand years ago ; but how long before that period is not known. Moreover, it may be gathered from numerous authorities that the arts of cotton spinning and cotton weaving, as practised there twenty or thirty centuries ago, differed very slightly from the methods followed throughout India until within a very recent period. Fabrics as fine as any that can be turned out at the present day, hy the most perfect machinery in Lancashire, were produced by the nimble fingers of Hindoo spinners, and the primitive looms of Hindoo weavers, a thousand years before the invasion of Britain by the Romans — in fact, at a period vrhen the inhabitants of the British Isles were attired in the skins of wild animals, the leading people of India were luxuriating in garments of a texture so fine as to have earned the poetic description of "woven wind," and what is still more astonishing is the circumstance that the cotton, with which this wonderful perfection was attained, was the much despised Surats, and still more despised Bengals, of modern times. In course of time the trade in cotton and cotton goods spread from India westwards. Herodotus, the historian (484 B.C.), and Xearchus, Alexander's admiral (32.5 B.C.), both make mention of the Indian cotton tree and the cloth made therefrom ; and there is no doubt that in their day the export of Indian fabrics to Persia, Egypt, and Eastern Europe was an established trade, though possibly not a very extensive one. Strabo, who flourished just before the commencement of the Christian Era, mentions cotton as a product of Persia, and Pliny says that the cultivation of the plant was carried on in Egypt in the year 70 A.D. Arrian, who flourished about the middle of the second century, enumerates cotton fabrics as among the articles imported by the Romans from India, and describes very minutely the trade carried on between Bengal, Madras, Guzerat, and-several ports in the Red Sea. By and by the cultivation of the plant found its way from Persia into Turkey and Greece, and from Egypt into North Africa, and thence over to Spain and Italy. The Moors are said to have introduced the culture into Spain in the eighth century, but we have no authentic mention of cotton spinning and weaving in Europe earlier than 950, about which time, and for several centuries later, an extensive manufacture was carried on at Seville Cordova, and Grenada. The industry, however, fell into decay after the expulsion of the Saracens, towards the close of the fifteenth century, and was not restored until within recent times. The manufacture mad? its appearance in Italy in the fourteenth century. By the middle of the sixteenth century it was estab- lished in Germany, Prussia, Saxony, and the Netherlands. A little later came England. France followed in the seventeenth century, and Russia in the eighteenth. It is important to note, however, that though the art of spinning cotton wool had spread over Europe, in the manner and in the chronological order just mentioned, there is no record of its yarn having been woven into cloth until towards the close of last century, except along with warp spun from either wool, flax, •or silk. This wis true at all events of "Western Europe. The first recorded import of cotton into England took place in 1298. It was used for the manufacture of candle-wicks. Several authorities mention the occasional arrival of small quantities of the fibre from the Mediterranean at various dates down to 1560, and the probability is that these imports were used chiefly, if not ■entirely, for candle-wicks. Mention is made of "Manchester cottons'' as early as 1352, and at various dates down to 1641; but these were really not cotton goods, but fabrics composed of wool and cotton or linen and cotton. Fustians were imported from the Continent as earlj^ as 1601, and calicoes from Calicut, in India, thirty years later ; but the fustians and calicoes made in England at that period, and for more than a century afterwards, were mere imitations, sometimes all wool and at other times partly cotton. But although the cotton manufacture, as it is at present under- stood, is only of comparatively modern origin, its foundations were really laid centuries ago in precisely the same county in which it is now the great and characteristic industry. The pioneer fabric was wool, and the starting point Flanders. The arts of spinning and weaving wool were introduced into England by the Romans, and early historians mention the industry at various dates up to the tenth century ; but the progress made was very slow, and the origin of the manufacture, as -v^e now under- stand the word, is generally associated with the arrival of a number of Flemish immigrants during the reign of William the Conqueror. These operatives, as we should call them now-a-days, had dwelt upon land reclaimed from_the sea, but a- sudden and overwhelming incursion swept away their dykes and they wer& left without a home. On this they turned their attention to- England as offering a profitable field for their industry. They sought the patronage of the Queen, who was a countrywoman of theirs, and were cordially received and located in the North. Others followed in succeeding reigns, and were settled in various districts, of the country. But supremacy in the manufacture of wool long remained with Flanders, though England stood first as the pro- ducer of the raw material. Hallam says that " a writer of the thirteenth century asserts that all the world was clothed from English wool wrought in Flanders.'' This, of course, is an ex- aggeration, but it shows the importance of the industry and the relative positions of the two countries at the time. The Flemish weavers were frequently at loggerheads with their rulers and corporations ; but, spite of continued wars and' corporate ojapres- sions, the industry continued to fiourish, and only comparatively few emigrants came over to England until the reign of Edward III (1327-1377). This sovereign, whom Hallam justly styles the father of English commerce, was by one of the French kings nick- named the "wool merchartt," on account of the anxiety which he displayed to, transfer the woollen industry from Flanders to- England. The circumstance that Edward had married the daughter of a Flemish count afforded him exceptional means of -putting his plans into execution. Early in his reign he sent over- messengers to invite the discontented Flemings to come and take up their abode in England, where it was said they would be- much happier than in their own country. The King's emissaries painted the advantages of the change in glowing colours. At home, to quote the account of Fuller, given in his " Church History," they were " early up and late in bed, and all day hard work and harder fare, and all to enrich their masters without any profit to themselves. But, oh ! how happy should they be if they would but come over to England, bringing their mystery, which would provide them welcome in all places ! Here they should feed on fat beef and mutton till nothing but their fulness should stint their stomachs,'' and, what was still bettei-, "the richest yeomen. in England would not disdain to marry their daughters unto them, and such the English beauties that most envious foreigners could not but commend them." The result was that, in 1331, about seventy families came over and were settled, says Baines, in York, Kendal, Halifax, Manchester, the districts of Rossendale and Pendle, and other places. Their settlement was for a time op- posed by the existing woollen interests, and, says Hallam, " it cost Edward no little trouble to protect his colonists from the selfish- ness and from the blind nationality of the vulgar." Q) Prior to the arrival of these immigrants the art of weaving was so backward in England that Fuller says that the English knew no better what to do with their wool than the sheep that wore it, and that their best clothes were no better than friezes; now, however, England was in a position to compete with the Flemish manu- factures in the production of the higher descriptions of cloth, and also in the manufacture of what were called " Manchester ■cottons," but which were in fact all wool fabrics, made in imitation of certain popular cloths imported from the Mediter- ranean. It is a fair inference, in fact, that the production of these so-called cottons was introduced by Edward's colonists, inasmuch as the first time we meet with the name occurs twenty-one years .after the date at which the colonists arrived." From the time of Edward the Third the industry continued to make more or less important progress, and was frequently the subject of legislative ■enactments of a controlling, encouraging, and protective character. Tlie export of sheep was prohibited in 1338, and a similar interdict was shortly afterwards placed upon the trade imvool; so that instead •of exporting the raw material, England began to export cloth, at first to Germany, Flanders, and Eussia, and eventually to Spain And Italy. In 1585 a considerable impetus was given to the whole of the textile industries by another extensive immigration ■of Flemish capitalists and artizans driven out of their own country by the cruelties of the Duke of Alva. Many of these settled down in the neighbourhood of Manchester, and, as an encouragement, were (^) " History of Europe," vol. iii., p. 322. for the small charge of 4d. per annum, allowed by the wardens and fellows of the college to cut timber for firing, and for the construction of looms, out of the extensive woods belonging to the foundation. (^)' This new influx of weavers increased the demand for yarn, and hastened the development of a change which had already com- menced to show itself in the character of the fabrics produced in Manchester. The linen manufacture had been introduced into England in the thirteenth centurj^, and in Lancashire had grown up side by side with the woollen industry, until it attained a, position as important as that of wool itself, and eventually became the immediate joredecessor of the cotton, manufacture. The po- sition of things early in the seventeenth century is very clearly stated by Lewis Eoberts, in a work called "The Treasure of Traffic," published in 1641. "The town of Manchester buys the linen yarn of the Irish in great quantity, and, weaving it, re- turns the same again into Ireland to sell. Neither doth their industry rest here, for they buy cotton wool in London, that comes from Cyjarus and Smyrna, and work the same into- fustians, vermillions, and dimities, and then return it to London, where the same is sold, and not seldom sent into foreign parts- who have means, at far easier terms, to provide themselves of the said first materials." It does not follow that because Man- chester imported linen yarn from Ireland she returned thence linen cloth : it is not at all unlikely that part of the exports would consist of the mixed fabrics which had been gradually coming, into use. Ireland had a small but growing woollen industry ; but as this was considered to be injurious to the woollen interests of England, its progress was discouraged and eventually rigorously opposed, though everything was done to promote and improve the linen industry which was considered to be more suitable for Ireland. This led to the production of more yarn than was re- quired by the Irish weavers, and thus left a surplus available for export to Manchester, in the way narrated by Roberts. (^) The woollen manufacture had from the first been the pet (^) " History of the Cotton Manufacture," by Edwd. Baines, p. 99. (2) "The Irish Linen Trade Handbook," by F. W. Smith, p. 29. industrj- of the country, and had always been regarded as a main source of national wealth. Hence the jealousy with which everything calculated to interfere with its welfare was viewed, not only by those immediately interested, but also by the leading statesmen and public writers of the time. Out of this arose the restraint placed upon the woollen trade of Ireland ; and out of it also originated the cry against the import of cotton fabrics from India. The first arrival of these took place in 1631, ten years before Eoberts wrote his account of Manchester. But they became so popular that quite a ckimour was raised against their import on the ground that they were ruining one of the main- stays of national prosperity. It is not at all unlikely, however, that the depression which had overtaken the manufacture, was due more to the loss of trade — home and export — occasioned by the political disturbances of the time (which included the whole of the revolutionary period) than to the displacement of domestic made woollens by Indian cottons. The whole question was frequently debated in Parliament and was the sul^ject of numerous ]>atriotic jsamphlets. One of the latter, published in 1678, and entitled, " The Ancient Trades Decayed and Eepaired Again," says, " This trade (the woollen) is very much hindered by our own people, who do wear many foreign commodities instead of our own." "Instead of green say, that was wont to be used for children's frocks, is now used painted and Indian-stained, and striped calico ; and instead of a j.erpetiiana or shalloon to lyne men's coats with, is used sometimes a glazened calico, which, on the whole, is not above 12d. cheaper, and abundantly worse. And sometimes is used a Bangale, that is brought from India, both for lynings for coats and for jjetticoats, too ; yet our English ware is better and cheaper than this, only it is thinner for the summer; To remedy this it would be necessary to lay a very high impost upon all such commodities as these are, and that no calicoes or other sort of linen be suffered to be glazened." The cry for more protection came chiefly from the manufacturers of Spitalfields, Norwich, Yorkshire, and "Wiltshire. Manchester ap- pears to have been quiescent, and was probably busily engaged in making imitations of the much-denounced Indian imports. Lord Macaulay, summarising the situation, says that " the importation of silks and Bengals, as shawls were then called, was pronounced to be a curse to the country. The effect of the growing taste for such frippery was that our gold and silver went abroad, and that much excellent English drapery lay in our warehouses till it was devoured by the moths. Those, it was said, were happy days for the inhabitants both of our pasture lands and of our manufac- turing towns, when every gown, every waistcoat, every bed was made of materials which our own flocks had furnished to our own looms. Where were now the brave old hangings of arras which had adorned the walls of lordly mansions in the time of Elizabeth ? And was it- not a shame to see a gentleman whose ancestors had worn nothing but stuffs made by English workmen out of English fleeces, flaunting in a calico shirt and a pair of silk stockings from Moorshedabad ? "Q) But the Indian trade was too important, its hold upon the public imagination too strong, its safety in the powerful hands of the East India Company too secure to he in the least interfered with ; and the only legislative result of the agitation was the passage of an Act designed to secure the more effectual observance of the somewhat grim, but constantly evaded measure (originally passed in 1666), which enacted that every dead person should be buried in a woollen shroud, in default of which the persons directing the funeral should forfeit the sum of £5. If the people while alive were so perverse and unpatriotic as to prefer foreign to domestic fabrics for their vestments, they should at all events not be allowed to carry their fripperies with them to the grave. Although the efforts made to induce Parliament to place some restriction upon the increasing import of Eastern fabrics were not rewarded with success, the agitation on behalf of pro- tection was not only kept alive, but became more powerful as time went on. In 1685 about 50,000 out of over lialf-a-million Huguenots wore driven out of France by the revocation of the edict which for a century had guaranteed to them religious (') " History of England,'' vol. iii., chap. 18. 9 liberty, arrived in England, and settled in Spitalfields and other places, introducing several new branches of silk and other falirica which came into direct competition with the Indian imports. Of course these newcomers by degrees swelled the ranks of the protectionists. Meanwhile the trade with the East continued to •grow in magnitude, so much so that the writer of a pamphlet entitled " The Naked Truth, in an Essay upon Trade," published in 1696, stated that the muslins and silks imported by the ■Company were " becoming the g-eneral wear in England f and then, in a tone of contempt, he goes on to say, "Fashion is truly termed a witch ; the dearer and scarcer any commodity the more the mode ; 30s. a yard for muslins, and only the shadow of a •commodity when procured !" While the agitation against the Indian imports had been going on, the textile industries of Ireland had made very fair progress ; cheaper living and lower wages had attracted capital from England and the Continent ; and spite of previous opposi- tion and discouragement, the Irish woollen trade had attained siich a position, both in respect of the export of the raw material .and in that of the production of the manufactured article, as to materially curtail the demand for English products, and, there- fore, to excite anew the jealousy and apprehensions of the English manufacturers, who by numerous petitions urged both Houses of Parliament to come to the rescue of the alleged jeopardized in- dustry. As Ireland had no corporation like the East India Company, powerful and popular enough to take care of its interests, its illiberal rivals had an easy victory. On the 9th June, 1698, the House of Lords, in an address to the King, said—" We, the lords spiritual and temporal in Parliament assembled, do humbly represent unto your Majesty that the growing manufacture of ■cloth in Ireland" ..." doth invite your subjects of England, with their families and servants, to leave their habitations to settle there, to increase the woollen manufacture in Ireland, which makes your loyal subjects in this kingdom very apprehensive that the further growth of it may greatly prejudice the said manufac- ture here ;" . . " wherefore, we do most humbly beseech your 10 most sacred Majesty, that your Majesty would be pleased, in the most public and effectual way, to declare to all your subjects of Ireland, that the growth and increase of the woollen manufacture there, hath long, and will ever be looked upon with great jealousy, by all your subjects of this kingdom : And if not timely remedied may occasion very strict laws, totally to prohibit and suppress the same ; and on the other hand, if they turn their industry and skill, to the settling and improving of the linen manufacture, for which generally the lands of the kingdom are very proper, they shall receive all countenance and favour and protection from your royal influence." On the Ipth of June the Lord Steward re- ported that " his Majesty will take care to do what their lordships have desired." On the 30th of the same month the House of Commons addressed his Majesty in even stronger terms than those employed by the House of Peers. " We," they say, " being very sensible that the wealth and power of this kingdom do, in a great measure, depend on the preserving of the woollen manu- facture, as much as possible entire to this realm, think it becomes us, like our ancestors, to be jealous of the establishment and in- crease thereof elsewhere." . . . "And, therefore, we cannot without trouble observe, that Ireland, is dependent on, and pro- tected by England in the enjoyment of all they have," . . . " should of late apply itself to the woollen manufacture, to the great prejudice of the trade of this kingdom ;" . . . " The consequence whereof, will necessitate your Parliament of England, to interpose to prevent the mischief that threatens us, unless your Majesty, by your authority and great wisdom, shall find means to> secure the trade of England, by making yo>n- subjects in Ireland to pursue the joint interest of both kingdoms ;" and we implore your Majesty to " enjoin all those you employ in Ireland, to make it their care, and use their utmost diligence, to hinder the ex- portation of wool from Ireland, except to be imported hither, and for the discouragement of woollen manufactures and the en- couraging of the linen manufactures in Ireland, to which we shall always be ready to give our utmost assistance." In compliance with the wishes thu« expressed by the Lords and Commons, the- 11 King communicated with the Irish Parliament, and, on the 27th September, 1698, in reply to the speech from the throne, the Commons of Ireland said — " We pray leave to assure your Excel- lencies that we shall heartily endeavour to establish a Imen and hempen manufacture here, and to render the same useful to Eng- land, as well as advantageous to this kingdom, and that we hope to find such a temperament in respect to the woollen trade here that the same may not be injurious to England ;'' and forthwith they passed a law imposing additional duties ranging from 10 tO' 20 per cent, upon all woollen manufactures exported from Ire- land, which, says Arthur Young, (^) was, in effect, a prohibition. The consequence of this compact was that the woollen industry of the sister isle shortly perished. Having thus got their Irish competitors out of the way, our manufacturers once more turned their attention to India. This time their efforts were crowned with success, inasmuch as, in 1700, they persuaded Parliament to pass an act prohibiting the' import of printed calicoes, under a penalty of £200 on the wearer or the seller, but allowing the import of plain calicoes upon the payment of a heavy duty, which latter concession was agreed to in the interests of the printing industry, which had been established since 1676. The protectionists were aided by a number of pam- phleteers and i^'ublic writers of the time, who wrote more or less exaggerated descriptions of the ruin which it was alleged was rapidly overtaking our textile industries. Perhaps the most amusing is- that of Daniel de Foe, the author of " Robinson Crusoe." " The general fansie of the people (he says) runs upon East India goods to that degree that the chints and painted caUcoes which before were only made use of for carpets, quilts, &c., and to clothe children and ordinary people, become now the dress of our ladies' and such is the power of a mode as we saw our persons of quality dressed in Indian carpets, which but a few years before their chambermaids would have thought were too ordinary for them." " Even the Queen herself at this time was pleased to (') " Tour in Ireland," vol. ii., p. 282, &e. 12 .ajjpear in China and Japan;" moreoVer, "it crept into our, houses, our closets and bedchambers ;" " in short, almost everything that used to be made of wool or silk, relating either to the dress of the women or the furniture of our houses, was supplied by the Indian trade." " Above half of the (woollen) manufacture was entirely lost, half of the people scattered and ruined, and all this by the intercourse of the East India trade." In a few years it was found that although, to jjlease the printers, the import of plain calicoes was allowed on the payment of a heavy duty;- the demand for them was- not checked, and in 1712 an excise duty of 3d. per yard was levied upon calicoes, printed, stained, painted, or dyed, and in 1714 the impost was raised to 6d. per yard. These various restrictive measures, however, failed to afford the desired protec- tion to the wool and silk interests. As Postlethwayt says, in his " Universal Dictionary of Trade and Commerce," the general wear of stained or jjrinted India calicoes had occasioned such " unspeakable distress and calamity upon our own manufacturers, •especially the weavers," that in 1720 an- act was passed which absolutely prohibited the use or wear of all printed or dyed calicoes except muslins, neckcloths, fustians, and fabrics dyed all blue. This act, the effect of which was to put an -end to the printing of cloth, either wholly or partly composed of cotton, re- mained in force until 1736, in which year it was modified so as to .sanction the printing of fabrics composed of cotton weft and linen warp, made in imitation of certain styles of East India goods, and the production of which had attained considerable importance. The prohibition against calicoes pure and simple, however, re" mained in force. " The late acts," says the author of a work -entitled " A Plan of English Commerce," published in 1728, " pro- hibiting the use and wearing of painted calicoes either in clothes, equipages, or house furniture, were without question aimed at improving the consumption of our woollen manufacture, and in part it had an effect that way. But the humour of the people running another way, and being used to and pleased with the light, easy, and gay dress of the cahcoes, the caUco printers fell to work to imitate these calicoes by malang the same stamps and 13 impressions, and with the same bgauty of colours, -upon linen." The same author is very severe on the ladies of that time for what- he terms their ungovernable passion for their fashions, the liberty of gratifying which, he says, had been frequently injurious to the manufactures of England, but he despairs of any reform in the matter as, he says, the ladies " claim English liberty as well as the men, and as they expect to do what they please and dress^ how they please." The ladies, in fact, were determined to have their own way, and, as usual, they were successful. The popularity of these goods suggested the obvious de- sirability of making a still further approach to the Indian article- by producing a fabric composed entirely of cotton; but in the absence of a machine capable of turning out a yam hard and strong enough to be used as warp (hitherto supplied by linen), this was found to be impossible ; and it was to the production of such a machine that the efforts of the mechanics of the time were now directed. 14 CHAPTER II. THE ERA OF INVENTION, Progress of the industry hindered owing to inadequate supply of Yam, especially after invention of the fly-shuttle by Kay in 1738. — Stationary condition of the trade from 1697 to 1749. — Prices of Yarn in 1743. — Invention of the spinning jenny by Hargreaves, 1764. — Opposition of workpeople. — Spinning by rollers invented by Wyatt in 1730, patented in 1738, followed up by Lewis Paul 1741-58, and perfected by Arkwright in 1768 ; brought into operation on a large scale in a mill erected at Cromford ; received the name of ' ' Water-frame. " Im- provements by Arkwright and others in carding machinery. — Produc- tion of first, piece of English Calico 1773. — Extensive infringement of Arkwright's patents. — His struggles with the workpeople and better classes, who all dreaded the influence of the new machinery. — Hie patents thrown' open to the pubKo. — The spinning jenny superseded by the " mule " invented by Crompton 1774-79. — Production of Yarn overtakes consumption .owing to backward condition of weaving machinery. — Power-loom invented by Cartwright 1785, and by others down to the close of the eighteenth century. — Contemporaneous improvements in steam-engine by Watt 1769-1784 ; applied to Cotton mills in 1785. — Cylinder-printing invented 1783. — Improvements in bleaching 1774-88. — Bridgewater and other canals opened 1780-1790. — Increasing demand for Cotton caused Spinners in 1788 to urge East India Company to push the cultivation of the fibre in India. — Inven- tion of Saw-gin by Whitney in 1793 eventually brings supplies from America. — Enactments against export of Cotton machinery, and against the enticing away of Cotton operatives. — Brief summary of movements, inventions, &c., 1741-1800. The necessity for some improvement in the method of spinning had become very imperative, as even the production of vi^eft alone, by the slow process of the primitive single-thread domestic wheel, was totally inadequate to meet the growing demands of the trade. One good weaver, as Dr. Ure observes, could keep 15 three active women at work siDinning weft ; and, as it was iound more easy to multiply weavers than spinsters, looms were often at a stand for want of yarn. This was especially the ■case after the invention of the fly-shuttle by Mr. John Kay, of Bury, in 1738, a contrivance which enabled the weaver to turn •out twice as much cloth as before in a given space of time. "The old mode," says Mr. Baines, " was, to throw the shuttle with the hand, which required a constant extension of the hands to each .side of the warp. By the new plan the lathe (in which the shuttle runs) was lengthened a foot at either end ; and by means of two .strings attached to the opposite ends of the lathe, and both held by a peg in the weaver's hand, he, with a slight and sudden pluck, was able to give the proper impulse to the shuttle." The inven- tion, however, was, adopted -very slowly, owing, partly, to the jealousy of the workpeople, who opposed this and every other labour-saving contrivance, on the ground that it would throw them ■out of employment, and, partly, to the circumstance that the old looms were more than able to consume all the yarn that could be prodiiced by the existing method of spinning. " It was no un- common thing," says Mr. Guest, " for a weaver to walk three or four miles in a morning, and call on five or six spinners, before he could collect weft to serve him for the remainder of the day" ; while in busy times the price paid, including supplementary presents made to the spinners to quicken their exertions at the wheel, was proportionately much higher than the payment re- ceived for the cloth when woven. Under such circumstances it is not surprising that the progress of the manufacture was exceed- ino^ly slow ; that our spinners and weavers were, in respect of many descriptions of yarns and goods, beaten by the cheap pro- ducts of India ; and that numerous writers of the time took a most gloomy view of the position and prospects of the whole of our textile industries. Between 1697 (the earliest year for which we .have any authentic statistics) and 1749, a period of fifty-two years, the imports of raw cotton into the United Kingdom were almost .stationary ; there were considerable fluctuations, but the average increase was quite insignificant. In 1697 and 1701 the imports 16 were 1,976,000 lb. and 1,985,000 lb. respectively ; during the subsequent five years they averaged only 1,170,000 lb., and in 1710 fell to 715,000 lb. ; in 1720 they rose to 1,972,000 lb., but. fell to l,.545,0001binl730, and to 1,132,000 lb in 1743 [in 174S they touched the exceptionally large total of 4,853,000 lb., but re- ceded to 1,658,0001b. in the following year. The average for the five years ended 1747 was only 1,795,000 lb. (4,500 bales of 400 lb.) or from 180,000 to 190,000 lb. less than 1697 and 1701, but still about 625,000 lb. (equal 1,560 bales of 400 lb.) greater- than in 1701 — 1705. Meanwhile the import of linen yarn from Ireland had increased from 1,538,208 lb. in 1731 to 2,489,872 lb. in 1750 ; so that the entire import of raw cotton from all parts of the world was much less than that of linen yarn from Ireland. The cotton was supplied by Turkey and the West Indies, chiefly the former, and there never was any difficulty in obtaining quite as much as was needed to meet the wants of our spinners. We have no record of the price of cotton in those days, but from a memorandum written by Mr. Wyatt in 1743 we gather that between 1739 and 1743 the prices paid for yarn in London were 2s. 6d. to 3s. 2d. per lb. for 16's, 3s. 4d. to 3s. 9d. per lb. for 20's, and 3s. 9d. to 4s. 6d. per lb. for 24's. In the same years- the average prices of yarn sold by the East Indian Company ranged from 3s. 9d. to 7s. 2d. per lb., with a few parcels at from 8s. Id. to 21s. 2d. per lb. Very little yarn over 24's was produced, though 40's were often touched, and 60's were some- times "hea,rd of." East Indian yarn as fine as 60's brought 13s. to 14s. per lb., and as high as 40s. per lb. was paid for a yarn the number of which is not stated. These prices, and those pre- viously quoted, were quite sufficient to retard the growth of the manufacture, and as they were entirely owing to the high cost of production occasioned by the slow and imperfect method of spinning then in vogue, it is quite certain that if a vast improve- ment had not been made upon the one-thread wheel, the cotton industry as it now exists would have been an impossibility. By the one-thread wheel the yarn, says Mr.Baines, "was spun by two processes, called 'roving' and ' spinning.' In the 17 first, the spinner took the short fleecy rolls in which the cotton was stripped off the hand-cards, applied them successively to the spindle, and, whilst with one hand she turned the wheel, and thus made the spindle revolve, with the other she drew out the card- ings, which, receiving a slight twist from the spindle, were made into thick threads called rovings, and wound upon the spindle so as to form cops. In the second process,, the roving was spun into yarn : the operation was similar, but the thread was drawn out finer, and received much more twist." The first improvement on this primitive wheel was the "spinning Jenny," invented by James Hargreaves, a weaver, of Stand-hill, near Blackburn. It was brought out in 1764, but was not patented until 1770. The idea was suggested by the wheel, and throughout the process the operations of the spinner, as described above, were strictly followed. The first machine consisted of eight spindles set in a frame, and put into motion by a single wheel ; and the action of drawing was produced by a movable carriage which contained a horizontal clasp through which the rovings passed to the spindles. The horizontal clasp performed precisely the same operation as the finger and thumb of the spinster ; the difference being that eight threads were spun at one time instead of only one, while they were also drawn out and twisted more evenly. Subsequently the number of spindles was increased to twenty or thirty, and by- and-by to 120. At first Hargreaves kept the invention to him- self, using it merely to produce yarn for his cfrn weaving ; but very shortly the secret oozed out, and the spinners in the neigh- bourhood, persuaded that the contrivance, if it came to be generally adopted, would throw naultitudes out of employment, broke into his house and destroyed the machine. Hargreayes then (1768) retired to Nottingham, where he entered into partnership with a Mr. Thomas Jones, erected a small mill, and took out a patent in 1770. Before leaving Lancashire, however, he had made anumb'er of " jennies " for sale. In thisway the machine, soon came into such general use that he was unable to maintain his patent right ; and he died (in 1778) without having received the slightest recompense for his valuable invention, c 18 Some years before Hargreaves brought out the "jenny," which, hke the domestic wheel, could spin nothing stronger than weft, another ingenious mechanic had been at work upon a contrivance which, in its final form, turned out a thread strong enough for warp, and thereby liberated the cotton trade from its dependence upon linen yarn. This invention, known as spinning by rollers, was first conceived in 1730, by JohnWyatt, of Birmingham, but was not patented until 1738, and was not really perfected until taken in hand by Richard Arkwright thirty years later. The method adopted was to pass the carding or sliver of cotton through two or more pairs of small rollers placed horizontally, the upper and lower roller of each pair revolving in contact ; amd the process, which is exactly the same as that in operation in the present day, is thus described by Mr. Baines : — " The sliver of cotton, being put between the first pair of rollers, is by their revolution drawn through and Compressed : whilst still passing through these rollers, it is caught by another pair of rollers placed immediately in front, which revolve with three, four, or five times the velocity of the first pair, and which therefore ' draw out' the sliver into three, four, or five times its former length and degree of fineness. After passing through the second pair of rollers, the reduced sliver is attached to a spindle and fly, the rapid revolutions of which ' twist ' it into a thread, and at the same time wind it upon a bobbin. That the rollers may take hold of the cotton, the lower roller is fluted longitudinally, and the upper is covered with leather." Though Wyatt was un- questionably the first to propound the principle of spinning by rollers, both his original machine and that patented in the name of Lewis Paul, in 1758, were so imperfect in detail that he did not succeed in deriving any benefit from his invention. In part- nership with Mr. Paul he erected a small mill at Birmingham, in 1741 or 1742, but the enterprise proved a failure, and the same fate befell a second experiment a year or two later at Northampton, imder the direction of a Mr. Yeoman, with capital supplied by Mr. Cavev the proprietor of The Gentleraan's Magazine. It is pretty certain that the principle of Wyatt's machine became known to 19 Arkwright, and formed the basis of the "spinning-frame," in- vented in 1768, and patented in 1769 ; but though the two con- trivances were alike in principle, they differed materially in form and construction, and it was this difference in detail which enabled Arkwright to succeed where Wyatt had failed. Much the same may also be said in respect of a machine invented by Thomas Highs, of Leigh, in 1767, but never practically utilized. Like Hargreaves, Arkwright erected his first mill at Notting- ham, whither he had retired to escape the possibility of outrages similar to those inflicted upon Hargreave;s, and where, after receiving some temporary assistance from Messrs. Wright, the bankers, he entered into partnership with Messrs. Need and Strutt, and in conjunction with them afterwards (1771) built the well-known mill at Cromford, in Derbyshire. It was at this mill that the machine was first really perfected, and received its name of the " water-frame,'' owing to the circumstance that the mill was turned by water-power. With the invention of the " jenny " and the " water-frame " commenced a new era in the history of the cotton trade ; in fact, so far as Europe is concerned, it may be said that the history of the cotton manufacture, as a separate and distinct industry, began with the invention of these two machines ; for, as we have already stated, until the introduction of Arkwright's contrivance for spinning by rollers it was impossible to produce a piece of cloth composed wholly of cotton; and so insignificant was the manufacture as late as 1766 that, in Postlethwayt's "Dictionary of Trade and Commerce," brought out in that year, the only reference made to the cotton industry is contained under the head of " Linen ;" and then it is only to report the quantity of raw cotton used in connection with the linen industry. How little the authoi- thought that the nation was then on the threshold of a marvellous industrial revolution may be gathered from the tenor of his introduictory observations on linen, which, he SEtys, "is a commodity of universal use, from the prince to the meanest subject, and a commodity that cannot be sup- planted by anything else near so commodious and agreeable for 20 those uses to which it is apphed. The use of the Indian cotton- cloth has been often attempted for shirting, but to no j)urpose ; and muslins for women's head-cloths and ruffles, &c., in place of cambric, but without success " * * " there is found, by long experience, to be a substance- and firmness in cambric which gives it a preference to muslins, for a variety of uses." The fact that these remarks were repeated in the fourth edition of the Dic- tionary, issued in 1774, showed that the growth of the new industry was at first very slow. This was due chiefly to the opposition of the workpeople to the improved spinning machinery, which was already before the public ; but, partly, to the still rude method of preparing the raw material for the spinning frame. This important process was performed by hand cards, " which," says Baines, " were brushes made, of short pieces of wire instead of bristles, the wires being stuck into a sheet of leather at a certain angle, and the leather fastened on a fiat piece of wood about twelve inches long and five wide, with a handle. The cotton being spread upon one of the cards, it was repeatedly combed with another, till all the fibres were laid straight, when it was stripped off the card in a fleecy roll ready for the rover." In 1748 a carding machine to supersede the old hand process was brought out by Lewis Paul, of Birmingham, but it was not known in Lancashire until 1760, in which year it was brought into operation by Mr. Peel (father of the first Sir Eobert) ; but/ it was so imperfect that it fell into disuse until it was improved upon by Mr. John Lees, of Manchester, in 1772; by Arkwright in 1773 ; and by Wood, of the firm of Wood and Pil- kington, in 1774. In its final form the machine turned off the cotton in an endless fleecy roll fully prepared for the next proces?. In 1775 Arkwright took out a patent including these and various other improvements connected with carding, drawing, roving, and spinning: combining, in fact, every machine comprised in the business of cotton spinning; His pretensions were fiercely opposed by other inventors and by his rivals in the trade, who infringed his patents without the slightest compunction. This state of things forced him to institute legal proceedings for the 21 maintenance of hisrights. In the first trial (1781) a verdict was given against him, chiefly on the ground that the specification given on obtaining his patent was obscure and unintelligible. Four years later, however, he was more successful, a verdict being given in his favour on the 17th of February, 1785. This un- looked-for result created considerable alarm amongst the manu- facturers of Lancashire, many of whom, on the strength of the verdict of 1781, had expended a large amount of capital in the erection of Arkwright machines ; and steps were immediately taken to obtain . a cancelment of the second decision. The case ■came on in June, 1785, , and on the 25th of that month the jury gave a verdict which in effect nullified the whole of Arkwright's patents, and threw them open to the world. That Arkwright was a great genius, and that he was the inventor of several important processes connected with modem cotton-spinning, that he was, to all intents and purposes, the father of the modern cotton manufacture, cannot be doubted ; but it was made abundantly clear at the trial of 1785 that he laid claim to more than really belonged to him ; and so satisfied was the judge on this point that he peremptorily refused to grant a new trial, remarking that he was convinced that " the de- fendant had not a leg to stand upon." But Arkwright, unhke Hargreaves, was a man of indomitable energy and remarkable business capacity • hence, even before his patents were thrown •open to the public, he had succeeded in amassing considerable wealth. Shortly after his first .patent the jealousy of the Lan- cashire manufacturers against him was so great that they refused to purchase his yarn, the result of which was that a heavy and valuable stock accumulated at the mill. But the man who worked from five o'clock in the morning until nine at. night, and who, when he was considerably more than fifty years of age, commenced the study of English grammar, and devoted an hour a day to improve his writing and orthography, was not the man to be disconcerted by a check movement of this kind. He at once commenced to weave his own yarn, and in this way met his' opponents in a manner they Httle anticipated. He was in part- nership with Messrs. Need and Strutt at -this time, but he was the ruHng spirit of the firm, and his partners promptly fell in with his suggestions. As manufacturers their first trial was in weaving stockings, but the transition from stockings to cloth was soon made, and in 1773 was produced the first piece of, British-made calico. Orders for goods now flowed in from all quarters, and everything was apparently going on prosperously ; when suddenly and unexpectedly the whole of the orders in hand were countermanded : the discovery having been made that the goods being all cotton were liable to an excise duty of sixpence per yard (instead of threepence, which was the duty on mixed fabrics), while their use when printed was prohibited ! These . duties were directed against Indian calicoes, for the protection of the home trade : no one, at the time (1736) when the Act em- bodying them was passed, contemplating the possibility of goods all cotton being produced in England. To overcome this new difficulty Arkwright and his partners applied to the Excise for a remission of the duties, and as this was refused an appeal was made (at great expense) to Parliament, the upshot of which was the passage of an Act the preamble of which states that " whereas a new manufacture of stuff's wholly made of cotton wool hath been set up within this kingdom, &c., be it enacted that no- higher duty than threepence for every yard in length reckoning yard wide, shall be imposed, &c., and that it shall be lawful for any person to wear any new manufacture made wholly of cotton when manufactured ;" and this Act, be it observed, was obtained against the " strong opposition of the manufacturers in Lancashire ! " who were annoyed by the circumstance that Arkwright had the start of them in capital, prestige, and ex- perience : a motive as spiteful and contemptible as it was selfish and suicidal. (') While this struggle between Arkwright and his various, opponents was going on, the workpeople of Lancashire were (1) Mr. Arkwright was High Sheriff of Derbyshire in 1786, and in the same year received the well-deserved honour of Knighthood. He died in. 1792, in his sixtieth year. 23 domg all ill their power to strangle the rising industrj^ From time to time there had been minor local demonstrations made against the new machines, but in 1779 there was a much more serious rising in, and for several miles round, Blackburn ; and every " jenny " made on Hargreaves' principal containing more than twenty spindles was destroyed. Those with twenty spindles were considered useful, and were therefore spared,— a fact which showed that knowledge had at least gained some ground, seeing that ten years previously a machine with only eight spindles was considered dangerous to the interests of the workpeople. Arkwright's water-frame was of such a nature that it could not be worked with profit, except with considerable power, and it had not, therefore, spread .so rapidly as Hargreaves' jenny, which could be worked at the homes of the operatives. Arkwright, however, did not escape, for a mill of his, says Mr. Baines, erected at Bickacre, near Chorley, was destroyed by a mob "in the presence of a powerful body of pohce and military, without any of the civil authorities requiring their interference to prevent the outrage." The opposition of the better classes was quite as great as that of the workpeople against the new machinery. " Not per- ceiving the tendency of any invention which improved and cheapened the manufacture, to cause an extended demand for its products, and thereby to give employment to more hands than it superseded, those classes were alarmed lest the poor-rates should be burdened with workmen thrown idle. They, therefore, connived at, and even actually joined in, the opposition to machinery, and did all in their power to screen the rioters from punishment." Q) It was these constant disturbances that caused the Legislature in 1782 to pass an Act making the destruction of cotton and other textile machinery a capital felony. But at the very time when popular vengeance was being visited upon Hargreaves' machine, another cor^trivance, which was destined to supersede the "jenny" as effectually as the "jenny" had superseded the "spinning- wheel," was being constructed by Samuel Crompton, a weaver, of C-) " History of the Cotton Manufacture," by Edward Baines, p. 160. 24 " Hall-in-the-Wood," near Bolton. This machine was first de- signed in 1774, but was not completed^until 1779. It was called a " mule," and received its name from the circumstance that it combined the principles of both Hargreaves' jenny andArkwright's water-frame. Its main advantage consisted in the fact that a finer and more uniform yarn could be produced with it than was possible with either of the other machines, and on this account it was sometimes called the muslin-wheel : the first English muslin, properly so called, being woven from yarn spun by the " mule." Crompton did not take out a patent for his invention, and the only reoompence he received was a parliamentary grant of £5,000, made in 1812 : thirty-three years after he had given the fruit of his genius to the world ! Important improvements have been made in the details of both Arkwright's and Crompton's machines, but the principles of the " water-frame " and the "mule " remain to the present day the same as when they left the hands of their inventors. There was now no longer any anxiety respecting the supply of yarn ; on the contrary, the fear was expressed that " so many mills would be erected, and so much cotton spun, that hands could never be found to weave it." This apprehension arose from the circumstance that whereas the art of cotton-spinning had been completely revolutionised, and the power of producing yarn almost indefinitely extended, the art of weaving, and the capacity for consuming yarn, had remained pretty nearly at a- standstill. The only improvements made up to 1785 were the invention of the " fiy-shuttle," by John Kay, in 1738, which doubled the producing power of the handloom ; and the invention of the " drop-box," by Robert Kay (son of John), in 1760, which enabled the weaver to use at pleasure " any one of three shuttles, each containing different-coloured weft, without the trouble of taking them from and replacing them in the lathe." In 1785, however, the Eev. Dr. Cartwright invented a power-loom, which, as Baines says, may be regarded as the parent of that now in use. Writing to Mr. Eannatyne, editor of the " Encyclopaedia Britannica," Dp. Cartwright said, — " Happening to be at Matlock in the summer 25 of 1784 I fell in company with some gentlemen of Mancliester, when the conversation turned on Arkwright's spinning machinery. One of the company observed that as soon as Arkwright's patent ■expired, so many mills would be erected, and so much cotton spun, that hands never could be found to weave it. To this •observation I replied, that Arkwright must then set his wits to work to invent a weaving mill. This brought on a conversation on the subject, in which the Manchester gentlemen unanimously agreed that the thing was impracticable, and in defence of their opinion, they adduced argunients which I certainly was incom- petent to answer, or even to comprehend, being totally ignorant of the subject, having never at that time seen a person weave ; I controverted, however, the impracticability of the thing by re- marking that -there lately had been exhibited in London an automaton figure which played at chess. Now you will not .assert, gentlemen, said I, that it is more difficult to construct a machine that shall weave than one which shall make all the variety of moves which are required in that complicated game. Some little time afterwards a particular circumstance recalling this conversation to my mind, it struck me that as in plain weaving, according to the concei^tion I then had of the business, there could only be three movements which were to follow each other in succession, there would be little difficulty in producing and re- peating them. Full of these ideas I immediately employed a carpenter and smith to carry them into effect. As soon as the machine was finished, I got a weaver to put in the warp, which was of such materials as sailcloth is usually made of. To my great dehght, a piece of cloth, such as it was, was the produce. As I had never before turned my thoughts to anything me- chanical, either in theory or practice, nor had ever seen a loom at work, or knew anything of its construction, you will readily suppose my first loom was a most rude piece of machinery. The warp was placed perpendicularly, the reed fell with the weight of at least half-a-hundred weight, and the springs which threw the shuttle were strong enough to have thrown a Gongreve rocket. In short, it required the strength of two powerful men to work 26 the machine at a slow rate, and only for a short time. Conceiv- ing, in my great simplicity, that I had accomplished all that was required, I then secured what I thought was a most valuable pro- perty, by a patent, 4th April, 1785. This being done, I then condescended to see how other people wove ; and you will guess my astonishment when I compared their easy modes of operation with mine. Availing myself, however, of what I then saw, I made a loom, in its general principles nearly as they are now made. But it was not till the year 1787 that I completed my invention, when I took out my last weaving pa,tent, August 1st of that year." The improved loom, however, was still defective ; and Dr. Cartwright expended the whole of a handsome private fortune in endeavours to perfect the machine, but without suc- cess. Similarly unsuccessful were the improvements brought out by Mr. Bell, of Glasgow, in 1794, and by Mr. Miller, of Glasgow, in 1796; and only a modified success was achieved by Mr. Monteith, of Glasgow, who took out a patent in 1801. "The great obstacle to the success of the power-loom," says Baines, " was, that it was necessary to stop the machine frequently, in order to dress the warp as it unrolled from the beam, which operation required a man to be employed for each loom, so that there was no saving of labour." This and other minor defects, however, were removed by the various dressing machines and other contrivances brought out by Messrs. B,adclif}"& and Ross, of Stockport, in the name of Thomas Johnson, a weaver, in their employment, and by Mr. Horrocks and Mr. Peter Marsland, manufacturers, of the same town, between the years 1802 and 1813, since which date very little change has- been made in the method of constructing the power-loom, though in matters of detail some very important improvements, have been introduced. In 1809 the case of Dr. Cartwright-was- brought before Parliament, and he was fortunate enough to obtain ,a grant of £10,000 as a reward for his part in aiding the progress- of the cotton manufacture. The power-loom, owing to the defects- to which we have just alluded, came into general use far more slowly than the " water-frame " and the " mule ;" and hand-loom. 27 weaving -v^as an extensive branch of the cotton industry more than half a century after the last spinning-wheel had disapjDcared. Simultaneously with the rapid advancement in the arts of spinning and weaving, considerable progress was also made in several departments of industry closely connected with the cotton manufacture. Cylinder printing, invented by Bell, of Glasgow, in 1783, and1)y means of which one man and a boy were capable of doing as much work as 100 block printers and as many boys, was introduced into Lancashire in 1785, by Livesey, Hargreaves, Hall, and Co.- Oxymuriatic acid, or chlorine, discovered by Scheele, the Swedish philosopher, in 1774, was applied to bleaching by BerthoUet, the French chemist, in 1785, introduced into Glasgow by Watt, the chemist, in 1786, and into Manchester by Mr. Thomas Henry, in 1788. By this application the time occupied in bleaching was reduced to a few days, whereas it had previously taken up several months. Watt, the engineer, took out his first patent for improvements in the steam engine in 1769, followed by other patents in 1781, 1782, and 1784. The first engine made for a cotton mill was erected by Watt and his partner Boulton, in 1785, for Messrs. Robinson, of Paplewick, in Nottinghamshire. A second one was put up for Mr. Drinkwater, in Manchester, in 1789, a third was constructed for Sir Richard Arkwright, at Not- tinghani, in 1790, and a fourth for Messrs, Scott and Stevenson, at Glasgow, in 1792. Meanwhile a considerable impetus had been given to trade in general by the opening of the Bridgewater and other ciinals between 1760 and 1790. During this period the shipping cleared out of English ports rose from 471,000 to 1,379,000 tons ; and no doubt the increase in the internal move- ments of trade was quite as great in proportion. This rapid development of consuming power greatly cheapened the cost of producing all kinds of cotton goods, and led to such an increased demand for the raw material that grave apprehensions were enter- tained as to whether a sufficient supply of the fibre could be obtained to meet the constantly increasing requirements of the rapidly rising manufacture. Hitherto the chief sources of supply had been the West Indies and Turkey, and as early as 1780 the 28 British Government, with the view to meeting the wants of Lancashire, levied a duty of l|d. per lb. and 5 per cent, upon cotton imported in foreign ships, the "proceeds tobe devoted to the encouragement of the growth of cotton in his Majesty's Leeward Islands, and for encouraging the import thereof into Great Britain." Our spinners, however, were quite convinced that neither the West Indies nor the dominions of Turkey would be able to furnish them with all the cotton they wanted ; and in 1 788 they urged, the East India Compgjiy to push the cultivation of cotton in the territories under their jurisdiction ; very " naturally supposing that if an increased supply of cotton could be obtained from any quarter whatever, it would be from the country which was undoubtedly the cradle of the cotton manufacture. But within a very few years assistance came from a totally unexpected quarter — the Southern States of the American Union, where, owing to the invention of the, saw-gin by Eli Whitney, the cultivation of the plant made such extraordinary progress that West India and Turkey cottons were rapidly superseded, and the desired supply from India ren- dered unnecessary. \ About the year 17,20 an Act was passed which inflicted a fine of £10C^ or three months' imprisonment, upon any jDerson who endeavoured to entice any manufacturer or artificer out of his Majesty's dominions ; but as, in spite of these penalties, '' divers wicked persons " had seduced into foreign ports several artificers in the woollen and other manufactures, the fine was in 1750 raised to £500, and the imprisonment to twelve months fox the first offence, and to £1,000 and two years, respectively, for the second offence. By the same Act the export of machinery was pro- hibited by the forfeiture of the goods and a fine of £200. In 1782 this Act was extended to the calico printing and cotton branches of manufacture. "In 1785 a German named Boden was tried at Lancaster and fined £500 for ha-^ing visited Manchester and enticed cotton operatives to Germany, ■ and in the succeeding year another person was fined £200 for having in his possession a quantity of cotton machinery with a 29 view to exporting it to Germany and for having seduced work- men to go abroad with it."(^) The following is a brief summary Of statistical movements,, inventions, &c., during 1741-1800 : — 1741 1751 1764- 1769 1770 1771-) to 177bJ 17761 to 1780 J 1781 1782 1783 1784 1785 1786 1787 1788 1789 1790 1791 1792 1793 179* 1796 1796 1797 1798 1799 1800 Cotton Imported. All kinds. American. E, Indian. lb. 1,645,031 3,976,610 3,870,392 No I'ecord No record 4,764,589 6,766,613 5,198,77b 9,735,663 11,482,083 18,400,384 19,475,020 23,260,268 20,467,436 32,576,023 31,447,606 28,706,675 34,fl07,497 19,040,829 24,358,569 26,401,340 22,126,357 23,854,371 31,880,641 43,5)79,278 60,346,600 lb. None None None None None .None None None 1,200 None None None None None 189,316 138,3-28 487,600 1,601,700 6,276,300 6,106,729 3,788,429 9,360,006 9,632,263 17,789;803 lb. None None None None None None None 114,133 11,440 99,455 None None None 4,973 422,207 3,351 None 729,734 239,245 197,412 609,850 912,844 1,752,784 6,712,6-22 6,629,822 1738 1748 1760 1764 1769 l770 1771 1773 1776 1779 1783 1784 Inventions, &c. 1786 1787 178S 1790 1791 1792 1793 1794 1796 1796 1797 1793 1799 1800 Kay's "Fly-shuttle." Paul's "spin- ning; by rollers." Jaul's improved carding machine. Kay's " Drop-boK." 17i)4 Hargreaves' " Spinning Jenny." Calico printing- introduced into Lan- cashire. Arkwright's first patent. Watt's first patent. Hargreaves' first patent. Arkwrig-ht's mill built at Crompton. Ark-wrig-ht's and Wood's carding ma- chines. Arkwright's second patent. Crompton invents mule. Watt's second patent, Muslins first made. First import of Brazil cotton— very dirty. Watt's further improvements. Ex- port of cotton machinery pro- hibited : penalty £500. Cylinder printing invented by Bell. Quantity of cotton imported from United States seized on ground that it was not American produce. Ger- man fined £600 for enticing cotton operatives to Germany.. Arkwrig-ht's patents throw.i open. Steam-engine first applied to cotton factory- Cartwright invents power-loom. Oxymuriatic acid first applied to bleaching cotton goods. Arkwright knighted. Cartwright's improved power-loom. East India Company pressed to push growth of cotton in India. Arkwright adopts steam in his factory. Improvement in mule by Kelly. Whitney invents saw-gin. Improve- ment in mule by Kenned.^. Improved saw-gin, by Whitney. Improvemement in loom, by Miller. Scutching machine invented. Tennant's patent for bleaching In bales of 400 lbs. each the import rose from 4,115 in 1741 to 28,705 in 1784, a period of 43 vSrsbTduring the subsequent 16 years increased to 160,864 bales-a movement due. tnt^rely to "he meAanical inventions of which an account has been given m this chapter. (1) Mannas "Cotton Trade of Great Britain," p. 17. 30 CHAPTEE III. PROGRESS OF INTENTION SINCE 1890 : DESCRIPTION OP A MODERN COTTON MILL. Chief Mechanical Appliances upon which Modern Cotton Industry is based, all brought out in short period between 1769 and 1793. — Subsequent Improvements merely developments of principles evolved ia that period. — First great improvement — Roberts' "Self-acting Mule,'' 1825-30. — "Throstle,'' based on "Water-frame,"' brought out about same time. — Improvements in Weaving much slower than in Spinning. — Large sums of money lost by Dr. Cartwright and others in efforts to improve Power-loom. — Only 2,400 Power-looms in existence in 1813. — Machine strongly opposed by Work-people. — First successful Improve- ments by Sharp and Roberts, 1822, but Hand-loom still in the ascendant as late as 1833 ; and Power-loom did not take lead until after improvements made by BuUough in 1841. — Both Spinning and Weaving Machines were now almost automatic. — Subsequent improve- ments directed to the securing of smoother action, increased out-turn, and diminished cost of production. — Great increase in length and speed of Mules, and speed of Looms compared with fifty years ago. — The Ring-Throstle. — The Mule-Throstle. — Improvements in Pre- paration Machines have kept pace with those made in Spinning and Weaving — Description of a Modern Spinning Mill : Cost of Building. — Description of the various Processes connected with the production of Oldham 32'b, from the " Mixing " of the Raw Material to the Out-turn of Yarn. — Cost of producing S2's. — Difference between Throstle and Mule, and the Yarn produced by each (foot note). The m,ost remarkable circumstance connected with the history of the cotton industry is the fact that, as shown in our second chapter, nearly the whole of the mechanical inventions and discoveries upon which the manufacture of the present day is based, were made known to the world within the short space of about a quarter of a century, commencing in 1769 with Arkwright's first patent, and 31 ending in 1793 with Whitney's saw-gin; the various contrivances, moreover, following each other in the natural sequence of demand and supply : improved spinning leading to improved weaving, and both together necessitating an increased supply of cotton, which would not have been olstained but for the invention of the saw-gin. But though the mechanical principles of modem cotton spinning and weaving were brought into operation during the period named, they were, from our present stand-point, only very imperfectly carried out. The domestic wheel had disappeared, but much hand-labour was still necessary to work the new spinning machines ; while in respect of weaving, the hand-loom continued to hold its own, owing to the yet unsurmounted difficulties in the way of the profitable working of the power-loom. The automatic character of Arkwright's water-frame rendered its proprietor almost independent of what may be termed "skilled labour,'' the hands employed in the spinning process being chiefly young people ; but the "mule " could not be worked without the aid of a skilled operative, called a " spinner," whose duty it was to superintend the general operation of the machine, and upon whose good conduct depended the employment of the'hands engaged in the various subordinate departments. The rapidly extended use of the " mule " in the absence of a corresponding increase in the supply of " spinners,'' soon led to disagreements between the men and their employers, and the former were at times so unre- liable and overbearing that it became quite evident that the progress of the trade would be retarded unless the "mule" could be made as automatic as the "water-frame." The first attempt to meet this urgent want of the trade is said to have been made sometime before 1790 by Mr. William Strutt, son of Arkwright's partner, but, from some cause or other not recorded, the in- vention was unsuccessful. A self-acting mule, invented by Mr. Kelly, of Lanark Mills, in 1792, likewise lacked the elements of success ; as did also several other contrivances brought out during the first quarter of the present century. But ultimately every difficulty was overcome by Mr. Eoberts (Messrs. SharpeandEoberts, machine-makers, of Manchester), who in 1825 patented the now 32 celebrated " self-acting mule," and in 1830 brought but a still more perfect machine. By this invention the attendance of the capricious spinner was dispensed with, 'vyhile a greater quantity of yarn was produced. Moreover, as Mr. Baines observes, the new machine turned out a yarn more uniform in twist, and less liable to break, and wound it upon the cop more evenly and closely, and, therefore, more desirable for the weaver. About the same time that Eoberts brought out his " self-acting mule," a very important improve- ment was made in the " water-frame," whereby the quality of the yarn spun was improved, the quantity produced increased, and the cost of production diminished. The new machine was called the " Throstle," and until its invention mule-spinning had made such rapid progress — producing both warp and weft — that, comparatively speaking, the "water-frame " appeared to be going out of use, but the invention of the " Throstle " rein- vigorated the apparently declining art of spinning on Arkwright's principle, especially as the application of steam-power to weaving- called for a warp stronger and more wiry than the "mule" could produce. Since the invention of the "self-acting" mule and the "Throstle" quite a multitude of minor improvements in spinning have been patented, the general effect of which has been a materially increased out-turn of yarn in a given space of time, at a considerably reduced cost of production. At the opening of the present century the number of spindles in the mule averaged about 200 ; fifty years" ago they mostly ranged from 300 to 350, though a few with from 500 to 600 were in existence ; at present they probably do not average less than 750 ; while in the most recently constructed mills they range from 1,000 to 1,200. Simultaneously with the augmented length of the mules their speed has also been' greatly increased ; while the better working, arising out of the various improvements introduced from time to time, has enabled the operative spinner to take in charge a con- stantly increased number of spindles Ten years ago. Dr. Bridges and Mr. Holmes, in their report to the Local Government Board, said that it appeared "to be safe to say that the number of spindles to each hand in the mule spinning room' has increased 33 between threefold and fourfold during the last forty years,'' and ' there can be no doubt that a further increase has taken place since the report was issued. The "Mule" has all along been in more general use than the " Throstle." The reasons for this are stated very clearly by Mr. James Hyde in his " Science of Cotton Spinning." " In the first place, the cops will hold about three times the quantity of yarn contained on a throstle-bobbin, which will give less labour to the winder ; and of course there will be considerably less time lost in ' doffing the cops off the mule than in doffing the bobbins from the throstle ; and as respects the power required for the two methods of spinning, it will be at least two to one in favour of the mule ; the same with respect to the quantity of oil used. The difference in carriage between cops and bobbins will be in something like the same proportion. The wear-and-tear of throstle-bobbins is no small item in the monthly bill, while mules have no such bills to provide for ; and I think if we investigate the question of wages, or the immediate cost of the two methods of spinning of the same counts of yarn, that likewise will be in favour of spinning water twist by mules. Suppose we take a pair of self-acting mules of 80 dozen spindles each, we then have 1,920 spindles, with one minder at 30s. per week, one piecer at 15s. per week, and one setter-in and scavenger at 8s. per week — 53s. per week. Then 1,920 spindles revolving 7,000 times per minute will produce 1,673 lb. of 36's water twist per week of 58 hours ; but it will require 2,686 throstle-spindles, revolving 5,000 times per minute, to produce the sanie quantity of yam, and will require nine good piecers to attend to 300 spindles each, at 10s. per week. If we rate the proportionate cost of doffing for that number of spindles at IDs. per week, which is very moderate, we shall have the sum of £5 to pay as wages on the cost of spinning 1,673 lb. of throstle- yarn or water-twist ; whereas, by self-acting mules we have the same weight and counts of yarn produced for the sum of £2 13s.; so by this it is clear there is a saving, in favour of self-acting mules of something like £2 7s. per week, or nearly one-half." But this superior position of the " mule " is just now being very 34 seriously threatened by some remarkable changes which have of late been made in the construction of the " Throstle : " based as a starting point on the American invention known as the ring and traveller-spinning frame. Varieties of this machine have for a number of years been in use in the United States, but it is only quite recently that the invention has gained a foothold in' Lanca- shire, and this ite due to important improvements on the original design. The new machine takes up little more than half the space occupied by the "mule,'' while its spindles can be run at quite as high a speed. As an example of what can be done, it may be stated that the result of a test made a short tiine ago showed that while the average production of 3,592 mule spindles was for ten weeks only 13'07 ounces per- spindle per week, that of 6,560 Eabbeth Eing Spindles, occupying the same floor space as the 3,592 mule spindles, was for the same period 17J ounces per spindle per week. In each case the yarn spun was 29|'s full counts. Another, and still more remarkable machine, is the " Mule-Throstle," recently patented by Mr. William Lancaster, of Accrington, and by which both weft and twist cops are spun on the bare spindle, same as by the self-acting mule. The new machine is the most important invention since the production of" the original "Throstle," and if it should come into general use (about which there is as yet some difference of opinion amongst practical spinners) it will very materially cheapen the cost of pro- ducing both weft and warp. Moreover, it will enable the busi- ness of cotton spinning to be successfully carried on in much smaller mills than are now absolutely required by the latest make of self-acting mule.(^) (1) In reference to the question of Mule-yam versus Throstle-yam, a, correspondent of the Manchester Ouardian, writing at the commencement of 1883, said : " During the past year or two a change in the use of warps, for cotton cloth manufactures has been going on in different parts of Lancashire. In some towns, notably Burnley, hardly any warps used to be consumed but those made from ' throstle ' yams ; at the present time these are the exception, for it has been found that ' mule ' twist is cheaper, and makes quite as good cloth. This change has necessitated alterations in the process of manufacture. Throstle warps were warped in balls ; they were commonly called ' ball warps,' and had consequently to be ' sized ' on ' ball ' machines. Mule warps, however, are manipulated in quite a different way and at a less cost. This kind of yarn, mostly spun in Oldham 35 As explained in the previous chapter, the power-loom came into general use far more slowly than either the water- frame or the mule. Even after the improved dressing or sizing machine brought out by Messrs. Eadcliffe and Eoss in 1804, and after- the improvements made in the loom itself by Mr. H. Horrocks and others about the same time, the progress of power-loom weaving was so slow that in 1813, twenty-nine years after the date of Dr. Cartwright's invention, there were only 2,400 power-looms and 100 dressing machines in use in the United Kingdom, whereas the number of hand-looms at work probably exceeded 200,000. Meanwhile, the progress of mule spinning had been so rapid that from 4,000,000 to 5,000,000 spindles on Crompton's principle were in operation in 1812. Sufficient had been done, however, to alarm the hand-loom weavers; and in 1813 mobs rose in various parts of the countrj-, and broke all the new machines within the range of their des- tructive operations ; the introduction of the power-loom being blamed for the distress occasioned by the American War and the Orders in Council. Horrocks's most important improvements were patented in 1813, but, this notwithstanding, only about 11,750 power-looms were put up between that year and 1820. In 1822 Messrs. Sharp and Eoberts brought out a loom based chiefly on the patent registered by Horrocks nine years before, and arranged for the production of fustians, velvets, &c. This machine at once became popular, and may be said to and Ashton, is ofifered for sale in the cop, and the manufacturer has to wind, beam, and tape it before it is fit for the loom. The taping is in place of the ' sizing ' of ' ball warps. ' Another feature in the matter is that with throstle-yam sizing flour was used in the preparation, but farina is now commonly used for taping printers. In manufacturing printers very little size is used ; indeed, it may safely be stated that there is put on the yarn just sufiacient for weaving purposes. In Todmorden, Over Darwen, and Hebden Bridge the same change is at work for Mexicans, and though considerably more size is put on the yarn for this make of cloth, _ the new process is on the whole satisfactory. The fact is that competition is so keen that every effort has to be put forth by manufacturers to- reduce cost. This change from throstle to mule yarn will in some part account for the bad trade throstle spinners have had during the past few years. Old mills in Burnley, Rossendale, and Rochdale have had to close, whilst Oldham and the surrounding districts have developed their mule- yam connection," 36 have marked the real starting-point of modem power-loom weaving. A large number of the new machines were put up in 1823, and a still greater number in 1824 and 1825, during which years the specu- lative mania, which ran through every department of business, showed itself in the manufacturing districts in the form of a rage for mill building. In 1 826 came a check : the consumption of cotton fell from from 11,500 bales per week to 9,800 bales, the average price of middling American declined from llfd. to 6|d. per lb., and the. annual exports of manufactured goods receded from 336 million yards to 267. millions. The result was a temporary period of distress amongst the operatives, and another rising of hand- loom weavers against the increased use of the power-loom : ending in the destruction of a great number of the newly-erected machines. Comparatively little building went on between 1826 and 1831 ; but 1832 and 1833 witnessed renewed activity, and in the last- named year it was estimated that from 100,000 to 105,000 power-looms were in operation in Great Britain against only lljISO in 1820; but although in the thirteen years from 85,000 to 90,000 automatic looms had been put up, the number of hand- looms at work had been increased to 250,000 from 240,000. Down to 1833, therefore, the hand-loom had by no means been- superseded by its powerful rival. The fact is that the power-loom was still defective in detail : so defective, indeed, that the improve- ments since made have trebled its productive power. In almost every year after the appearance of Roberts's first loom patents for improvements, of more or less importance, in some one of the various portions of the loom, were taken out in this country or the United States ; but the first really valuable invention, or, at all events, the one which has best stood the test of experience, was that registered by Messrs. Kenworthy and Bullough, of Black- burn, in 1841. This improved power-loom (mainly the invention of Mr. Bullough), said the late Alderman Baynes in 1857, " with its self-acting temple, stop, and taking-up motion, reduced the labour of the weaver nearly one half, and produced a greater quantity of a decidedly richer and superior quality of cloth, which admirably adapted it for the Eastern markets, whither so 37 large a quantity is now exported in the grey state." Before the invention of the self-acting temple (an apparatus attached to looms for the purpose of keeping the cloth as it is woven distended to its full width) the movement had to be constantly superintended by an operative ; but by Mr. Bullough's contrivance this expense was saved, while the power-loom became really automatic. Subse- quently Mr. Kenworthy ,in\'ented an improved power-warping mill, which, as Mr. Alderman Baynes observed, considerably reduced the labour of the wai-per, and yet produced one-third more work. Further imj)rovements have since been made by quite' a host of inventors, the general result of which has been, as in the case of the improvements in the machinery for spinning, to secure smoother action, increased out-turn, and diminished cost of production. Fifty j^ears ago the speed of the loom varied from 90 to 112 picks (throws of the shuttle) a minute ; ten years since it was estimated at from 170 to 200 picks per minute ; (') since which there has been a still further increase. At the late Exhi- bition of Machinery at "Oldham there was shown a light calico loom, capable of running as high as 400 picks per minute. One important result of the improvements just noticed is that the weaver can now take charge of more looms than was previously possible. Forty years ago, few operatives, with the usual juvenile assistance, could manage more than two looms, whereas a good hand can now take charge of from four to six looms. Simultaneously with the constant improvements being made in the machinery ior spinning and weaving, quite as important changes have been introduced from time to time into the prepara- tory .processes of willowing, scutching, lapping, and carding. Before the invention of the scutching machine by Mr. Snodgrass, of Glasgow, in 1797, the raw cotton, says Mr. Baines, "was opened and cleansed by being placed upon cords stretched on a wooden frame, and then beaten by women with smooth switches " — an employment not only very fatiguing, but one looked upon as exceedingly degrading. The scutching machine not only reheved (1) Report by Dr. J. H. Bridges and Mr. Holmes. 38 the " hands " of this dirty occupation, but it did the -work a great deal better and at one-twentieth of the cost. The machine "vvas not introduced into Lancashire until about 1808 or 1809, but was in course of time generally adopted, and has since been greatly improved upon — the most notable recent developments being the various patents associated with the names of Mr. Edward Lord and Messrs. Crighton and Sons. Very important improvements have also taken place in cardmaking and in the construction of carding engines : commencing with the mechanical card-stripper, patented by Mr. Alexander Buchanan (of Findlay and Co., Ayr- shire) in 1823, followed by. the " Self-stripping Carding Engine," brought out by Mr. James Smith (Deanstone Cotton Works) in 1834, and ending with the various inventions and improvements brought out by Mr. Evan Leigh in 1850 and subsequent years; the general result being a vastly increased productive power at an immensely reduced cost. Similar economising progress has also been going forward in the printing and bleaching departments of the industry. Nor has the comfort of the operatives been overlooked. Improved machinery has banished the stifling clouds of dust and fly which formerly filled the air of the blowing-room, and only in a less degree contaminated the atmosphere of the carding-room ; while in all modern-built mills every room has been made healthier and pleasanter to work in : loftier, better ventilated, and lighter. The best constructed modern spinning mills are erected on the fire-proof principle. The external walls are substantially built of brick and stone. The buildings vary from five to seven stories in height, and are of sufficient length and width to accom- modate self-acting mules of at least 1,000 spindles twist guage, or 1,200 sjjindles weft guage. The beams and pillars are made of cast iron, and the joists or girders of rolled iron. The ceilings of each room consist of small arches between the joists, levelled up with concrete and made into one solid mass, alTording a substantial flooring for the room above, which flooring is generally boarded over. The mixing room, the scutching room, and the card room are mostly on the ground floor or bottom stories ; the spinning 39 rooms are in the upper stories. The warehouse, boiler-house, and. engine-house are on the ground floor adjoining the mill proper. At the present time a good, substantial, fire-proof mill can be erected and fitted with the best machinery at a cost of 20s. per spindle, weft and twist. There are many mills in Oldham which cost from 26s. to 34s. per sj^indle, but they were constructed at a time when building materials, machinery, and labour were very high in price. On the arrival of the cotton at the mill the bales are weighed and examined, in order to ascertain that the weights are in accordance with the invoice, and that the quality is equal to the purchase sample, or to the "class" guaranteed in the contract. Any bales that do not comply with these conditions are put aside until the sellers have been communicated with ; the remainder, after being stripped of their bands and tares, are opened out in the mixing room. The cotton, which in the bale is very closely compressed for the purpose of carriage from the countries of growth, is pulled into small pieces, about the size of those shewn in the selling samples in Liverpool. These pieces are spread out in layers one over another until a large heap or stack has been ■formed, called a mixing, consisting it may be of various parcels of cotton very similar in quality. In the best conducted mills the practice is for the longer stapled cotton to be put into one mixing, and the shorter stapled into another ; and a similar rule is observed in respect of very clean and very dirty cotton ; there are separate mixings, too, for stained and white cotton. The reason for this is, that th? blending of the various sorts and quahties can be more evenly accomplished at a later stage of the operations than in the "mixing." The first machine through which the "mixing" is passed (called a "willow," or "opener") is one in which the cotton is thoroughly beaten and opened out, in which, in fact, it is restored from the more or less matted condition, caused by the compression incidental to packing, to the soft and fluffy state in which it existed after ginning and before baling. This process, while loosening the fibres, also serves to shake out much of the soil, dust, leaf, and other 40 extraneous substances with which the bulk of the cotton imported (especially the lower grades) is in a greater or lesser degree mixed. There are various kinds of "openers," but the one generally in use at Oldham consists of an endless feed apron upon which the cotton from the mixing is spread, a pair of rollers which regulate the feed, and a series of beaters which, revolving (inside a circular casing) at the rate of 1,000 to 1,5 00. revolutions, per minute, seize upon the cotton as it is delivered from the apron by the feeder rollers, and beat it out, as already described. As the cotton passes through the machine, a fan draws out all sand, dust, and leaf left behind. The cotton placed upon the feed apron is scraped down from the front of the stack containing the mixing : in this way a portion of each layer is obtained, and passed through the " opener." From the "opener" the cotton is transferred to the "lap" machine, in which it undergoes another beating, and by which it is turned out in the form of a "lap" or fleecy roll, ready for the next process. In some cases the "opener" and "lap" machines are attached and continuous; in others they are separate. Both machines are similar in construc- tion, and both bear some resemblance to the "scutching" machine, to which the fleecy out-turn of the lap machine is conveyed for further manipulation. It is at the scutcher (or intermediate lap-machine) that the final mixing of the various sorts or qualities of cotton generally takes place. If a spinner desires to bleind in certain proportions two or three different growths or grades, he can more effectually accomplish the object at the "scutching" machine than at the "opener." The staple production of Oldham is 32's twist, of which there are various qualities : the difference in value between the highest and lowest grades being about Id. per lb. The character of the mixing will, therefore, depend upon the quality of yarn which it is the wish of the spinner to produce. But as the same quality of yarn can be produced by different blendings of cotton, the nature of the mixing will also depend upon the prices of the different growths of cotton at the time of mixing. If American is plentiful and cheap — cheaper relatively than other growths — all American will be used. If Brazils or Egyptians of suitable grades sink below the parity of American, 41 a blending of Brazil and American or Egyptian and American will be used. If American becomes comparatively scarce and relatively dear owing to a semi-failure of the crop, and simul- taneously the supply of Surats increases, as was the case in the season 1881-82, then a blending of American and Surat will be used. If a larger proportion than usual of the American crop is stained by frost, or reduced in grade by rains and storms, then a blending of stained or white, or of dirty and clean cotton, or a mixture of all four, will be used. All the cotton having passed (each quality or growth separately) through the lap machine, and being freed from the heavier extraneous matters with which it entered the "opener," the blendings of the various qualities can be made with a much nearer approach to mathematical exactness than if the cotton had been mixed at the outset. Supposing the mixing to be divided into four portions of equal weight, and that it is desired to use equal portions of four different growths or qualities, or equal portions of only two, or three-fourths of one and one of another, the requisite quantities of each description, as delivered from the first lap machine, are passed together through the next, or intermediate lap machine, called a scutcher, ' in which machine the cotton is operated upon by two sets of beaters, the first going at the rate of about 1,000 revolutions per minute, and the second at a still higher speed. In this way, the several laps, constituting the mixing, are thoroughly blended and reduced to a single fleece, free from many impurities which had previously escaped. On emerging from the second set of beaters, the fleecy product passes between two sets of rollers which press and deliver it in a continuous "lap," in which f-orm it is trans- ferred to the final or "finishing scutcher," from which, after further beating and mixing, it emerges in a "lap" or felt-like fleece, about forty inches wide and half an inch in thickness, wound on an iron roller ready for the carding engine. Although nearly the whole of the grosser extraneous matters, such as sand, dust, heavy leaf, pieces of shrub, and fragments of seed, have been beaten out of the cotton by the opening and scutching machines, there still remain in the fleece many lighter 42 impurities, such as "neps" or small ■wa:sfcy tufts, bits of leaf, short, immature, or perished fibres, and possibly a sprinkling of light dust. Moreover, the fibres are in a tangled mass lying across each other and more or less curled up. Before the cotton can be spun into yarn it is necessary that the lighter impurities aforesaid shall be removed, and that the fibres themselves shall be straight- ened and combed parallel to each other. The first of these services is completed and the second commenced by the "Carding engine," a machine consisting (for Oldham counts) of one large or central cylinder, about 40 inches in diameter; a "taker in" cylinder, about 9 inches in diameter, situated in front of the main cylinder and immediately behind the feed-roller, which is the first to operate on the " lap " brought from the finishing scutcher; a " doffer-roUer," about 26 inches in diameter, and situated at the back of the main cylinder; and a series of carding- roUers, about 6 inches in diameter, and " clearing-rolli.TS," about 4 inches in diameter, placed alternately over, and in contact with, the upjser surface of the main cylinder, between the "taker in'' on the one side and the "doffer" on the other. The whole of the cylinders and rollers are of uniform length or width; all are clothed with cards or wire brushes with teeth bent at a particular angle, and all rotate like so many circular brushes — the large cylinder in the centre and the others at various points round and in contact with its upper circumference. An iron framework supports the whole. The fleecy roll or "lap" from the finishing scutching machine being placed in position in front of the carding engine is gradually unwound, and passed over an iron plate and under a fluted feed-roller about 2 inches in diameter, which brings the cotton into contact with the first carding cylinder or " taker in." This cylinder strikes downwards and revolves much faster than the feed-roller, the "lap " therefore is broken up, the fibres are drawn out, and the greater part of the impurities which remained after scutching are shaken out and fall to the floor. On the upward journey of the "taker in," the tufts of cotton are caught by the teeth of the main cylinder, which revolves in an opposite direction to the "taker in." They are then caught by the 43 fost " clearer-roller," and subsequently by the first " roller card," from which they are again taken by the teeth of the main cylinder, and in this way passed through the whole of the clearers and rollers until the fibres after these oft-repeated combings are freed from all impurities, and removed in a straight and elongated condition parallel to each other, from the main cylinder by the "doffer" cylinder, by which they are further combed, and from which they are stripped, by a rapidly vibrating dofiing comb, in a •continuous film almost as thin and transparent as a spider's web. This film, over" a yard in width, is gathered together and passed through a funnel-shaped ring, then between two pairs of rollers, which deliver it in a soft riband-like untwisted form about an inch in thickness, called a "sliver," into a can about 36 inches deep and about 9 inches in diameter. The can is placed on a revolving dish, and the web falls into it through a coiling motion, which causes the sliver to be deposited in a continuous coil, so that it can easily be drawn out for the next process without being stretched. The •can when filled is removed and replaced by an empty one. The leaf, waste fibres, and other impurities driven into and retained by the wire clothing of the various portions of the carding engine remain there until the engine is stopped for cleaning, which is done about five times daily. The teeth of the card clothing, which it is essential to keep as level and as sharp as possible, have to be ground several times in the course of a week. Both "stripping" and "grinding" were formerly done by hand, and are .so still in the older mills, but in the more modern estabhshments they are done by self-acting processes. A single carding engine will turn out in a week, of 56| hours, from 400 lbs. to 600 lbs. of sHvers suitable for 32's to 40's weft; a double engine, that is, a machine with two main cylinders and a double set of rollers, clearers, &c. will produce from 900 lbs. to 1,000 lbs. per week.O (>) In fine spinning mills the cotton after passing through some one of the various makes of carding engines is put through the combuig machine .originally invented by Mr. Heilmann, of Alsace, but subsequently consider- ably improved, and now frequently used in preparuig cotton for the medium counts of yarn and for thread making. ' 44 The cotton is now free from neps and other impurities, but spite of the operation of carding many of the fibres still overlap each other, while the sliver itself lacks uniformity and evenness of texture. These defects are almost entirely removed by the drawing-frame, a machine in which a number of slivers are put together and drawn out into, a single web, as long as the com- bined lengths of the original slivers. For Oldham counts, six cans filled with carding slivers are placed at the back of the drawing- frame; their ends are then brought together over curved levers and plates, and passed uniteil through a series of four pairs of rollers situated immediately behind each other. Each pair of rollers travels at a diiTerent speed : the second quicker than the , first, the third quicker than the second, and the fourth quicker than the third. The total difference between the first and fourth pair is as one is to six, so that the united sliver emerges from the fourth pair of rollers drawn out to six times its original length. It is moreover greatly improved in appearance, the fibres being straighter and the web itself more uniform in texture than in the carding sliver. On the completion of the drawing process the sliver passes through a funnel, then between a pair of calender rollers to a coiling motion into a can, ready for the next process. This doubling and drawing operation is repeated a second and third time, and the original slivers are said to have passed through three heads of drawings, in course of which they have received 216 drafts and doublings: 6 x 6 = 36 x 6 = 216, the result of which, is an even spongy web or cord of straight and parallel fibres. The number of doublings and drawings necessary to produce the result desired depends upon the character of the cotton used and upon the counts of yarn to be spun. American cotton requires fewer drawings than that of any other country, and genuine Orleans fewer than any other variety of American. Hence the general popularity of American cotton, and the exceptional popularity of the variety known as Orleans. For Oldham 32's- the usual practice as already described is to have three drawings, though occasionally two may be deemed sufficient. For fine- counts as manj' as six drawings may be requisite. 45 The cans containing the slivers from the last head of drawing, or last box as it is called, are now taken to the back of the " slubbing-frame," in v^hich machine the slivers are passed through three pairs of rollers and wound on bobbins about 1 1 inches in length. The rollers revolve at different velocities, the draft between the first and third pair varying from i to 6, so that the web on its passage is increased from 4 to 6 times in length, and correspondingly reduced in thickness. On leaving the last pair of rollers the attenuated sliver is wound on a bobbin by means of a spindle and flyer, receiving at the same time a slight twist to enable the elongating process to be continued in the next or "intermediate-frame." Two slubbing bobbins are placed on the " creel," or " rack " of this frame. The ends of the slubbings are joined, and the two are passed through three pairs of rollers, by which they are drawn and reduced to a single sliver, which is wound on a bobbin slightly smaller than that belonging to the slubbing-frame. The doubling, twisting, and winding are continued and completed in the "roving-frame," which is similar in construc- tion to the slubbing and intermediate frames, except that it contains more spindles and uses smaller-sized bobbins. The sliver after this three-fold drawing, twisting, and winding is greatly reduced in thickness, and is now called a "roving." Up to this point, the last process in the card room, the expenditure in wages, is for 32's twist and 40's weft, from |d. to xVd. per lb., including of course the wages paid in connection with the mixing and scutching processes. The rovings are finally converted into yarn by either the "mule" or the " throstle, "(^) but for Oldham counts the former machine (^) In the throstle the rovings after being drawn through rollers pretty much the same as in the mule pass to a row of spindles fitted with bobbins and flyers, and are simultaneously twisted Into yarn and wound on the bobbins. The yarn made by the throstle is harder, stronger, and more even than that made by the mule. For certain purposes throstle yarn is indispensable. It is used almost entirely for warps, or for making thread. , It is more costly to produce than mule yarn, and therefore commands a higher price. The mule, however, produces much finer yarn (that is to say, much higher counts) -than it is possible to spin by the throstle. As already stated in a previous chapter, the throstle was originally called the water-frame, and throstle yarn still goes by the name of Water Twist. In 46 is the one in almost universal use. The bobbins containing the rovings are placed on the creel or shelf of the mule, the ends of the rovings are then passed through a series of rollers and cleaners by which they are drawn out and smoothed, and from which they are guided to the spindles. These are fixed on a moveable carriage, which recedes from the rollers to the distance of about five feet, at a slightly greater speed than that at which the rovings are delivered. On the return journey the yarn, which in the meantime has been stretched and spun, is wound upon the spindles, and the outward journey is again repeated, with a fresh delivery of yarn from the rollers. The mules of the present day contain about 1,000 spindles twist cop guage, or about 1,200 spindles pin cop guage. The twist cops are used for warp, and the pin cops for weft. The mules are erected in pairs, and each pair is worked by a man, a youth, and a boy. Each spindle will produce 13 ozs. to 14 ozs. of yarn per week of 56^ hours, say about 1,700 lbs. of 32's twist from 2,000 spindles, at a cost of £3 for wages, which is equal to about Ad. per lb. The total cost of management and all other wages is ^d. per lb. The cost of coal, oil, tallow, carriage, &c., together with an allowance for depreciation of 2| per cent, on the building and 7J per cent, on the machinery, and a charge of 5 per cent, on one half of the capital (assumed to be borrowed), will amount to about another Id. per lb., making a total of l|d. per lb. as the cost of labour and capital in producing one pound of 32's twist. If to the foregoing we add 6d. per lb. for the price of the raw material, or 6|d. (allowing 10 per cent, for waste), we get 8^d. as the cost of producing one pound of 32's twist of average quality. the "Prices Ciirrenf ' of leading Manchester houses the range of counts quoted varies from 6's to 40's for water twist, but from 6's to lOO's for mule twist and weft. Water twist is sometimes spun up to 60 's, and occasionally as high as 80's ; mule yarn is frequently spun as fine as 200's to 3O0's, and occasionally up to 500's. For experimental and exhibition purposes yarn as high as 2150's has been spun by Messrs. Houldsworth, of Manchester. Each hank contains 840 yards of yam. The denomination of the yarn is derived from the number of hanks contained in a pound weight : the yarn called 32's, for instance, contains 32 hanks of 840 yards ; the yarn called 200's, contains 200 hanks of 840 yards, and so on. CHAPTEE IV. THE ECONOMICAL RESULTS OP THE INVENTION OP THE WATER-PRAME, THE MULE, AND THE POWER-LOOM, DOWN TO IS 15. The Character of the Cotton Industry completely revolutionized during the closing quarter of the last century. — The transition from the Domestic to the factory system. — The substitution of Cottons in the place of Linens. — Relative importance of each branch of the Cotton Manufac- ture in 1787. — Over-production. — Agitation against imports of East Indian Cotton Goods. — Rapid expansion of industry, 1789-1800. — Great increase and general distribution of wealth in manufacturing districts. — Fluctuations in economical conditions, between 1801 and 1815, occasioned by political disturbances ; but constant expansion of the trade. — Abnormal increase in the population of Lancashire, owing to immigration from other Counties. — Great increase in general commerce. — Cost of producing yam at various periods from 1786 to 1812. — The Enormous saving effected by machinery. — Extent of the Industry in 1815. — Amount of machinery employed. — Value of Manu- factures produced ; Proportions Exported and Consumed at Home. In the absence of complete and trustworthy statistical data, it is difficult to trace, with any degree of minuteness, the influence of the mechanical contrivances described in previous chapters upon the development of the cotton manufacture, until we get down to the commencement of the present centur}'. The information available, however, shows that between 1770 and 1800 the character of the industry was completely revolutionised, and that during the transition period, which witnessed the disappear- ance of the old and the establishment of the new order of things, the trade experienced considerable vicissitudes, and values cor- 48 respondingly wide fluctuations. In 1770 the import of raw- cotton into Great Britain reached about 4,000,000 lb., or about 10,000 bales of the present average weight; and West Indian was selling at 10|d. to '14d. per lb. At that time the industry was entirely Sr domestic one, and what Mr. William RadcliiFe, in his work on the " Origin of Power-loom Weaving,'' says of the state of things in the parish of Mellor, Cheshire, fourteen miles from Manchester, was true of other districts. There were in the parish some fifty or sixty farmers, and out of these only six or seven raised their rents directly from the produce of their farms, the rest getting them partly from some branch of trade, such as sjjinning and weaving. " The cottagers were entirely employed in this manner except for a few weeks in the harvest. * * * The father of a family would earn from eight shillings to half a guinea at his loom, and his sons six or eight shillings per week ; but the great sheet-anchor of all cottages and small farms was the labour attached to the hand- wheel;" and as it required six to eight hands to prejiare and spin yam of either cotton, wool, or flax sufficient for the consumption of one weaver, the industry aff'orded an inexhaustible source of employment to all classes of the population. From 1770 to 1788, says Mr. Eadcliff"e, "a complete change had gradually been effected in the spinning of yarns ; that of wool had disappeared altogether, and that of linen was also nearly gone ; cotton, cotton, cotton was become the almost universal material for employment ; the hand- wheels were all thrown into lumber-rooms 4 the yam was all spun on common jennies ; the carding for all numbers up to 40 hanks in the pound was done on carding engines ; but the finer numbers of 60 to 80 were still carded by hand, it being a general opinion at that time that machine carding would never answer for fine numbers.'' In weaving no great alteration had taken place ; Cartwright's improved power-loom not being brought out until 1787. The displacement of linen and woollen yarns led to a considerable increase in the demand for raw cotton, and eventually to a serious advance in prices. We have already stated that the import in 1770 was about four million pounds, and the jmce of 49 West Indian from 10|d. to 14d. per lb. The following are the only figures obtainable for the period referred to by Mr. Eadcliffe : — Years. Import. Price. lb. West India. 1771-75 average 4,767,589 9W. to 14d. 1776-80 „ 6,766,613 16d. to 21d. 1781 5,198,778 21d. to 41d. 1782 11,828,039 20d. to 40d. 1783 9,735,663 13d. to 36d. 1784 11,482,083 12d. to 25d. 1785 18,400,384 14d. to 27d. 1786 19,475,020 22d. to 42d. 1787 23,250,268 19d. to 42d. 1788 '20,467,436 14d. to 33d. In the rise in prices between 1771 and 1781 we see the influence of Hargreaves's "jenny," inveiited in 1764, but not brought into general use until several years afterwards ; and of Arkwright's water-frame, invented in 1769. The average ad- vance between 1771-5 and- 1776-80 was about 50 per cent. ; but the small import of 1781 led to a further rise of about another 50 per cent., the extreme figure of 41d. being paid for an exceptionally fine lot of Barbadoes cotton similar to modern Sea Island. In 1782 the import ran up to nearly twelve million pounds (or 30,000 bales of 400 lb.), and it is stated that the large arrivals produced quite a panic in Manchester ; but though con- siderable fluctuations took place in prices, West Indian did not sink below 20d., while for the best quality as high as 40d. was paid. The effect of the increased supply, however, was felt in 1783, in which year the average price of West Indian fell to 24|-d. against 30d. in 1782, although the import had fallen to less than 9| million pounds. Part of the fall in 1783, however, was due to the termination of the war with the newly-founded American Eepublic, during the continuance of which values of most kinds of imported commodities had been more or less inflated. In 1784 the import rose to nearly 11| millions, and prices receded to an average of 18|d. per pound. In 1785 Arkwright's patents were throvm open. In the same year cylinder printing, by means of which the productive power of labour was increased one hundredfold, was introduced into Lancashire by Livesey, Har- greaves. Hall and Co. The result was an extraordinary develop- 50 ment of the trade. Prices of cotton advanced to an average of 20id. per pound, followed by 32d. in 1786, and 30^d. in 1787, against 18^d. in 1784, although the imports for the three years increased to 18, 19, and 23 million pounds respectively, against llj millions in 17S4, and 9f millions in 1783. It was estimated that 6*00,000 pieces of muslin alone were produced in Great Britain in 1787; and in reply to a protest made by the manu- facturers against the import of Indian fabrics the Company stated that " every shop offers British muslins for sale equal in appear- ance, and of more elegant patterns, than those of - India for one-fourth, or perhaps more than one-third, less in price.'' The weight of cotton consumed in 1787 was estimated to have been distributed as follows : — Lbs. Calicoes and Muslins 11,600,000 Fustians 6,000,000 Silk and Linen Mixtures 2,000,000 Hosiery 1,500,000 Candlewicks 1,500,000 Total 22,600,000 This is double the quantity used only three years previously, and there can be no doubt that the increase consisted mainly of calicoes and muslins. ' There is not the least doubt that production had overtaken con- sumption; the fact that cotton fabrics had largely superseded those composed partly or wholly of linen notwithstanding. The result was a glut of goods and a fall in prices, which ruined numbers of people in the trade, and led to the panic of 1787-88, during which occurred the failure of the great manufacturing firm of Livesey, Hargreaves, Hall and Co., who, as already stated, were the first to introduce cylinder printing into Lancashire. The crisis was so severe that many, years afterwards Mr. Kirkman Finlay, of Glasgow, said that he thought at the time that the trade would- never recover from it. The manufacturers maintained that the ' mischief had been brought about, not by over-production at home, but by excessive imports of East Indian piece goods, which had been forced on the market at ruinously low prices ; and they 51 appealed to the Government to save the rising domestic industry from the destructive competition of these foreign imports. At first the Government refused to move in the matter, on the ground that the import of printed goods vras already prohibited, while the greater part of the plain fabrics imported were re- exported, and that any legislative interference with the East India Company's business would encourage smuggling, and throw the trade into the hands of foreigners ; but ultimately the duties were raised from time to time, until in 1803, those on white calicoes reached nearly 60 per cent., and in 1813 about 85 per cent. ad. vol. The crisis of 1787-8, however, was eventually heneficial to the industry, inasmuch as the forced sales and low prices occasioned by the panic led to a wider distribution of the new fabrics, and therefore opened up a more extended market for them in a shorter space of time than would have been the case under ordinary circumstances. Even in 1785, a writer in Macpherson's " Annals of Commerce '' testified that the new cotton fabrics had largely superseded the use of silk fabrics, and the cambrics, lawns, and other goods made from flax. Still more rapid progress was made between 1788 and 1800. Crompton's mule was invented in 1779, and was rapidly adopted throughout the manufacturing districts. "The mule-twist now coming into vogue,'' says Mr. Eadcliflfe, in his account of Mellor, " for the warp as well as weft, added to the water-twist and common jenny yarns, with an increased demand for every fabric which the loom could produce, put all hands in request, of every ao-e and description, -The fabrics made from wool and linen vanished, while, the old loom-shops being insufficient, every lumber-room, even old barns, cart-houses, and outbuildings of any description, were repaired, windows broke through the old blank walls, and all fitted up "for loom-shops." " The weekly circu- lation of money, as the price of labour only, rose to five times the amount ever before experienced in this district, every family bringing home weekly 40, 60, 80, 100, or even 120 shillings per week." Naturally this new wealth enriched not only the operators themselves, but those among whom it circulated, part of it finding 52 its way into the pockets of the joiners, builders, tradesmen, farmers and landowners of the districts ; the rents of the farms belonging to the latter being doubled, and in many instances trebled, during the fifteen years, ended with 1803. A similar change was apparent in other portions of Cheshire, and throughout Lancashire, and portions of Yorkshire and Derbyshire. The rapid progress made is shown very clearly in the following account of import and prices of raw cotton from 1789 to 1800 : — Years. 1789 1790 1791 1792 1793 1794 1795 1796 1797 1798 1799 1800 Import, lb. 32,576,023 31,447,605 28,706,675 34,907,497 19,040,929 24,358,569 26,401,340 "32,126,357 23,354,371 31,880,641 43,375>,278 56,010,732 Prices. West Indies. 12d. to 22d. 12d. to 21d. 13d. to 30d. 20d. to 30d. 12d. to 27d. 13d. to 26d. ]5d. to 30d. 19d. to 30d. 17d. to 40d. 25d. to 40d. 18d. to 55d. 20d. to 38d. Prices. American. 13d. to 22d. 12d. to 18d. 15d. to 27d. 12d. to 29d. 12d. to 37d. 22d. to 45d. 17d. to 60d. 16d. to 36d. The large imports between 1789 and 1792 led to a considerable accumulation of stock, both of goods and cotton. This cir- cumstance, in conjunction with the interruption to our foreign trade, occasioned by the declaration of war against France, occasioned quite a crisis in Manchester, and brought about a decided decline in prices in 1793 — the small import of that year notwithstanding. A very unsatisfactory state of things also existed in 1799, owing to the high prices then current. On the whole, however, the disturbed state of the Continent during' the closing years of the eighteenth, and the opening years of the nineteenth, century, was decidedly beneficial to the cotton in- dustry in particular, and to the trade of the country in general. Internal peace and immunity from invasion admitted of unin- terrupted progress in our domestic manufactures, while the victories of our admirals and the successes of our privateers threw the carrying trade of Europe almost entirely into the hands of British shipowners. The important position held by cotton manufactures in our foreign commerce is shown by the fact that they figured for £7,000,000 (official value), against 53 £-18,000,000 of all other descriptions of- produce exported in 1801 ; and the extent to which our shipping was employed in what may be termed the international trade of Europe is shown by the circumstance that of £31,000,000 of produce imported in 1801, £10,000,000 were re-exported. Between the years 1800 and 1815 there were necessarily very considerable fluctuations in supply and prices, owing to the political disturbances of the period. The import of raw cotton rose from fifty-six million pounds in 1800 to nearly seventy-five millions in 1807; and prices receded from 18d. to 14|^d. for middling uplands. In 1808 the arrivals fell to 43 million pounds, owing to the American embargo, and the average price rose to 2 2d. In 1810 the import rose to 132 millions, and in the following year prices sank to 12^d. In 1812 commenced the war between this country and the United States, and the arrivals in that and the subsequent two years reached only 63, 54, and 60 million pounds respectively, owing to which the average price of uplands ad- vanced to 16fd. in 1812, 23d. in 1813, and 29^d. in 1814. During this period there was considerable distress in the manu- facturing districts, the suffering occasioned by the scarcity of employment being aggravated by a general rise in the valile of provisions. Wheat, which averaged only 73s. Id. per quarter in 1807, rose to 122s. 8d. in 1812, and still averaged as high as 106s. 6d. in 1813 ; while beef, purchasable at 4s. 6d. per stone in 1808, rose to 6s. 4d. per stone in 1812 and 1813. In 1815 the im- port of cotton ran up to 100 miUion pounds, and prices receded to average of. 20fd. After the peace of 1815 the imports increased year by year, and prices gradually declined until they reached 8|d. in 1822, The actual consumption of cotton in 1815 was about 82,200,000 lb., but the figures had reached 98,000,000 lb. in 1810, against 48,400,000 lb. in 1801, about 28,000,000 lb. in 1791, 7,000,0001b. in 1781, 4,000,000 lb. in 1771, and 2,000,0001b. in 1751. This rapid growth naturally gave rise to a considerable demand for labour in the cotton manufacturing districts, while it greatly augmented the volume of our trade with foreign countries. The movement in population is shown in the following statement 54 of the number of inhabitants in Great Britain, Lancashire, Liver- pool and Birkenhead, and Manchester and Salford, in 1750, 1801, 1811, and 1816:— Great Britain 1750 7,788,009 297,400 18,000 20,000 1801 10,942,646 40-6 673,486 126-6 82,296 366-6 94,876 374-4 1811. 12,696,803 16-1 828,499 23-0 104,209 21-3 115,874 32-1 1816. 13,600,000 7-2 940,000 13-6 121,000 16-3 140,0 20-6 Increase per cent Increase per cent The increase in the population of Great Britain between 1750 and 1801 were equal to 40-6 per cent. A similar ratio of increase in Lancashire would have given a total of 418,000 in 1801, but the actual total was 673,000 — a difference of 255,000. There was a farther gain of about 106,000 between 1801 and 1811, and about 52,000 between 1811 and 1816. The total increase between 1750 and 1816 was 643,000, of which 413,000 represented the gain by immigration, and only 230,000 the gain by the average natural increase in the native population. The movements in the populations of Liverpool and Manchester were still more striking ; and these two great business centres may be said to have been created by the cotton industry. The influence of the new manufacture upon the foreign commerce of the kingdom is clearly exhibited in the subjoined statement of imports and exports at various dates from 1765 to 1815. The figures are based on " ofiicial " or fixed prices, and therefore represent quantities rather than values : — Years. Imports. All kinds of produce. Exports. Cotton goods, &c. Other Britisll produce. Foreign and Colonial produce. Total all kinds. 1765 1780 1786 1790 1796 1800 1806 1810 1815 £ 11,812,144 11,714,966 16,379,419 19,130,886 22,738,889 30,!570,805 28,661,270 39,301,612 32,987,396 £ 248,348 356,060 864,710 1,662,369 2,433,331 6,854,067 9,625,465 18,961,994 22,289,645 £ (no Sep. 10,217,'l01 18,268,715 13,904,882 18,450,227 13,851,476 15,109,907 20,686,351 £ returns) 6,035,358 6,199,037 10,785,126 18,847,736 7,642,120 9,367,436 15,748,564 £ 15,763,868 13,698,178 16,117,169 20,1-20,121 27,123,839 43,162,020 31,019,061 63,419,336 68,624,650 With these figures -before us we can understand the state- 55 ment made by M'Culloch (" Principles of Political Economy," page 123) that "it was the rapid growth of the cotton manu- facture that bore us triumphantly through the contest with revolutionary France, and gave us wealth and power sufficient to overcome the combined force of almost all Europe, though wielded by a chief of consummate talent.'' The secret of the success was the fall in values brought about by the inventions of Hargreaves, Arkwright, Crompton, Cartwiight, and others. In 1779 Crompton was paid 14s. per pound for spinning yarn of 40 hanks to the pound ; the cotton, say 18 ounces, would cost, at the then market price, about 2s., making the total value 16s. per pound. In 1784 Arkwright was paid 10s. lid. for 42's twist, everything included; he would probably get his raw material at Is. 9d. per pound, or about 2s. for 18 ounces, this would leave 8s. lid. for labour, profits, &c. The same quality of yarn was selling at 7s. 6d. per pound in 1799, and at 2s. 6d. in 1812. In 1786 the price of yarn 100-4ianks to the pound, was 38s. ; in 1796, 19s. ; in 1806, 7s. 2d. ; and in 1812, 5s. 2d. ! In the same years 18 ounces of the West Indian or Sea Island cotton would cost about 4s., 3s. 6d., 3s., and 2s. 4d. respectively. These , facts are embodied in the following table : — Yarn 40 hanks to the lb. 1779. 1784. 1799. 1812. s. d. s. d. s. d. s. d. Sellingprice 16 ... 10 11 ... 7 6 ... 2 6 Cost of cotton 2 ... 2 ... 3 4 ... 1 6 Labour and capital ... 14 ... 8 11 ... 4 2 ... 1 Yarn 100 hanks to the lb. 1786. 1796. 1806. 1812. s. d. s. d. s. d. s. d. Selling price 38 ... 19 ... 7 2 ... 5 2 Cost of cotton 4 ... 3 6 ... 3 ... 2 4 Labour and capital ... 34 ... 15 6 ... 4 2 ... 2 10 A similar decline took place in the cost of producing piece goods, but there' are no reliable statistics in existence showing the market prices at the above dates. The above figures prove that as regards 40's yarn, labour was fourteen times more productive in 1812 than in 1799, nine times more productive than in 1784 and four times more productive than in 1799. As against the / 56 primitive spinning-wheel the power of production was as 1 to 200 ! That is to say, one spinner in 1812 could produce as much in a given time as 200 could have produced before the invention of Hargreaves's jenny. As nearly as can be ascertained there were about 100,000 machine-spinners, 200,000 hand-loom weavers, and, probably, 5,000 to 7,000 power-loom weavers, in employment in 1815. The number of mule spindles at work was about 6,000,000. Taking the average of three years, 1815 to 1817, the extent of the manufacture was about as follows : — Cotton consumed 92,600,0001b. Waste, If oz. per lb 10,100,000 1b. Yams produced 82,500,000 lb. Exports in Yarn 13,000,0001b. Goods 42,000,0001b. Consumption 27,500,0001b. Total as above 82,500,0001b. Value Yam exported £2,105,000 ,, Goods exported 15,380,000 , , Goods consumed, one-fourth more per lb. than export 12,500,000 Total value £29,985,000 Cost of Cotton, 19Jd. per lb 7,620,000 Balance for labour and capital £22,365,000 The balance of £22,365,000 would include payments for wages, rent, interest, commission, coal, dyes, oils, &c. The re- markable feature is that this valuable trade was virtually created between 1785 and 1815. 57 CHAPTER V. THE ECONOMICAL RESULTS OP THE MECHAJSTICAL IMPROVEMENTS INTRODUCED SINCE 1815. Average Annual Weight of Cotton consumed and Yarn produced in the triennial periods ended 1821, 1831, 1846, 1861, and 1882; relative progress of each department of the industry ; distribution of Yams and Goods produced — Proportion exported, and consumed at home ; Value of Yarn and Goods exported, and of Goods consumed at home. — Comparative cost of producing Yarn at various periods down to 1882. — Vast expansion of the trade with the East : a result quite un- expected sixty years ago. — Weight of Cotton Goods consumed in India in 1831-.35, 1856-60, and 1880-81, with the proportion supplied by Great Britain. — Exports of Goods and Yam to the chief districts of the World 1820 to 1882. — Particulars of the Number of Operatives, Spindles and Looms employed, and Wages paid, 1819-21 to 1880-82. — Wages paid to the diflferent denominations of Operatives at various periods. — Recapitulation, showing Weight and Value of Yarns and Goods produced ; Number ol Spinners and Weavers employed ; Annual Amount of Wages paid ; Out-turns of Yarns per Spindle, of Goods per Loom, of both per Hand, &c. — Amount of Capital, fixed and floating, at present employed in the Industry. In the previous chapter is given an account of the marvellous results of the invention of the water-frame, the mule, and the power-loom, upon the character and progress of the cotton industry down to 1815. The even still more astonishing results brought about since that year by the important improvements made upon the original ideas of Arkwright, Crompton and 58 Cartwright, shall now be described. There was not much progress made during the first five years of the period, the trade being more or less disturbed by the changed condition of things which followed the peace of 1815. As the cotton industry had benefited more than any other by the war, so it experienced the greatest reverse when peace was restored. The consumption of the raw material which in 1810-11 averaged 85 million pounds, against 48 millions in 1801, increased to only 92 milhons in 1815-17; while the weight converted into goods, which in 1810-11 stood at 71 million pounds, fell to 69 millions, in 1815-17, and rose to only 80 millions in 1818-19. Meanwhile the export of cotton goods, which in 1809 reached 216 million yards, and in 1810 211 millions, averaged only 229 millions in 1818-19. During this period the operatives in the manufacturing districts were only partially employed, and no progress of moment was made in mechanical improvements. . After 1819, however, as already chronicled, commenced the series of improvements in the appliances for spinning and weaving, the economical results of which we are about to describe. Owing to the more or less disturbed state of the trade between 1815 and 1818, we shall start with the three years 1819-21, and compare the average statistics for these years with the three years ended 1831, 1846, 1861, and 1882 respectively. This chrono- logical division of the figures will furnish a greatly condensed, but for all practical purposes a sufficiently complete, account of the progress made by the cotton industry _ during the period under review. The first statement furnishes an account of the weight of cotton consumed and of yarn produced at the various periods named : — Cotton consumed.. Waste in spinning-. Yarn produced.. 1819-21. lb. 119,600,000 13,100,000 1829-81. lb. 243,200,000 26,700,000 1844-46. lb. 633,000,000 64,70li,000 1859-61. lb. 1,022,600,000 112,600,000 1880-82. lb. 1,424,600,000 99,700,000 106,600,000 216,600,000 623,300,000 910,000,000 1,324,900,000 The waste in spinning is calculated at 11 per cent, down to 1859-61, and at 7 percent, for 1880-81 : a saving of about 4 per cent, having been effected by the adoption of more economical 59 methods of spinning and by the increased utiHsation of waste. The progress made in each department of the trade is shown in the following table, figures in thousands of pounds : — Yarn produced Exported in yarn Goods produced Goods exported Home consumption.. 1819-21. lb. 106,600 1829-31. jv Ino.p.c. * perann. 216,600 10-3 1844-46. j,^ Ino.p.c. ■ perann. 623,300 10-0 1869-61. ]j^ Ino.p.c. ' perann. 910,000 5-0 1880-82. j^ Inc. P.O. perann 1,324,900 2-1 236,360 1-2 1,088,640 2-4 888,000 3-1 200,640 0-4 20,880 85,620 60,000 35,620 63,300.20-4 153,200 6-2 82,600 6-5 70,600 9-8 146,190 8-6 378,110 12-1 228,600 11-8 149,610 7-6 189,130 2-1 720,ci70 8-9 636,000 9-0 184,870 1-6 The principal improvements in spinning machinery were made between 1820 and 1830, but in wea-\dng machinery between 1830 and 1845 ; hence the circumstance that whereas between 1820 and 1830 the exports of yarn increased 20-4 per cent, per annum, and those of cloth only 6-5 per cent.; between 1830 and 1845 yarn gained only 8-6 per cent., while cloth increased 11-8 per cent. As might have been expected after the extraordinary increase between 1830 and 1845, the figures between 1845 and 1882 indicate a slower rate of progress though a larger absolute increase in weight. The distribution of the yarn and goods produced as above was as follows : — Yarn. Exported in yarn . . Ditto in mixed goods. Ditto in cotton g-oods. Total export Consumed at home . Total as above . . . Goods. Exported Consumed at home . Total production ; . . 1819-21. lb. p.c. 20,880 19-5 6,000 4-7 46,000 42-3 70,880 66.5 36,620 33-5 106,600 100 50,000 68-4 36,620 41 -f 86,620 100 1829-31. 1844-46. lb. p c. lb. p.c. 63,300 29 2145,190 27-8 10,000 4-6l 30,000 67 72,600 33-6198,600 379 1869-61. lb. p.c. 189,130 20-E 70,000 7-7 466,000 61-2 145,900 67-4'378,600 71-4 70,600 32-6149,610 28-( 216,600 100-0 623,300 100-0 82,600 63-9 70,600 46.1 163,200 100-0 726,130 79-7 184,870 20-3 223,500 60-5 149,610 39-6 378,110 100-0 910,000 100-0 536,000 74-4 184,870 25-6 720,870 100-0 1380-82. lb. p.c. 236,3".0 17-8 95,000 7-1 793,000 60-0 1,1-24,360 84-9 200,640 16 1 1,324,900 100-0 888,000 81-6 200,640 18-4 1,088,640 100-0 The proportion of yarn exported, compared with the entire production and with the export of goods, gained ground between 1821 and 1831, but has since then fallen behind, especially since 1844-46. The change is due to the great expansion in the ship- ment of goods to the East during the past forty years, of which some particulars will be found further on in the present chapter. 60 The rapid growth of the export trade has greatly diminished the relative importance of the home trade. Of the whole weight of Goods produced the proportion retained from home consumption in 1880-82, was only 184 per cent, against 25-6 per cent, twenty- one years ago, and 46-1 per cent, fifty years ago. The following statement furnishes the value, total, and' per lb. (the former in 1,000's of £'s) of the cotton yarns and goods produced, exported, and consumed, and of which the weights are furnished above : — Valde. Yarn exported . . Mixed goods ex- ported Cotton goods ex- ported Home consump- 1819-21. 1829-31. 1844-46.' 1869-61. 1880-82. 2,661 604 13,189 ]3,044 29,388 p. lb. d. 29-0 29 -C 70-3 88-0 66-2 £ 4,028 637 14,046 13,361 32,062 p. lb. d. 16-3 15-3 40-6 46-0 36-6 £ - 7,278 1,500 18,663 19,324 46,666 p. lb. d. 12-0 12 22-6 31-0 £ 9,270 3,409 39,822 27,730 ■ 80,231 p. lb. d. 11-7 11-7 20-6 35 21-2 £ 12,646 6,026 64,176 24,231 p. lb. d. 12-8 12-8 19-4 • 29-0 19-2 Total 106,077 The export values are those given by the Board of Trade. The yarn included in mixed fabrics exported we have computed at the same value as the yarn exported. The home consumption for 1819-21 we have estimated at the same price as the goods exported, plus 25 per cent, for superior quality and finish. Between 1821 and 1831 there was a decline of about 47 per cent, in certain standard descriptions of goods. In the same descrip- tions there was a further fall of about 30 per cent, between 1829-31 and 1844-46, arise of from 12 to 16 per cent, between 1844-46' and 1859-61, and a fall of 18 per cent, in 1880-82 compared with 1859-61. On this basis, starting with 88d. per lb. for 1819-21, we get 46d. for 1829-31, 31d. for 1844-46, 35d. for 1859-61, and 29d. for 1880-82. The previous chapter contains a comparative statement of the cost of producing 40's and lOO's weft at various dates between 1779 and 1812, and the effect of the continued improvements in machinery on prices cannot be better shown than by adding the figures for 1830, 1860, and 1882 to that statement : — 61 Selling price . . Cost of cotton (18oz.).. Labour and capital . Selling price Cost of cotton {18oz.). 1779. s. d. 16 2 1784. s. d. 10 11 2 Yam 40 hanks to the lb. 1799. 1812. 1830. s. d. s. d. s. d. 7 6 2 6 12^ 3 4 16 7| 4 2 10 6J 1860. s. d. Hi 6} 14 8 11 4g Labour and capital . 1786. s. d. 38 4 34 1882. s. d. 10} 7i 33 Yarn 100 hanks to the lb. 1796. 1 8. d. 19 3 6 15 6 1806. s. d. 7 2 3 1812. 8. d. 5 2 2 4 1830. s. d. It 1860. 8. d. 2 4 11 1882. s. d. 1 10 9f 4 2 2 10 2 2} 1 6 1 Ol With respect to cloth, it is shown in a paper by Mr. Alder- man Neild, read before the British Association in Manchester in 1861, that the average price of |-72 reed printing cloth fell from 28s. per piece in 1815 to 8s. 9d. in 1830, to 6s. in 1845, and touched ag low as 4s. 6d. in 1848; but rose to 6s. in 1850, and to 7s. in 1860 owing to the advance in raw cotton. In 1858, Mr. Ashworth, in a paper read before the Society of Arts, said that calicoes selling, at 13d. yer yard in 1815, were purchasable in 1856 at 2Jd. per yard; that printers worth 22d. per yard in the former year had fallen to 4|d. per yard in the latter; and that fustians had given way in the same period from 22d. to 6d. per yard. The natural result of this decline in prices was an immense extension of trade in directions scarcely thought of fifty years ago. In Smithers's " History of Liverpool," published in 1825, the author has some speculations on the prospects of the cotton manufacture, the extraordinary progress of which up to that time had led many people to think that it had reached its culminating point. Mr. Smithers takes a more hopeful view of the future, but he is by no means very confident. He has doubts about the United States, then almost our best customers, and looks upon the rising New England manufacturers as likely in course of time to become very formidable rivals. He says nothing about the Continent; but thinks we may expect much from South America. He has great reliance, however, upon the home trade ; and it is in the belief that, in a prosperous state of the country " an amount equal to all that is at present manufactured would be consumed at home, even B2 without any exportation," that he comes to the conclusion " that the cotton manufactures of Great Britain have not attained the summit of their greatness." He does not say one word of India or China, evidently > considering competition with the native spinners and weavers of the East out of the question, and yet the si^inners and weavers aforesaid were already beginning to regard with apprehension the rapidly rising importance of the British cotton industry. Only six years after the date at which Mr. Smithers wrote, the native Bengal manufacturers and dealers in cotton and silk goods, in a petition to the Government asking for a repeal of the then existing duties on textiles imported from India into the United Kingdom (10 per cent, on cottons and 24 per cent, on silks), pleaded, " That of late years your petitioners have found their business nearly superseded by the introduction of the fabrics of Great Britain into Bengal, the importance of which augments every year, to the prejudice of the native manu- facturers." "They, therefore, pray to be admitted to the privilege of British subjects, and humbly entreat your lordships to allow the cotton and silk fabrics of Bengal to be used in Great Britain ' free of duty ' or at the same rate which may be charged on British fabrics consumed in Bengal ; " which at that time was 2| per cent, ad valonim. Only forty years previously to this a similar memorial had been sent up from Manchester praying for protection against the " highly injurious " and "unfair and dangerous com- petition" of "the muslins and cotton goods imported from the East Indies," whereby the British manufactures were "exposed to con- tinued danger and immense losses ; " and which memorial was drawn up by a committee including Sir Richard Arkwright, Mr. Robert Peel, and the leading manufacturers of Lancashire, Cheshire, and Derbyshire ! So that within the short space of a single generation . the character of the trade in cotton goods between England and India had been almost completely revolutionised. What occurred between 1831 and 1881 is shown in the following brief statistical statement of the annual average weight of cotton goods consumed in India, and .the proportions supplied by native and British manu- facturers, respectively, in the periods 1831-5, 1856-60, and 1880-1 : 63 Population of India Cotton goods, &c. imported fm England Ditto produced at home Total consumption 1281-85. ISO.OOO.OOO lb. 14,360,000 360,660,000 376,000,000 1856-60, 182,000,000 lb. 160,420,000 294,680,000 t 36-3 64-7 465,000,000 1880-81, 240,000,000 lb. 360,000,000 260,000,000 % 6S-4 41-6 600,000,000 The consumption of cotton goods in India, according to the most recent official authorities, is about 2Jlb. per head per annum. On this basis the shipments from Great Britain supplied only 3-9 per cent, in 1831-35, but 35'3 per cent, in 1856-60, and 58-4 per cent, in 1880-81. What the self-acting mule and the automatic power-loom have accomplished is shown in the following account of the exports of cotton goods and yarn to the principal districts of the world in 1820, in each subsequent 10th year, and in 1882 :— Piece Goods. . Europe (except Turkey) . . Turkey, Egypt and Africa.'. America (except U.S.) TTnited States .... 1820. 1830. 1340. lj.50. 1860. 1870. 1880 1882 yds. 127-7 9-6 66-0 23-8 14-2 19-7 yds. 137-4 40-0 140-8 49-3 66-9 20-2 yds. 200.4 74-6 278-6 32 1 145-1 29 9 29-9 yds. 222-1 193-9 860-4 104-2 314-4 104i-3 68-9 yds. 200'5 357-8 6-27-1 226-8 826-1 3i!4-2 214-7 yds. 294-6 670-6 594 5 103-3 923-3 478-2 lSS-4 Yds 30.'j-l 588-6 651-6 77-9 1813-4 G32-0 367-7 yds 348-7 540-2 783-9 74 1664-8 e05-6 331-6 British East Indies | China, Japan, Java, &o.. J All other Countries ~ Total Yarn, Europe (except Turkey) . . 260-9 444-6 790-6 1358.2 2676-2 3252-8 4496 8 484S-7 lb. 22-0 0-5 0-6 lb. 66-0 1-5 4-9 2-2 -lb. 91 9 8-3 16-1 1-8 5-4 lb. 90-7 4-7 21-0 3-1 11-9 lb. 116-0 19-6 30-7 88 22-2 lb. 93-7 14-2 31-0 20-8 28-0 lb 95-1 12-4 47-1 46-4 14-7 lb 121-9 18-6 45-0 34-4, 18-6 238-4 British East Indies ) China, Japan, Java, &o.. J All other Countries Total 280 I 64-6 ! 118-5 131-4 197-3 187-7 215-7 The trade on the Continent showed a steady increase up to 1840, but thence to 1860 remained almost stationary. This latter change was due entirely to the impetus given to the erection of cotton spinning and weaving mills on the Continent by the abro- gation in 1843 of the prohibition of the export of cotton spinning and other machinery from Great Britain. Since 1860 the trade has again increased, thanks chiefly to the augmented business done with France under the provisions of the Cobden Treaty. The trade with the United States steadily increased up to 1860, but since then has fallen off in consequence of the protective 64 policy introduced by the Lincoln administration, and since main- tained. The exports to America (except the United States), to India, China, Japan, and " other countries," show an uninterrupted increase throughout the sixty years. The relative importance of the trade with each district of the world at each decade is shown in the following statement : — Piece Goods. Europe (except Turkey) Turkey, Eg-ypt, and Africa . . America (except U.S.) United States 18i0 1830 1840 1850 1860 1870 1880 1882 % 50-90 379 2C-S2 9-48 6-C6 7 -as % 30-94 8-99 31-66 11-68 12-79 4-54; % 25-36 9-43 35-24 4-07 18-85 3-78 3-78 16' 14 26 7 23 7 4 / 35 27 68 68 15 68 % 7-49 13-37 19-70 8-48 30-83 1211 8-02 100 % 9-06 20-61 lS-28 8-18 28-88 14-70 6-79 "/ 8-°12 13-09 14-49 1-73 40-33 14-16 8-18 % 8-03 12-42 18-03 1-70 88-28 13-92 7-63 British East Indies | China, Japan, Java, &c. .. | Total 100 X 95-66 2-17 2-17 100 100 100 100 100 100 Yarn. Europe (except Turkey) % 86-69 2-32 7-58 3-41 % 77-55 2-78 13-69 1-62 4-66 % 6903 3-68 16-98 2-36 9-06 % 58-79 9-94 16-56 4-46 11-25 49 %3 17-66 16-51 11-08 14-92 % 44-09 6-79 21-84- 21-61 6-81 % 51-14 7-76 18-87 14-43 7-80 British East Indies 1 China, Japan, Java, &c, . . j All other Countries Total 100 100 100 100 100 100 100 100 Europe was our best customer in 1820 : taldng half of the goods, and nearly the whole of the yarn, exported. In 1830 America held the first rank in respect of goods, but Europe still took nearly seven-eighths of the yarn shipped. The relative positions were without change of moment in 1840; but in 1850 India and China took the lead for goods ; they were also good customers for yarn, but Europe still took about 69 per cent. The large increase in the exports to the East was due partly to the opening up of the trade with that quarter in 1841 and 1842, but chiefly to the improvements made in the power-loom. Since 1850 India and China have become by, far our most important customers in respect of goods, while they are not far behind Europe in respect of yam. Beyond a doubt the cotton industry of Great Britain could not possibly have attained its present magnitude if it had not been for the fall in prices brought about by the inventions con- nected with weaving machinery between 1831 and 1851. An account of the number of spindles, looms, and operatives em- 65 ployed, and of wages paid, at the various dates given in previous tables, puts this matter of the reduced cost of production in a very clear light. In 1819-21 the weight of yam produced was 106,500,000 lb. per annum. At that time Mr. Kennedy, in a paper published in the Proceedings of the Manchester Literary and Philosophical Society, gave 40 hanks to the pound as the average count of yam spun, and two hanks per spindle per day as the average rate of production. On this basis the total number of spindles at work would be about 7,000,000. The average annual production of yarn in 1829-31 was 216,500,000 lb. The average production per spindle per day (according to Mr. Kennedy, Mr. Babbage, Dr. Ure, and others) was from two and 'three-quarters to three hanks, against two hanks in 1820. The number of spindles in existence was, therefore, about 10,000,000, assuming 40's as the average count of yarn spun. This compu- tation, allowing for further gradual improvements, agrees with Dr. Ure's estimate of 12,000,000 as the number of spindles at work in 1835. The first official count of spindles took place towards the close of 1849. The number returned by the Factory Inspectors was 20,977,000. The weight of cotton consumed in that year was '630 million pounds, and of yarn produced 561 million pounds, or 26| lb. per spindle. At the same rate the 523 million pounds of yam produced, on average, in 1844-46 would require about 19,500,000 spindles. In 1861 there were, according to" the factory returns, 30,387,000 spindles at work. The average annual production of yarn in 1859-61 was 910 miUion pounds. The out-turn per spindle was therefore about 30 pounds. In 1882 there were about 42,000,000 spindles at work, and the out- turn of- yam was about 31-5 lb. per spindle. In 1819 Mr. Kennedy estimated the number of hand-looms employed in the cotton manufacture at 240,000, and the number of power-looms at from 14,000 to 15,000. Between 1830 and 1835 the number of hand-looms at work was variously estimated at from 200,000 to 250,000 — probably an average of 225,000 would not be far from the mark for 1829-31. At the same period there were about 80,000 power-looms at work. In 1849, 66 according to t}ie Factory Inspector's returns, there were about 250,000 power-looms .at work, and 225,000 would be a fair estimate for 1844-46, at which period there were also about 60,000 hand-looms employed in connection with the cotton trade ; about 165,000 hand-loom weavers having been either drafted into the mills as power-loom weavers, &c., or transferred to the silk and fancy goods trades, between 1830 and 1845. In 1860 there were about 400,000 power-looms in existence, and hand-loom weaving had nearly ceased to form an item in the manufacture of cotton goods. In 1882 there were about 550,000 looms at work. In 1881 there were about 686,000 persons directly employed in the cotton industry. In -1861 the number so employed was about 646,000. The number in 1851 was 585,000, and in 1841 486,000 : an average between these two would give 535,000 as the number employed in 1846. In 1830 the number of operatives was about 515,000, and in 1820 about 445,000. On the basis of statements pubhshed at various dates between 1821 and 1860, by Mr. Porter (in the "Tables of Ee venue. Population, and Com- merce," 1821 to 1832), by Mr. Baines and Dr. Ure (in their works on the cotton trade, 1833 to 1835), by Mr. Stanway, factory commissioner, in 1833, by Mr. David Chadwick in 1860, and by recent inquiries made by the present writer, we estimate the wages paid to the various classes of operatives as follows : — 1819-21. 1829-31. 1844-46. 1859-61. 1880-82. Number Number Number Number ^1 Nmnber Operatives in spin- ning mills Ditto, in weaving- mills Hand-loom weavers, Other Operatives, bleachers^ printers, dyers, &c Total 110,000 10,000 240,000 85,000 s. d. 10 3 9 6 8 10 3 140,000 60,000 226,000 100,000 s. d, 10 6 9 6 7 10 6 190,000 160,000 60,000 140,000 s.d. 11 10 8 11 243,000 203,000 196,000 s. d. 12 6 n 10 12 6 240,000 246,000 2C0,000 s.d. 17 15 17 -ttt.OOO 9 616,000 8 8 640,000 10 6 648,000 12 4 686,000 16 2 There were, perhaps, from 5,000 to 10,000 hand-loom weavers at work in the manufacture in 1859-61, but we have included tliem in the 195,000 "other operatives." The "week" 67 consisted of 74 hours in 1819-21, of 69 hours in 1829-31, of 60 hours in 1844-46 and 1859-61, and of 56J hours in 1882. In weeks of equivalent hours the wages compare as follow : — SpiNKixa MiiLS, WEAVixa Mills. § a 1820. 1830. 18i5. I860. 1882. 50 1 1820. 1880. 1845. 1860. 1882. 74 89 60 66J s. d. 10 3 9 6 8 3 7 10 s. d. 11 2 10 a 9 1 8 6 s. d. 13 6 12 7 11 10 6 s.' d. 16 5 14 4 12 6 11 9 8. d. 22 2 20 9 19 17 74 69 60 mi s. d. 9 6 8 10 7 8 ' 7 s. d. 10 0' 9 6 8 3 7 6 a. d. 12 4 11 6 10 9 6 s. d. 14 6 13 7 11 10 11 1 s. d. 19 6 18 4 la 11 15 Of course the figures represent the average wages paid to workers of all ages. In the following table the figures for 1839, 1849, and 1859, giving the average rate of wages paid to the various denomina- tions of operatives in the years named are from a parliamentary return published in 1860. To these are added the range and average rate of wages paid in 1882 : — Spinnisg Depaetmbst. Blowing-room Hands (Women) Strippers (Young Men) Grinders (Men) Drawers (Women) Slubbers (Women) Rovers and Jack-frame Tenters (Women) Minders— Self -actors (Men) Piecers (Lads) Reelera (Women) Throstle Spinners (Young Women) Card Masters (Overlookers) Spinning Masters (Overlookers) . . . ; — Weaving Department. Winders (Young Women) Wai-pers (Women) Sizers (Men) Three-loom Weavers (Women and Men). Four-loom Weavers (Do.) Six-loom Weavers (Do.) Average of both departments 12 7 1839. 1849. 1859 Avge. s. d. 7 11 14 23 13 17 Avge. s. d. 7 6 12 13 7 8 6 9 9 6 7 6 28 22 23 13 16 13 5 Avge. d. 26 15 6 19 1882. Range, s. d. s. 12 to 15 16 „ 19 19 „ 24 12 6 „ 18 16 „ 24 14 „ 20 23 „ 40 11 „ 16 „ 20 „ 14 „ 60 „ 67 „ 20 „ 21 9 „ 45 „ 19 „ 25 „ 32 Avge. s. d. 13 6 17 6 21 6 16 6 81 6 13 6 42 6 These particulars show that the average rate of wages paid in 1882 was about 80 per cent, more than in 1839, 69 per cent, more than in 1849, and 55 per cent, more than in 1859. As respects the wages of weavers, this advance is due not so much to the rate per loom as to the increased number of looms which 68 the weaver can now take in hand, owing to improvements in the construction and working of the loom itself. The wages paid to three-loom and four-loom weavers in 1859 ought, therefore, to be compared with those paid to four-loom and six-loom weavers, respectively, in 1882. The following statement contains particulars of the range of wages paid to the various classes of operatives in 1882. The figures are. based upon returns obtained from the principal spinning and manufacturing towns of Lancashire : — s. d. ..16-0 t s. d. 26-0 , 24.0 , 17-0 , 60-0 , 35-_6 , 24-0 , 19-0 , 16-0 , 18-9 , 24-3 , 13-6 , 20-6 , 26-6 , 20-0 , 10-0 , 5-0 , 26.0 , 10-0 , 19-8 s. d. 28 '0 s.d. , 57-0 , 28.0 , 40.0 , 16-0 11.0 8-6 , 35-0 , 14-0 , 11-0 3-6 , 18-6 , 25 6 ,- 32-0 , 6-0 , 22-6 . 20-0 , 45-0 , 70-0 , 36 Blowex- Mindei-s Assistant Do Carders , Under Carders Grindei-s Strippers ..19-0 , ..12-0 ..28-0 ..24-0 ..19-0 ..16-3 , . ,12-0 Assistant Do. 24 Self-acting Minders Big Piecei-g ....23.0 . 11 "0 8-0 , Scavengers .... 7-6 , 30-0 Drawing — Fiume Tenters . Slubbing— Frame Tenters . Little Slubber Tenters Intermediate Tenters Cardroom Jobbei-s ..12-6 , ..16-0 .. 9-0 ..14-0 , ..19-0 , ..14-0 , 9-0 , Ditto, Half Timers 3'0 16-0 , Do. 4 . 20-0 , Do. 6 „ 29-0 , Do. Half Timers Wai-pei-s Winders . .... 3-6 , ....16-0 , lO'O Back Tentei*s . . . 9-0 , Half Timera .. 3-0 Roller Coverei-s ..26 .. 7-0 , Sizers ....30-0 , Bobbin Can-iers ..10-6 , fi-3 . Twisters and Drawers . . . ....26-0 , A recapitulation of the figures giving the weight of yarn and goods produced, the number of spindles and looms at work, the number of spinners and weavers employed, the amount of wages paid, the rate of production per spindle, &c., compares as follows. In the weight of "goods produced " we have excluded the yarn ex- ported in mixed fabrics : that being woven by operatives connected with the woollen, linen, and silk industries. The figures relating to yarn and goods produced are given in thousands of pounds only : Yarn. 1819-21 1829-31 1844-46 18.69-61 1880-82 Yarn Spun. lb. 106,500 216,.'-00 523,300 910,000 1,321,900 Spindles at Work. No. 7,000,000 10,000,000 19,600,000 30,400,000 42,000,000 Hands employed. No. 110,000 140,000 190,000 248,000 240,000 Wages Paid. Bate of Production , Wages. per ann. £ s. 26 13 27 6 28 12 32 10 44 4 Total. £ 2,931,000 3,822,000 6,434,000 8,060,000 10,608,000 per spindle. lb. 15-2 21-6 26-S 30 31-6 per hand. lb. 968 1,646 2,764 8,671 6,620 per lb. d. 6 '4 4-2 2-3 2-1 1-9 69 Goods. 1819-21 1829-31 1844-46 1869-61 1380-82 Goods produced. lb. 80,620 143,200 348,110 660,870 993,640 Looms at Work. No. 256,000 306,000 282,000 400,000 660,000 Hands employed. No. 260,000 276,000 210,000 203,000 246,000' Wages Paid. Rate of Production. Wages. per ann. £ s. 20 18 19 8 24 10 80 IS 39 Total. £ 6,223,000 6,335,000 6,146,000 7,612,000 9,694,000 per loom. lb. 335 470 1,234 1;627 1,806 per hand. lb. 842 621 1,631 3,206 4,039 ?br d. 15-6 9-0 3-5 2-9 2-3 The rate of production per power-loom was about 600 lb. in 1820, 900 lb. in 1830, 1,470 lb. in 1845, 1,627 lb. in 1860, and 1,806 lb. in 1881. The increase in the out-turn of j-arn per sjnndle and of cloth per loom between 1821 and 1845 was owing mainly to the mechanical improvements to which we have already alluded, but since 1845 chiefly to the augmented speed at which the machinery has been run, and to the increased proportionate produdtion of the lower counts of yarn and the coarser makes of of goods required to meet the vast increase in the demand for cheap fabrics for India and China. If from the total value of the goods produced we deduct the cost of raw material and the amount of wages paid to the various classes of operatives, we shall get the amount available for "other expenses" — coal, gas, water, oils, dyes, stores, wages paid to mechanics, joiners, builders, &c., wear and tear of machinery, interest of capital, profits, &c. These particulars we give in the following statement : — Value of Cost of Wages. Balance Goods. Cotton. Total. Total. £ £ p.c. £ p.c. £ p.o. 1819-21 29,388 0,187.. 21-1 10,413 36-4 12,788.. 43-5 1829-31 32,062 6,713.. 20 -9 11,604.. 36-2 13,746.. 42-9 1844-46 46,666 11 ,943.. 25 -6 14,626.. 31-3 20,097.. 43-1 1859-61 80,231 29,290.. 36-6 20,704.. 26-8 30,237.. 87-7 1880-82 J06,077 38,211,. 36-0 29,042.. 27-4 88,824.. 36-6 The price of cotton is taken at 12-|d. per lb. for 1819-21, 6fd. for 1829-31, 4|d. for 1844-46, 6|d. for 1859-61, and 6/ird. for 1880-82. The wages comprise the amounts paid to the total number of operatives as given in a previous table. The value of this table would have been greatly increased if it had been possible to divide the "Balance" into "other expenses" and "interest of capital, profits, &c. ; " but the data necessary to accomplish this is not obtainable. The machinery at present in existence in the cotton industry probably cost on average about 24s. per spindle and about £24 per loom, including all building and other exj^enses. . Say, 42,000,000 spinning spindles and 5,000,000 1 £gg ^qq qqq doubling spindles, at 25s. each J ' ' And 550,000 looms, at £24 each 13,200,000 To these items must be added the iloating capital \ „» qqq qqq requisite to carry on the business / ' ' The capital employed in the printing, bleaching, \ ,g qqq qqq and other works / ' ' And for capital employed in the manufacture of 1 » qqq qqq cotton lace and hosiery / ' ' Total £119,600,000 This, of course, takes no note of the capital employed by merchants, shipowners, railway proprietors, and others, in bring- ing the raw materials from the places of growth or production, or in distributing the manufactured products at home and abroad. The present value of the machinery is probably not more than 18s. per spindle and £20 per loom, or a total of £42,300,000 for the one and £1 1,000,000 for the other. 71 CHAPTER VI. V FACTORY AND CENSUS RETURNS. Comparison of the particulars of Operatives, Spindles, and Looms employed^ as furnished by the earliest and latest complete returns made by the Inspectors of Factories. — Large increase in number of mills carrying on spinning and weaving separately : comparatively very small increase in mills engaged in both branches — Comparatively small increase in labour, compared with the increase in machinery ; and large increase in female and juvenile labour, compared with increase in adult male labour. — Dimiimtion of the industry in Scotland and Ireland. — ■ Fluctuations in the number of spindles and looms at various periods, 1850 to 1878. — Reasons why the manufacturing branch of the industry is frequently less profitable than the spinning branch. The earliest complete Factory returns, giving the number of spindles and looms as well as the number of hands employed, were issued in 1850, and the latest in 1878. A comjDarison of these two returns shows that some very considerable economic changes have taken place in the course of the past thirty years. In the following statement will be found the separate particulars relating to the three divisions into which the industry is divided. First, the mills which spin but do not weave ; second, the mills which weave but do not spin ; and third, the mills which both spin and weave. The first spin yarn for sale either to home manufacturers or to exporters ; the second weave cloth from yam purchased from the first ; and the third mostly weave the yarn spun by themselves, we say mostly, because some of them have occasional]}- to purchase yarn, while others have sometimes a surplus to sell. Number of Mills Number of Spindles;. . . Number of -Looms Hands Employed :— Children under 13 Females over 13 Spinning Mills. Weaving Mills. 1860. 1S78. n si 1860. 1878. is 834 9,112,767 1,159 28,671,423 38-9 189-2 278 50,936 766 234,603 175-2 860-4 6,488 60,108 38,643 20,766 78,628 66,321 220-0 56-6 46-7 166 20,676 10,724 12,643 67,360 31,761 1 283-9 196 1 Total. 95,239 156,616 63-3 31,566 111,664 263-7 No. of Spindles per Mill. No. of Looms per Mill. . No. of Hands per Mill. No. of Spindles pr. hand No. of Looms per hand. 11,886 114 104 24,738 138 184 108-1 21-0 77-0 183 113 i-6 306 146 2-1 66-6 29-1 31-2 Number of Mills Number of Spindles Number of Looms Hands Employed : — Children under 13 . ... Females over 13 Mills which and combine Sp Weaving:. mning Grand Total. United Kingdom / 1860. 1878. IS 1860. 1878. 11 sl 673 11,064,260 198,692 697 15,636,267 280,408 4-4 40-4 41'1 1,982 20,977,017 249,627 2,674 44,206,690 614,911 38-4 110-7 106-2 8,065 104.043 78,179 28,364 116;460 . 67,359 261-6 10-9 14,993 183,912 132,019 61,923 264,171 166,809 313-0 42-1 18-8 Total 190,287 211,183 10-9 330,924 482,903 46-0 No. of Spindles per Mill. No. of Looms per Mill. . No. of Hands per MUl.. 20,131 364 332 26,022 468 354 29-2 27-4 6-6 10,867 128 171 16,682 192 180 62-3 60-0 6-2 * Decreane^ 13-9 per cent. It will be gathered from the foregoing particulars that the mills in existence in 1878 were, on average, much larger than those in existence in 1850 : the spinning mills holding about 108 per cent, and the weaving mills about 66 per cent, more machinery in the one year than in the other ; and there is no doubt that the next returns -wiW show a still more marked movement in the same direction: nearly the whole of the spindles added since 1878 being in connection with the new huge mills erected at Oldham. Another important feature is the exceptionally large increase in the number of factories and spindles devoted to spinning only, '73 and in the number of factories and looms devoted to weaving only, as against the mills combining both branches. This change, however, though spread over the entire period of twenty-eight years, was more marked during the last eighteen, and most marked during the last eight years, as is shoivn in the following analysis of the returns for 1850, 1861, 1870, and 1878. Spindles. In Spinning' Mills 1850. 1861. Total. Per cent. Total. Per cent. 9,912,767 11,064.260 47-3 62-7 16,308,969 14,078,508 63-7 46-3 In Spinning: and Weaving Mills . . Total 20,977,017 100-0 30,387,467 100-0 Looms. 50,935 198,692 20-4 79-6 148,646 261,346 37-2 62-8 In Weaving and Spinning Mills . . Total 249,627 100-0 399,992 100 -0 Spindles. 1870. 1878. Total. Per cent. Total. Per cent. 20,607,969 17,610,789 53-9 46-1 28,671,423 16,63.'),267 64-9 35-1 In Spinning and Weaving Mills. . . Total ■■.. Looms. 38,218,758 100-0 44,206,690 100-0 191,294 249,882 43-4 56-6 234,603 280,408 45-5 54-5 In Weaving and Spinning Mills — Total 440,676 100-0 514,911 100-0 The rapid growth of factories devoted to spinning only is con- spicuous throughout, but they did not materially overtake the factories in which both spinning and weaving are carried on until between 1870 and 1878, during which years they gained over eight million spindles, while the others lost nearly two millions. This alteration was due entirely to the enterprise of the Oldham Limited Companies. As respects the mills employed in weaving only, there was a much more considerable increase between 1850 and 1861 than between 1861 and 1878. For the entire twenty- eight years the spinning mills gained 189 per cent, in spindles, and weaving mills 360 per cent, in looms. This disparity, however, disappears if we include the machinery employed in the 74 mills engaged in both spinning and weaving : the total increase being 110-7 per cent, in spindles and 106'2 per cent, in looms. The increase in mills combining both spinning and weaving is only 40-4- per cent, in spindles and 41-1 per cent, in looms. This may be taken as an indication that, as respects the great bulk of the yarn spun or cloth woven, the two branches or processes can be more economically worked separately than together. Still more remarkable changes, than those to which we have already referred, will be seen jn the figures relating to the operatives employed. For the United Kingdom the increase in hands is only 46 per cent., while the increase in spindles is nearly 111 per cent, and in looms over 106 per cent. In spinning mills only there is an increase of about 189 per cent, in spindles, but only 63 per cent, in hands employed ; and in weaving mills an increase of 3€0 per cent, in looms, but only 253 per cent, in operatives. This, of course, shows that the - machinery has become more and more automatic or self-regulating, thus re- quiring the attendance of a relatively smaller number of workers. The same circumstance has also of late enabled the mill owners to- manage their business with a much smaller proportion of the more expensive class of operatives than formerly : their places now being filled lij- juveniles or young women. The total increase in the number of hands employed in spinning mills, between 1850 and 1878, was 60,376, of which more than two- thirds, or 42,698, consisted of women and children; so that whereas thirty years ago males over 13 years of age constituted 40 "6 per cent, of the hands at work, they now constitute only 36'2 per cent., leaving 59'4 and 63'8 per cent, respectively for women and children. In the same way the proportion of males over 13 years of age employed in weaving mills is now only 2 8 -4 per cent, against 34 per cent, in 1850, leaving 71 '6 per cent, for women and children against 66 per cent. In mills engaged in both spinning and weaving there is an absolute decrease of 10,820 males employed, and an increase of 31,716 women and children : so that of the total number of hands employed in 1878 only 31 '7 per cent, consisted of males over 13 years, against 41 per cent, in 75 1850; leaving 68-3 per cent, for females and children against 59 per cent. For the United Kingdom the total increase in the number of operatives employed is, as already stated, 46 per cent. The increase in children alone is 313 per cent., and in females over 13 years 42-1 per cent., but in males over 13 only 18 '8 per cent. The particulars in respect of age and sex are as follow : 1850. 1878. Increase. Total. P. cent. Total. P. cent. Total. P. cent. Children under 13 years... 14,993 4-5... 61,923 128. .. 46.930 313-0 Females over 183,912 55-6. ..264,171 547... 80,259 42-1 Males over „ ...132,019 39-9. ..156,809 32-5.,. 24,790 18-8 Total 330,924 lOO'O... 482,903 lOO'O... 151,979 46-0 The proportion of females over 13 years is almost stationary, but there is a large increase in the number of juvenile operatives, and a corresponding decrease in the number of males over 13 years. It vrill be gathered, therefore, from this table, and the one imme- diately preceding it, that the improvements in machinery during the past thirty years have not only led to a diminished ratio of increase in the number of hands employed, compared with the number of spindles and looms brought into operation, but that they have also' led to a still greater proportionate diminution in the more expensive class of operatives — that of males over 13 years. The foregoing figures refer only to cotton spinning and ^Yea.v- ing factories, but the following particulars include the operatives and other workpeoijle employed in all other departments of the industry : lace, hosiery, printing, dyeing, bleaching, &c. They are taken from the Census tables of 1851 and 1881, and comprise the returns for England and Wales only. 1851. 1681. Decrease. Total. P. cent. Total. P. cent. Total. P. cent. Males under 20 years 82,734 150... 81,730 13-5... 1,024 1-5 ,,' 20 years and over 176,435 31-9. ..148,279 24 ■4... 28,156 . 15-6 TotalMales 259,189 46'9... 230,009 37-9... 29,180 11-2 ^ Increase. Females under 20 years. ..121,801 22-0.. 141,655 23-3... 19,854 16-3 „ 20 years and over 171,680 31-1. ..235,178 38-8... 63,498 36-1 Total Females 293,481 53-1.. 376,833 62'1... 83,352 28-4 Grand Total 552,670 1 00 '0... 606, 842 lOO'O... 54,172 9-8 76 These figures, which are doubtless more complete than the factory returns, show an absolute decrease in the number of males employed in 1881 compared with 1851 : the decrease, moreover, being in the older and more expensive class of labour. On the other hand, there is a considerable increase in the number of females employed, especially in respect of those over 20 years of age. Altogether there is a decrease of 11 -2 per cent, in the number of males, but an increase of 284 per cent, in the number of females, employed. In respect of males 20 years of age and over there is a decrease of 28,156 or 15'6 per cent., while in respect of females of the same age there is an increase of 63,498 or 36 '1 per cent. The total increase in the number of people employed is barely 10 jjer cent. ; whereas, as shown in previous tables, the increase in the number of spindles and looms is over 110 per cent, and 106 per cent, respectively. The following statement shows that while considerable jirogress has been made in England, both Scotland and Ireland have fallen back : — England and Wales Scotland Ireland Total No. of Spindles. No. of Looms. No. of Operatives. 1860. 1878. 1850. 1878. 1860. 1878. 19,173,969 1,683,093 119,956 42,640,309 1,487,863 78,628 223,626 23,564 2,437 489,960 22,265 2,686 291,662 36,326 2,937 461,608 29,775 1,620 20,977,017 '44,206,690 249,627 514,911 330,924 482,903 In reference to the decline in the cotton industry of Scotland, a writer in "The Textile Eecorder" of May, 1883, says that "After a careful examination of the whole case, it appears that the decline of cotton spinning ill Glasgow is due to the want of enterprise and energy on the part of millowners, carelessness on the part of workers, and a lack of friendly common interest among all concerned. These defects are remediable, and there is therefore some reason to hope that Glasgow will not allow its cotton spinning industry to sink out of existence, but will make strenuous efforts to regain the position it has lost." In the twenty-eight years covered by the Factory statistics there was an increase of about 110 per cent, in the number of spindles, and about 106 per cent, in the number of looms ; but though, at the close, the relative positions of the two branches of the industry were about the same as at the opening of the period, there occurred several intermediate fluctuations of importance. These are shown in the following figures : — Number of Increase. Number of Increase. Spindles. Total. Per cent. Looms. Total. Per cent. 1850 . .. 20,977,017 — — .. 249,627 1861 . .. 30,387,467 9,410,450 39-1 . .. 399,992 150,635 60-0 1870 . .. 38,218,759 7,831,291 25-7 . .. 440,676 40,684 10-0 1874 . .. 41,881,789 3,663,031 9-6 .. 463,118 23,442 5.0 1878 . .. 44,206,69 J 2,324,901 5'5 .. 514,911 51,793 11-2 It will be observed that between 1850 and 1861 the ratio of increase in looms was much greater than that in spindles. This led to a considerable over-production of cloth, especially during the last three years of .the period, and to a serious diminution in the profits of manufacturers. It gave rise also to a gigantic amount of over-trading with the Eastern and other markets, from the disastrous effects of which the shippers were only saved by the enforced reduced production occasioned by the cotton famine. Between 1861 and 1874 the relative positions of the two branches were brought back almost to the point at which they started in 1850 : the proportion being as one loom to 90 spindles in 1874 ' against one loom to 84 spindles in 1850. The increase in spindles was especially marked between 1870 and 1874. Between 1874 and 1878 there was a pause. Over two and a quarter million new spindles came into operation, but these had mostly been projected or started in 1874. For the time being, however, mill building had been overdone ; the suppl}- of yarn exceeded the demand, especially as the consumption of cloth was cut down by the adverse influence of war, bad harvests, and commercial depression ; and prices ran so low that dividends became things of the past, and losses, calls, and forced sales of shares, matters of every day occurrence. Eventually there came a turn for the better. As the markets of the world had been run bare of stock, goods felt the improvement first. This stimulated the manufacturing branch of the industry, and as the export demand for yarn came later 78 than the demand for goods, the looms got more quickly to work than the spindles, and though the latter shortly, followed, the former, for a little time, kept ahead, and thereby laid the founda- tion of the unsatisfactory state of trade which ruled in 1882-83. It is a matter of common observation that the weaving, or manufacturing, department of the industry is always the first to feel the approach of a period of depression in trade ; in fact, even when there is a large and apparently remunerative business going on, and when the spinning mills are declaring good dividends, manufacturers frequently comjjlain that their special section is doing very badly. For the past two years, for instance, the market reports have been continually telling us that though the position of spinners was fairly satisfactory, that of manu- facturers was not only the reverse of this, but was going from bad to worse. The explanation is very simple. In the first place, it costs considerably less to put up an increased number of looms than it does to bring into operation an equivalent number of spindles, while it also requires a much smaller amount of floating capital to work a weaving shed than it does to conduct a spinning mill of corresponding dimensions. Moreover, weaving can be profitably conducted on a much smaller scale than is possible in the case of spinning. An operative weaver who has saved.a few pounds can hire both looms and power, and with the assistance of a Manchester cloth agent can commence business on a very small capital. If times are good he makes money and invests it in the hire or purchase of more looms ; if business becomes bad he fails, pays a dividend, and goes on again ; -or his looms, after standing idle for a while, pass into the hands of another weaver. To put up a spinning mill, however, requires a large capital, both fixed and floating ; and it is not possible for a small spinner to com- mence business with hired spindles, in imitation of the small weaver, who, by renting a few looms, becomes a full-blown manufacturer. It is easy to understand, therefore, how, when the margin of profit is satisfactory, an increased number of looms can be brought into operation more quickly than can an increased number of spindles ; it is equally easy to grasp the reason why competition amongst manufacturers is much keener than it is amongst spinners, and why spinners can retain a margin of profit for some time after that of the manufacturer has vanished. But the principal reason why the manufacturer is frequently at,a disadvantage compared with the spinner is the fact, that the latter has several markets at which he can sell his yam, while the fornier has practically only one in which to sell his cloth. The spinner disposes of the bulk of his yarn to the home manufacturer of calico, but he also sells a not inconsiderable quantity to the Yorkshire and other manufacturers of mixed fabrics, and to thread makers, while he disposes of a still greater quantity for export to Continental, East Indian, and other markets. As it only rarely happens that the whole of his customers simultaneously slacken their operations, he is less frequently under the necessity of forcing sales than is the case with the manufacturer. The result is that the weaver has often to sell his cloth in a weak market and buy his yarn in a firm one. So long as the manufacturer keeps his looms going he must have yarn no matter what the price, but in dull times, when demand is small and stock large, he must, if he wishes to sell, take the best price the buyer of calico can be persuaded to give. Eventually he may be compelled to stop his looms. Thereupon will follow a diminishe/i demand for yarn, which, if it continues long enough, will cause spinners first to reduce their prices and then to curtail their production. Simul- taneous " short time " amongst both spindles and looms will lead to a reduction of surplus stocks, and by-and-by bring about a revived demand, first for goods and then for yarn. During the first portion of the revival manufacturers will do better than spinners ; but when the whole of the looms have got to work the spinners will once more be able to make their own terms as to price. 80 CHAPTER VII. COTTON SUPPLY, 1781--1883. Mediterranean countries almost exclusive sources of supply down to about a century ago. — First imports from the American Colonies, 1748, 1757, and 1781, probably West Indian. — First import from the United States, 1784, seized by the Custom authorities on the ground that it %Yas not American growth. — First imports from Brazil, 1781. — Great increase in consumption owing to mechanical inventions of Hargraves, Arkwright, and others. — Appeal to the East Indian Company to promote imports from their territories. — First arrival of Indian Cotton pronounced unsuited for the requirements of the Spimiers. — Eventually assistance comes from America owing to invention of saw gin in 1793. — Rapid increase in supplies from Georgia and Louisiana iuterferes with the profitable sale of West Indian. — Quantities and proportions of imports from all sources, 1786 to 1883. Fluctuations in supplies at various periods explained. — First imports from Egypt, 1822-23 : remarks thereon by contemporaneous brokers. Great expansion of the staple industry of Lancashire, due chiefly to constantly increasing supplies of ■ raw material from America : fact that in 1826-30 75 per cent, of Cotton used came from this one source begin to cause uneasiness. — East Indian Company again urged to promote cultivation ; but with further and increased American supplies agitation ceases. — Stock of American in Liverpool, middle of 1843, 1844, and 1845, raiiges from 38 to 43 weeks' requirements ; prices, down to from 3d. to 34d. — Short crops in 1 846 and 1 847 lead to revived grumbling at the East Indian Company. — Appointment of Parliamentary Committee of Inquiry. — With large American crops agitation ceases. — Need of something practical being done leads to sending out of Mr. Mackay to India in 1852, and to forma- tion of Cotton Supply Association in 1858. — Fluctuations in supplies and prices occasioned by the American civil-war, 1861-65. — Particulars of the imports into Europe from all countries, 1860-83. — Discovery that size of Indian Cotton crops had been greatly exaggerated. — Effects of high prices on supplies from India, China, Egypt, Brazils, &c. — 81 Reduction in exports from all countries than America on cessation of the war. — Effect of the Cotton Famine upon the industry of Lancashire. — Number of Operatives thrown out of employment ; amount of Loss in Wages. — Number of Operatives relieved by Parochial and Private Charity ; amount of money expended. — Estimated aggregate losses to Millowners and Operatives during the four years of the famine. Down to about twenty years before the close of the last century the cotton imported into Great Britain came almost entirely from the Mediterranean, chiefly from Smyrna. Occasional parcels arrived from the West Indies, but nothing of moment, and in the article " Cotton," in Postlethwyt's Dictionary of Commerce, published in 1766, there is no mention of America as a source of cotton supply, though in another part of the Dic- tionary it is stated that cotton wool was grown in South America, but was not exported. Small shipments of cotton were made from Charleston in 1748 and 1757, but these were probably of West Indian origin. The first recorded import into Liverpool from the American Colonies took place in 1771, and consisted of three bales from New York, four bags from Virginia and Mary- land, three barrels from North Carolina, and four bags from Georgia, but it is, not unlikely that a portion of these imports consisted of West Indian cotton transhipped. There' is no record of any imports from America between 1770 and 1784, though possibly some may have been received. In 1784, a little over a year after the independence of the Colonies was acknowledged by the mother country, eight bags of cotton were imported in an American vessel from the United States into Liverpool. As the greater part of the cotton hitherto imported from the Colonies had consisted of West Indian produce, transhipped or re-exported, it was very naturally surmised by one of the custom house officials that these eight bags might also be of West Indian origin, and, as such, could not,- according to the then existing navigation laws, be legally imported in the vessel of &fm-eign country, which the new republic had now become. The eight bags were, there- fore, temporarily detained by the official aforesaid, until he was satisfied they were really produced within the United States. G 82 The curiosity of the incident consists in the fact that it was doubted whether so large a quantity of cotton as eight bags could have been raised in the country adjacent to the port of shipment ! The cotton was consigned to Messrs. William Rathbone and Son, the great-grandfather and grandfather of the senior members of the present firm of Messrs. Rathbone Brothers and Co. The con- signment does not appear to have been of a very desirable quality, as it remained in the warehouse for several months, waiting for a customer. Eventually it was sold to Messrs. Strutt and Co., of Derby, most likely by Mr. Nicholas Waterhouse, who acted as broker for the Messrs. Rathbone and other importers as well as for Messrs. Strutt and Co. and other spinners. He commenced business as a cotton broker in 1780, and was the founder of the present firm of Messrs. N. Waterhouse and Sons. The first import from the Brazils took place in 1781. It . came from Maranham, and was described as inferior in quality and badly cleaned. Later on came small quantities from Pernambuco, which were classed with the better sorts of West Indian. The total import of all kinds of cotton in 1781 reached only 5,198,778 lbs., equal about to 13,000 bales of 400 lbs., against an average of 6,766,613, or nearly 17,000 bales of 400 lbs., in 1776-80. The West Indian crops had been seriously injured by a severe hurricane in 1780, but the chief cause of the diminished imports was the interruption to commerce occasioned by the circumstance that England was at war not only with her American colonies, but also with France and' Spain. The defeat of the Franco-Spanish fleet by Admiral Rodney in April, 1782, enabled a large number of West Indian ships to sail for England. Eleven from Jamaica alone arrived in Liverpool in July. Large supplies also arrived from other sources, attracted by the high prices produced by the previous scarcity. In this way the total imports into Great Britain in 1782 reached 11,828,039 lbs., equal to 29,500 bales of 400 lbs., against only 13,000 in 1781. Between 1771 and 1775 the prices of West Indian had ranged from 9|d. to 14d. • between 1776 and 1780 the range was from 16d. to 25d. ■ in 83 1781 the opening prices were from 19d. to 25d., and the closing from 36d. to 48d. ; at which date Smyrna was selling at 34d. on the spot and at 32d. " to arrive." Part of this rise was due to large speculative operations, which, meeting with no support from spinners, ended in disaster to those concerned. In 1783 the import fell to the equivalent of 24,300 bales of 400 lbs., but in 1784 rose to 28,700 bales. In the meantime prices rapidly- declined until West India stood at from 14^d. to 20d., and Smyrna at 13|d. to 14|d. In 1785 Arkwright's patents, which had already been extensively utilized by outsiders, were thrown open to the public. The consequence was an immense impetus to the consumption of cotton, and although the imports in that year equalled 46,000 bales of 400 lbs. and in 1786 48,600 bales, prices rapidly advanced, until at the end of the last named year West Indian was selling at 27d. to 42d., Maranham at 42d. to 48d., Pemam at 56d. to 59d., and very fine Bourbon at 7s. 6d to 10s. per lb. ! These prices stimulated imports and checked consump- tion, and in 1787 and 1788, with imports equal to 58,000 bales and 51,000 bales of 400 lbs., respectively, values fell to from 14d. to 20d. for West Indian and 18d. to 21d. for Pernambuco. The increased supplies were chiefly from the West Indies and the Brazils, Turkey giving but little additional assistance. Spinners were quite convinced that unless some new source of supply could be found the progress of the rising industry would be checked, if not altogether arrested. Naturally enough it occurred to them that India, the cradle of the cotton industry, would be more likely than any other country to furnish them with their much needed raw material. Accordingly, in 1788, Manchester urged the East India Company to promote the import of cotton from the territories under their jurisdiction. The Company thereupon commenced to bring forward a few parcels by way of experiment, but the quality was so unsuited to the wants of our spinners that it could not be sold except at unre- .munerative prices. " It is evident, therefore," says a letter of the Hon. Court, dated May 20, 1792, " notwithstanding the flattering allurements held out by the British manufacturers, that the 84 article will by no means answer." Under such circumstances it was not surprising that the import, which in 1790 had reached 422,207 lbs. (1,000 bales of 400 lbs.), fell to only 3,351 lbs. (8 bales) in 1791, and to nothing at all in 1792. But as prettj liberal supplies were received from the West Indies and Brazils (the average receipts in 1789 to 1792 from all countries being about 80,000 bales of 400 lbs.), spinners ceased to grumble, especially as prices sank to something like half the figures touched in 1786. In 1793 the import of all growths fell to the equivalent of only 47,000 bales of 400 lbs., but as stocks were liberal prices again receded : speculation being curbed by monetaty stringency. The political disturbances of the times caused considerable fluctu- ation during the years 1794 to 1796, but without much net change : the prices at the end of 1796 being only slightly higher than, those at the close of 1793. Meanwhile the import had averaged about 69,000 bales of 400 lbs. for the three years. But stocks had been greatly reduced, and in 1797, with an import of only 58,000 bales of 400 lbs., prices gained 9d. to 15d. per lb. The upward movement continued in 1798 and 1799, although the arrivals reached 79,000 and 108,000 bales of 400 lbs. respectively; and in the last named year Brazils touched 4s. 2d. to 4s. 8d., Orleans 3s. 2d. to 3s. 3d., Boweds 2s. lid. to 3s., Sea Islands 5s. to 5s. 3d., and Surats 2s. 6d. to 2s. 9d. Once more "Manchester" appealed to the East India Comjaany to stimulate the shipment of cotton from their Eastern possessions, with the same result as before. The imports of Surats and Bengals in 1799 and 1800 averaged 16,000 bales of 400 lbs. against only 4,400 in 1798 and 2,000 in 1797, but they could not be sold, and the Company, writing to the Governor of Bombay in May, 1800, trusted to his "exertions for providing tonnage for our returning shipping without the aid of this article-^ The consequence was that the import of " this article " fell from 16,000 bales of 400 lbs. in 1800 to 1,700 bales in 1805 ! The truth is that the requirements of the British cotton spinner had already been met by liberal supplies from a totally unexpected quarter. In 1784 doubts were entertained as to 85 whether so large a quantity as eight small bags of cotton could have been raised in the Carolinas, and in 1 792 the probability of the South becoming a large cotton producing country was considered so remote that Mr. Jay, in the treaty which he negotiated with Great Britain, gave his consent to an article which stipulated that no cotton should be exported from America : the object being not to exclude American cotton, but to ensure to British shipowners the carriage of West. India cotton to Europe. And j^et only eight years later (1800) the export from the United States amounted to nearly eighteen million pounds, or about 45,000 bales of 400 } lbs., of which about 40,000 bales came to Great Britain ! In ' 1803 the import from America reached fully 45,000 bales of 400 lbs. against about 57,000 West Indian, 28,000 Brazilian, and 10,000 East Indian of similar weight : the total from all countries being about 56,000,000 lbs. or 140,000 bales of 400 lbs. This sudden development of the cotton producing powers of America was the outcome of Mr. Eli Whitney's invention of the saw gin, in 1793, of the economical results of which it is not necessary that anything further should be said here. This sudden appear- ance of a formidable competitor created something like consterna- tion amongst the West Indian importers. In their circular dated Nov. 2nd, 1801, Messrs. Ewart,Eutson and Co.said, "The quantity produced in Georgia and Carolina and on the banks of the Mississippi, in favourable seasons, will, in point of weight, exceed > all the West Indian Islands put together, and will have a serious tendency to depress the value of our own West India cotton. The consumption of New Orleans and inferior Georgia is become yery general, and already precludes the sale of middling and inferior West India at the proportionate price we have formerly been accustomed to." In 1802 the import of American for the first time exceeded that of West Indian, and on March 1st Messrs. Ewart, Eutson and Co. spoke of the increasing growth of the former as " almost exceeding belief." What has since gone on is shown in the following statement of imports, reduced throughout to bales of the uniform weight of 400 lbs. : — 86 United BrazU. British Mediter- East Sun- Total. States. W.I. ranean. Indies,&G. dries. 1786-90 100 6,000 46,000 13,000 600 — 63,600 1796-1800 22,480 10,670 32,890 17,260 8,310 1,770 93,370 1806-10' 107,500 32,600 82,830 2,590 26,870 1,000 202,290 1816-20 166,310 65,760 23,800 1,030 93,710 10,970 361,680 1826-30 433,800 60,860 12,940 16,100 56,720 2,860 682,270 1836-40 920,580 62,330 3,480 19,360 146,940 10,300 1,161,990 1846-60 1,247,230 57,860 1,910 31,310 196,140 2,870 1,687,320 1866-69 2,172,820 66,060 1,960 89,940 480,020 22,430 2,822,230 1866-70 1.410,860" 190,700 7,570 363,960 1,218,370 73,600 8,266,060 1876-80 2,689,070 86,330 1,670 402,190 510,800 51,710 3,640,770 1881 (one year; 3,106,020 102,940 800 442,140 616,060 23,680 4,190,640 1882 do. 2,898,640 130,010 1,020 878,020 994,290 23,080 4,428,060 1883 do. 3,118,720 119,320 1,000 488,290 667,420 20,600 4,856,360 In order that the reader may the more easily comprehend at a glance, so to speak, the relative importance of each source of supply, the above figures are in the following table reduced to percentages : — United Brazil. British Mediter- East Sun- Total. States. W. I. ranean. Indies,&o , dries. 1786-90 0-16 7-87 70.75 20-44 0-78 100 1796-1800 24-08 11-43 36-23 18-47 8-90 1-89 lOO 1806-10 63-14 16-07 16-23 1-28 12-79 0-49 100 1816-20 47-31 . 15-86 6.77 0-i9 26.65 3-12 100 1826-30 74-60 10-45 2-23 2-76 9-67 0-49 100 1836-40 79-91 4-64 31 1-68 12-67' 0-89 100 1846-50 81-13 3-76 0-12 2,04 12-78 0-19 100 1866-60 77 '00 1-96 0-07 3-19 17-01 0-78 100 1866-70 43-23 5-83 0-24 11-15 37-32 2-23 100 1876-80 71-11 2-33 0-06 11-04 11-04 1-43 100 1881 74-10 2-46 0-02 10-66 12-31 0-66 100 1882 65-49 . 2-94 0-02 8-55 22-48 0-62 100 1883 71-61 2-74 0-02 10-06 15-09 0-48 100 The figures for the intervening quinquennial periods are pur- posely omitted, in order that the reader may the better be able to see at a glance the leading movements for the entire period. The American figures 'were seriously disturbed during the embargo of 1808-9 ; but the " average " is about correct, the whole of the pent-up cotton having reached Europe before the close of 1810. The high prices occasioned by the embargo (uplands at one time touching 30d. to 36d. per lb.) led to increased imports from India; but the bulk of the cotton "remained," in 1811, said a letter of the Court of Directors, "^ ruinous and unproductive burthen upon the Company and the private im- porters.'' The import, consequently, fell from 79,000 bales in 1810 to 2,000 bales in 1813. The war of 1812-14 again dis- turbed the movements, and a large part of the imports of those 87 years were received ind Denmark, Sweden, Spain, the Azores, Florida, &c. Prices again ran up to the neighbourhood of 3s. per lb. : the average for uplands being 23d. in 1813 and 29Jd. in 1814. This enabled the East India Company to get rid of their burthensome stock of Surats, and induced them to again become large importers, especially as even after the war prices remained at a comparatively high level ; the average for uplands being 18|d. in 1816, 20^d. in 1817, and 20d. in 1818. The consequence was that, in bales of 400 lbs. each, the imports of East Indian cotton reached about 170,000 in 1818, against 17,000 in^l816 and 2,800 in 1813 ! In 1819 and 1820 jsrices rajndly declined, and the importers were again saddled with an enormous and unsaleable stock, which remained in their hands for several years, and was eventually sold at a heavy sacrifice, some of it at one-third of the cost pripe. In 1820 about 10,000 Bengals were actually shipped from London to China ! At the opening of the year the stock of East Indian cotton was equivalent to 241 weeks' consumption ! and even in 1824, although the import had in the meantime been greatly diminished, the stock was still equal to 167 weeks' consumption ! Q) Returning to our table, it will be observed that the imports from the British West Indies have rapidly fallen off since 1806-10, until in 1881-83 they reached only 800 to 1,000 bales of 400 lbs. : thus 9,ffording a literal fulfilment of the prophetic utterance made by Messrs. Ewart, Eutson, and Co. in 1801. The Brazilian supplies gained ground until 1826-30, but during the subsequent thirty years fell behind, and in 1856-60 averaged only about (1) It is interesting to note here that during the interval between 1796 and 1820 there were a number of shipments of cotton from Calcutta to the United States. The particulars are as follow : — Bales of Bales of lbs. 400 lbs. lbs. 400 lbs. 1796 864 2 . . . 172 1807 ... 1808 ... . . . 1,842,200 . . .." 1,169,200 . . . 3,386 1798 68,736 . . 2,898 1799 270,816 ... 677 1816 ... 600 . on^^ 1800 316,896 .... 779 1817 ... . . . 1,730,200 . .. 4,326- 1804 239,400 . . . . 698 1818 ... . . . 6,060,925 . . . 16,127 1806 120,000 . . . . 200 1819 ... . . . 9,306,806 . . . 23,267 1806 267,300 .... 608 1820 ... . .. 441,900 . . . 1,106 There were no shipments during the omitted years of the period, and there are no records of any shipments subsequent to 1820. the same as in 1816-20. The high prices occasioned by the American "War of 1861-65 led to increased figures ; laut a large part of the increase was lost on the return of a lower range of values in 1876-80. The imports under the head of "Sundries" consist chiefly of arrivals from Peru, Chili, Central America, Foreign West Indies, Africa, and Australia. The imports from the Mediterranean rapidly dwindled away down to 1816-20; but subsequently became more important than ever, owing to the establishment of the cotton culture in Egypt by Mehemet Ali in 1821-22. Prior to this date the imports were chiefly from the European and Asiatic dominions of Turkey, and principally from Smyrna. The first shipment from Alexandria took place in 1821, in which year the exports amounted to 944 cantars of 94 lbs. each, including 235 cantars to England. In 1822 the exports reached 35,108 cantars, including 7,925 cantars to England; in 1823 they amounted to 159,426 cantars, of which only 34,229 came to England; but in 1824 high prices brought 141,554 cantars to England, out of a total of 228,078 shipped. The first recorded import into Liverpool look place in April, 1823, and was sold at auction on the 16th May, at lid per lb., on which day uplands were quoted at 6|d. to 8|d., Pernams at 10|d. to llfd., and Surats at 5|d. to 6|d. The cotton was described by Messrs. Ewart, Myers and Co. as "long and tolerably fine in staple, but rather dull, in colour, and not very well cleaned." The same firm in their Annual Report, dated December 31st, 1823, said, "About 3,000 bags have been received from Egypt this year, from whence it is thought that we shall hereafter have a regular import, but no accurate opinion can at present be formed of its extent." Messrs. Marriott and Eogers, at the same date, said, " This cotton has already been used as a substitute for Brazils with considerable success ; and when it shall be more carefully gathered, and its nature more generally understood by our manufacturers, there is every pro- bability of its becoming a useful and valuable substitute for the lower qualities of Sea Island." Our table shows that the supply steadily increased down to 1856-60, and then advanced by 89 "leaps and bounds" until 1876-80, owing to stimulus originally- given to the cultivation by the high prices ruling in 1861-65. Of late years the crops have rather diminished than otherwise, while they have also fluctuated considerably in quantity in consequence of the variableness of the seasons. Except during the interruptions occasioned by the embargo of 1808, the war of 1812-14, and the small crop of 1823-4, the supply of American cotton down to 1826-27 kept rather ahead of consumption, and at the end of 1827 the stock in Great Britain was considerably larger than at any previous period — say 334,900 bales (including 92,000 at the mills or in the hands of dealers in Manchester), or 3 8 weeks' consumption at the then current rate. The previous smallest stock was 95,500 bales, or 13 weeks' consump- tion, at the end of 1824; but twelve months previously it had touched 214,600 bales, or 32 weeks' consumption. In the five years ended 1830, the American import was equal to nearly 75 per cent.' of the total arrivals from all quarters, against only 47 per cent, ten years previously,, and 24 per cent, at the end of the last century. This rapid development of the American cotton culture enabled the mamifacturing industry of Lancashire to make much more rapid progress than would otherwise have been possible ; but the fact of so large an amount of capital and labour being dependent upon a single source of supply for three- fourths of the raw material necessary to keep the mills and operatives employed, soon began to be regarded as a state of things the continuance of which was altogether undesirable. So long as stocks accumulated and prices declined no one practically interested troubled himself; but the moment that stocks dwindled and prices advanced, the question of cotton supply came to the front, generally in the shape of grumbhng at the Government for not having promoted the cultivation of the fibre in India. The century opened with middling uplands at about 2s. per lb. ; in 1820 the price was about Is., while in 1829 the average for the whole twelve months was only 5|d., with a five months' stock in the warehouses of Liverpool, besides over two years' requirements of Surats ! During the subsequent six years 90 consumption shot ahead of supply, and at the end of 1835 the stock of American was equal to only ten weeks' supply, while the average price for the year had reached lOJd. per lb. Although there was still a liberal stock of East Indian — say over a year's consumption at the then current rate — the Company was severely criticised for not having pushed the growth of cotton in the countries under their charge. The India House then published an account of the measures which had been adopted, from the year 1780, towards promoting the production of cotton in the Peninsula. The high prices, however, stimulated produc- tion everywhere, and between 1835 and 1845 stocks accumulated and values declined. In July, 1843, there were in Liverpool 43 weeks' consumption of American; in the same month, 1844^ 3& weeks, and in 1845, 38 weeks' consumption. In the last-named year middling uplands averaged only 4|-d., and at the lowest point in the summer touched 3d. to 3^d. At the end of the year the stock was equivalent to 33 weeks' consumption of American, 131 weeks of East Indian, and 39 weeks of all growths. Nothing, therefore, was heard about promoting the cultivation of cotton in India. Short supplies, owing to diminished American crops, in 1846 and 1847, led to revived agitation, and in 1848 the whole question was investigated by a Parliamentary Com- mittee, who examined a large number of witnesses, whose evidence went to show that uncertain land tenures, high taxes, bad roads, careless cultivation, and the vagaries of the climate had all had a hand in retarding the growth of cotton in India; but that these evils could not be remedied without the assistance of British capital and enterprise, and that they would be of no avail unless the manufacturers would guarantee to purchase the produce raised. "With increased American crops, and a return to lower prices, the agitation soon subsided. The need, however, ' for something practical being done was recognised by the sending out (by the Manchester Chamber of Commerce) of Mr. Mackay to Western India in 1852, and by the establishment of the Cotton Supjjly Association in 1858; but in 1856-60 "the Import of American into Great Britain still represented 77 per 91 cent, of the total from all countries, while in 1860 alone it equalled nearly 84 per cent ! During the American War it fell to a small fraction ; in 1866-70 it rose to 43 per cent. ; in 1876-80 to 71 jper cent. ; and in 1883 to 71 1 per cent., after having touched 74 per cent in 1881. In former years the Continental spinners received a large portion of their requirements from Great Britain, but of late years they have obtained the bulk of their supplies direct from the countries of growth, especially since the opening of the Suez Canal. To obtain a complete view of the more modern phases of the cotton supply question we must regard the matter from the stand point of the whole of Europe. For this purpose we have constructed the following table, which gives a statistical view of the import of cotton from all countries into Europe in the years 1860 to 1883. The bales are throughout of the uniform m of 4.00 lbs. :— 21 1— H Total. Average Pi ices. Uprd. Pern. Dhol. I860 4,068 48 136 23 662 4,837 6i "^"7 6 1861 3,075 46 124 36 18 949 4,248 8fi, n Q\ 1862 102 65 182 68 20 1,010 2 1,439 17i 18i 12J 1863 163 67 294 127 36 1,179 81 1,947 23i 24 19| 16U 241 127 427 188 39 1,374 239 2,635 27i 28 20V 1865 622 160 649 239 84 1,231 86 2,860 19' 19i 14V 1866 1,556 222 279 161 77 1,706 16 4,015 15i 17 12' 1867 1,669 220 305 129 103 1,889 1 3,806 lOJ 11 8J 1868 1,946 309 365 146 86 1,476 4,316 m 11 8 1869 1,683 281 363 207 92 1,678 4,094 12J 12 9i 1870 2 346 217 379 136 79 1,057 4,213 9!S 11 8i 1871 3,409 281 396 119 130 1,384 6,719 8ft 9ft 6 ? 1872 2,234 377 439 188 121 1,526, 4,886 lOft 10* 7i 1873 2,908 243 484 143- 105 1,165 5,088 9 9| 61, 1874 3,177 262 632 93 98 1,317 6,469 8 81 6ft 1876 3,112 216 662 88 69 1,420 6,467 7f 7 } 6 1876 3,461 169 749 89 55 1,184 6,657 6J 6i 4J 1877 3,163 149 626 89 37 980 4,993 6A 6i 6ft 1878 3,906 68 468 61 23 813 6,318 2* 6U m 1879 4,329 47 616 31 42 868 6,933 6i»« ess 5 1880 4,620 78 683 24 33 1,074 6,312 6 1 6ft 6i 1881 4,816 135 726 36 33 1,098 6,843 6 6ft 4| 1882 4,467 166 597 38 32 1,677 6,967 6 7A 4ft 1883 5,104 164 620 24 30 1,620 7,462 5J 6J? 35 Twenty-five years ago the current notion both here and in India was that the cotton crop of that dependency was equal to some 5,000,000 or 6,000,000 bales of American weight; some authorities, inded, went so far as to estimate the yield at 10,000,000 bales ! But the fact that the extraordinarily high prices current 92 during the American War failed to raise the import into Europe to more than 1,374,000 bales of 400 lbs. against 949,000 in 1861, was a proof that the crop could never at any time have reached one-half of the smallest previous estimates. Making the most ample allowance for native consumption, it is doubtful if the Indian crop ever exceeded 2,250,000 bales, or, at the outside, 2,500,000 bales. This was first demonstrated by Mr. Samuel Smith (Messrs. Smith, Edwards and Co.), who visited India in 1863 J and his conclusions were confirmed in a remarkable degree by Mr. Eivett-Carnac, the Government Cotton Commissioner, who thoroughly investigated the matter in 1868. The high prices caused by the cotton famine, however, gave an impetus to the culture in India which it would not otherwise have obtained, and thereby secured to Europe a permanent increase in supply. Moreover, the quality of the cotton has been so materially im- proved by the introduction of better methods of handling the crop, that " Surats " are no longer despised as they were up to " within a few years ago. The Brazilian supply rose from 48,000 bales in 1860 to 309,000 in 1868, then fell back to 21 7,000 in 1870, owing to the fall in prices, but recovered to 377,000 in 1872 in sympathy with the rise in values occasioned by the semi-failure of the American crop, but, with the return of lower prices, subsequently receded to 47,000 in 1879. The better rates of 1881 and 1882 brought increased imports, but the total in the last named year was still only half that of ten years previously. The Egyptian supplies have fluctuated considerably, but the variations have been due more to the changeableness of the seasons than to the ups and downs of prices. The supply from Turkey and other Mediter- ranean sources showed a large increase during, and for several years after, the American War, but the imports have since fallen back to the insignificant position held in 1860-61. Similar (1) The import from India in 1866 was 475,000 bales larger than in 1865, but at least half of the increase consisted of old cotton which would have been shipped in time to have arrived here in 1865 but for the prostration of business and the reduction of shipping facilities caused by the monetary 93 fluctuations have taken place in the suppHes from the West India and miscellaneous sources. It took an average of 1 7 Jd. for upland and 12|d. for Dhollera to bring cotton from China, and ivhen prices sank to 15Jd. and 12d. respectively the imports ceased. In 1860 the total import into Europe reached 4,837,000 bales of 400 lb., or an average of 93,000 bales per week. Of this aggregate supply the United States furnished 4,058,000 bales, or 78,000 bales per week, and 83-9 per cent, of the total import ! In 1861 commenced the war between North and South, and in 1862 the import of cotton into Europe fell to 1,439,000 bales, or only about 27,000 bales per week ; of which only 102,000 bales, or barely 2,000 bales per week, came from the Southern States, equal to only 7 per cent, of the entire supply, against 83-9 per cent, two years previously. In the same year 52,000 bales were exported from Liverpool to the Northern States, so that the net receipts from America were only 50,000 bales, or less than 1,000 bales per week, against 73,000 bales per week in 1860 ! This sudden cessation of supplies occasioned great distress amongst the cotton operatives in Europe, but especially amongst those of Lancashire. The consumption of cotton in Great Britain, which in 1860 averaged 51,700 bales of 400 lb. per week, fell to 21,700 bales in 1862, and touched only 18,000 in November, of 'that year — affording only a little over two days per week employment for the more than half-a-million operatives engaged in the staple industry of the county. Spite of the fact that prices ran up to 30d. per lb. for Middling Orleans, and averaged about 24d. for the year, the import in 1863 only exceeded that of 1862 by about 500,000 bales, of which 250,000 came from India and China, and 180,000 from Egypt and Turkey. The mills, therefore, could not work more than an average of barely three days per week : the consumption of cotton for the year being only 22,500 bales per week against 51-, 700 in 1861. In 1864 Middling Orleans touched 31id. per lb. and averaged 27|d. per lb. for the year. In the same year 3 2d. was paid for fair Pernam., 30d. for fair Egyptian, and 24d. for .fair Dhollera — the average for the year being 2 8|d., 27fd., and 21|d. per lb. respectively. But even these famine prices failed to 94 bring more than a further increase of 688,000 bales, of which 195,000 came from India, 158,000 from China and Japan, 133,000 from Egypt, 78,000 from America (blockade cotton), 61,000 from Turkey, 60,000 from the Brazils, and 3,000 from miscellaneous sources. A good portion of the increased supply was taken by the Continent, and 41,000 bales were exported to the United States, against 37,000 in 1863 and 52,000 in 1862. The average consumption of Great Britain was, therefore, increased by only about 4,000 bales per week, bringing the total up to 26,600 bales of 400 lb. per week. In the meantime enough employment had been found for the operatives, either in Lancashire (chiefly in carrying out public works) or elsewhere, to reduce the applicants for relief to a weekly average of 134,498 persons, against 280,548 in 1863, and 485,454 in November, 1862. In 1865 the war came to an end, and by the close of the year the famine was also at an end ; but the average weekly consumption of cotton in Great Britain was still only 41,000 bales against 51,700 in 1860, and prices; after sundry violent fluctuations,' were in December still at 2i Jd. per lb. for middling Orleans and at 2 Id. for middling upland. Supplies came forward very slowly, and it was not until 1868 that the import into Europe got back to the figure touched in 1861, while the great import of 1860 was not equalled until 1871, in which year the arrivals from America alone reached 3,409,000 bales of 400 lb. In the meantime the fall in prices had led to materially diminished arrivals from every other source. The distress occasioned by the stoppage of supplies from the United States was felt much less severely on the Continent than in England, partly because the industry was less important in extent, but chiefly because instead of being concentrated in one small district it was spread over the entire Continent, which cir- cumstance made it comparatively easy to find work for the hands thrown out of employment. The rate of consumption fell from 34,500 bales of 400 lb. per week in 1860, to only 15,000 bales in 1862, and rose to 28,900 in 1866. The last figure was 5,600 bales, or 16-3 per cent, behind 1860. In Great Britain the decrease was 9,400 bales, or 18-4 per cent. 95 How the famine affected Lancashire is shown in the follow- ing particulars, gleaned from the reports published by the Central Relief Committee ; — Average weeMy oon- 1 sumption of Cotton, > in bales of 400 lb. ..) Opersutites Working 1 Full Time . j" 1861, 1862. 1863. 1864. 1865. 3 if ill M J.3 §.9 Bales. 4a,000 Bales. 18,000 Bales. 23,000 Bales. 27,000 Bales. 32,000 Bales. 34,000 Bales. 41,000 No. 633,96i0 No. 121,129 166,600 247,230 No. 215,477 129,219 189,167 No. 243,012 97,083 133,847 No. 265,466 68,572 106,916 No. 319,616 38,228 86,001 No. 460,000 Working Short Time. . Out of Work ..... Total Total reduced to the ) equivalent of full r time ) Estimated Weekly ) Loss of Wages / Applicants relieved ' by Guardians (out- door) only By Guardians and ) 'Jv Committees ) Bi ', Committees only . . Tota.U number relieved. Per ce^t. of population Expenditure^yGuar- ) dians ^^ ) Ditto by CommlWS^s. . Total per week .7]" 633,960 633,969 633,863 473,942 440,963 443,846 460,000 633,960 203,200 286,400 303,400 309,080 344,300 460,000 £ £ 169,744 146,000,' .£ 96,444, £ 71,447 £ 61,413 £ No. 47,637 No. 69,015 181,573 234,866 No. 76,873 80,681 122,994 No, 71,374 22,040 41,084 No. 70,006 9,796 25,438 No. 63,199 3,87i 8,71„ No. 48,267 47,637 2-3 485,454 24-1 280.548 13-7 134,498 6-9 106,169 5-2 76,784 3-7 48,267 2 -3 £ 1,238 £ 17,943 46,366 £ 9,138 12,208 £ 7,099 6,377 £ 6,899 2,653 £ 4,066 1,272 £ 1,300 ^1,238 64,299 21,346 12,476 8,662 6,238 1 1,300 At the crisis of tH&siamine (in November, 1862) there were 247,230 operatives out of^nrork, and 165,600 working short time. In the same month no less tW^, 485,454 persons, or nearly one- fourth of the entire population ofithe districts affected, were in receipt of relief. There was a gradual reVluction after that until, in November, 1865, the percentage of persons reHeved fell back to where it stood in 1861. The weekly los\of wages in November, 1862, amounted to £169,744, and it still ^^tood at £51,413 in 96 May, 1865. The total amount, expended by the Guardians and Eelief Committee during the four years ended March, 1865, compares as follows with the amount expended in 1861 : — Years ended March 26. 1860-61. 1861-62. 1862-63. 1863-64. 1864.66. £/ £, £i £i £, By Guardians 191,101 231,322 660,531 577,363 392,076 By Relief Committees ... — — 809,167 563.287 188,012 __, Total 191,101 231,322 1,469,69?^ "^^^O.^S^-^-jjO, 088 Per £ on Assessment s. d. s. d. s. d. ^ ^ d, s. d. By Guardians 7i 9J 2 2§ 1 11 1 34 By Relief Committees ... — — 2 8| 1 lOJ 7S Total 7| 9i 4 lOJ 3 9i 1 llj The total expenditure in the four ye4rs ended Lady Day, 1865, was £3,421,763. On the basis of the amount paid in 1861 the outlay would have been only £573,303, so that the extra expenditure arising out of the cotton famine was £2,848,460 for the four years, of which amount the Guardians paid £1,287,994, and the Eelief Committees £1,560,466. This is aside from the large sums expended privately by millowners and others through- out the Cotton districts. Altogether the amount distributed in charity was certainly considerably over £3,000,000, and may have rea'lied £4,000,000. During the course of the famine- r- the losses of the trade amounted to between £65,000,000 a- nd £70,000,000, including from £28,000,000 to £30,000,000 \op ,s of wages to the operatives. Of the latter amount about one^fi^urth was recovered in the form of relief, or in wages for emj-' jloyment on PubHc Works, &c. Many millowners also regaijj^fej \ portion of their losses, in the shape of profits on stocks JagfeM at the com- mencement of the famine; but a large , jj^n^i^ijer lost nearly everything they were worth, while ng^nany were reduced to bankruptcy. -■- -^ CHAPTER VIII. THE RELATIVE POSITIONS OF ENGLAND, THE CONTINENT, AND THE UNITED STATES SINCE 1801, AND OF INiDIA SINCE 1861. Relative positions of the English, Continental, and American Cotton industries at the opening of the present century. — Statement showing the movements between 1821 and 1883. — Position of Great Britain shows no change of moment down to 1845 ; hut relative increase in America greater than on Continent. — Since 1845 England has gradually lost ground, but especially since 1865-70. — Enormous increase in the consumption of Cotton everywhere, but especially in the United States and on the Continent ; rate of increase on the Continent three times, and in the United States four times, as great, as in England. — Increased production of Cotton Goods on the Con- tinent and in America being chiefly consumed at home, have not come into competition with England in outside markets ; but India a. formidable competitor in this respect. It is impossible to obtain any reliable data respecting the quantity of cotton consumed on the Continent prior to the opening of the present century ; but there can be no doubt that it was considerably larger than the weight consumed in Great Britain, except towards the close of the last century, about which time England took the lead, thanks to the mechanical inventions of Hargreaves, Arkwright, Crompton, and others. Between 1700 and 1750 the consumption in Gteat Britain did not exceed 4,000 to 5,000 bales of 4001bs. per annum; thence to 1780 it increased to probably 10,000 bales per annum. In 1785 it may have amounted to 40,000 or 50,000 bales. Up to this date the 98 quantity used on the Continent was certainly larger than these figures ; but at the close of the century England stood first. In the United States the consumption in 1790 was only about 2,000,0001bs., or 5,000 bales of 4001bs. ; in 1801 it was probably about 12,000,0001bs., or 30,000bales; in 1811 about 18,000,0001bs., or 45,000 bales; the average for 1811-13 being, according to Pitkin, not "less than twenty millions of pounds," (^) or 50,000 bales of 4001bs. In 1815 an official return gave the consumption as 27,000,0001bs., or 67^000 bales; in 1821 it was probably about ,30,000,0001bs., or 75,000 bales. Meanwhile the consumption on the Continent was, as nearly as can be ascertained, about 30,000,0001bs. in 1801 (including 17,000,0001bs. in France); 40,000.0001bs. in 1811 (including 22,000,0001bs. in France); and about 76,000,0001bs. in 1821 (including 46,000,0001bs. in France). In bales of 4001bs. the figures for 1801, 1811, and 1821 compaie as follow : — Per Per Per 1801. cent. 1811. cent. 1821. cent. Great Britain. 120,000 53-4 ... 245,000 ... 62-8 ... 322,000 ... 54-8 Continent 75,000 ... 33 3 ... 100,000 ... 25-6 ... 190,000 ... 32-4 United States 30,000 ... 13-3 ... 45,000 ... 11-6 ... 75,000 ... 12-8 Total 225,000 1000 390,000 lOD'O 587,000 lOO'O The cotton industry of the Continent was retarded by the Napoleonic wars, and the chief portion of the increase shown between 1811 and 1821 was gained after 1815. The domestic manufactures of the United States were stimulated in an extra- ordinary degree by the famine prices for calico which followed upon the cessation of British imports during the war of 1812-14 ; and quite 70 per cent, of the increase in the consumption of cotton between 1811 and 1821 was gained before the close of 1815. The resumi^tion of imports, after the war, completely prostrated the infant industry, and suggested the protectionist policy adopted in 1816; in which year the import duties on cotton goods, which had previously been only from 7| to 10 per cent., were raised, at one bound, to 25 per cent. (1) Statistical View of the Commerce, &c., of the United States, page 18. Edition 1816. 99 For the period from 1821 clown to the present day the available statistics are much more complete than those obtainable for the first twenty years of the century, and from these are derived the following particulars of the deliveries to English, Continental, and American spinners in average periods of five years down to 1880, and for the three years ended 1883. The sources of supply are also given. As the average weight of the packages has constantly varied, the actual weight in millions of pounds is given in the second portion of the table. Deliveries. Sources of Supply. a 4J ^ ^ d 6 S !b -g . s iO ^ m Hi -43 -B .!! '^ S ^ .2 % In lOOO's of § n s < n 1— 1 c r^ H Bales. ■s Bi 1821-26 653 336 96 984 691 173 66 73 89 984 18-26-80 711 411 130 1,252 837 169 63 77 118 1,262 1831-86 903 460 - 220 1,683 1,149 175 39 97 123 1,683 1838-40 1,1.58 629 266 2,040 1,528 142 73 169 138 2,040 1841-46 1,388 729 382 2,479 1,997 105 57 198 i-i 2,479 1846-60 1,468 776 563 2,787 2,264 131 80 233 2,787 1861-66 1,896 1,140 659 ■ 3,694 2,949 149 80 862 214 3,694 1856-60 ,." 2,266 1,490 813 4,563 3,678 163 36 640 162 4,668 1861-85 1,669 1,19b 488 3,353 1,281. 201 73 1,380 418 3,363 1866-70 2,639 1,842 876 6,356 2,528 614 175 1,601 438 6,366 1871-76 3,191 2,301 1,183 6,676 3,827 690 202 1,484 472 6,676 1876-80 2,924 2,456 1,643 6,922 6,016 266 92 1,090 469 6,922 1881-83 3,369 3,134 1,966 8,468 6,166 332 74 1,478 428 8,468 In Millions of Pounds. 1821-25 164-2 92 'fi 30-2 277-0 187-9 29-4 16-8 23-4 19-6 277-0 1826-30 212-3 119-8 43-9 876-0 282-1 29-5 13-2 25-0 26-2 376-0 1831-35 295-2 142-7 78-6 616-4 416-7 30-6 9-6 34-2 26-4 616-4 1836-40 406.7 208-4 112-6 726-7 601-4 25-3 13-4 56-6 30-i 726-7 1841-45 521 3 267-2 166-4 ' 943 9 819-2 18-9 9-4 72-6 ?3-8 943-9 1846-60 66) -8 300-4 2350 1106-2 968-7 23-8 6-3 86-7 29-7 1106-2 760 1 ■).')l-4 281-4 1482-J 1264-7 27-1 6-3 134-8 60-0 1482-9 1856-60 947-3 627 4 3f>0-l 1984-8 1636-0 27:7 72 207-9 67-0 1934-8 628-6 466 4 216-6 1299-6 666-1 36-2 14-6 191-2 191-4 1-299-6 1866-70 973-8 653-4 884 1 2-111-3 1110-8 99-9 33-2 f,76-6 190-9 2011-3 1228 6 t66-6 619-6 2604.7 1677-1 108-8 42-3 6:-i8-6 238-0 2604-7 1876-80 1264-7 10-26-7 636-8 2967-2 2231-5 43-7 16-9 407 4 2ri8-7 2967-2 1B81-83 1471-9 1323-0 891-1 3686-0 2789-8 58-4 12-1 563-9 271-8 3686-0 : Between 1821 and 1845 the relative position of Great Britain remained without material change : the increase in consumption from year to year being about equal to the combined ratio of increase on the Continent and in the United States. Mj3anwhile the ratio of increase in the United States was greater than that on the Continent. Since 1845 Great Britain has relatively gradually lost ground, which ground has been taken up 100 by her comijetitors. This movement is ^own more clearly in the following further analysis of the foregoing table, in which the deliveries are reduced to bales of the uniform weight of JfiOlhs. each: — Deliveries in Bales of 400 lbs. Great Total ir lOOO's. United Proportion. Con- Total. Great Con- United 1821-25 Britain. tinent. btates. Britain. tinent. States. 386 231 75 692 65-8 33-4 10-8 182'-30 531 299 110 940 56-5 31-8 11 7 1831-35 738 357 196 1,291 57'2 27-6 16 ■T 1838-40 1,014 621 . 281 1,816 56-8 28-7 15 5 1841-45 1,303 688 3' 8 2,369 55-2 28-3 16 6 1846-50 1,425 751 587 2,763 61-6 27-2 21 3 1851-55 1,875 1,129 703 3,707 60 6 30-4 19 1856-eO 2,368 1.569 900 4,837 49 32-4 18 fi 1861-(i5 1,672 , 1,138 639 3,249 48-4 35 16 6 1860-70 ' 2,435 l,d33 960 5,028 48-4 32-5 IH 1 1871-75 3,072 2,141 1,299 6,612 47-2 32-9 19 9 1376-80 3,137 2,567 1,714 7,418 42-3 34-6 23 1 1881-83 3,680 3,307 2,228 9,215 30-9 35-9 24-2 1 Of the total weight of cotton used in EurojJe and America,- England's share, which in 1821-25 was 55'8 per cent., was still at 55 '2 per cent, in 1841-45 ; in the meantime the Continent's share had decreased from 33-4 per cent, to 28'3 per cent. ; while America's share had increased from 10'8 per cent, to 16'5 per cent. In 1846-50 America gained at the expense of both England and the Continent. Between 1851-55 and 1856-60 England lost, 1-6 per cent, of the proportion and America 0-4 per cent., and the- Continent gained what the other two had lost. One reason why England fell behind after 1841-5 was the repeal of the enactment which prohibited the export of cotton machinery. This took place in 1843, and the immediate result was a more rapid/ extension of mill building abroad that had previously been possible. In 1861-65 the entire industry was disorganised by the American civil war and its consequent "cotton famine." In the five years after the war the relative positions of the three great consuming sections were pretty much the same as in the five years before the war; but since 1865-70 England has fallen considerably behind her rivals : her present proportion being only 39-9, per ceLt. agiiinst 49 per cent, in 1855-60, and 55-8 per cent, in 1821-2,5. 101 The Continent, after falling from 33-4: per cent, in 1821-25, to 27-2 per cent, in 1846-50, has risen to 35-9 per cent., while the United States, which stood at 10'8 per cent, in 1821-25, now, after sundry fluctuations, stands at 24-2 per cent. The movements during several of the quinquennial periods were more or less disturbed by financial or commercial crises. The influence of these disturbing causes are less apparent, and the general progress of the trade is more accurately ascertained, by dividing the sixty years into average j)eriods of ten , years each : — Average Annual Deliveries. Increase per Cent, per Annum. Great Con- United Total. Great Con- United Total. 1821-30 Britain. tinent. states. Britain. tinent. States. 469 265 92 816 1831-40 876 439 238 1,663 9-08 6 66 15 -87 9-03 1841-60 1,364 710 487 2,561 5'57 i6-17 10-46 6-49 1861-60 2,122 1,349 801 4,272 6-65 9-00 6-45 6-68 1861-70 2,004 1,385 749 4,138 0-26 1871-80 3,105 2,354 3,606 6,966 6 -49 6-99 10-io 6-83 Ann^ al Average Increase 1 871-80 ovei 1851-60... 2-31 S-72 4-40 3-16 It will be seen that the quantity of cotton consumed in 1 861-70 was rather less than that used up in 1851-60. This was due to the stoppage of supplies occasioned by the Civil War in America. There was a shght decrease in both Great Britain and the United States, but a slight increase on the Continent. On comparing the movements of 1871-80 with those of 1851-60 it will be noticed that the average annual increase is much smaller for Great Britain than for either the Continent or the United ' States. This is seen in a still more remarkable degree on com- paring the figures for 1871-80 with those of 1861-70. In fact, it is only during the past ten or twelve years that the influence of foreign competition has really been felt by the Lancashire spinner and manufacturer. The following statement gives the annual and average weekly consumption of cotton in Europe and America in each of the past thirteen seasons compared with 1860-61 — the season before the American war— in bales of 400 lbs. The figures for the season are given, because it is easier, to ascertain the actual consumption for that period than for the calendar yean The 102 season ends on August 31st in America, and on September 30th in Europe : — 1860-51 1870-71 Total Consumption — Bales of 400 lbs. Great Britain. Continent. United States. Total. 2,614,000 1,723,000 1,009,000 6,346,000 ! 3,013,000 1,962,000 1,116,000 6,091,000 1871-72 2,963,000 1,971,000 1,248,000 6,182,000 1872-73 3,068,000 2,064,000 1,376,000 6,498,000 1873-74 3,160,000 2,180,000 1,384,000 6,714,000 1874-75 3,071,000 2,238,000 1,399,000 6,708,000 1876-76 3,176,000 2,403,000 1,444,000 7,022,000 1876-7T 3,182,000 2,450,000 1,671,000 7,203,000 1877-78 3,038,000 2,609,000 1,721,000 7,268,000 1878-79 2,843,000 2,696,000 1,781,000 7,220,000 1879-80 3,360,000 2,760,000 1,966,000 8,066,000 1880-81 3,672,000 2,966,000 2,114,000 8,642,000 1881-82 3,640,000 3,198,000 2,192,000 9,030,000 1882-83 3,770,000 3,437,000 2,360,000 9,667,000 The following figures furnish the weekly average rate of con sumption and the proportion taken bj- each of the three divisions — Great Britain, Continent, and United States : — Average per Week." Proportion. Great Con- United Total. Great Con- United 1860-61 1870-71 Britain. tinent. States. Britain. tinent. States. 50,270 33,134 19,404 102,808 48 9 H2-2 18-9 67,942 37,781 21,346 117,019 49-5 32-2 IS -3 a87!-72 66,981 37,904 24,000 118,885 47-9 319 20-2 1872-73 69,000 39,600 g6,461 124,961 47-2 31-6 21-2 1873-74 60,677 41,928 26,615 129,116 47-0 32-4 20-6 1874-76 59,057 44,009 26,904 129,970 46-8 33-4 20-8 1876-76 61,067 46,211 27,769 135,037 46-2 34-2 20-6 ■ 1876-77 61,192 47,116 30,213 138,520 44-2 34 21-8 1877-78 68,423 48,250 33,096 139,769 41 -S 34-5 23-7 1878-79 64, 162 49,923 84,2.50 138,326 39-4 35-9 24-7 1879-Sa 63,810 62,381 87.807 163,998 41-6 34-1 24-4 1880-81 68,602 66,846 40,663 166,191 41-3 34-2 24-6 1881-82 70,000 61,600 42,164 173,664 40-3 36-4 24-3 1882-83 72,500 66,100 46,386 183,985 39-4 36 24-6 The first thing that strikes one in glancing at the foregoing tables is the enormous increase in the consumption of cotton in Europe and America during the past twelve seasons : the total in 1882-3 being 9,567,000 bales of 400 lbs. against only 6,091,000 in 1870-71, and 5,346,000 in 1860-61. The next imf)ortant feature is the fact that whereas between 1860-61 and 1870-71 the increased consumption was very evenly distributed between Great Britain, the Continent, and the United States, between 1871 and 1883 the lion's share was taken by the United States' 103 and the Continent, leaving only a small increase for Great Britain. The total increase between 1861 and 1871 was 745,000 bales, of which Great Britain took 399,000 bales, the Continent 239,000 bales, and the United States 107,000 bales. The total increase between 1871 and 1883 was 3,476,000 bales, of which the Continent took 1,475,000 bales, and the United States 1,244,000 bales, leaving only 757,000 bales for Great Britain. Between 1861 and 1871 the relative positions of the three sections were scarcely disturbed, whilst the slight change which did take place was in favour of Great Britain; but between 1871 and 1883 the relative positions were very materially altered, and the changes were entirely at the expense of Great Britain, the rate of increase on the Continent being about three times, and that in the United States over four times, as great as in England. This is placed in a very clear light by the following figures, which give the total increase in bales and the total and average annual increase per cent, between 1861 and 1871, and between 1871 and 1883 : — Great Britain Continent United States Total Increase in the lOyeara ,1861-71. Increase in the 12 years 1871-83. Bales Total Percent. Total. Percent, per Ann. Bales Total. Per Cent. Total. Per Cent. pev Ann. 399,000 239,000 107,000 16-26 13-87 10-60 1-62 1-38 1-06 767,000 1,476,000 1,244,000 25-12 76-17 111-47 2-09 6-26 9-29 746,000 13-93 1-39 3,476,000 57-06 4-75 The comparatively small general movement between 1861 and 1871 was due to the diminished supply and enhanced prices of the raw material occasioned by the American war, which led to a large increase in the consumption of woollen, linen, and mixed fabrics. When cotton tecame more plentiful and cheaper, the rival textiles fell either positively or relatively behind. This feature has been very marked in the course of the past few years, and the result is the great movement in cotton exhibited by the foregoing statistics. Besides the rivalry of the Continent and the United States, Great Britain has, of late years, had to contend against the for- midable competition of the Bombay and other mills in India, 104 three-fourths of which have been erected within the past ten years. In 1861 there were only 338,000 spindles at work in India, and in 1874 the number was only 593,000, but at present there are 1,700,000 at work. The following is a statement of the relative importance of the various competitors and the jDrincipal fluctuations in the quantity of cotton consumed since 1860-1, in 1,000's of bales of 400 lbs. :— Great Britain 1860-61. 1862-63. 1870-71. Bales. Percent. Bales. Percent. Bales. Per Cent. 2,614 1,723 1,009 65 48-3 31-8 18-7 1-2 1.161 732 435 32 ■ 49-2 31-0 18-4 1-4 3,013 l,96i 1,116 87 48-8 31-7 18-1 1-4 United States 6,411 100-0 2,360 100-0 6,178 100 Great Britain 1876-77. 1878-79. 1882-83. Bales. Percent. Bales. Percent. Bales. Percent. 3,182 2,460 1,671 231 42-8 33-0 21-1 3-1 2,843 2,696 1,781 186 38-4 36-1 24-0 2-6 3,770 3,437 2,360 431 37-7 34-4 23-6 4-8 United states Total 7,434 100-0 7,406 100 9,998 100-0 During the first ten years of the period Great Britain pro- duced nearly half of the entire weight of cotton yarns and goods turned out by the spindles and looms of the world ; but since then her proportion has gradually fallen behind, until it is at present only about 37f per cent. ; what she has lost being gained chiefly by the United States and India, only a small share falling to the Continent. The absolute increase for each section in the twenty-two years compares as follows, in 1,000's of bales of 400 lbs :— Great Britain 1860-61. :i882-8S. Total Increase. Average per Annum. Bales. Bales. Bales. Percent. Bales. Percent. 2,614 1,723 1,009 66 3,770 3,437 2,360 431 1,156 1,714 13.S1 306 44-2 99-4 133-9 663-0 62 78 61 17 2-0 4-B 6-1 26-6 United States Total 6,411 9,998 4,687 84-7 208 3-4 It will be seen that both absolutely and relatively the Continent 105 and the United States have shot considerably ahead of Great Britain, and it looks as if the Continent will shortly take the lead altogether. The increased production on the Continent is chiefly con- sumed at home, but spite of this our exports of yarns and goods thither are still much larger than they were twenty-five years ago, though not so large as they were ten or twelve years since. The increase on the Continent, therefore, has not taken from us any custom we already had, but has doubtless deprived us of much of what we should have had. With the United States, however, the case is different ; we have lost not only two- thirds of the business we did with them twenty-two years ago, but the vast amount of trade we should have done with them if they had been satisfied to keep on the old lines, which of course was not to be expected. But although the competition of America and the Continent has restricted our trade with them, it has not interfered with our customers in the great outside markets of the world. In this latter respect our most formidable •competitor is India. Hitherto the greatest sufferers frojn the competition of the Bombay and other mills have been the native hand-spinners and weavers ; but of late Indian yarns and goods, ■especially the former, have been sold largely in China, Japan, and other markets in the far East ; and most unquestionably Man- chester has more to fear from rivals in India than from either "Continental or New England competitors. 106 CHAPTER IX. THE DEPRESSION OF TRADE 187o-79. THE "RECIPROCITY" DELUSION. Brief summary of causes which led to commercial depression experienced in 1875-79, especially 1877-78. — Reply to the Continental complaint that main cause of bad state of Cotton Industry was over-production in England. — Production in England seriously reduced, while that on Continent greatly increased. — Large temporary increase in exports from England to Continent, owing to changes brought about by Franco-German War ; subsequent serious decrease. — Per capita con- sumption of English Yarns and Goods, 1851-1881 : Yarns show a ■decreaise, but Goods an increase. — Per capita consumption of English and Home-made Goods compared. — Consumption of English products as one yard to five of native ; whereas ten and twenty years ago it was as one to three. — Absolute quantity, however, still larger than either ten or twenty years ago : protective tariffs notwithstanding. — The Recipro- city Delusion. — Protective systems of Continent and United States while curtailing our trade with those countries have strengthened our hold upon, and increased our business with, the neutral markets of the world. — "Weight and Value of Cotton exports to "Protected " and " Neutral " Markets, 1856-60 to 1876-80 compared. —The value of Continental and American Exports to outside markets very insignifi- cant. — Facts make it abundantly clear that British Cotton Industry quite competent to take care of itself. — Protective systems of America and Continent gives us full control of the outside markets, which com- prise three-fourths of the population of the globe. — Folly of supposing that England alone would benefit by universal Free Trade. The season 1870-71 was one of the most prosjjerous periods in the history of the cotton trade. Iir that season Great Britain consumed 23'7 per cent., the Continent 20-1 per cent., and the United States 16 '2 per cent., more than the average of the five years, 1865-70. It was, in fact, a period of inflation, not in cotton only, but in every other article of merchandise. There was a temporary interruption in business on the Continent during the Franco-Prussian war ; but this only caused the inflation tO' 107 take a more ' aggravated form after the war was over. In the meantime, the war, by withdrawing a multitude of French and German operatives and artisans from industrial employment, led to an abnormal demand for English textiles ; while the American railway mania, which commenced in 1868, occasioned an enormous demand for English rails, which continued until 1873 : prices of iron, coal, &c., being run up to unprecedented figures. The cost of producing manufactures of all kinds was greatly increased, owing to the rise which was established in the rate of wages, and to the advance which took place in the price of all kinds of ra-^^- materials. The exceptional profits stimulated production everj-- where. In 1872 the French and German manufacturing industries began to recover from the effects of the war, and in 1873 the demand for English manufactures commenced to fall of!'; the more so as prices had been seriously enhanced by the increased cotet of production, to which reference has already been made, and especially as the annexation of the Alsatian spinneries to Germany stimulated mill building in France, to make up for the reduced supply of yarns and goods occasioned by the transfer beyond the tariff boundary of about one-third of the cotton machinery of the country. English merchants and manufacturers had already commenced to complain of excessive stocks and unremunerative prices, and the rate of production was arrested in 1872 and 1873. About this time, too, culminated the inflation period in America. 1873 witnessed the failure of Jay Cooke and Co., and the occurrence of a host of smaller disasters. Thence to 1875 the consumption of cotton in the United States was almost stationary. The fall in prices led to an increased consumption in England in 18734. A still greater increase took place on the Continent, spite of the financial disturbance in Austria and Germany which occurred in 1873 ; but the increase led to augmented stocks and unsatisfactory prices, and during the succeeding three or four seasons the rate of increase was on a smaller scale. In 1875 occurred the Collie and other failures, which for a time completely disorganised the trade with the East. In 1875-6 there was less depression. People 108 hoped that after the great disasters which had occurred matters would improve. Spinners and manufacturers therefore again in- creased their production. But matters did not improve, and the shght spurts of activity which occasionally took place only left affairs worse than they were before. Things were no better on the Continent. The rate of consumption was kept up, but the deficient food crops made sales slow and business unremunerative. jMeanwhile trade in America was beginning to mend. In 1876 came the Eusso-Turkish war. In the same year commenced the fall in silver and the disorganised exchanges which thence to 1878 paralysed the trade with the East: the more so as the demand for yarns and goods was diminished by the famines which afflicted India and China. The European crops were also again poor. The whole period from 1873 to 1878 was characterised by an uninterrujated struggle, first against the immediate effects of the inflation and extravagance which ran riot in 1870-73, and then against the failed food crops of 1875-78 and the disorganised silver exchange, which postponed the period of recovery to a later date than would otherwise have been the case. ' The period of liquidation, so to speak, culminated with the failure of the Glasgow Bank in October, 1878, and with the disasters which took place after that date, up to the suspension of the Western Bank of England, in December of the same year. Then commenced the I'ecovery witnessed between 1878 and 1883, ending in the gigantic business which, as already stated, brought the consumption of cotton in Europe and America in 1881-83 up to 9,567,000 bales of 400 lbs., against only 7,220,000 in 1878-9 and 6,091,000 in 1870-71. During the depression which, in a more or less intense 77-78 62-6 270-2 382-7 66-6 SH-2 165-7 171-2 428,000 1878-79 69-8 249-6 3"8-9 61-8 91-1 152-9 168-1 4-20,260 1879-80 61-4 216-8 268-2 63-6 74-3 127-9 140 6 351,600 1880-81 57-0 258-6 816-6 63-1 94.2 167 -S 173-0 432,500 1881-82 60-4 222-6 282-9 56-6 111-9 168-5 186-3 463.260 A separate column is given for France, owing to the excep- tional movements caused by the war and by the transfer of Alsace no from France to Germany. As already stated, the temporary Avithdrawal of labour from the cotton industry during the war stimulated shipments of yarn and cloth from Great Britain to both France and Germany, while the reduced power of production in France, occasioned by the loss of the Alsatian mills, forced up the price of cotton products to such a height as admitted of larger imports of yarns and goods from England at a profit than would otherwise have been the case. These things, however, shortly adjusted themselves, and later on the increased out-turn of the German and French mills led to a rajiid falling back in the imports from England. In the last column of the table the yarns and goods exported are reduced to the equivalent of raw cotton by adding ten per cent, to the total weight of exports. The jjiece goods are reduced to weight oh the supposition that five yards of cloth are equal to one pound of yarn. This may not be exactly correct, but it is near enough for the purpose of com- parison. It will be observed that, in bales of 400 lbs. each, the shipments' fell from 446,250 in 1868-9 to 378,250 in 1869-70, then gradually rose until they reached 545,500 in 1872-73. They then rapidly declined, until they touched only 351,500 in 1879-80, and subsequently rebounded to 463,250 in 1881-82: being 111,750 bales over the previous lowest point, but 82,250 bales below the previous highest, and 5,250 below the business of 1861, since which there has been a considerable increase in popu- lation. Taking the more complete returns published in the Annual Statements issued by the Board of Trade, we have the following comparison. As in the previous table, the figures relating to Eussia, Turkey, Greece, and English Possessions in the Mediterranean are omitted. The statistics of population, yarn, cloth, and value are in lOOO's : — Population. Yarn Exported. Cloth Exported. Value of Exports. 1 lbs. Per head. Yards. Per head. £ Per head. 1851 1861 1871 1881 168,096 166,823 180,098 193,105 95,823 126,360 116,437 118,206 0-60 0-76 0-64 0-61 238,821 338,632 367,316 386,130 1-51 2-04 2-04 2-00 8,666 12,402 18,468 13,866 d. 13-I4 17-96 24-61 17-22 Ill The per capita import of English yarn shows Httle change compared with thirty years ago, but a very considerable loss compared with twenty years since. Cloth shows very httle difference since 1861, but exhibits an increase of about half a yard per head compared with 1851. -The "value" includes a number of miscellaneous articles, such as lace, net, &c., not entered either in lbs. or yards. There is a reduction of only |d. per head compared with 1861, but a decline of about 7fd. per head compared with 1871. The falling off since 1871, however, is owing mainly to prices in 1881 being much lower than in 1871. The broad fact remains, that our business with the Continent has lost ground during the past twenty years, but especially during the past ten or twelve years, owing to the large increase in the native production. The extent of this increase is shown in the following figures : — Population. Cotton Spun. lb>. 18fil 1871 1881 Per Head. Iba. 163,823,000 595,000,000 3.59 180,098,000 664,000,000 3-69 193,105,000 974,000,000 5-04 Supposing one pound of cotton to represent five yards of goods, the domestic production was equal to 17'9 yards per head in 1861, 18 '4 yards in 1871, and 2.5-2 yards in 1881. This compares as follows with the import from England, assuming one pound of yarn to represent five yards of cloth (leaving out lace, net, &c. ) : — 1861 1871 1881 Yarn. Cloth. Total. Per head. Home products. lbs. Yards. Yards. Yards. Per head. 125,360 116,437 118,205 626,800 582,185 591,025 338,632 367,318 386,130 966,432 949,601 977,165 6-8 6-3 5-0 17-9 18-4 26-2 Only ten years ago, England, oij average, supplied about one-, fourth of the calico used by each person on the Continent, whereas she now supplies only one-sixth. Bearing in mind the highly protective tariffs with which Lancashire has to- contend, this is by no means, a bad exhibit. The fact that, spite of these semi-pro- hibitive tariffs, English yams and goods are still so largely saleable on the Continent, is a proof that in the open markets of the world, which are the largest consumers, Lancashire can hold her own 112 against all comers. It is true that the per capita consumption of English goods is less now than it was twenty years ago, but in absolute amount it is much greater, and enormously larger than it was thirty years ago. In connection with- this matter of foreign eompetition, the present writer has no sympathy with those who, under the cry of " Reciprocity," advocate a return. to the days of protection. Aside from the impossibility of finding any article of commerce upon which to retaliate, without doing more harm to ourselves than to our competitors, a careful examination of all the facts of the case will show that if the protective systems of the Continent and the United States have curtailed our trade with these countries, they have strengthened our hold upon, and increased our business with, what may be termed the neutral markets of the world. The following is an account of the average annual value and weight of piece, goods and yarn exported from Great Britain in the three quinquennial periods 1856-60, 1871-75, 1876-80 : — 1866-60 1871-76 1876-80 Declared Value (lOOO's of £'s). Estimated Weight (lOOO's of lbs.) Pi-otected Markets. Open Markets. Grand Total. Protected Markets. Open Markets. Grand Total. £ 11,054 23,706 17,777 £ 38,850 61,669 60,680 44,904 76,275 68,467 lbs. 167,700 233,800 219,600 lbs. 498,800 695,000 793,700 lbs. 666,600 928,800 1,013,200 Under the head of " protected markets," we 'have included the United States and all Continental Europe (though in some instances the duties are much lighter than in others), except Greece and Turkey, which, with all other countries, are put under the head of " open markets." The figures show an enormous increase in the trade with both sections between 1856-60 and 1871-75. Those for 1876-80, compared with the figures for 1871-75, show a general decrease in value, but in weight the falling off is confined to the " protected markets," the trade with the " open markets " showing an increase so important as to more than counterbalance the decrease in the business with the other section. 113 The decrease in the grand total of " value " is due entirely to the fall which has taken place in prices : the grand total of " weight " showing the respectable increase of about 9 per cent. The decrease in the value of products exported to "protected markets " is due in part to the fall in prices, ■ and in part to the circumstance, already pointed out, that the trade with some of the Continental nations was unduly inflated in consequence of the economical disturbances arising out of the Franco-German war and the transfer of Alsace from France to Germany. Un- doubtedly, however, a portion of the decrease in the exports to "protected markets" is due to the circumstance that our Con- tinental and American customers are now supplying more of their own wants than formerly, and this in consequence of the fact that their home manufactures are "iDrotected." But, spite of "protection," the business done in 1876-80 shows a tre- mendous increase upon that done in 1856-60. But however potent our competitors may be in their own " 23rotected markets,'' it is quite clear from the above statement that they are powerless against us in the " open markets " of the world. The quantity of American and Continental cotton fabrics exported to outside markets is quite insignificant compared with our own trade, and, for the past ten years, moreover, the business has been almost stationary. In the following table we give the average annual value of cotton goods and yarn imported into and exported from France, Belgium, Holland, and the United States, in the twp quinquennial periods of 1871-75 and 1876-80 : — Imports. Exports. 1871-76, 1878-80. 1871-76. 1876-80. £ 3,796,000 607,000 3,161,000 6,444,000 £ 4,308,000 476,000 2,920,000 4,423,000 £ 2,856,000 697,000 2,846,000 631,000 £ 2,616,000 770,000 2,218,000 2,008,000 Holland United States .... Total £13,908,000 £12,126,000 £7,029,000 £7,612,000 There are no exports of cotton goods or. yarn from either Eussia, Austria, Spain, or Italy, at all events, there is no record of such in the official tables published by each country. There are some I 114 exports from G-ermany, but there is no record of their value earlier than 1880, in which year they were estimated at £2,726,800. Switzerland exports largely, but the official tables give only the weight : the annual average for 1871-75 was 334,000 centners, and for 1876-80, 357,000. centners, showing an increase of about 7 per cent., against an increase of 9 per cent, in the exports from Great Britain. The imports enumerated in the above table are almost entirely from Great Britain, the exports from France and Holland are chiefly to the French and Dutch Colonies respectively. With the exception of Belgium, all the countries import more than they export. Part of the " exports '' come to England, but the following figures show how insignificant is this item : — 1871-75. 187C-80. £ Average anmial value of cotton, ya.rns, and | , g„ qOO ... 2,525,000 piece gooods imported into Great Jiritam j > ■ " > > Ditto re-exported ' " 347,000 l,230,C0O 486,000 2,039,000 Net supply for Great Britain Showing an increase of £809,000. As a great deal of fuss has been made about the competition of the United States, we give the following comparison of exports of all kinds of cotton products from the American Union in 1856-60 and 1871-80:— S S' * 1866 6,967 000 1871 3,668,000 1876 7,723,000 1867 6,116,000 1872 2,304,000 1877 10,236,000 1868 S,6.'il,00 1 1873 2,947,000 1878 11,439,000 1859 8,S16,f.OO 1874 3,096,000 1879 10,854,000 1800 Average — 10,936,000 1 1875 4,072,000 1880 9,981,000 .*7,697,000 §3,196,000 §10,047,000 £1,619,000 £639,000 £2,009,000 The average value of the exports in 1876-80 is actually less than the value of fabrics shipped in 1860. The annual increase for the five years 1876-80 over 1856-60 is only £490,000, while the figures for 1880 are -11,458,000 or £291,000 less than those of 1878, and $954,000 or £190,000 less than those of twenty years previously (1860). The foregoing facts make it abundantly clear that the British cotton industry is quite competent to take care of itself (and the game is true of other branches of trade) without the assistance of 115 the expedients advocated by those good but misguided people who have allowed themselves to be victimised by a plausible phrase. Including the "home trade," the annual Value of the out-turn of our cotton industry is about £100,000,000. Against this there is the formidable competition of £2,000,000 imports ! sent from countries which take a vast deal more of our cotton products in return. It is quite true that our rivals in cotton spinning and manufacturing in the United States and on the Continent have of late made great progress in the industry ; a greater ratio of pro- gress, in fact, than we have ourselves made ; but they have for the most part worn their own calicoes, and, as already shown, they have not in the least interfered with the sale of our products in the neutral markets of the world. It should always be remembered that protection increases the cost of producing manufactures. It is quite immaterial whether the protection takes the form of import duties upon articles which compete with the protected product itself, or upon the raw material out of which it is manufactured, or upon the machinery with which it is made, or upon the food of the operatives employed in its production — they all add to the cost of production, and every addition made to the cost of pro- duction diminishes our power to compete with the products of other manufacturers in the open markets of the world. It follows from this, that the greater the protection bestowed by other manufacturing countries upon their own products the better it is- for us, so far as concerns our commerce with the outside workL It is the protective system of the United States which has lost to them, and gained to us, so large a share of the shipbuilding business and carrying trade of the world ; and it is the protective system of America and the Continent which enables us to beat them all in outside markets, which comprise fully three-fourths of the population of the globe. This is not the place in which to enter into a discussion upon the whole question of Free TTa.de' versus Fair Trade (so-called) ; but it would be easy to demonstrate that what we have said in 116 respect of the cotton industry is true of every other industry of the country. It may be true that some special branches of business are not in so flourishing a state as could be desired ; but their adverse condition is due to circumstances other than the operations of Free Trade. The doctrine of the survival of th« fittest is as true of commerce and manufactures as it is of natural history ; and even the universal adoption of Free Trade, though an eventual benefit to everyone, would, until matters accom- modated themselves to the economical changes incidental to the new departure, be a sore trial to many departments of English industry, the conductors of which appear to think that, with untrammelled international commerce, English manufacturers would advance in "leaps and bounds,'' while the industrial systems of other nations would stand still. The greater portion of this chapter was written two years ago, but nothing has since transpired to make its recasting at all necessary. 117 CHAPTER X. THE KELATIVE IMPORTANCE OF THE COTTON, WOOLLEN, AND LINEN INDUSTRIES, 1783-l'883. Relative positions of the three Textiles in 1783 — Wool first, Linen second. Cotton third — in respect of both production and exports. — In 1793 Cotton takes the second place in exports, and ten years later first plase ; but in production still only third place. — Progress of the Woollen Industry, 1800 to 1882. — Progress of the Linen Lidustry during same period. — Cotton takes the first place in 1829-31, Linen second, and Wool third. — Wool and Linen change places in 1859-61. — Of the entire products of the three textiles Cotton forms over two -thirds. — Between 1859-61 and 1880-82 proportions of Cotton and Linen slightly diminish, while that of Wool increases. — Cottons largely replace Linens between 1830 and 1860. — Early prejudice against Cottons disappears. — Influence of the American War, 1861-65. — Exports of Cottons, Woollens, and Linens — total, ratio, and per head — 1798-1800 to 1880-82. — Value of the total production of Cotton goods in 1859-61 and 1880-82. — Similar statement in respect of Woollens and Linens. — Relative positions of the three Textiles, in respect of production, export, and home consumption. — Value of Foreign Cottons and Woollens imported, re-exported, and consumed at home. — Value of Apparel, &c., exported. — Number of Operatives employed and amoxmt of Wages paid in each of the three Industries. — The disturbances in the relative positions of the three Industries occasioned by the American war. Statement of movements at various periods between 1860 and 1883. Cotton eventually recovers the ground lost during the war. Values and quantities of Cottons, Woollens, and Linens exported, 1860 to 1883. A century ago wool held the first place in the textile indus- tries of Great Britain : linen being a very poor second, and cotton a still poorer third. In 1783 the relative positions of the three were about as stated on the next page. 118 Value of Value of Fabrics & Yarns Value of Home Produced. Exports. Consumption. £ £ £ Woollen 16,800,000 3,700,000 13,100,000 Linen 4,000,000 .... 700,000 3,300,000 Cotton 960,000 360,000 600,000 Total 21,760,000 4,760,000 17,000,000 The figures in the first column are from Anderson's " Historical and Chronological Deduction of the Origin of Commerce," vol. iv, p. 522, except that the sum of £2,250,000 is added for the value of linens produced in Ireland, for which see Arthur Young's " Tour in Ireland," vol. ii, pages 91 and 92. It is impossible to know what worth to attach to the iigures given as the estimated value of fabrics produced ; but they were probably not very far from the truth. As respects cotton, the weight of raw material spun was about 10,000,000 lbs. which, at 16d. per lb., the then average price, would be worth about £660,000 ; but in all proba- bility two-thirds of this would be used in connection with wool or flax, or made into candle wicks, leaving only one-third, or about £220,000 worth, for cotton goods properly so called, the value of which, in the finished state, might easily amount to £960,000. Ten years later, that is, in 1793, the official value of woollens exported amounted to about five and a half millions sterling, that of cotton to about one million and three-quarters, and that of linens to about one million. As respects the value of exports from Great Britain, therefore, cotton now held the second place and linen the third, wool still retaining the first. , But in another ten years cotton took the lead, and went on steadily, gaining ground, until it attained the first place, not only in respect of exports, but also in respect of the weight and value of fabrics consumed at home. At the close of the last century, Mr. Luccock, in his " Treatise on English Wool,'' estimated the production of wool in England and Wales at 94,377,000 lbs. The production in Scot- land at the same date, probably, amounted to about 10,000,000 lbs.; making a total of 104,377,000 lbs. for Great Britain. Thirty years later Mr. Hubbard, the well-known wool stapler of Leeds, 119 estimated the production in England and Wales at 1 08,937,000 lbs., which, with about 15,000,000 lbs. for Scotland, would give a total of 123,937,000 lbs. for Great Britain. In 1860 the late Mr. Henry Ashworth and others estimated the growth of wool in the United Kingdom at about 145,000,000 lbs. The average for 1880-82 was, according to the valuable annual wool tables published by the Bradford Observer, 138,770,000 lbs. If to the foregoing particulars we add the weight of wool imported, and deduct the quantity (home and foreign) exported, we shall get the quantity or weight left for home consumption. This is done in the following table, the figures contained- in which are the annual averages for each period of three years ended 1800, 1831, 1861, and 1882. The imports include goat's hair; wool taken from sheep skins, estimated at 2 lbs. per skin; and woollen rags, intended to be torn up and mixed with wool. 1798-1800 1829-1831 1859-1801 1880-1882 Produced at Home. Foreig-n and Colonial Imported. Total Supply. Home and Foreign Exported. Left for Home Consumption. lbs. 104,377,000 123,937,000 145,000,000 138,770,000 lbs. 6,388,000 28,491,000 166,633,000 680,506,000 lbs. 109,765,000 162,428,000 311,638,000 719, 270, COO lbs. 134,000 S,197,C00 61,089,000 270,690,000 lbs. 109,631,000 149,231,000 260,444,000 448,686,000 Before offering any observations on the above statement, we shall construct a similar table relating to the supply and con- sumption of flax. There are no official records of the pro.duction of flax in Ireland for the first two periods, but on the basis of the quantity of flaxseed imported, particulars of which are given in the Board of Trade tables, compiled by Mr. G-. E. Porter, and published in 1832, the average annual quantity raised in the three years, 1798 to 1800, was about 64,000,000 lbs. Thirty years later the production showed an increase of about 40 per cent., or a total of about 90,000,000 lbs. During the subsequent thirty years there was an important decrease, owing partly to the increased import of foreign flax and tow, and partly to the diminished .per cajnta consumption of linens, caused by the comjDetition of cheaper fabrics made from cotton : ,the average annual production of flax in 1859-61 being only 56,251,000 lbs., as per the excellent 120 Annual Eeports compiled by Mr. Michael Andrews, Secretary of the Flax Supply Association. There was an important recovery during the American war, and for a year or two after that event > but the whole of the increase was subsequently lost, and though the average annual production in 1880-82 was much larger than for several years previously, it was still only 57,048,000 lbs. By adding the foregoing figures to the quantities of flax and tow imported, and deducting therefrom the quantities exported, we shall get the weight left for home consumption, as follows :-r Produced at Home. Impoi-ted from Abroad. Total Supply. Quantity Exported. LeftforHome Consumption. , lbs. lbs. lbs. lbs. lbs. 1798-1800 1829-1831 1859-1861 188 '-1882 61,000,000 90,000,000 60,261,000 67,048,000 46,727,000 104,628,000 169,619,000 222,883,000 109,727,000 194,628,000 216,770,000 279,931,000 1,120,000 860,000 3,763,000 6,096,000 108,607,000 193,778,000 212,017,000 278,836,000 We are now in a position to compare the relative importance, at each of the dates named, of the three great textile industries, cotton, wool, and -flax, in respect of the raw material spun and manufactured. This is done in the following table, the particulars as to cotton being taken from statements already given in previous chapters : — Weight Consumed in Millions of lbs. Increase per cent, per annum. 1798-1800 1829-1831 1859-1861 1880-1882 Cotton. Wool. Flax. Total. Cotton. Wool. Flax. Total. lbs. 41,8 243,2 1,022,5 1,424,6 lbs. 109,6 149,4 260,4 448,6 lbs. 108,6 193,8 212,0 273,8 lbs. 260,0 686,4 1,494,9 2,147,0 % 15-5 10-9 ' 1-9 % 1-2 2-6 3-S % 2-6 0-3 14 % 4-6 6-1 2-1 1798-1800 1829-1831 1869-1861 ■ 1880,lt82 Proportion of each. Consumption per head. Cotton. Wool. Flax. Total. Cotton. Wool. Flax. Total. % 16-08 41-47 68-40 66-35 X 4-2-15 25-4i 17-42 20-90 % 41-77 33-05 14-18 12-75 % 100 100 100 100 lbs. 2-78 9-96 36-27 40-41 lbs. 7-31 6-12 8-98 12-73 lbs. 7-24 7-94 7-32 7-77 lbs. 17-33 24-01 61-67 60-91 Down to 1861 cotton rapidly overtook both wool and flax. Between 1831 and 1861 wool showed a fair amount of progress, and has since then held its ground very well. During the thirty years ended with 1861 the competition between cotton and flax 121 was keener than even during the previous thirty-one years, with the result that the consumption of flax was almost stationery. For a number of years there was a considerable prejudice amongst oldfashioned people against the use of calico for either clothing or bedding, but with a new generation this prejudice disappeared, and linens were largely superseded by calicoes. The com- paratively greater vitality displayed by both wool and flax, especially the former, between 1861 and 1882, was due to the new start given to both by the cotton famine occasioned by the American war, which brought woollen, linen, and mixed fabrics into such general use and favour that cotton has not yet regained the ground lost during the war. Linen has fallen slightly below the relative position at which it stood twenty years ago : the quantity consumed in 1880-82 being only 12-75 per cent, of the total weight of textiles spun or manufactured, against 14'18 per cent, in 1859-61 ;■ but the proportion of wool has risen from 1742 per cent, to 20'90 per cent., while that of cotton has fallen from 68 '40 per cent, to 66 '35 per cent. In weight, the consumption of cotton was 5-14 lbs. per capita larger in 1880-82 than it was in 1859-61, but wool gained only 3-75 lb. and flax only 045 lb. per head. The relative positions of the three branches of industry in respect of the value of yarns and goods exported are shown in the following particulars, taken from the returns published by the Board of Trade : — 1793-1800 18-29-1831 1869-1861 1880-1882 Value of Yarns and Goods Exported. Increase per cent, per annum. Cotton. Woollen Linen. Total. Cotton. Woollen Linen. Total. £ 6,088 18,077 49,000 76,816 £ 6,846 4,967 16,041 21,377 £ 1,010 2,188 .6,119 6,907 £ 12,944 26,182 70,160 106,100 % 8-'2 5-7 2-7 % 6-7 2-0 - % 3-6 6-2 0-6 % 3-2 6-9 2-3 1798-1800 1829-1831 1869-1861 1880-1882. Proportion of each. Value of Exports per head. Cotton. Woollen Linen. Total. Cotton. Woollen Linen. Total. % 39-30 71-79 69-84 73-09 % • 52-90 19-72 21-44 20-34 7-80 100 8-49 100 8-72 1 100 6-67 100 s. d. a 9 14 9 33 9 43 7 s. d. 9 1 4 10 4 12 1 s. d. 1 4 1 9 4 2 3 11 s. d. 17 2 20 6 48 3 69 7 122 The values for 1798-1800 are what were known as " official Talues," but at that date they differed very little from the real or •declared values. The figures for the subsequent periods are the '" declared'' values. During the first thirty-one years the exports ■of cotton goods increased 8 '2 per cent, per annum, and those of linen 3 '6 per cent., but woollens fell behind. In the subsequent thirty years the ratio of increase was pretty uniform, wool taking -a slight lead ; since then woollens have lost a little, and linens a great deal, of ground. At the opening of the century more than half (52-90 per cent.) the total exports of textiles consisted of vroollens ; thirty-one years later nearly three-fourths (71-79 per •cent.) consisted of cottons, which proportion has since been, on average, fully maintained, except during the American war. Since the commencement of the century the value of cotton goods exported has increased 15 times, but that of linen only about 7 times, and that of woollens only about 3 times. - The population of the United Kingdom was about 15,000,000 in 1800, 24,419,000 in 1831, 28,985,000 in 1861, and 35,246,000 in 1881. The value of cotton products exported has increased from 6s. 9d. per head in 1798-1600 to 43s. 7d. per head in 1880-1882, while that of woollens has risen only from 9s. Id. to 12s. Id., and that of linens only from Is. 4d. to 3s. lid. per head. The increase in the exports of the three textiles between 1800 and 1882 amounted to 42s. 3d. per head, of which 36s. lOd. fell to the share of cotton. In the absence of reliable data, a comparison cannot be made between the values of the entire amount of cotton, woollen, and linen fabrics produced at the earlier dates given in the foregoing tables ; but fairly approximate particulars are available in respect of the last two periods 1859-61 and 1880-82. In 1862, Sir Thomas Bazley, Bart., estimated the value of cotton manufactures con- sumed at home in 1859-61 at about £28,000,000. In the same years, the average value of yarns and goods exported was about £49,000,000. So that the average annual value of the entire production of cotton yarns and fabrics was about £77,000;000. In 1880-82, the average value of cotton products exported was £76,816,000, and that of cotton goods consumed at home, about 123 £30,000,000, giving a total of £106,816,000 (say, in round numbers, £107,000,000) as the average annual value of the ■entire production. The various items which entered into the -cost of producing these yarns and goods were approximately as follows, weights and values, in 1,000's : — Cotton consumed Wages Other expenses, than wages, in connection with spinning and weaving Other expenses, than wages, in "1 connection with bleaching, > dyeing, and printing J Eent, interest, depreciation, ) profits, &c j" Total value of production Value of yarns and goods exported Value of home consumption. 1869-61. 1880-82 lbs. 1,022,500 d. 6i £ 29,290 lbs. 1,426,690 d. 6rt £ 38,211 Operatives 646,000 £ 32 10 £ 20,996 7,800 10,000 8,915 Operatives 6i6,000 £ 42 28,812 10,700 17,000 12,277 77,000 49,029 107,000 76,816 27,971 30,184 These figures are reached by a different method than that used in arriving at the estimates given on page 60 ; but it is impossible to determine which is the more correct, as both consist partly of estimates. In 1857, Mr. James, in his " History of the "Worsted Manu- iactui'e," estimated the annual value of worsted, yarns, and fabrics produced in the United Kingdom at about £18,000,000; and in 1858, Mr. Baines, in a paper read at the Leeds meeting of the British Association, estimated the value of the woollen products •of the United Kingdom at about £20,000,000, making a total of £38,000,000 for ■ woollen and worsted together. The average .annual value in 1859-61 was about £40,000,000. The result of many inquiries and calculations has led to the adoption of £53,000,000 as a fairly approximate estimate of the value, of woollen and worsted yarns, and fabrics produced in 1880-82. On the next page will be found particulars of the various items upon which these estimates are based, with an account of the value of the fabrics exported, and of these left for home con- sumption and stock. Weights and values in lOOO's : — 124 Wool Consumed. 1859-61. 1880-82. lbs. 104,869 131,993 2,886 6,603 16,193 36,000 nib. d. 17 165 36 12 2i 2| 12 40 £ s. 32 10 £ 7,428 9,280 420 276 168 364 lbs. 202,569 123,783 13,617 14,284 85,160 46,000 ^Slb. d. 13i US 20 9 2i 2i ik 29-3 £ s. 42 18 £ 11,182 5,993 1,126 63B 798 422 Domestic ^ Wool from Sheep Skins imported Domestic Rags ■ Total 295,444 20,000 1,991 17,925 1,000 332 484,253 80,000 12,331 20,057 1,582 1,612 Woollen Yarn imported Total 317,436 19,257 8,937 11,806 626,584 23,131 13,566 16,313 Wao-es Operatives 270,000 Operatives 316,000 Other expenses, dyes, oils and \ soap, rent, coal, interest, de- V preciation, profits, &c j Total value of products Value of Yarns and Goods ex- 1 ported ) Value of Home Consumption . . 40,000 16,041 63,000 21,377 24,969 31,623 The foreign and colonial wool is the quantity imported, less the quantity exported (except that in 1880-82 a further reduction is made for excess of stocks held at the end of 1882, in accordance with the figures given in Messrs. Helmuth Schwartze and Co.'s- reports), and the value is calculated at the import price ; the domestic wool is the quantity produced, less the quantity ex- ported, and the value is calculated at the average prices kindly furnished by Messrs. Helmuth Schwartze and Co. Goats' hair is the quantity and value imported. The wool taken off sheep skins imported is calculated at 2 lbs. per skin. The rags (for conversion into mungo or shoddy), both imported and domestic,, are calculated at the import price. In 1856, Mr. Alexander Eedgrave estimated the value of the linen yarns and piece goods produced in the United Kingdom at- £15,100,000, of which the proportion exported was £6,262,588, leaving £8,837,412 for home consumption. In 1859-61, the average annual production was probably about £15,500,000, including £6,119,000 exported. In 186-3, the out-turn was estimated at £17,000,000, of which the amount exported was- £6,986,387, leaving £10,013,613 for home consumption. In 1864-67, the annual value, owing to the increased production and 125 high prices occasioned by the cotton famine, ranged from £20,000,000 to £25,000,000, of which the proportion exported amounted to from £11,000,000 to £13,000,000. In 1880-82, the average annual value of products vv^as probably not more than about £18,000,000, and may have been rather less. The particulars for 1859-61 and 1880-82 compare as follows, weights and values in 1,000's : — Flax and Tow Consumed. Import, less export 1859-61. 1880-82. 1 Ito. 1.56,766 66,261 d. 6-56 6-80 £ 26 £ 3,631 1,369 lbs. 202,679 57,048 d. 4-09 6-69 £ 32 10 £ 3,462 1,400 Total 212,017 Operatives 120,000 4,090 3,120 7,390 259,627 4,862 4,355 8,793. 18,000 6,907 Wages Other expenses, rent, depreciation, ) interest, profits, &c J Operatives 134,000 15,500 6,119 Value of Yarns and Goods exported. Value of Home Consumption 9,381 11,093 The value of fiax and tow imported is calculated at the import price; the value of home-grown flax is taken at an average of £54 per ton in 1859-61, and at £55 per ton in 1880-82. The estimated number of workpeople employed is based upon the census returns of 1861 and 1881. The average weekly rate of wages, for operatives of all ages, was about 10s. in 1859-61, and about 12s. 6d. in 1880-82. These figures are based upon particulars supplied to the Board of Trade, and published in the various issues of " Miscellaneous Statistics of the United King- dom." In estimating the amount of foreign fiax consumed, it is as- sumed that in respect of 1859-61 there was no variation of moment in the stock on hand at the end of 1861, as compared with that held at the beginning of 1859. It is known, however, that there was a considerable accumulation of stocks at the close of 1882. The extent of this accumulation may be gathered from the fact that the deliveries of hom-e and foreign flax in 1883 amounted to onl}' 217,000,000 pounds, against 273,000,000 pounds in 1880-82, making an average of 259,627,000 pounds for the four years, which figure we have adopted as representing the probable average consumption for 1880-82. 126 The relative importance of the three branches of industry is. shown in the following table, in 1,000's of £'s : — Cotton Woollen . . . Linen Total Total Value of Yarns and Goods Produced. Value of Yarns and Goods Exported, Value of Goods Consumed at Home. 1869-61. 1830-82. 1869-61. 1880-82. 1859-61. 1880-82. £ 77,000 40, COO 15,600 £ 107,000 6j,000 18,000 £ 49,029 15,041 6,119 £ 76,816 21,377 6,907 £ S7,971 24,969 9,881 £ 80,184 31,623 11,093 132,600 178,000 70,189 105,100 6-2,311 1 72,900 Although these figures must not be accepted as being abso- i lutely correct, they may be taken as being approximately accurate. They are the result of much careful inquiry, and though subse- quent investigations may lead to a revision of the various items, the net result will not be very important. It will be observed that in tespect of the total value of yarns and goods produced, and the value exported, cotton has more than held its ground as- the leading textile industry ; but that in respect of home con- sumption has rather fallen behind wool. This may be only apparent. The "value of goods consumed at home " includes the stocks carried over at the end of 1882, 'and there may have been larger of wool than of cotton. Moreover, the wool figures in- clude fabrics composed of wool and cotton, at the extent of which we can only make a rough guess. The percentages of production, export, and home consumption, and the per capita value of the last-named compare as follow : — Cotton Woollen .... Linen Total Production. Expoi-t. Home Consuniption. 1 1869-61 % 68.1 30-2 11-7 1880-82 1869-61 1880-82 1859-61 lS-iO-82 1859-61 1880-82 % 60-1 29-8 10-1 % 70-0 '21-4 8-6 % 73-1 20- 1 6-5 Z 4i-9 40-0 15-1 % 41-4 43-4 15-2 Per head. s. d. 19 llj 17 10 6 8i Per head, s. d. 17 li 17 111 8 Si 100-0 100-0 100-0 100-0 100-0 100-0 J 44 6i 41 4 The fall in the per capita value is due to the reduction in the price of the raw materials and to the vast economy which has taken place in the cost of production. Moreover, the domestic con- sumption of foreign woollen and cotton manufactures, especially the former was much larger in ] 880-82 than in 1859-61, as 127 is shown in the following table of imports, less exports, in lOOO's of £'s :— Wo(»llen Goods. Cotton Goods. Total. 1 1859-61 1880-82 1659-61 1880-82 1859-61 1880-62 £ 98! 27 £ 6,539 660 £ 741 132 £ 2,482 694 & 1,724 159 £ 9,021 1,164 Consumption Perheaxl .' me d. 8-2 5 979 d. 40-7 609 d. 6-2 1,888 d. 12-8 1,666 d. 13-4 7,807 d. 53-5 The consumption of foreign woollens has risen from about 8|d. to 3s. 4f d. per head, while that of foreign cotton goods has only advanced from 5^6.. to 12fd. per head. This shows that in com- petition with foreign manufacturers Lancashire has been much more successful than Yorkshire. The total per capita consumption of cottons, woollens, and linens, home and foreign, was about 45s. 7d. in 1859-61 and 45s. 9d. in 1880-82. The value of the goods retained for home consumption and stock includes the yarn and cloth contained in the apparel, slops, haberdashery, and millinery exported. It is impossible to say either what proportion belongs to cotton, wool, or flax, or how much belongs to silk and other materials, but here are the totals for reference : — 1859-61. 1880-82. Apparel and Slops £2,169,000 ... £3,698,000 Haberdashery and Millinery . 4,108,000 Total £6,079,000 ... £7,806,000 The relative importance of each industry in respect of the number of hands employed and the annual amount of wages paid are shown as follows : — Cotton Woollen . . Linen Total Hands Employed. Paid in Wages. 1 1859-61 1880-82 1859-61 1880-82 No. 646,000 270,000 120,000 No. 686,000 316,000 134,000 £ 20,996,000 8,937,000 8,120,000 £ 28,812,000 13,666,000 4,356,000 1,036,000 l,138,or_0 33,062,000 46,723,000 The relative positions of the textiles were greatly disturbed by the serious reduction in the supply of cotton occasioned by the 128' American war. The principal fluctuations in the supply and consumjjtion of cotton, wool, and flax, between 1860 and 1883. are shown in the following statement, in millions of lbs.: — Cotton. 1860 1864 1868 1871 1877 1883 lb. 1,391 250 lbs. 893 246 lbs. 1,329 323 lbs. 1,778 362 lbs. 1,355 169 lbs. 1,784 264 Retained for Consumption 1,141 648 1,006 1,416 1,186 1,520 1,088 561 996 1,206 1,237 1,510 . Wool. Sheep, Lamb, &o., imported Taken from Sheepskins imported. lb. 148 3 145 3 13 lbs. 206 8 166 6 22 lbs. 253 9 166 7 36 lbs. 323 17 145 9 64 lbs. 410 16 162 8 75 lbs. 496 14 129 13 81 Woollen Kags imported Total 312 406 471 548 660 732 Foreign Wool exported Domestic Wool exported Total . 31 11 66 7 105 10 135 1? 187 10 277 19 42 63 116 147 197 296 Retained for Consmnption 270 343 356 401 463 436 270 343 366 421 436 465 Flax and Tow. lb. 164 63 lbs. 210 144 lbs. 209 66 lbs. 297 30 lbs. 269 49 lbs. 173 47 Total 217 6 364 8 266 6 327 9 808 3 220 3 Retained for Consumption 211 246 269 818 305 217 The difference between the weight of cotton left for con- sumption and the weight actually consumed arises from the increase or decrease in the stocks in the ports or at the mills at close of each year. In the absence of any data as to the stoclw of wool at the end of either 1864, 1865, or 1868, we have assumed that the weight left for consumption was about the quantity actually consumed. The stock at the close of 1871 was much larger than at the opening. The difference was probably about 20,000,000 lbs., which item, added to the balance between im- , ports and exports, gives 421,000,000 lbs. as the probable actual consumption in 1871. The actual consumption for 1877 is arrived at by deducting 28,000,000 lbs. for increase in the stocks in the ports at the end of the year, and that for 1883 by adding 19,000,000 lbs. taken out of the stocks in the ports: both 129 «stimates being given in the valuable Annual Eeports published by Messrs. Helmuth Schwartze and Co., Wool Brokers, of London. The weight of flax and tow retained for consumption is accepted as the probable actual consumption, except that 40,000,000 lbs. are added to the figures for 1883 for flax taken ■out of stock : the stock at the end of the year being much lighter than at the beginning. The revision is probably correct, as the average annual deliveries for consumption for the four years ended 1883 was about 257,000,000 lbs. With these explanations we give the following further comparative statement : — • Consumption, in Millions of lbs. Proportion. Cotton. Wool. Flax. Total. Cotton. Wool. Flax. lbs. lbs. lbs. lbs. % % % 1880 1,083 270 211 1,664 69-26 17-26 13-49 1864 561 343 246 1,160 48-78 29-83 21-39 1868 996 356 259 1,611 61-83 22-09 16-08 1871 1,206 421 318 1,946 62-01 21-64 16-35 1877 1,237 435 306 1,977 62-67 22-00 15-43 1S83 1,510 456 267 2,222 67-96 20-48 11-67 Of the total consumption of the three textile raw materials cotton represented 69'25 per cent, in 1860, but only 48-78 per cent, in 1864, leaving only 30'75 per cent, for wool and flax in 1860, but 51'22 per cent, in 1864. , The consequence, of course, was a considerable change in the character of the textile manu- factures woi'n or used : woollens, linens, and mixed fabrics largely taking the place of cottons. As respects clothing, this was particularly observable amongst the artisan, operative, and labour- ing classes. Woollen and mixed fabrics superseded cotton for shirts ; varieties of woollen or worsted cloths superseded mole- skins and corduroys for outer clothing ; cotton prints for dresses, frocks, and gowns disappeared, and in their place came worsted, .alpaca, and mixed fabrics. Such was the hold which the rival fabrics obtained upon the public that it is only within the past few years that cotton has made any decided progress towards regaining its former position. For several years after the war the agriculture of the Southern States remained in a very backward condition, and with small crops there was a continuance of comparatively high prices. But with large crops values K 130 sank low enough to enable cotton to regain the position it held relative to wool and flax before the war ; and there can be no doubt that this struggle on the part of cotton to get back the ground lost during the famine has been one source of the un- satisfactory condition of the whole of the textile trades, about which both masters and operatives have for a number of years past had occasion to complain. During the four years between 1864 and 1868 cotton regained a very large portion of the ground lost between 1860 and 1864, the proportion used in 1868 being 61-83 per cent., against 48-78 per cent, in 1864; meanwhile the proportion of wool used fell from 29-83 per cent, to 22-09 per cent., and that of linen from 21-39 per cent, to 16-08 per cent. Between 1868 and 1877 there was very little relative change, but the return to ante-war prices for cotton was paving the way for an important alteration in the relative positions of the competing textiles, and between 1877 and 1883 the proportion of cotton rose from 62-57 per cent, to 67-95 per cent., while that of wool fell from 22-00 per cent, to 20-48 per cent., and that of lineni from 15-43 per cent, to 11-57 per cent. The following statement contains particulars of the value of cotton, woollen, and linen piece goods and yam exported in the years for which an account of the consumption of the raw materials has already been given : — Piece Goods. Yarn. Cotton. Woollen. Linen. Total. Cotton. WooUen Linen. Total. £ £ £ £ £ £ £ £ ' I860 42,142 12,159 4,806 69,106 9,871 3,578 1,801 15,260 1864 46,799 18,669 8,172 72,640 9,083 5,183 2,992 17,268 1863 62,971 19,681 7,113 79,665 14,715 6.203 2,308 28,226 1871 67,760 27,182 7,603 92,446 15,061 6,101 2,218 23,380 1877 67,036 17,346 6,834 80,214 12,193 3,609 1,292 17,094 1883 62,937 18,320 6,439 86,696 13,510 3,267 1,069 17,836 Total Value— All Kinds. Proportion. Cotton. Woollen. Linen. Total. Cotton. Woollen. Linen. £ £ £ £ % X % 1860 62,013 16,737 6,606 r4,366 69-96 21-16 8-89 1864 64,882 23,762 11,164 S9,798 61-12 26-45 12-43 1868 67,686 25,784 9,421 1 '2,891 66-78 25-06 9-16 1871 72,821 33,283 9,721 1 16,826 62-87 28-74 8-39 1877 69,228 20,964 7,126 }7,308 71-14 21-53 7-33 188(3 76,447 21,687 6,498 1 34,532 73-13 20-65 6-22 131 The fluctuations in the quantities of yarns and piece goods exported are shown in the following tables, in 1,000's of pounds and yards : — • Cotton. Cotton Piece Goods. Yarn. Thread. Plain. Coloured. Mixed. Total. lb. lb. Yards. Yards. Yards. Yards. I860 197,343 fl,297 1,800,490 971,126 4,602 2,776,218 1862 93,225 4,638 994,095 648,070 89,229 :i,681,394 1864 75,677 4,434 1,088,003 650,423 13,563 1,751,989 1868 171,262 6,602 2,030,869 939,963 6,284 2,977,106 1871 193,482 7,616 2,397,499 991205 22,197 3,410,901 1877 227,651 11,200 2,699,232 1,126,255 13,283 8,837,820 1883 264,847 14,445 3,136,891 1,379,430 22,836 4,639,167 1860 1864 1868 1871 1872 1877 1883 Woollen & Worsted Yarn. Woollen and Worsted Piece Goods. Cloths, &c, Worsteds. Flannel, &c. Carpets. Total. lb. 26,465 30,867 42,799 43,726 39,734 26,672 33,491 Yards. 23,968 29,616 24,622 35,548 40,734 44,125 41,888 Yards. 148,685 187,305 224,367 307,668 344,968 194,777 189,823 Yards. 12,642 18,128 12,727 13,775 15,022 16,068 13,400 Yards. 6,076 6,993 7,417 10,970 11,816 6,454 10,678 Yards. 190,371 241,041 269,133 367,961 412,540 261,414 256,787 Lir en. Linen Piece Goods.i Yarn. Thread. Plain. Coloured. SaU Cloth. Total. lb. lb. Yards. Yards. Yards. Yards. 1860 31,211 3,230 135,822 4,317 3,931 144,070 1864 40,177 3,978 189,194 14.333 7,148 210,675 1868 33,608 3,785 232,838 16,998 6,796 265,632 1868 32,769 2.676 197,635 8.888 3,591 210,114 1S71 36,397 2,886 207,083 9,814 4,069 220,966 1877 19,216 2,447 159,274 14,411 4,081 177,766 1883 17,678 2,263 162,163 6,577 3,516 162,256 The figures for 1862 are added to the cotton table as showing the maximum decrease in the expoj-t of goods during the cotton famine ; those of 1872 are added to the woollen table as showing the largest exports of goods on, record ; and for the same purpose the figures of 1866 are added to the linen table. The minimum export of cotton yarn was in 1864; the maximum exports of woollen and linen yarns were in 1871 and 1864 respectively. Although in quantity the exports of cotton fabrics were in 1864 57 per cent, less than in 1860, the rise in prices caused the value to show an excess of over 8 "6 per cent. In cotton yams there was a decrease of 62 per cent, in weight, but a fall of 132 only 8 per cent, in value. In the same period the exports of woollens increased 27 per cent, in quantity and 52 per cent, in value. Woollen yarn increased about 17 per cent, in quantity and 45 per cent, in value. The business, especially in worsteds, continued to increase until 1871-72, owing doubtlessly to the fact that cotton had not yet fallen back to ante-war prices ; but since then woollens (except the heavy sorts, which do .not compete with cotton) have experienced a material reduction, the exports of worsteds in 1883 being only 189,823,000 yards, against 344,968,000 in 1872. Between 1860 and 1864 the exports of linens increased about 46 per cent, in quantity and over 70 per cent, in value ; in yam the increase was 26 per cent, in weight and 66 per cent, in value. The export of linen yarn fell back in 1866 almost to the figure at which it stood in 1860, but the shipments of piece goods showed a further in- crease upon 1864. Since then, but especially since 1871, there has been a considerable falling off, owing to the decline in the prices of cotton products. 133 CHAPTER XL THE OLDHAM COTTON MILLS. Recent extraordinary growth of Co-operative or Limited Liability Spinning and Manufacturing Companies. — Success of tlie Co- operative Societies in connection with; other branches of buamess suggested application of the principle to Cotton Spinning and Manu- facturing. — Differences of opinion as to ultimate result. — The pioneer venture — the Sun Mill projected in 1858. — Vicissitudes of the Company during American war. — Eventual gratifying success. — Prosperity of similar ventures, 1867-70. — The great " Floating mania " produced by these successes and by the prosperous condition of the Cotton trade in 1870-71. — Particulars of the Companies projected 1873 to 1883. — The disastrous reaction experienced owing to over-production and bad trade 1876-79. — Recent revival of the Mill Building mania. — Fluctuations in the vaiue of Mill Shares 1876, 1879, 1883, and 1884.— Causes of the Depression. — Suggestion that part of the serious fall in the value of Mill Shares was due to .excessive employment of Loan Capital. — The crisis, nevertheless, proved that the Limited Mills were able to weather the storm better than those conducted by private firms, and that the Co-operative principle will eventually absorb greater part of Cotton industry, in consequence of rigid economy and vigilant super- vision which attend the management of the mills. — Remarks thereon. Particulars of the number of Spindles, Value of Machinery, Capital, Wages, Value of Products, &c., of 71 Mills in Oldham and district. — Increase in Mill Building in Oldham compared with other parts of the Kingdom. — Cost of producing 32's Cop Twist reduced ^d. per lb. within a dozen years. — Characteristic energy and enterprise of Oldham in all departments of industry. The most remarkable feature or characteristic of the recent progress of the cotton industry of Great Britain is the extra- ordinary growth of co-operative or limited liability spinning and manufacturing companies, especially in the neighbourhood of 134 Oldham. The success of the co-operative societies in connection with the grocery, drapery, and other trades, suggested the application of the principle to the business of cotton spinning and manufacturing. The new departure was regarded with some misgivings by many who wished to see it succeed, while its eventual failure was confidently predicted by those with whose business it was to come into direct competition. But the men of Oldham, undeterred by either the nervous apprehensions of timid friends, or the terrible warnings of strong opponents, determined to give the scheme a fair trial. The pioneer venture was that of the Sun Mill, which was projected in 1858, by the members of the Oldham Industrial Co-operative Society. The business of the company was at first confined to manufacturing, but as the results, though at the outset fairly satisfactory, were in the end unremunerative, the concern was converted into a spinning mill. This was in 1861. Then came the troubles and disasters arising out of the cotton famine, the upshot of which was that in the autumn of 1865, just after the close of the American war, the balance-sheet of the company showed a debit of over £11,000. During the subsequent nine months, with the return of prosperity, the company made over £9,700, and in December, 1866, the directors were able to declare a dividend of 5s. per share of £5 paid up. Thence forward, down to 1870, the dividends ranged between 10 and 30 per cent. For the quarter ended June, 1871, as much as 40 per cent, was declared, and for the whole year the average was 32J per cent. A like success attended several similar ventures started between 1867 and 1870. This circumstance, together with the highly-prosperous condition of the cotton industry in general in 1870-71, brought about the great "floating mania," which culminated in 1875, and which, along with general over-trading, bad harvests here, on the Continent, and in the East, led to the unsatisfactory, not to say disastrous, condition of business in 1876-79. In the two years, 1874-75, about 3,000,000 spindles were " floated " in Oldham alone, while, including private firms converted into limited companies, 5,000,000 to 6,000,000 more were " floated " in other towns and districts of Lancashire. 135 The number of coijipanies and the nominal capital of the mills projected in each of the eleven years ended 1883 compare as follows : — Oldham. Other Places. Total. 1 No. Nominal No. Nominal No. Nominal Oo.-s. Capital. Co. '8. Capital. Co.'s. Capital. £ £ & 1873 IB 830,000 25 964,600 40 1,784,600 1874 21 1,445,000 80 4,345,400 101 5,790,400 1875 24 1,242,000 60 2,760,700 •84 3,992,700 1876 2 20,000 16 933,000 17 953,000 1877 19 1,180,000 19 1,180,000 1878 10 328,500 10 328,600 1879 6 257,000 6 267,000 1880 2 23,000 21 867,000 23 890,000 1881 4 260,000 21 1,482,000 25 1,742,000 1882 4 410,000 20 1,608,600 24 ' 1,918,600 1883 5 '77 436,000 4,665,000 19 296 1,145,000 24 373 1,580,000 20,416,700 16,761,700 The companies tabulated under the head of " other places " include many in the immediate neighbourhood of Oldham. The returns for 1884 are not yet published, but they will show a very large increase upon those of 1883, and will probably not fall far short of those of 1875, as during the past twelve or eighteen jjionths there has been witnessed a very near approach to the " floating mania " of 1874-75. It is estimated that the number of new mills projected in the neighbourhood of Oldham alone, since those included in the Parliamentary returns for 1883, represent a capital of £1,000,000 to £1,250,000; and in some quarters it is feared that this abnormal expansion will, sooner or later, be followed by a reaction similar to that witnessed in 1876-79. But although it is only in accordance with experience that a period of contraction should follow a period of expansion, there is no probability of an early repetition of a crisis so severe as that of 1876-79. That crisis was the outcome of a combination of circumstances, the simultaneous operation of which is not likely to be repeated in the immediate future. Moreover, the mills recently built have been put up at from 20 to 30 per cent, below the cost of those erected during the inflation period of 1874-75 ; there is less room, therefore, for any serious depreciation in their market value. Oldham shares -vvill doubtless rise and fall in 136 price in proportion that the mills are prosperous or otherwise, but only a general financial crisis, combined with bad harvests. in the East and war in Europe, could bring about a repeti-' tion of the untoward state of things witnessed in 1876-79. What then took place is shown in the following comparison of the market value of the shares of the principal Oldham companies at the end of 1866 and in the autumn of 1879 ; to which figures are added the values for December, 1883, and October, 1884. The figures relate to twenty-three of the largest- mills, each containing 70,000 or more spindles : — Name of MUl. Amount Share. Called Up. Value End 1876. June, 1879. Dec, 1883. Oct. 1884. Butler Green Equitable Gladstone Glodwick Greenacres Higginshaw Honeywell Industry Junction ; Lancasliire Middleton, &o. . . Mooriield Moss Lane North Moor Oak £ 25 6 4J 6 5 6 5 6 100 4J 10 6 10 5 6 20 S 6 6 5 6 6 10 £ ■ 26 5 H i i 4i 50 4 10 4 6 3 ^ 20 8 f 5 3 3 6 £ s. 24 12 5 1 2 12 4 4 18 2 6 5 i 5 60 3 8 13 15 4 1 i 3 1 2 9 26 5 3 17 3 19 4 5 1 3 4 3 1 3 16 £ s. 20 2 8 5 1 1 15 10 3 1 7 46 10 15 8 2 12 3 3 1 5 3 16 10 2 5 2 2 13 3 1 13 1 13 1 15 £ 5. 26 8 8 18 1 18 2 18 4 6 2 10 5 3 1 12 66 1 3 9 14 4 8 5 19 3 7 2 17 25 10 3 16 3 14 4 6 6 3 7 3 5 4 1 & a. 25 17 3 10 1 18 2 16 3 19 2 4 16 1 9 62 18 9 8 3 IS 5 15 3 6 2 15 24 5 3 10 3 3 3 8 4 19 3 1 2 18 3 12 Oldham Twist. . . Royton Shaw , . ,. . Smallbrook United Werneth West End In the first half of 1876 the quarterly dividends on the shares- of these mills ranged from 5 to 30 per cent., in the third quarter from 5 to 20 per cent., and in the fourth quarter from nil to 13 per cent. In 1877 the dividends gradually disappeared, only two mills out of the list — Butler Green and Oldham Twist — dividing anything in the last two quarters. In 1878 the only mill in the above list which declared a dividend was the Junction, Meanwhile, the remaining twenty-two concerns had accumulated debit balances of more or less importance. A similar experience- befell the remaining forty or fifty mills, containing less than 70,000 spindles each. The depreciation in the value of th& 137 shares of sixty limited liability mills was estimated by the Oldham Chronicle at £200,000 in 1877, and at £900,000- in 1878, or a total of £1,100,000. But as the value of the shares at the opening of 1877 was more or less inflated, the actual loss to the original shareholders was, perhaps, not more than half a million sterling, to which must be added about £50,000 for loss of dividends. There was a further serious depreciation in the first half of 1879, but towards the close of that year matters took a turn for the better. The course of the crisis was watched with intense interest by all students of industrial economy. Those who had faith in th& value and stability of the co-operative principle had no fears as to the ultimate result ; but the pessimists regarded the crisis as the fulfilmetit of their early forebodings and as the death-blow to- the system. These entirely overlooked the fact that the unsatis- factory state of trade in Oldham was not at all exceptional. The coal, iron, and other industries were in a worse condition even than the cotton manufacture ; while the state of trade in the United States and on the Continent was no better than the condition of business in England. The depression was neither local in its incidence nor in its origin. There had been over- trading everywhere ; and the effect of this was aggravated by a succession of poor food crops in Europe and the East. Many critics charged the Oldham troubles to the abuse of the limited liability principle, by the original calling uj) of too small a pro- portion of the nominal capital of the companies, and by the excessive employment of loan capital, the fixed interest on which had to be paid when profits had disappeared and serious losses, had commenced to show themselves. There was, no doubt, some truth in these allegations, one result of which was that many of the working-class and small shopkeeping shareholders, who were unable to pay calls, lost the whole of the hard earnings which they had invested ; whereas if they had purchased fewer shares, and paid up a larger proportion of the nominal capital, they would have been in a position to have retained their property through the non-dividend pa3ang crisis. 138 But as to the co-operative principle itself, the crisis proved that the Oldham limited mills were able to weather the storm, if anything, rather better than those conducted by private firms ; and what has since happened proves that the co-operative or limited liability principle will eventually absorb the greater part, if not the whole, of the cotton industry, in consequence of the rigid economy and the vigilant supervision which attend the management of the mills. In this connection the following remarks from the last annual report of the Co-operative Wholesale Society are very interesting : — " The daily discussions which take place amongst the shareholders as to why dividends are small or otherwise, have led almost every intelligent operative to become more economical with materials, more industrious, and to see what effect his individual efforts have upon the cost of the materials produced. In fact, the bulk of the working-class operatives of Oldham have more knowledge of the buying of cotton, working it up, and selling the manufactured goods than most private employers had ten years ago. The cotton trade could not in these days be conducted at all if mismanaged so wastefully as was customary before the spinning companies were established. Profits now are not calculated by the penny or two- pence per pound on the yarn as formerly ; much less than half those rates are now welcome, and realise good dividends. The competition between the managers of one company and those of another, and also between the directors of different companies, and the pride which each body of shareholders take in their own mill, is constantly leading to improvements in rnachinery, and economy of every kind in manufacture, so that it is almost im- possible for the management of any mill owned by working men to be seriously defective for any length of time. These benefits, in our opinion, extend their influence far beyond the town itself, and may be regarded as the main reason why profits have for years been realised by the Oldham companies, and the spindles kept constantly working, while private spinners in other towns have complained of incurring losses, have lessened production, and shown a willingness to retire from the business.'' From the 139 same source we take the following particulars relating to seventy- one limited liability mills in Oldham and district : — Number of mills 71 Number of spindles 4,217,008 Average number per mill 59,400 Value mills, engines, and machinery £4,402]29l Average value per spindle 20s. lOd. Paid-up capital £2,976,557 Loans, debentures, and mortgages £2,526,371 Reserve fund and undivided proiits £45,853 Total working capital £5,548,781 Wages paid per annum £651,448 Trade expenses per annum £1,300,188 Average value of stock on hand £852,804 Net profits per annum £273,936 Net balance at bankers £61,856 Annual sales of yarn £9,464,432 The seventy-one mills contain almost as many spindles as there are in either France, Germany, or Russia, , twice as many as there are in Austria, Spain, or Switzerland, nearly four times as many as there are in Italy, and about ■one-third of the total at work in the United States. And yet these facts convey but a very inadequate idea of the position which Oldham holds in the cotton industry of the country. Twenty years ago there were about 28,000,000 spinning spindles in the United Kingdom, of which about 3,000,000, or barely one-ninth, were in Oldham ; last year there were about 42,000,000 in the United Kingdom, of which 10,000,000 (including private mills), or ^ nearly one-fourth, were in Oldham. It is not too much to say that but for the thrift and energy displayed by the people of Oldham, and forced by them upon ■other districts, the cotton industry of Great Britain would not have been so successful as it has during the past ten or fifteen years in its contest with foreign competition. A dozen years ago the common calculation was that 32's cop twist could not be proiitably produced except there was a margin of 3d. to 3Jd. per lb. between the price of the raw material and the finished article; but this can now be done at a margin of from 2|d. to 2| d. per lb. The reduced cost of production is due entirely to the improved machinery and improved methods of working introduced from time to time by the Oldham limiteds. 140 The whole town bristles with all kinds of co-operative or limited liability industrial enterprises. Besides co-operative cotton mills, there, are co-operative machine-works, co-operative banks, co-operative insurance companies, co-operative stores of every description, and it is now proposed to start co-operative manufacturing sheds, for the a,vowed purpose of putting an end to the inconvenience occasioned by the constantly recurring labour disputes in North-East Lancashire, in consequence of which the Oldham spinning mills are periodically compelled to. stock their yarn or resort to " short time." 141 CHAPTER XII. THE PRODUCTION Al^D CONSUMPTION OF COTTON IN THE WORLD. Extent of the Cotton 2one. — Exceptional position of the Southern States of America. — Disorganization caused by the War. — Temporary impetus given by that event to production of Cotton in otlier countries. — Per- manent gain to India. — Exceptional position of Egyptian Cotton. — Quantity of Cotton produced in the United States, Brazils, Peru, Central America, West Indies, &o. — The quantity raised in India, and its distribution. — Previous erroneous estimates. — Quantity produced in China, Japan, Turkey, Persia, and Asiatic Russia. — The Egyptian crop. — Quantity raised in Africa. — The production of Cotton in Italy and Greece. — Summary of the crops of the world, and of their distri- bution. — Number of Spindles at work and quantity of Cotton consumed in each country in Europe and in the United States. — Consumption of Cotton and number of Spindles per head. — Total and per capita con- sumption of Cotton, including Cotton Goods imported, in each country in Europe. Cotton can be produced, and in greater or smaller quantities is produced, in nearly all the countries of the globe situated within the parallels of 40° of latitude, though chiefly within the area of 35° ; but the plant is only cultivated on a large scale in places where the climate is specially adapted to ' produce the greatest quantities of the fibre, of the best qualities, at the lowest cost. In this respect the Southern States of the American Union have long held the foremost place in the industry. They lost ground for several years, owing to the economical dislocations occasioned by the War of Secession ; but they eventually fully recovered their former exceptional . position, and they now pro- duce more than half of the total quantity of cotton raised in the world. For some years prior to the outbreak of the civil war it 142 had been foreseen that, sooner or later, a serious labour disturb- ance at the South was inevitable ; and in view of the calamity which such an event would bring upon Lancashire, every effort was made to discover new sources of cotton supply. But although the powerful Association formed for the promotion of this end searched every nook and corner of the cotton zone, and sent seed to everyone in the four Continents willing to experimentize, they entirely failed to accomplish the laudable object they had in view. The high prices caused by the "famine" brought increased supplies from the Brazils, Turkey, India, and China ; but with the return of ante-war values the imports into Europe fell back almost to the level at which they stood in 1860-61. From the 'Vyest Indies, Central America, South America (other than the Brazils), Africa, and the far East (other than India, China, and Japan) the imports in 1865-6 showed an increase of only 80,000 bales of 400 lbs., or less than one week's consumption for all Europe. These districts now send us little more cotton than they did twenty-five years ago. There is a respectable increase from the Brazils, but the annual aggregate is still little more than the equivalent of one week's consumption. In 1860-61 the average import into Europe was equal to 47,000 bales of 400 lbs. ; in 1868 it rose to 309,000, fell back to 217,000 in 1870, rose to 377,000 in 1872, owing to high prices, then gradually- receded until in 1879 it was only 47,000 bales — since which it has got back to about 170,000. China and Japan ceased to ship anything after Middling American fell to 15d. per lb. It took an average of 17|d. for Middling Upland to bring 2,000 bales of 400 lbs. in 1862. A rise to 23^d. in 1863 brought 81,000 bales, and a further rise to 27|d. in 1864 brought 239,000 bales; but with a fall to 19d. in 1865 the import sank to 85,000 bales, while with a further reduction to 15|d. in 1866 the arrivals sank to 15,000 bales; after which the imports ceased, only 1,000 bales coming to hand in 1867. Turkey, Greece, and Italy, after increasing their shipments from about 30,000 bales up to about 240,000 bales, now supply only some 40,000 to 50,000 bales. India, after a temporary 143 reduction, has got back almost to the figures touched during* the war ; partly because of the permanent impetus which that event gave to the industry, and partly on account of the extension of the railway system, which has enabled the produce of all parts of the Empire to be delivered at the seaboard at a considerably lower price than was possible a quarter of a century ago. The special adaptation of Egyptian cotton for the spinning of the fine counts of yarn has enabled that growth to more than retain the increased production which took place in the course of the American War. There was an important temporary falling off after the war was over, but this was subsequently fully recovered, • and' in 1876 the crop was 200,000 bales of 400 lbs. larger than in 1865. As the demand for this description of cotton, however, is limited, there has been no increase since 1876 in the area cultivated, and as, during the interval, several of the seasons. have been unfavourable, the crops have, on average, fallen below the yield of that year. The average annual production of cotton in the United States in 1881-2 and 1882-3 amounted to 2,8J4,000,000 lbs. net, or 7,035,000 bales of 400 lbs. The crops of the Brazils, Peru, Central America, West Indies, &c., averaged about 300,000 bales of 400 lbs., including about 200,000 bales shipped to Europe. Official inquiries show that the annual average per capita consumption of cotton goods in India is from 2| lb. to 2| lb. Taking it at 2^ lbs. on 254,000,000 people, we get at the quantity of cotton produced as follows : — lb. lb. Total consumption of cotton fabrics at 2J lb. per head 635,000,000 Less received in yarns and goods from Great Britain 364,000,000 „ Cotton received from Persia ' 6,000,000 370,000,000 Total consumption of native cotton manufactures 265,000,000 Add, lAdian yarn and goods exported to China, 4c 40,000,000 „ Cotton exported to China, &c , 40,000,000 „ „ Exported to Europe 636,000,000 Total crop (equal 2,450,000 bales of 400 lbs.) 980,000,000 Twenty years ago it was customary to estimate the Indian crop at from 5,000,000 to 6,000,000 bales, some authorities going even as high 'as 10,000,000 bales. Similarly ejtaggerated views have been current in respect of the quantity of cotton produced in 144 ■China ; but the fact that 20cl. to 30d. per lb. for American and 12d. to 24d. per lb. for Surats did not draw from China and Japan more than 420,000 bales of 400 lbs., or an average of only 105,000 bales per annum, during the four years of the American war, proved beyond a doubt that the crop was considerably smaller that even that of India. Careful investigations made by the Japanese Government show that the consumption of home and foreign cotton goods in Japan averages about 2| lb. per head per annum, against the Indian estimate of 2^ lb. to 2|- lb. The accuracy of these computations is further confirmed by the ■ fact that the weight of English aiad Dutch cotton products annually imported into Java averages about 2| lb. per head. So that it is quite safe to assume that in all these and other Eastern countries the average annual per capita consumption of cotton goods is about 2J lb. Adopting this figure for China, and taking the population at 300,000,000, which is the estimate of the best and most recent authorities, we get at the crop as follows : — lb. lb. Total consumption of cotton fabrics at 2h lb. per head 750,000,000 Less yarns and goods received front Great Britain 110^000,000 „ ,, ,, ,, ,, India 80,000,000 ,, Raw cotton received from India 40,000,000 180,000,000 Total consumption of native c )tton 570,000,000 Equal, in bales of 400 lbs., to a crop of 1,425,000 ^ A similar calculation for Japan, Java, Philippine Islands, Siam, &c., containing an aggregate population of 70,000,000 persons, comes out as follows : — lb. lb. Total consumption of cotton fabrics at 2^ lb, per head 175,000,000 Less yarns and goods received from Great Britain .' 102,000,000 ,, ,, ,, ,, ,, India 5,000,000 ,, „ ,, „ „ Holland 15,000,000 122,000,000 Consumption of native cotton, almost exclusively Japanese 53,000,009 Equal, in bales of 400 lbs., to a crop of 132 000 As nearly as can be ascertained, the crops of Turkey and Persia amount to about 48,000,000 lbs., or 120,000 bales of 400 lbs. About 40,000,000 lbs., or 100,000 bales, are raised in Asiatic Eussia. Adding these figures to those of India, China, and Japan, we get 4,227,000 bales as the crop of all Asia. The Egyptian crops of the two seasons 1881-83 averaged about 250,000,000 lbs. net, or 625,000 bales of 400 lbs. Almost 145 the whole of this is exported to Europe. A large quantity of cotton is grown in the coast places and interior of Africa, but one can only guess at its amount. As the natives are for the most part more economical than fastidious in the matter of clothing, it will, perhaps, be sufficient to estimate the requirements of all Africa at an average of IJ lb. per head per annum, or one-half the per capita rate adopted for India. The most recent authori- ties estimate the population of the Continent and neighbouring Islands at about 200,000,000. At an average of 1-^ lb. per head, these would require 250,000,000 lbs. of cotton fabrics per annum. Deducting the weight of cotton fabrics imported, say 80,000,000 lbs. from Great Britain^ 10,000,000 from India (partly Manchester goods re-exported), and possibly 10,000,000 from other places, or a total of 100,000,000 lbs., there would remain 150,000,000 lbs., or 375,000 bales of 400 lbs., as the amount of the cotton crop of Africa, aside from that of Egypt, and making with that a total of 1,000,000 bales. During the height of the cotton famine Italy and Greece pvo- :Kon^ Manoliuria, Corea, Mon- f goHa, Tibet, &c. ( Japan India (British & Foreign), ) Nepaul and Bunnah . . f Cej'lon Siam, Anam, &c Straits Settlements Sumatra and Java Borneo, Celebes, &c Phili]ipine Islands, &c Total, Asia,. .. Population. Value of Exports ^^--^^ Total. Per head. 1883. 1863. 1883. 1863. 1883. 1853. £ £ £ s. d. £ s. d. 15,314 9,000 - - - 6,000 8,000 — — — — 16,173 18G 16,000 2,681 277 3 3J 4J 9,000 7,653 6,100 300,000 8,000 7,100 6,000 325,000 .S3 213 4,808 1 1,408 Oi 6| . 3J 1 30,000 30,000 — — — — 36,700 30,000 1,283 — 8g 266,670 191,800 20,282 6,082 1 61 6| 2,750 21,000 423 27,089 2,000 6,604 1,700 18,000 156 21,000 2,000 6,000 256 1,634 1,676 112 812 149 452 448 344 1 lOi 3 12 6| 1 2 1 1| 2 lOj 19 2 38 4 4i 1 4i 7:.0,(,71 077,665 S3, 580 8,161 10?f 23 15:', Although these tables show a very important and gratifying increase in our aggregate shipments of cotton products to the Continent and islands in Asia, it is obvious, from the small jjer capita amount yet taken, that there is ample room for further and still greater expansion. Nothing can be expected from Russia or Turkestan, which is virtually Russian ; but there is room for more business with Turkey, Persia, and Arabia. The a'\-erage per head, 3s. 3|d., is very good in respect of Turkej^ alone ; but as part of the export to Asiatic Turkey goes to Persia and part to Arabia, we must take the average of the three districts together, which is only Is. 9-|d. per head. This, however, compares very favourably with the figures of 1853, which show an average of only 2^d. per head. Our business with Turkey, in point of fact, has, in proportion to population, increased mora rapidly than with any other district in Asia, including even India — the increase in thirty years being- tenfold. The shipments to China in 1SN3 were more than three times larger than in 18.53 ; but they were still only 3|d. per head, and only 3Jd. per head if we include the States of Manchuria, Corea, Mongolia, Tibet, &c. The business with China in 1883, however, was exceptionally small, owing to the less prosperous condition of the people in that and the previous 3'ear. In 1881 the value of our exports of cotton products to that Empire amounted to £6,831,000 ; but even this is only just over 4|d. per head for the 330,000,000 of people, and as the business of 1881 was as exceptionally large as that of 1883 was exceptionally small, we may take it that the annual average consumption of British cotton products in China and its dependencies is only about 4id. per head. The little state of Japan took 82d. per head in 1883 against nothing in 1853; while in 1880 the exports reached £2,008,000, or 13^d. The average of the two extremes is £1,645,000, or lOfd. per head, equal to ejd. per head more than the average for China in 1881 and 1883. The larger business done with Japan is due to the circumstance that the country is more opened up. In one of his recent letters Mr. A. R. Colquhoun, The Times correspondent, says—" At present we are only on the ■154 skirts of China, with only one shaft driven into the heart of the country, the Yangtaze. Open China, bring goods under the eyes of the interior population, and if you deliver a better and cheaper article, the Chinaman will buy." Hitherto the authorities have opposed the introduction of railways and_ other methods of improved communication. "They want neither foreign inven- tions, foreign goods, nor foreign men. But if we have to make any way against this enormous barrier, the mandarinate of China, the people are fortunately not against us." Recently, however, matters have moved a little in the right direction. The telegraph (at first opposed) is rapidly spreading over the country, and the same success will ere long attend the introduction of railways. In a few years China would become as good a customer in pro- portion to population as Japan, and, a little later still, as good as India. The population of China and its dependencies was in 1853 about 365,000,000, but it is thought at present not to be more than 330,000,000. A per capita consumption of British cotton products equal to the average taken by Japan (lOfd.) would give a total of about £14,780,000, while a consumption equal to that of India in 1883 (Is. 6^d.) would give a total of over £25,000,000, against an actual consumption of only £4,808,000 in 1883, and £6,831,000 in the exceptionally active and higher priced year 1881. The exports to India have in thirty years increased fourfold — from five millions up to twenty millions sterling, or from 6|d. to Is. 6;|d. per head. This increase is largely due to improved communications, which have had the double efTect of cheapening the pirice of imports to the inland consumer and lessening the cost of conveying his products to the seaboard for export. Beai~ ing in mind the continually increasing magnitude of the native cotton spinning and weaving industry, one cannot hope for any great increase in the consumjition of Manchester fabrics, such as we may calculate upon in respect of China, but we may reasonably anticipate a more or less gradual growth with the further extension of the railway system and the continued material prosperity of the people. 155 The exports to the Straits Settlements find their way to Siam, &c., giving an average of Is. 5^d. per head for 21,423,000 people. Some of the shipments may go to Borneo, &c. If yre add the populations of Siam, Anam, Straits Settlements, Borneo, Philippine Islands, &c., together, we get a total of 56,116,000 in 1883 and 46,155,000 in 1853, and exports of £4,033,000 against £1,244,000, or Is. 5id. per head in 1883 against 6^d per head in 1853. The trade in these districts has, therefore, increased in almost the same ratio as the trade in India, which rose from •6|d. per head to Is. 6|d. per head. Now, if the entire population of Asia took Is. 6d. per head, our exports to that part of the world would reach the value of £56,300,000. The particulars relating to the exports to the various countries and districts of Africa compare as follow : — Countries. Population. 1883. 1863, Value of Exports. Total. Per head. 1883. Morocco Alg^ei-ia Tunis, Tripoli, and Barca Sahara Central Soudan, Wadai, Baghirimi ) and Bornu ". . I Egypt, including Nubia & Eastern ) Soudan (Korduf an and" Darf ur) )" Abysinnia Countries East of the Nile and"! North of the Equator, including V Galla (7,000) and Somalli (8,000) j East Coast South of the Equator, J including Zanzibar, Portuguese [ Possessions, and the basin of [ the Zambesi river } Transvaal Orange Free State Natal Cape Colony Native Districts of South Africa . . Bourbon Mauritius Portuguese PosseSbions,West Africa Biitish Settlements, West Africa, I including St Helena \ French Settlements, West Africa . . Lower Guinea and the Congo Basin Upper Guinea (Gold Coast, &c.). . . . Western Soudan (Massina, Gando, ( Solcoto and Adaraawa) f Senegambia 6,140 3,300 3,110 6,000 9,000 17,600 3,000 26,000 830 136 406 1,260 16,000 3,600 180 370 2,130 600 210 38,000 14,000 25,000 12,000 6,600 3,300 2,600 4,600 7,000 17,600 3,000 20,000 600 100 120 290 12,000 3,000 150 280 800 210 130 30,000 10,000 18 000 9,000 £ 234 213 148 1,862 9 186 113 272 31 44 126 138 s. d. 9i 1 3| OllJ 354 2 1| - 0} 2 .0 IJ — ' 01 220 , 4 4i - 2J — , 4 1115 130 : 6 9 3 I 1 Si 128 ; 18 8 1 I 6 4 Total. 199,760 158,080 4,632 s. d. 2J 43 10 8J 9 81 OJ 12 2i 1| H 1} 150 Except in respect of the countries bordering on the North, and of the various European colonies and settlements on the West, South, and East Coasts, the estimated population of Africa is more or less conjectural ; but as we have consulted the whole of the leading modern authorities on the point, the figures given are probably approximately correct. Part of the exports to 'Morocco, Algeria, Tunis, &c., pass on by various caravan routes to the Sahara and Western and Central Soudan. A portion of the shipments to Egypt go to Abyssinia and the surrounding districts; part also goes to Arabia. Some portion of the imports into Natal and Cape Colony passes on to the Ti'ans\'aa], Orange Free State, and the native districts beyond. Part of the shifiments to the various foreign settlements on the West Coast find their way into the interior by land or up the Niger, Congo, &c. The same remark applies tp the shipments to- the various native. places in the West. Although the per capita consumption of British cotton products in Africa has within the past thirty 3-ears increased more than threefold, the ratio of increase is much smaller than that whicli has obtained in Asia, while the absolute quantity of goods used in 1883 represented only about two yards of calico per head, . The chief cause of the slow progress of the trade is the inaccessi- bility of the interior ; for although the natives are not ■^■ery lavish in the matter of clothing, they use a vast deal more calico than they get from Great Britain. Cotton is grown, spun, and woven in all the fertile districts of the Continent, and quite a laige trade is- carried on in the more populous places, especially in the Soudan States which cross the Continent from the Nile to Senesrambia. Besides the cotton goods imported from Great Britain, some £250,000 or £300,000 worth are received from India, of which part consists of Manchester fabrics re-exported from Bombay, and the remainder of Indian goods manufactured in Bombay. All these go to the East Coast of Africa. If to the £186,000 and £40,000 received at various points from England we add £250,000' received from India, we get a total of £476,000 amongst 39,000,000- of people, or 2|-d. per head; against a total of £1,354,000 takeix 157 ■fay the 91,940,000 on the West Coast, which is equal to about 3M. per head. If we add the £250,000 worth of goods received from India to the £4,632,000 received from Great Britain, we get a total of £4,882,000 as the total of British and Indian cotton fabrics imported into Africa, which gives a little over o|^d. per head. It is manifest, therefore, that there is room for a vast expansion in our shipments of cotton goods to Africa, and if the prospects are not spoilt by the outcome of the present political complications, there is no reason why Africa should not become to Lancashire as a second India. The particulars for North, Central, and South America, including the West India Islands, are as follow : — Countries. Greenland (D.anish) . . . Canadian Dominion . . . Newfoundland St. Pierre, &c. (French) United States Mexico British Honduras Central America Bermudas British West Indies . . . Danish West Indies . . . Dutch West Indies French West Indies . . . Spanisli West Indies Hayti and St. Domingo. British Guiana Dutch Guiana "French Guiana , Venezuela Columbia Ecuador Peru Bolivia Chili Brazil Uruguay Argentine Paraguay Patagonia Falldand Islands Total American . Population. 1S83. IS.'iS. ,253 S66 2 7 70 27 ,075 100 ,.'i00 374 ,325 ,j81 ,631 438 i.oae 476 200 2 I 2,478 119 2 23,192 7,660 16 2,230 11 812 37 31 26S 1,832 760 12/ 63 21 1,356 2,303 ],050 2,106 1,660 1,439 7,600 177 1,100 1,300 120 1 103.089 I 69,820 Value of Exports. 1883. ! 1853. 1,46S 61 3,474 6S2 42 567 4 6"1 63 92 89 891 194 142 18 2 459 704 122 264 8 754 2,885 490 1,366 16,342 721 2i 4,273 632 67 131 ■ 331 296 12 76 64 1 169 294 20 593 1,788 264 256 10,943 Per head. £ s. d. 6 fla 6 9.} 48 IJ Is 4 4 lOJ 1 17 Oii- 2 2 10 4 lOJ 7 11 4 6| 11 Oi 1 1 1 11 4 6 IJ 6i 5 ei 7i 03 7S 4 lOi 2 95 9 Oi 2 Hi £ s. d. 5 10 4 8h 3 Si " ^ H 3 2i Oi 1 3 11 1 8 7 4 3 2 10 1 4i 4i 3 4 9i 9 10 4 n 3 7J The exports to British North America show an increase of about Is. per head, or about 17 per cent., while those to the 158 United States. figure for a decrease of 2s. IJd., or about 71 per cent. Our American cousins numbered only twenty-three millions- in 1853, but they took £799,000 more of our cotton products than did the fifty millions in existence in 1883. There have, however, been considerable fluctuations. In 1851 the value of the exports was only Is. 8d. per head, in 1861 only llfcl., but in 1871 2s. 8d. per head. The general tendency, however, has been towards smaller and smaller figures, owing to the high protective duties imposed by the States upon imported manufactures during and since the war. In the event of the adoption of a tariff similar to that in existence before the war, there would unquestionably be a very large increase in the exports of British cotton products to the States. The increase would be chiefly in the higher, medium and finer descriptions of goods, but in all probability this gain to English cotton manufacturers would be in a great measure counterbalanced by a large increase in the imports of the lower medium and coarser descriptions of American cotton products into Great Britain. Lancashire can beat Lowell in the production of the finer makes of goods ; but Lowell, if permitted to purchase her machinery in the cheapest market, would be able to beat Lancashire in many of the lower medium and coarser sorts. Both nations would be benefited, inasmuch as each would" be able to purchase in the cheapest m-arket. The exports to Mexico show a small decrease in the per capita amount, but a slight increase in the actual total value. This slow movement is due to the large increase in the home production of cotton products in Mexico itself. According to Dr. P. Ormelas, Secretary to the Mexican National Commission to the Cotton Centennial Exhibition held at New Orleans, there are in Mexico S7 cotton establishments, containing 217,894 spindles and 8,745 looms. The weight of cotton consumed is estimated at 25,826,000 lbs., equal to 64,565 bales of 400 lbs. each. Of this quantity about 10,000,000 lbs., or 25,000 bales, are raised in Mexico. The remaining 15,826,000 lbs., or 39,565 bales, are imported from the United States. There is no record of the extent of the production or consumption of cotton in Mexico in 159 1853 ; but the quantity imported from the United States in that year amounted to 7,464,000 lbs., or 18,660 bales of 400 lbs. The shipments to British Honduras figure for a considerable decrease, but this is due to the circumstance that much of the business done with Central America, through British Honduras, now goes direct. If we take the two together, the per capita value in 1853 was Is. 8d., and in 1883 4s. 7^-d. The exports to the British and Foreign West Indies show important variations, owing to the fact that ever varying quantities of European pro- ducts imported into the West India Islands are subsequently sold or transhipped to the mainland, including Mexico. The shii)- ments to Mexico, Central America, British Honduras, and the British and foreign West India Islands added together amounted in 1853 to £1,824,000,, or 2s. 8d. per head, but in 1883 to =£3,127,000, or 3s. 7d. per head, or an increase of 34 jier cent. There is no reason why our trade with this region should not go on increasing. The business with British and foreign Guiana and with Venezuela and Columbia shows a good increase. The total in 1853 was 2s. 7|d. per head, but 4s. 9Jd. per head in 1883, an increase of 2s. Ifd. per head, or about 122 per cent. Except in the case of the Brazils, there are wide variations in the particulars respecting the other South American countries. Ecuador figures for 4|d. per head in 1853, but she no doubt obtained part of the 6s. 3d. per head exported to Peru. Bolivia is stated to have taken no cotton products from England in 1853, and only |d. per head in 1883, but she received supplies through Peru and Chili. Moreover, both Peru and Bolivia themselves produce cotton goods. Bolivia also does business with the Argentine Eepublic, and probably received European goods via the Eiver Plate. Part of the exports, which in the first instance go to Argentine and Uruguay, go on to Chili and up to Paraguay. The Brazils, which took 4s. D^d. per head in 1853, figures for 4s. 10|d. 1883. They took 6s. per head in 1861 and 1871. This was partly on account of enhanced prices ; but part of the subsequent decrease is due to the extension of the cotton manufacturing industry in the Brazils- 160 In the subjoined statement the -various countries of the American Continent and islands are grouj^ed together, as indicated^ on the previous two pages :- - Countries Value of Exports. Total. Per head. 1883. 1863. 1883. 1853. 1883. 1863. N. America (except U.S.)- ■. 4,519 60,156 17,433 5,529 11,831 13,622 2,C03 23,192 13,657 3,920 7,500 8,943 £ 1,629 3,474 3,127 1,326 2,885 3,002 £ 749 4,273 1,8:4 618 1,788 1,791 . s. d. 6 9 1 4| 3 7 4 9^ 4 lOi 4 6 s. d. 6 8i 3 8i 2 8 2 7J i H 4 Mexico, Central America, and W. I. Guiana, Venezuela, and Columtiia. . Ecuador, Pera, Bolivia, Chili, ' UrugTiay, Argentine, Parag:uay, > Total.... All America, except Canada and ( the United States, &c ) 103,089 48,414 59,820 34,020 15,342 10,339 10,943 5,921 2 IH 4 3i 3 n 3 5| The average rate of consumption in the countries other than North America is 4s. 3];d. per head, against 3s. 5|d. thirty years ago. The following are the particulars of the exports of British cotton products to the Australian Colonies and the South Sea Islands : — 1 Value of Exports. Total. Per head. 1883. i 1863. 1888. 1863. 1883. 1863. Australia, &c ■ ■ .3,060 780 1,000 . 900 £ 2,466 22 £ 1,082 17 s. d. 16 li 6; s. d. 26- 5 J 4} Total.... 4,060 1,680 2,487 1,049 12 3i 12 6| The shipments to Australia in 1853 were greatly in excess of the actual requirements of the colonists. The gold discoveries led to a considerable amount of over-trading, and the markets were glutted. The average annual value of the shipments in 1851-')2 was only £331,000. In 1853 there was a sudden jump up to £1,032,000, in 1854 there was a fall to £785,000, and in 1855 a further reduction to £300,000. The average for the five years was £556,000, or 14s. 3d. per head, against 16s. T|d. in 1883. This last figure was about the same as the per capita consumption in the United Kingdom. 161 On the basis of the foregoing particulars, we can now compare the figures for the world :- Value of Exports. Total. Per head. 1883. 1863. 1883. _ 1863. 1883. 1863. 296,562 760,671 4,060 199,760 103,089 236,174 677,666 1,680 168,700 69,820 £ 20,448 33,689 2,487 4,632 16,342 £ 11,340 8,161 1,049 1,160 10,943 a. d. 1 4i 101 12 3 6i 2 115 s d. llj 2i 12 6J 1} 3 23 Asia Australasia Africa America Total 1,353,132 36,100 1,134,029 27,613 76,498 30,000 32,663 21,273 1 H 16 7t 63 16 6i Add United Kingdom Total for the World... 1,389,232 1,161,642 106,498 63,296 1 6i llj These figures show an increase in exports of £43,845,000, or about 134 per cent., in the total value of English cotton products consumed by the world, and a per capita increase of 6|d., or about 94 per cent. The increase in population is 219,130,000, or about 1 9 per cent. The rate of increase in the gross value of our sales of cotton products is consequently about seven times greater than the rate of increase in the number of consumers. Spite of protective tariffs, Europe has taken, in gross value, 80 per cent., and per head 43 per cent., more goods, while her population has gained only 25 per cent. Asia, with an increase of only 10'7 per cent, in population, has consumed, in the gross, 311 per cent., and per head 274 per cent., more British cotton ■fabrics. This, of course, is largely at the expense of the native products of India and China. The AustraHan figures are excep- tional, as explained on a previous page. Africa, while gaining only 25 per cent, in population, has taken 300 per cent, more of our goods in gross value, and 215 per cent, more per head. America figures for an increase of 72 per cent, in population ; but the gross value of her consumption of English cotton goods has increased only 40 per cent., while the per capita value has actually decreased 7f per cent. This is due to the highly protective duties levied by the Government of the United States. Leaving out the United States, the increase in population is 47 per cent., and the increase in the consumption of English cotton goods 75 M 162 per cent., in the gross, and 20 per cent, per head. The increase in the population of the United Kingdom is 31 per cent., and the increase in the consumption of domestic cotton products 41 per cent, in gross value, but only 7 '6 per cent, in the value per head. This comparatively small increase in the rate of consumption at home is due, in part, to the circumstance that the domestic branch of the trade, as indicated by the per capita demand for cotton goods, had already reached figures beyond which any further increase of moment could not be expected ; and, in part, to the reduced cost of production. End of Part I. PAET II. HISTORY OF THE LIVERPOOL COTTON MARKET THE COTTON BROKERS' ASSOCIATION. PART II. THE LIVERPOOL COTTON MARKET. THE COTTON BROKERS' ASSOCIATION. CHAPTER I. THE COTTON MARKET IN THE LAST CENTURY. The customs of the market in the infancy of the trade. — The first mentioned cotton brokers, — Import into Liverpool in 1770 ; and increase thence to 1785. — Auction sales. — The Exchange and neighbourhood. — Preference of the merchants and brokers for congregating on the ' ' Flags " rather than indoors. — Description of high 'Change a hundred years ago. — Increase in business caused by the new spinning machinery. — The imports into Liverpool begin to exceed those into London. — First mention of brokers whose firms subsequently became eminent. — Further futile efforts made to induce the merchants and brokers to meet indoors instead of in front of the Exchange (now Town Hall). — The custom maintained until the opening of the new (now old) Exchange buildings and area. In the infancy of the trade, when the arrivals into Liverpool were only trifling and intermittent, the cotton imported was for the most part sold to dealers, who retailed it to spinners in Manchester, Blackburn, Bolton, and other centres. Sometimes it was sold direct to the dealers by private treaty; at other \ 166 times by auction, either by the importers themselves or by brokers in their employ. Sometimes the dealers themselves attended the auctions, and purchased direct ; at other times they commissioned brokers to attend and buy on their account. Occasionally the importers sold direct to spinners, but instances of this kind were very rare. Occasionally, too, spinners pur- chased through brokers, whom they commissioned to report on imports and offerings at auction ; but only a small business was done in thi^ way. The remuneration paid by the importers to the brokers was generally 1 per cent, on the value of the cotton sold. The dealers and spinners frequently paid Jd. to Id. per lb. as remuneration for the special technical knowledge and for the time which jn those days had to be consumed by the broker, who had to attend the warehouse and examine and select such bales as in the matter of quality and staple met the requirements of his client. The first brokers of whom we have any mention, engaged in the sale of cotton, were Mr. George Drinkwater (afterwards Sir George Drinkwater), who, in 1766 and a few years previously, conducted his business in Thomas Street ; and Mr. Charles Lowndes, who at the same period flourished in Water Street. Mr. Drinkwater was broker to the Underwriters, and in that capacity, on the 20th September, 1766, sold a quantity of damaged cotton saved out of the " Molly," from Granada, which vessel was accidently set on fire in the river, owing to the carelessness of the Excise' officers,' who had gone into the hold to rummage with a lighted candle. The cotton, prior to sale, was on view at the warehouse of Mr. William Rathbone, " at the top of South Dock." (1) Between 1766 and 1775 we find Mr. Thomas Eyan, of Exchange Alley ; Mr. Samuel Woodward, of Oldhall Street ; Mr. Joshua Holt, with a house in Moor Street and a warehouse in Old Ropery. As the import of cotton into Liver- pool in 1770 was only 6,000 small bags, and as some of these were sold direct to dealers for retail in Manchester, the income from cotton brokerages could not have been of any importance. (^) Liverpool General Advertiser, Sept. 19th, 1766, 167 All of the above-named, therefore, were general brokers, except Mr. Holt, whose income as a cotton broker was merely supple- mentary to that derived from the occupation of stay-making. Between 1775 and 1785, with a considerable increase in business (the imports rising to 25,000 bales), the little band 'of brokers was increased by the addition of Mr. George Dunbar (afterwards Sir George Dunbar), who resided in Tarleton Street, and had his counting-house in Exchange Alley, next door to Mr. Thomas Kyan ; Mr. Peter Kennion, of Clayton Square, with an office in Castle Street ; Mr. John Thompson, of New John Street, Lord Street, with a warehouse in Harrington Street; Mr. Andrew Aikin, of Mersey Street and Exchange Alley ; and Mr. Christopher Wetherhead, of Roe Street, with an office back of 4, Castle Street. All these dealt in other articles besides cotton ; and as yet Mr. Joshua Holt was the only cotton broker properly so called. He was also the only exclusively buying broker, the others being exclusively selling brokers, with the exception of Mr. Charles Lowndes, who occasionally bought for dealers. Mr. Holt's business as stay-maker had brought him into contact with several Manchester people, on whose account he was commis- sioned to examine and report upon the West India cotton imported into Liverpool, and for which purpose he was in the habit of interviewing the importers and visiting the warehouses in which such cotton was stored on landing. He had acquired a special technical knowledge of the staple of cotton, and for the most part had always orders in hand to purchase any lots of fine or long stapled that might be offered for sale, and for which he was paid so much per pound for his trouble. A large part of the cotton imported was offered for sale at auction. Here are a few announcements : — To be sold by auction, at George's Coffee House, on April, 15tli, 1784, at eleven in the forenoon, 133 bags and 278 pockets of fine St. Domingo cotton. The cotton lies in Mr. Blundell's warehouse, Covent Garden, where it may be viewed, and samples will be laid out in the saleroom the day before the sale. — George Dunbar, broker. To be sold, at the office of Thomas Ryan, in Exchange Alley, on April 14th, 1784 (sale to begin at eleven o'clock), for the purpose of settling 168 a dispute respecting the same, 44 bags of Grenada cotton, 25 bags Bemerary, 18 bags St. Domingo, 50 serons Spanish, and 25 bags damaged. — Thomas Ryan, broker. To be sold by auction, at Messrs. Thomas and Backhouse's ware- house, Castle Street, on the 9th June, 1784, at eleven o'clock prompt, 130 bags of fine Barbadoes cotton. — Charles Lowndes, broker. To be sold by auction, at G. and J. Drinkwater's office. Water Street, on the 17th December, 1784, at eleven o'clock precisely, 110 bags St. Domingo cotton. — G, and J. Drinkwater, brokers. To be sold by auction, on Tuesday, Feb. 8th, 1785, at eleven o'clock in the morning, 60 bags of fine French cotton. — To be seen at the office of Peter Kennion, jun. To be sold by auction, at Mr. Thompson's warehouse, in Harrington Street, at eleven o'clock, to the best bidder, 74 bags and 13 pockets of St. Domingo cotton. — John Thompson, broker. The foregoing are taken at random from JFilliamson's Advertiser. Similar announcements occur very frequently. The greater number of the sales were by Mr. George Dunbar, who did a much larger business than any of the other brokers. The George's Coffee House referred to above stood a few doors from Water Street on the west side of Castle Street, at that time a very narrow thoroughfare ; the north-west corner being opposite the door of the Town Hall, then called the Exchange. The Exchange Alley mentioned as containing the offices or counting houses of Mr. George Dunbar, Mr. Thomas Eyan, and Mr. Andrew Aikin, was situated behind Castle Street, with an entrance in "Water Street, somewhere about the present Lower Castle Street. Immediately below was " The Talbot " Coaching House, with stables in Fenwick Street. The Excha,nge (Town Hall), since considerably altered and enlarged, was not then a detached edifice as it is now. Buildings abutted upon it on both the west and north sides. The south side fronted Water Street, and the east side High Street, which thoroughfare started opposite the end of Castle Street, and came out in Tithebarn Street opposite the end of Oldhall Street. Next door to the Exchange, in Water Street, was the shop of a barber and wig maker of the name of Blackstock. Immediately below were the premises of one Hodgson, a printer. Behind- the Exchange, 169 running from High Street westwards, and about in a line with the present passage over the " Flags " from Exchange Street East to Rumford Street, were the butchers' " shambles." On the ground now covered by the Exchange Newsroom, Brown's Build- ings, Rumford Street, and the buildings down to Covent Garden, was an assemblage of old tumble-down buildings, small streets, courts, alleys, and passages : some Avith entrances from Water Street, others from Chapel Street, and others from High Street via the shambles. The buildings at the front of Water Street and Chapel Street were of a more respectable type than those between the two streets. Dale Street and Water Street were both considerably narrower than they are now. The upper portion of the Exchange was used for municipal business ; the lower portion, with the open area which at that time existed in the centre of the building, was intended for the use of the merchants and brokers of the day. But they preferred assembling outside, a custom kept up to the present day by the cotton trade. They congregated in the front and at the south- east corner of the building, opposite the ends of Castle, Dale, and High Streets, and, spite of several attempts made to remove them, they held their ground until the opening of the new (now old) Exchange Buildings. There at high 'Change might be seen the . Eathbones, Bensons, Tarletons, Earles, Drinkwaters, Dunbars, Backhouses, Crosbies, Birches, Blackburns, Blundells, Hey woods, Gildarts, Branckers, Bolds, Gregsons, Laces, and Eoscoes of those days, attired in the quaint costume of the time, graphically described by Brooke in his " Liverpool during the Last Quarter of the Eighteenth Century ": — " Coats cut much in the form of Court dress coats, often with stand-up collars, and usually with gilt, silvered twist, or basket buttons ; waistcoats of very great length, of the kind called flap waistcoats, the flaps being large and containing pockets with a small cover or flap over each pocket, and often with ornamental basket Ijuttons ; short breeches with buckles of gold, silver, or false stones at the knees, and large buckles of gold or silver, or gilt or plated to resemble those metals,, in their shoes. The coat, waistcoat, and breeches- 170 were often all of one colour, frequently of a light or snuflf colour. Euffles at the wrists and white stocks were almost invariably Tvorn. Cocked hats were commonly used; the kind of cocked hat then in fashion came to a point or peak in front, and the raised part of the back was higher than the sides. The young men, and some of the middle-aged men, wore their hair dressed with large curls on each side of the face, called cannon curls, and with queues behind, and occasionally with thick short queues called clubs. Wigs of various descriptions, such as tie wigs, ■cauliflower wigs, brown bob wigs, and bush wigs (with hair powder), were also commonly worn by middle-aged and elderly persons." The scene at high 'Change a hundred years ago was, therefore, ;a much more picturesque sight than at the present, day, as it was Also, no doubt, much less bustling. In 1786-7 the buildings round the Exchange were pulled down, and the present north wing was added. About the same time the buildings on the west aide of Castle Street were pulled down and the street increased to its present width. The Old Exchange Alley gave place to Lower Castle Street. Brunswick Street was also projected. While these alterations were being made in Castle Street and Water Street, another Exchange Alley was being erected on the site now occupied by Brown's Buildings ; considerable changes were also made in Dale Street and High Street. Most of the merchants and brokers resided in Lord Street, Church Street, Clayton Square, Houghton Street, and a few in Duke Street, then only partially built. Some of the Eathbones and Earles resided 'next to the river on the west side of the Salthouse Dock ; .and many merchants resided over their own counting houses in Water Street, Dale Street, Castle Street, &c. The increased supply of cotton to meet the requirements of the new spinning machinery then rapidly coming into operation led to largely augmented imports, and Liverpool, instead of being only second in importance as a cotton emporium, soon took the lead. As late as 1789 London stood first with an import of 48,000 bales, against 47,000 received at Liverpool. In 1790 to 1792 Liverpool took the lead; lost it in 1793 and 1794; but 171 recovered it again in 1795, and kept it ever after. With more ■cotton there was room for more brokers, and more work was :available for the firms already in existence. Mr. Joshua Holt came in for so fair a share of this increased business that he was able to abandon his original calling, and instead of being a " Broker and Staymaker," he became a " Cotton Broker " only. Somewhere between 1785 and 1789 Mr. Holt took into partner- .ship a Mr. Davies, and the firm became Holt and Davies, at the old premises in Moor Street and Old Ropery. Meanwhile Mr. Nicholas Waterhouse, Messrs. Ewart and Rutson, Mr. William Peers, Mr. Thomas Tattersall, and Mr. Edgar Corrie •commenced business. These were subsequently (1795 to 1800) followed by Mr. Richard Dobson, Mr. Joseph Greaves, and Messrs. Thomas and Isaac Littledale. The commercial rendezvous was still at the top of Castle Street, in front of the Town Hall, which edifice, after the fire which in 1795 destroyed the whole of the interior, had undergone •considerable alterations. The open area in the inside had been ■done away with, and the externals of the building had been greatly improved by the erection of the present dome and other .additions. Moreover, the assooiatiod of the building with com- merce had been severed, and its name altered from that of " The Exchange " to that of "The Town Hall." The change of name, however, had no influence upon the merchants and brokers of the day, who still insisted upon congregating on the spot which had been the meeting-place of their mercantile forefathers ; and this notwithstanding the complaints constantly made that they were more or less obstructing the thoroughfare, to say notbing of their inconveniencing the neighbouring tradesmen by sheltering in the .shop door- ways on wet days. Two years before the fire, the Mayor had complied with the request that the lower portion of certain buildings at the back of the Town Hall might be used as a place •of meeting for the merchants, instead of the " flags " in Castle Street (^), but the movement came to nothing, although the (') We are desired to inform the public, that the petition to tlie Mayor and Council, for the appropriation of the lower part of the new building on 172 requisition to the Mayor was signed by a number of the mer- chants themselves. It was seen, however, that this state of things could not be allowed to exist much longer, and a movement was started for the erection of a new Exchange. The scheme, originally proposed by Roscoe, was promptly taken up by capitalists. The foundation-stone was laid in 1803, and the building was opened to the public in 1808. Monday, the 7th March of that year, says Billinge's Advertiser — Was a day of much importance in the commercial annals of Liverpool, as on that day the merchants abandoned their usual place of meeting, at- the upper end of Castle Street, and assembled for the first time in the grand area of the new Exchange. No place in the world affords so elegant and commodious a situation as this for the purposes of a public exchange, and we have often been surprised to hear it observed that it would be difficult to bring "the merchants to abandon their old situation to which they were so much attached by the strong ties of habit and early prepossesion. In opposition to this common opinion, we are happy to observe that the trans- lation was absolutely perfect the first day, not a single person being found loitering about his old haunts during the whole 'Change hours. Ten months later was opened what was at first called the Commercial Room, but afterwards the News Room. With the new Exchange came new faces. In addition to- the Rathbones, Bensons, Tarletons, Dunbars, Earles, and others, already mentioned in this chapter, there were ryjw the Croppers, Brockebanks, Boltons, Bullins, Aspinalls, Cardwells, Gladstones, Houghtons, Lodges, Mosses, Myerses, Neilsons, Parrs, Sand- baches, Tobins, Williamsons, Molyneuxes, Yateses, and others, not to forget Pudsey Dawson and Francis Jordan. These would the north side of the Exchange to the use of the merchant, &c., met with a most favourable reception, and being referred to the Select Committee, wat , at their last meeting recommended to be immediately carried into effect. The merchants and others, whose business renders a daily attend- ance ou 'Change necessary, may therefore soon expect to have a most, commodious and elegant place to meet in ; as this room, in addition to, and in connexion with, the present side-walks and area, which we understand is to be covered with a dome, will form a suite of conveniences admirably adapted to the purpose, and equal, if not superior, to anything of the kind in Europe. The immediate attention of the gentlemen of the Council of the Select Committee to this request, and their liberal compliance with it, is a striking proof of their wish to coincide with the sense, and to forward whatever appears conducive to public utility. — Williamson's Advertiser^ February ISth, 1793. 173 "be well represented at the first meeting on the new " flags. There also, in all probability, would be seen, besides those already mentioned, several of the rising generation of cotton brokers : Mr. Isaac Cooke, Mr. Eobert Gill, Mr. J. A. Jee, Mr. Hugh Dtickworth, Mr. Miles Barton, Mr. William Clare, Mr. William Comer, Mr. Samuel Hope, Mr. Colin Campbell, Mr. Daniel Buchanan, and most likely Mr. Godfrey Barnsley, Mr. Richard Bateson, Mr. John Eason, and Mr. Nicholas Salisbury, about all of whom we shall have something to say in subsequent chapters. 174 CHAPTER II. THE COTTON MARKET IN THE PRESENT CENTURY. Introduction of the custom of buying cotton by sample instead of by actual' inspection of the bulk : the innovation at first opposed. — Spinners who formerly bought from dealers in Manchester and elsewhere begin to purchase through brokers in Liverpool : the movement unsuccessfully opposed by the dealers, many of whom became brokers. — Establishment of the custom for buying brokers to have samples sent to their own offices instead of buying off the counters of the sellers.. — The sellers J hold a meeting and object to this custom; but are eventually over-ruled by the buyers. — Earliest attempts to collect the statistics of imports, sales, &c. — The first monthly report started by Ewart and Eutson in 1787. — This became weekly in 1805. — The first exclusively weekly cotton circular started by Mr. Samuel Hope in 1805. — The first really complete and authentic stock-taking not accomplished till 1811 : this- was the beginning of associated effort. — The first associated circular, called the " General Circular," issued in 1832, which was subscribed to by sixteen firms. — The cotton brokers met weekly in the offices of ''^ certain firms who, turn about, undertook to collect the sales. — This suggested the establishment of the Liverpool Cotton Brokers' Association ' in 1841. — Names of the ninety firms contained in the first muster rollr — The first President. — The first Secretary. — The weekly meetings removed to the Cotton Sales-room, and finally to Brown's Buildings. — The method of collecting the sales unchanged. — The first and only hitch in connection with the collecting of the sales. — The first associated weekly cotton circular commenced In 1864. — Followed by the daily, annual, and other reports. Towards the close of the last century the increased Remand for cotton had .led to a greatly extend'cd cultivation of the plant in the West Indies and the Brazils, but, above all, in the United States, where the invention of the saw-gin had established a new 175 era, so to speak, in the industry. "With the extended cultivation came a more careful system of selection and packing. In this way it became possible to offer the imports in even running lots by sample, and the custom of selling by sample shown on a counter was established. This innovation (first proposed by Mr. Robert Gill) was at the outset stoutly opposed by the majority of the brokers, on the ground that the dealers and spinners would be able to purchase, direct from the importer, without the inter- vention of a broker. As a matter of fact, however, the interests of the brokers were not in the least affected. They did their work in less time and with less trouble than before, and although the customary brokerage was now fixed at ^ per cent, for selling,, and the same for buying, the smaller rate of remuneration was more than counterbalanced by the increased business done, and by the greater amount of work which could be got through in a given space of time than formerly. Both seller and buyer found it to be more to his advantage to employ a broker rather than to deal direct: the seller, because the broker, by virtue of his occupation, could more readily find a market than he could him- self ; and the buyer, because the broker, by being always on the spot, and ever on the look out for the article required by his client, could more easily find what was wanted, when it was wanted, than could the buyer himself. This was at the commencement of the present century, bj' which time the business had become extensive enough to support a number of both purely selling and purely buying brokers, in , addition to some who both bought and sold. , The buying brokers had originally been brought into existence by dealers who in those days were the principal buyers; but one or two had been started by spinners whose joint requirements were sufficient to- support an agent here, and who found it more advantageous to purchase through a broker here than from a dealer in Manchester, Some of the dealers were in a very large way of business, and many of them imported extensively on their own account. They were, in point of fact, merchants. Knmp. nf t.he firms VApt np a stock of several thousand bales of various growths and qualities. 17« and the spinners made their purchases after inspecting the actual bales or bags in the warehouses at Manchester. As the size of the mills and the means of the owners increased, the spinners turned their eyes towards Liverpool, naturally concluding that if they purchased there, from the importers, they would secure for themselves the profit hitherto gained by the dealer. This gave rise to the establishment of a greatly increased number of buying brokers, from about the j^ear 1810 downwards, but especially after the opening of the Liverpool anfl Manchester Eailway. The movement was for some time strongly opposed by the dealers, who, shortly after a number of spinners had set up several brokers to represent them in Liverpool, held a meeting in Manchester, and resolved neither to buy from, nor to deal with, any broker in Liverpool who sold to the newly-established buying houses. But this opposition melted away before the determination of the spinners to retain the advantages which they had gained by buying in the larger market, where sellers w«re more numerous, and the competition to sell more open, than was the case in Man- chester. Gradually, therefore, the number of brokers increased, while the number of dealers diminished. Some of the new brokers were relatives of spinners, some were connections of dealers, while many were dealers themselves, who, having the wisdom to see that a new departure was at hand, quickly adapted themselves to the altered circumstances of the times, by com- mencing to act as brokers instead of operating as dealers — by buying for their clients instead of selling to them. In this way they started with a connection already in hand, and one which they or their descendants have since retained. The change, of course, took time, but eventually the dealer was almost extin- guished. In 1815 there were upwards of one hundred cotton merchants or dealers in Manchester, and there were many more besides in the leading towns in the spinning and manufacturing districts ; but from that date the numbers gradually diminished, while the number of brokers gradually increased, until a complete revolution had been effected, and the term cotton dealer became associated with an entirely diflferent class of men from that to which it was originally applied 177 With the new order of things there was gradually introduced an important change in the method of buying cotton. Hitherto, the practice had been for the buying broker to make his purchases in the saleroom of the selling broker, but by and by it became the custom for the buying broker to have the samples s ent to his own buying-ropm for inspection before purchase. This enabled him to compare the samples of the various lots with each other, and with the sample of any previous purchase which he might be desirous of matching ; moreover, it enabled both broker and spinner to examine the cotton at leisure by alight witLwhich they wei'e familiar (a very important matter), and also to conduct their business without being watched by competing buyers. The .system was ne ver accep table to the sellers, and, after several years of grumbling, they rose in rebellion against its continuance. They ' protested that the buying broker, by getting in samples early in the day, and keeping them for several hours, frequently prevented the sale of the cotton, because other buyers had no opportunity of seeing the lot ; and that the careless manner in which the samples were handled, while in the possession of the buying broker, prejudiced the sale of the lot, and often put the seller to the expense of re-sampling ; and they were determined to put a stop to the evil. Accordingly, at a meeting held on the 15th January, \^^ ■ 1845, in the old Cotton Salesroom, it was resolved, " That in the opinion of this meeting the practice of allowing samples of cotton to be taken from the selling brokers' office previous to sale is attended with great loss and inconvenience ; and that, viath the view to remedy this evil, it is proposed that the importers of cotton in this port should enter into a general resolution to instruct their seUing brokers not to permit samples placed in their hands to be removed from their office until after a sale has been effected, so that all parties may have equal opportunities of inspecting them." This resolution, and another carrying out its recom- mendation, were duly passed ; the vigorous opposition notwith standing of Mr. George Bamsley, Mr. Wm. Bower, and Mr. James ^ H. Wrigley, who, along with other buying brokers, had attended the meeting, although they were told that they had no right N 178 here, on the ground that ths mesting was one of importers only. The obvious convenience of the modern system, and the i^ractical impossibility (owing to the multiplication of buyers) of reverting to the old method, prevented the resolutions passed at the meeting from being acted upon, and at a second meeting, called on the 28th January, it was resolved, by way of compromise, " That in lieu of the plan proposed in the resolutions passed at the meeting of importers, held at this place on the 15th inst., the following plan be adopted, namely, That of every parcel of cotton on sjale, duplicate samples shall be drawn ; That one set of the samples- (to be distinguished by a red ticket and to be called the office sample) shall always be retained in the office of *the selling broker, so as to enable the seller to exhibit his cotton to aH buyers' and to give the opportunity to any buyer at once to purchase the parcel." This practice differed very slightly from that it was- designed to supersede, and in course of time it was discontinued. Meanwhile circumstances, especially these in connection with the collection of statistical information, had gradually led up to- the establishment of the Liverpool Cotton Brokers' Association. During the closing years of the last century the transactions in the cotton market ranged from only about 200 or 3.00 bags, up to- about 2,000 or 3,000 bags, per week. The average from 1791 to 1795 was about 1,000, and from 1796 to 1800 about 2,000, per week. As only a few brokers were engaged in the business, and as much of the cotton was sold at auction, little difficulty was experienced in obtaining an account of what was going' on. There was no Brokers' Association, but there was a tacit understanding amongst the brokers to supply each other with particulars of cotton sold. There were no printed circulars in those daj's except the monthly Prices Current started in 1787 by Messrs. Ew-art and Eutson, who were the first (so far as we have been able to learn) to- publish this kind of literature in Liverpool. These reports, how- ever, applied to all kinds of produce, and furnished only the prices current and the tone of the markets. Particulars of the business done in cotton were generally forwarded in a letter by the brokers to their constituents. Here is a specimen of such a letter, for 179 which, and other interesting matter, we are indebted to Mr. Chappie Grill, whose father, some years after the date of this, became a partner in the firm of Richard Dobson and Co.: — Liverpool, (ith Sept., 1796. Mr. William Heaton, Cotton Merchant, Blackburn, Sir, — In the course of this week about 700 bags of cotton have been sold here, consisting of Pernams at 20d. to 25d ; Maranhams, fair, 22Jd. ; Surinams, 22^d. ; Grenadas at 23d. Buyers— John Walker, Peter Fletcher, Burns, Selves, and Tattersall. I had a sale on Friday last of 210 damaged Bahamas, which sold very well indeed; tliey averaged 18d. Two ships have arrived from Barljadoes with 380 bags for T. Barton, one from Jamaica with 128 for Sydebottom and Co., and one from Cadiz with 407 bags, prin- cipally for A . Clegg. I am of opinion that cotton will not be lower this year. To-day Maranham cannot be purchased under 23d. ; not above 30O bags good in the market ; no good Pernams at all. I am, for Richard Dobson and Co., Your obedient servant, ' C. Mawson. With the opening of the present century the trade increased in a way that greatly surprised the people of those days ; the imports into Liverpool rising from 92,000 bales in 1800 to an average of 168,000 bales in 1804-6, and to one of 250,000 in 1809-11. This called for a more complete and more systematic service of statistics than had hitherto been required. Accordingly, in 1805, Messrs. Ewart and Rutson commenced to issue a weekly account of the sales, imports, &c., of cotton. Towards the close of the same year Mr. Samuel Hope, who had recently commenced business as a cotton broker, also began to issue a weekly report. A few years later, somewhere about 1807 or 1808, Mr. J. A.. Jee, who commenced business as a general broker in 1804 or 1805, also started the issue of a weekly report on cotton and other produce. These three firms and other brokers assisted each other in the collection of the necessary statistics. Mr. Hope's report, being devoted exclusively to cotton, was more complete in respect of that article than the other reports, which dealt vnth all kinds of foreign and colonial produce. It was, in fact, the first attempt made to systematise the statistics of the trade. The imports and exports were made up from the returns 180 published by the Custom-house. The stocks were ascertained at the end of each year by application to the merchants who were known to have imported cotton, and to the brokers or dealers into whose hands some portion of the imports may have passed. For some years these returns were very incomplete ; but at the end •of 1811 Mr. Hope was able to announce, that "the difficulty which has usually attended our estimating the stocks on hand at the close of the year hag, in the present instance, been overcome, by the whole of the brokers, with only one or two exceptions, having by common consent exchanged returns of the quantity of which they were respectively in charge. From these returns, the general accuracy of which cannot be questioned, it appears that the total quantity with which the whole of the brokers have had any connection whatever certainly does not exceed 91,000 bags. In addition to this quantity, several of the merchants, and some few of the speculators, hold cottons on hand, which have not been given in charge to any broker. On the part of these, an almost equally frank communication has been made, from which the quantity thus held may be estimated at about 9,000." The organisation thus commenced has since been continued, with such improvements as were suggested, from time to time, by the ever varying requirements of the trade. The leading brokers issued weekly market reports. In a few instances several brokers joined at a common circular, all using the same tables of statistics, but each firm appending their own views as to the condition and prospects of the market. The most important cotton , circulars, besides those of the firms already mentioned, issued between 1820 and 1840, were published by Mr. Colin Campbell, Messrs. Hol- linshead and Tetley, Messrs. Marriott and Eogers, and Mr. Francis Haywood. The most important general circulars were those of Messrs. T. and H. Littledale and Co. and Mr. Daniel Buchanan. The compilations of this latter gentleman assumed gigantic pro- portions, and were much sought after by other brokers. The first attempt at the production of an associated circular, on a scale worthy of the name, was in 1832, in which year was issued the first number of what has since gone by the name of the " General 181 Circular," that is to say, a market report giving an account of the imports, sales, stocks, and prices current of all articles which custom had included under the head of foreign and colonial produce, including cotton, but excluding breadstufFs and pro- visions. A number of brokers subscribed to this -weekly i'eport,(^) but the leading firms still issued their own private circulars, and continued to do so for many years afterwards. The particulars of the business -done in cotton were collected from week to week, turn about, by a number of firms .appointed for the purpose. The number selected being .sufficient to insure that no firm should receive more than two sets of returns in any one year. The sellers furnished an account of all cotton sold, but the buyers returned only the purchases for export or on speculation ; the balance, after deducting these two items, being put down as deliveries to consumers. There was no official, or associated, account of imports ; and those firms who required these particulars, for their weekly market report, had either to make them up for themselves, from the returns published in the Customs' Daily Bill of Entry, or to obtain them from some one or other of the brokers who kept what was called an import boo^i:, which contained the names of all the vessels which had during the week arrived with cotton. Every Friday morning the brokers met together in the saleroom of the firm whose turn it was to collect the sales, and at this meeting the figures were called out. There was rarely any other business to transact, and the meetings scarcely ever lasted more than ten minutes. These weekly meetings suggested the establishment of the Cotton Brokers' Association, which was formall} inaugurated on the 2nd April, 1841. The first muster roll contained the names of ninety firms, of which eighteen, whose names in the following list are printed in italics, were appointed to collect, and to give (^) The first subscribing brokers were : llichard Bateson and Co. ; Buchanan and Browne; \V. P. Bushby; Ewart, Myers, and Co. ; Glad- stone and Serjeantson ; Jee Brothers ; Jones, Mann, and Foster ; T. and H. Littledale and Co. ; Miller, Whitaker, and Kathbone ; Molyneux, Taylor, and Co. ; Percival, tarton, and Booth ; Pritstley, Uritfiths, and Cox; KoscowandRigg; Salisbury, Turner, and Earle ; Shaud and Horsfall ; and Nicholas Waterliouse and Sons. 182 out, the weekly sales. About in later years. Barber William Barnsley Godfrey, and Son Barton Milea, and Bigland Bateson liichard, and Sons Bateson and Horsfall Blackburn Samuel, and Co. Blackburn, T. B. Bourne, Paton, and Co. Bourne Timothy Bourne Bower William, and Son Buchanan Daniel, and Sou Buchanan and Browne BuUey Samuel Bulley AVilliam, jun. Campbell Oolin, and Son Coohe Isaac-, and 6'o/is Corrie and Co. Duckworths and Marsden Eason and Barry Eccles Edward Ewart, Myers and Co. Earrer William Franceys and Comer Oath Samuel Hill and Syers Gladstone and Serjeantson Haigh Thomas, and Co. Haywood and MoViccar ' Hodgxon and Ryley Hodgkinson J. A. Hollinshead, Tetley and Co. HoUins Francis , Holt George, and Co. Howell James Huson William Hyde E. E. Hyde Thomas Jee Brothers and Latham Jones, Mann and Foster Joseph E. Montefiore Joynson Samuel and Thomas Joynson Thomas Irlam and Thompson Kearsley E. and T. Kearsley John, and Son a dozen other firms were added Kershaw William Law George Lea and Waddington Littledale T. and H. and Co. Marriott John, and Co. Martin Studley Mason Robert Molyneux, Taylor and Co. Musgrove Edgar Musgrove Robert, and Sons Needham Samuel Oughterson Arthur, and Co. Peers John, and Sons Peers William, and Son Percival and Partou Priestley, Griffiths and Cox Rawlins Brothers ' Eeyner Nathaniel Reynolds and Gibson Richards Silas Henry Ridgway Joseph Robinson Joseph, and Son Rushton and Johnson Salislinry, Turner and Marie Shakespeare, Isaac Shand, Higson and Hughes Seddon James Sleddon Thomas Smith John B. Smith James Houlbrooke S tatter Robert Stevenson Hew Stock James, and Son Swainson Anthony Tattersall and Clare Taylor John Unsworth Giles Gorton Walker and Belcher Waterhouse A'. , and SoTis Webster Horatio John Whitaker, Carter and Co. Willis John, jun. Wolstenholme, W. L. Worthington and Cunningham Wrigley John, and Sons 183 From April, 1841, until February, 1842, there was no President, nor was there any Committee of Management. The ■chair at each weekly meeting was taken by a member of the ■firm whose turn it was to collect the sales, and in whose saleroom the meeting was held. But on the 22nd January, 1843, at a ineeting held at the office of Messrs. Godfrey Barnsley and Son, Mr. Barnsley in the chair, it was proposed by Mr. Clare .and seconded by Mr. Gill, "That in order to the better 'definition of the Cotton Brokers' Association, it is indispensable that its members be regularly enrolled and that a Committee ■of Management be appointed." The majority of the members, however, took a more modest, though less far-seeing, view of the functions of the Association than did Messrs. Clare and Gill, and they passed the following amendment, proposed by Mr. Wrigley and seconded by Mr. Ryley: "That it is the opinion ■of this meeting that, as the transactions in the cotton trade in this town have heretofore been so much to the general satisfaction, it is inexpedient to make any other alteration in the constitution •of the Cotton Brokers' Association than the annual election of a President and Vice-President, to whom all communications from ■other associated mercantile bodies shall be addressed, and whose business it shall be to bring such communications before the general body, and that the election of President and Vice-President be by ballot, each individual firm having a vote." A vote of thanks was then passed to the Chairman, who brought the pro- ceedings to a close by requesting each firm to send in to Messrs. Eichard Bateson and Sons, on or before the 28th January, the names of the gentlemen they desired to propose as President and Vice-President. This was done; and on the date named, Mr. Bateson announced that the choice of President had fallen upon Mr. George Holt, and that of Vice-President upon Mr. James Wrigley, by large majorities. The post of President was then, .as subsequently, one of distinction and honour, but it carried with it none of the hard work and great responsibilities attached to the position in later years. The first Secretary (quite an honorary office at that time and for some years later) was 184 Mr. Studley Martin, who, with undiminished activity and ever increasing popularity, still worthily fills the post. As a further step towards putting the Association on a sound and lasting basis, Messrs. Clare and Gill, at a meeting held at the office of Messrs. Isaac Cooke and Sons on the 18th February, 1842, brought forward the following resolution: "That as the rule with regard to the admission of members to this Association is not sufficiently explicit, it be from henceforth understood that no individual shall be admitted a member of the Association unless> he shall have served an apprenticeship as a broker in an office where the cotton brokerage business is carried on, or have been in business at this port for three years at the least as a cotton broker, and unless such individual shall be proposed and seconded in the usual manner after one week's notice having been given, and the meeting generally by a majority thereof approves him as a member." This resolution was carried unanimously ; as was alsO' the following resolution proposed by Mr. Clare and seconded by Mr. Eyley : " That in future no individual shall have a right of membership in consequence of his being taken into partnership by any existing member, and that those individuals only (being principals) who have the management of the cotton department in concerns carrying on business .as general brokers, are eligible as members, being duly elected, or being , already members of the Association." These resolutions were acted upon until the amalgamation of the Association with the Cotton Exchange. Prior to 1845 no admission fees had been paid by any one joining the Association, but on the 14th February of that year at a meeting held at the office of Messrs. Whitaker, Carter, and Co., it was proposed by Mr. D. C. Buchanan, seconded by Mr. George Comer, and resolved, "That in future an admission fee be paid by each individual on his joining the associated body of Cotton Brokers. Such fee to be ten guineas for any -individual who has served an _ apprenticeship of five years to a cotton broker (a member of the Association), and twenty guineas for any individual admitted without such qualification." Some years later these fees were altered to five guineas and fifty guineas respectively. 185 Some years after the formation of the Association, when the members became too numerous to be accommodated in the sale- rooms of the brokers, it was decided to hold the weekly meetings in the Cotton Sales-room, in the east wing of the old Exchange Buildings, afterwards, when these were being pulled down, in the Public Sales-room in the west wing, and, finally, in one of the rooms taken by the Association in Brown's Buildings. The method of obtaining the sales remained unchanged. About thirty firms of brokers collected the weekly returns in rotation, and a member of the firm whose turn it was to make up the figures called them out at the meeting. . The same method was adopted at the periodical stock-takings. TLo system was kept up until within a few years since, when the dut}' was transferred to the Secretary, or rather to Mr. Martin's coadjutor, Mr. Peter Brown. For a while the members who formerly collected the figures attended to assist in the making up of the tables, but, eventually, this last relic of the old custom sank into a mere matter of form, and the work was left entirely in the hands of the Secretary (Mr. Brown) and his assistants. During the forty years of the separate existence of the Cotton Brokers' Association the only hitch that occurred in con- nection with the collection of the weekly sales took place in 1849. The following explanation of the incident is from Messrs. Fairclough and Chinn's report, dated March 2nd, 1849 : — We regret that we are unable to publish our usual Weekly Cotton Circular, with account of imports, sales, stocks, &c., owing to a dispute between two of the leading firms in this town. As the facts of the case may prove interesting to our friends, we do not hesitate to give the full particulars. They are as follow : — Messrs. T. and H. Littledale and Co. some weeks past tendered a pay- ment for cotton to Messrs. Miles Barton and Bigland, a few minutes after the usual time for receiving payments, which the latter refused, as the rule agreed to by the Cotton Brokers' Association was to the effect that all payments should be made not later than half-past two o'clock. The matter in dispute was referred to the weekly meeting of the brokers, when Messrs. Littledale and Co. were requested to settle the pay- ment in accordance with the rule before alluded to, which was complied with apparently unwillingly, as they (Messrs. Littledale and Co.) imme- diately gave notice of their intention to withdraw from the Association, 186 and have since refused to fiTrnish an account of their sales during the "week and the quantity purchased by them- on speculation, which is reqiiired from all brokers, in order to ascertain tl^e stock of cotton in this port. This has caused considerable inconvenience and no little unpleasant- ness, as the total amount of sales during the week could not be made up. It was proposed to-day at the weekly meeting, after a long and animated ■discussion, in order to arrive at the actual amount of business transacted during the week, that each broker should make a return to the Chairman of all purchases made during the week from Messrs. Littledale and Co., and thereby a tolerably correct statement could be shewn. But to this proposition Messrs. John Wrigley and Son refused to comply ; and, in con- sequence, it was determined by a large majority, that, rather than give an imperfect statement, it would be better not to furnish any account at all beyond an estimate. The matter was satisfactorily arranged during the course of the succeeding week, by an oiScia:! extension of the time fixed for the latest receipt of payments to a quarter to three o'clock instead of half-past two, and everything afterwards went on smoothly. Down to 1864, the leading firms continued to issue' weekly market reports ; but in that year the Association commenced the publication of an associated circular. This was followed in the same year by the Daily Table of sales and imports, which, in 1874, was succeeded by the present more complete Daily Circular. To these publications were at various times added the Annual report issued in December, the American Crop report issued in September, and the daily advices by cable from America, issued every morning. 187 CHAPTER III. GLEANINGS AND llEMINISCENCES ABOUT OLD COTTON BROKERS AND THEIR OFFSHOOTS. What may be termed the commercial genealogy of the great bulk of the members of the Cotton Brokers' Association can, directly or indirectly, be traced back, either through partnerships or apprenticeships, to houses established during either the closing years of the last century, or the opening years of the present one. Accordingly, in the following gleanings and reminiscences each section consists mostly of an account of one or more of these old firms and its, or their, various direct and indirect offshoots. I. As already stated in the previous chapter, one of the earliest brokers connected with the cotton trade was Mr. George Dunbar, ^ who commenced business as a general broker somewhere about 1775. At that time he resided in Tarleton Street, and, his office was in the old Exchange Alley, behind Castle Street. One of his apprentices was Mr. William Ewart, the son of a Scotch Presbyterian Minister ; another was Mr. William Rutson, son of Mr. Eutson, of the old firm of Backhouse and Rutson, African merchants, founded by Mr. John Backhouse, somewhere about 1750. At the close of his apprenticeship, Mr. Ewart commenced business on his own account. In 1787 he was joined by his feUow-apprentice, Mr. Rutson, and the firm of Ewart and Rutson was established. The new firm very shortly took a leading position on 'Change, and eventually virtually succeeded to the business of their late master, who for many years was the most ■extensive broker in Liverpool. He continued in business for .several years after the establishment of the firm of Ewart and Rutson, and, in 1796, was Mayor of Liverpool; but when, by the death of a distant relative (at the opening of the present 188 century), he succeeded to the family baronetcy, and thereby became Sir George Dunbar, he retired from business. " The pride of ancestry," says the author of "Liverpool a few years since," (published thirty years ago by the Eev. James Aspinall, under the non de plume of " An Old Stager") — " The pride of ancestry was stronger than the pride of the merchant prince within him, and he retired from vulgar trade, cut hogsheads and rum puncheons, and was no more seen on ' the Eialto ' discussing markets and inquiring the price of barilla and pearlashes. It was' a false move on the part of the worthy baronet. No rank would have been sullied by remaining in the firm of which he was the head. His junior partners, Ew.art and Rutson, became not only eminent, but pre-eminent, amongst our giants of that day, and achieved a name and reputation known to the ends of the earth." But although Messrs. Ewart and Eutson may, to all intents and purposes, have eventually succeeded to the business of Sir George Dunbar, they were not his partners. The two firms existed independently, side by side, for a number of years ; and although their counting-houses were, both in Exchange Alley, the one (George Dunbar's) was at No. 7, and the other at No. 3, and for a short time after Sir George's retirement (until somewhere about 1805) the business was continued by his son. In the year ISOO the style of Ewart and Rutson was altered to Ewart, Rutson, and Co., on the admission to partnership of Mr. William Myers, son of Mr. John Myers, the eminent merchant, who for a number of years was a neighbour of the Rutsons in Houghton Street. On the 30th April, 1815, Mr. Rutson (^) retired, but no change was made in the style of the firm until the 30th April, 1816, when it was altered to> {'■) Mr. Kutaon was godfather to Rutson, third son to Mr. James Maury> who, in 1783, on tlie recognition of the independence of the colonies by the mother country, was appointed first United States Consul to Liverpool. This fact is mentioned because Mr. Rutson Maury was for many years a leading statistical authority in the cotton trade, first in Liverpool as partner in his father's firm of James Maury and Sons, and finally in New York as- senior partner of the firm of Maury and Co. He died only last year (1884) at the ripe old age of 7(5, and to the last kept up a voluminous statistical correspondence with his old Liverpool friends, by whom he was held in the Ijighest regard. 189 Ewart, Myers, and Co. In the meantime, Mr. William Taylor, who had been brought up in the firm, had been taken into partnership. Mr. John Ewart, son of the senior, was admitted a partner on the same day that the style of the firm was altered. Simultaneously with the change in Liverpool, a London firm was started under the style of Ewart, Taylor, and Co. The partners now consisted of Messrs. William Ewart, William Myers, William Taylor, and John Ewart. In 1823 Mr. William Ewart, the founder of the firm, died .(^). A short time previously to this, Mr. Joseph Christopher Ewart (another of the founder's sons) had been taken into partnership. Mr. John Ewart retired somewhere about 1832, and Mr. Joseph C. Ewart withdrew in 1838. Somewhere about the latter date Mr. John Myers and Mr. Jaques Myers, sons of Mr. William Myers (^), were taken into partnership, and in 1839 these three constituted the firm of Ewart, Myers, and Co. In 1848 Mr. John Myers retired, leaving only Mr. Jaques Myers, and the style of the firm was altered to Jaques Myers and Co. In 1853 Mr. Myers took into partnership ' Mr. J. B. Thomson, who had served an apprenticeship with Messrs. Gladstone and Serjeantson. In 1855 Mr. Myers retired, and the style of the firm was changed to J. B. Thomson and Co. In 1863 Mr. Thomson took into partnership Mr. Charles D. Brown, and these two no'w constitute the firm of J. B. Thomson and -Co.(^) Mr. Jaques Myers was President of the Cotton Brokers' Association in ] 853, Mr. Thomson held that important post in 1874 and 1875. (1) Mr. William Ewart, senior, was godfather to our great statesman, -the Right Hon. William Ewart Gladstone, M.P. (^) Messrs. John and James Myers, brothers of Mr. William Myers, of Ewart, Rutson, and Co., coraraenced business as brokers in 1810, with a counting-house in Houghton Place, Water Street. In 1813 they removed to Hargreave's Buildings, High Street. In 1816 they were in Exchange Buildings, and the style of their firm was John, James, and Joseph Myers. In 1 818 there remained only John and Joseph in the firm, and the office was in Water Street. There was no change until 1828, when Mr. John K. Myers was alone, at the same office, where he continued to carry on the business of a broker until about thirty years ago. Mr. J. K. Myers was ■the father of Mr. John Myers, late a partner in the firm of Molyneux, Taylor, and Co. {") Mr. Wm. Goebel, who in 1867 commenced business as a cotton l)roker, began his commercial career with Messrs. J. B. Thomson and Co. 190 Mr. Ewart's eldest son, William, was member for Liverpool between 1830 and 1837. He had never been connected with commerce, but, after graduating at Oxford, had been called to the bar. In his first contest (for the vacancy caused by the death of Mr. Huskisson) he was pitted against Mr. Denison (subse- quently Speaker of the House of the House of Commons). In those days bribery was openly practised by both political parties; and in this respect this particular contest is not likely to be for- gotten. The prices paid for votes ranged from .£5 to £40 ; but one voter on Mr. Ewart's side received =£50, and another on Mr. Denison's side got £80. The total expenses were £65,000 on Mr. Ewart's side, and £50,000 on Mr. Denison's. Mr. Ewart lost his seat in 183V, being defeated by Mr. Cresswell-Cresswell. He subsequently, for several years, represented NeAvark. His brother, Mr. Joseph C. Ewart, was an unsuccessful candidate for Liverpool in 1852, but was victorious in 1855, and again in 1857, but lost his seat in 1865, being defeated by Mr. S. E. Graves. Sir James Picton, in his " Memorials of Liverpool," tells a good story of how, in 1831, Mr. John Ewart narrowljr escaped being knighted. There was a general desire to get up some festivities in connection with the Coronation of King William IV, and Queen Adelaide ; but the Corporation showed no disposition to move in the matter. A meeting was, therefore, called to see what steps could be taken to make up for ^he official deficiency ; and a deputation was appointed to wait upon the Mayor (Mr. Thomas Brancker) "requesting him to call a meeting, to consult the inhabitants as to the best mode of expressing their loyal feelings ;" but he declined to comply, on the ground that the deputation presented something of a party appearance. He gave the same answer to a requisition signed by about a hundred respectable names. The upshot was that an open-air meeting'was called in Clayton Square, at which a congratulatory address to the King and Queen was adopted. Meanwhile, the Mayor and Council had voted a similar address from the Corporation as representing the town. The two addresses were sent up to London — the pubhc one in charge of Mr. Ewart, and the Corporation one in charge of 191 the Mayor (Mr. Brancker), Mr. Alderman Bourne, and Sir George Drink water. " Mr. Ewart, with the town's address, was first in the field. As he knelt to present it, the King seized the Royal sword, and was about to confer the honour of knighthood on him, under the impression that he was the Mayor of Liverpool. Mr. Ewart, seeing the sword suspended, exclaimed hastily, ' Not me ;. don't knight me !' on which the King asked, ' Why, which is the Mayor of Liverpool ?' and was informed that his worship was behind. The scene caused considerable amusement. The Mayor and bailiffs were then introduced by Lord Melbourne, and the accolade was given in due form to the Mayor, who rose Sir Thomas Brancker." One of Mr. William Ewart's strongest political supporters during the stirring times which preceded the passage of the first Reform Bill (of which Mr. Ewart became an energetic advocate) was Mr. John Taylor, who, along with his brother Eichard, had commenced business as cotton broker in 1821, but who since 1826 had been by himself. He was commonly called " Philosopher John ;" for besides being an active politician, both as writer and speaker, he was also noted as a poet and as an astronomer. He was the first to propose the erection of an Observatory in Liverpool, and out of this suggestion originated the present establishment at Bidston Hill. He was one of the original members of the Cotton Brokers' Association, and . continued in business until his death,, which occurred in 1857. (') Mr. Colin Campbell, founder of the firm of Colin Campbell,. Son, and Co., was brought up in the counting-house of Messrs. Ewart and Eutson. He commenced business on his own account early in the present century, but this did not prevent an arrange- ment being made that he should continue occasionally to super- intend the balancing of Messrs. Ewart and Eutson's books. Having a right appreciation of the value of property in the (1) Mr. Taylor was virtually succeeded by Mr. J. H. Hutchinson, who, after serving an apprenticeship with Messrs. Marriott and Co., was with Mr. Taylor about twelve months before his death. Mr. Hutchinson commenced business on his own account in 1857. After a while he took into partnership his cousin, Mr. W. H. Hutchinson. The style of the firm is- John H. Hutchinson and Co. 192 neighbourhood of the Exchange, he purchased the land (then covered with small cottages) at the toi3 of Hacbin's Hey, which is still in the possession of his grandsons. His son, Mr. John Campbell, retired in 1861, and died in 1882, aged 82. The business of the firm is now conducted ' by Mr. Thomas Stretch (who became a partner in 1849) and Mr. Herbert Campbell (son •of Mr. John Campbell), who became a partner in 1854.(^) Mr. Wm. Bower also was brought up in the house of Ewart, Rutson, and Co. On completing his apprenticeship, in 1816, he was taken into partnership by Mr. John Kearsley. The style of the firm was Kearsley and Bower. Mr. Kearsley had been in business as a merchant since the opening of the century, and was at first in partnership with Mr. John Francis Muller and Mr. John Malonek (who was Consul for Prussia), under the style of Kearsley, Muller, and Malonek. Their counting-house was in Haywood's Yard, Gradwell Street. A few years later Mr. Malonek withdrew, and commenced business on his own account. The firm remained Kearsley, Muller, and Co. until 1815 ; mean- while Mr. Muller had died. In 1816, as already stated, the style of the firm became Kearsley and Bower. They were still called merchants, though Mr. Bower himself was denominated a cotton broker. Mr. Kearsley, who at the opening of the century had resided at Ford, near Litherland, had removed to Speke Hall, and Mr. Bower resided in Nash Grove, then only partially built upon, and almost out in the country. In 1818 the office was in Tarleton Buildings, Rumford Street. A few years later the partnership was dissolved. Mr. Kearsley took into partnership (1) Mr. Charles H. Cox (Cox and Elliott) served an apprenticeship with ■Colin Campbell and Son. He commenced business in 1852, and joined Mr. Elliott, after having for a time been a partner in his father's firm, Edward Cox and Sons, produce brokers. Mr. W. A. Cooksou also served an apprenticeship with Colin Campbell and Son. He commenced business in 1862 (Cookson and Steel). On the dissolution of this partnership (1864) Mr. Cookson was joined by Mr. Reginald Hodgson (Hodgson and Cookson). Mr. Hodgson retired some years ago, when the present style of W. A. Cookson and Co. was adopted. Mr. George Turner was brought up in the office of Hodgson and Cookson. He commenced business in 1872. Presently he was joined by Mr. J. W. Taylor (George Turner and Co.), and later on by Mr. J. E. Atkinson, shortly after which the style was altered to Turner, Atkinson and Co. Mr. Taylor withdrew in 1879 and founded the firm of J. Windus Taylor and Co. 193 his son, Mr. Samuel Kearsley, and the style of the firm became John Kearsley and Son, brokers. Mr. Bower then started a separate firm in his own name in Exchange Street East. By and by the style of the firm became William Bower and Son, on the admission of Mr. William Bower, jun., and there has not since been any change. The present partners are Mr. Alfred Bower (admitted in 1841) and his son, Mr. Harold Lance Bower (ad- mitted in 1870), son and grandson of the founder of the firm.(^) Mr. Wm. Bower, jun., was President of the Cotton Brokers' Association in 1853. The firm of John Kearsley and Son remained without change until 1848, in which year the only remaining member took into partnership Mr. Joseph Hadwen, and the style was altered to Kearsley and Hadwen. Mr. Samuel Kearsley had a taste for cotton statistics, and his weekly circulars were very ably compiled, and very tersely written. For a number of years the other brokers depended chiefly on him for an account of the quantity of cotton afloat to insert in their circulars. His information on all other statistical jjoints was also in continual request, and was freely imparted to those who asked for it. On the retirement of Mr. Hadwen the style of the firm was altered to Samuel Kearsley and Co. In 1861 Mr. Harold Cunningham — brought up in the house of Buchanan and Browne — was taken into partnership, and the style was altered to Keai'sley and Cunningham, and has (1) Mr. James Cunninghara served his apprenticeship with Mr. William Bower. He was then for a short time with Mr. John Coupland, merchant. In 1834 he commenced business as a cotton broker, along with Mr. James Sorley, under the style of Cunningham and Sorley. This partnership was dissolved in 1837, and Mr. Cunningham was joined by Mr. Isaac Worth- ington, who had influential connections in the manufacturing districts. The style of the iirm was Worthington and Cunningham. In June, 1845, Mr. Worthington became a member of the- Stock Exchange, and Mr. Cunningham continued the business on his own account until the following November, when he was joined by Mr. Robert Hinshaw, and the firm took the style of Cunningham and Hinshaw, which it has since retained. Mr. Danson Cunningham and Mr. H. H. Bardswell became partners in 1863. Mr. James Wilkie was admitted in 1867. Mr. Cunningham died in 1871. Mr. Hinshaw retired, and his nephew, Mr. J. B. Hinshaw, was admitted in 1882. Mr. Adam Moflfat was brought up in the house of William Bower and Son. He, along with his brothers Thomas and William, commenced business as cotton brokers in 1864, under the style of Moflfat Brothers. He retired from the firm in 1869, went out to the United States, and established liimself there as a commission merchant. O 194 since remained without change. Mr. Kearsley retired some time ago, and died a few years since. The present members of the firm are Mr. Harold Cunningham, his brother Mr. W. Cunningham, Mr. Eobert Bruce Higgins, and Mr. E. Hacking. Another of Ewart, Rutson and Co.'s apprentices was Mr. Thomas Eogers, who, in 1821, entered into partnership with Mr. John Marriott, formerly a partner in the house of Messrs. John Fisher and Co,, cotton merchants, of Manchester. The style of the firm was Marriott and Rogers, and the house soon took a leading position in the market. Mr. Rogers retired in 1840, and the style was altered to John Marriott and Co. Between 1844 and 1848, during which period Mr. Joseph Bramwell was a partner, the style was Marriott and Co. On the retirement of Mr. Bramwell, in 1848, Mr. JosepL Leather (who had served an apprenticeship with the firm) was admitted a partner. Mr. Marriott, who was always held in exceptional esteem by his fellow brokers, was in 1844 elected the third President of the Association. He retired from business in 1867. Meanwhile his son, Mr. William Mariiott, had been made a partner. In 1879 there was a dissolution of partnership. Mr. Leather retired, and Mr. William Marriott continued the business under the style of William Marriott and Co. , taking into partnership Mr. G. A. Holt, Mr. G. W. Irvine, and Mr. W. F. Leather, who had all been brought up in the firm.(^) Mr. Fletcher Rogers (Rogers and Calder), son of Mr. Thomas Rogers, was brought up in the house of Marriott and Co.(-) (') In 1883 Mr. W. F. Leather withdrew from the firm, and entered into partnership with Mr. T. 15. Bowers, under the style of Bowers and Leather. C) Mr. T. S. Stowe served an apprenticesliip with JIarriott and Co. ; and in January, 1882, commenced business with Mr. J. P. Holmes, as Stowe, Holmes, and Co. 195 II. In 1782 Mr. Nicholas Waterhouse commenced business as a cotton broker. He resided with his father, Mr. EUythorpe Waterhouse, at 28, Pool Lane, now called South Castle Street, and his first counting-house was in Litherland Alley, behind Pool Lane. He acted as selling broker for the Messrs. Eathbone and ■other leading importers of those days, and his firm soon took the influential position which it has since retained. He also acted as buying broker for some of the leading consumers in the manufacturing districts. It was probably through Mr. Waterhouse that Messrs. William Eathbone and Son, in 1784, sold to Messrs. Struttand Co., of Belper, the eight bags of American cotton which were temporarily detained at the Custom House, on the ground that they were not American growth. Soon after the alterations •connected with the widening of Castle Street, Water Street, and the isolating of the Exchange (now Town Hall), which commenced in 1786, Mr. Waterhouse removed to the new Exchange Alley, •erected on the west side of the Town Hall. Somewhere about 1795, Mr. Isaac Cooke, who came from Manchester, entered into the family and counting-house of Mr. Waterhouse, and eventually, about 1803, became his partner. In the meantime, Mr. Waterhouse had for several years been in partnership with Mr. James Sill, who at one time resided with the Waterhouses in Pool Lane. This partnership was in existence for only a few years, and was terminated in 1804. The style of the firm was Waterhouse and Sill, and the counting-house was in Druid's Court, Dale Street. They were general brokers, and the firm was quite distinct from that of Nicholas Waterhouse, cotton broker, whose office was still in Exchange Alley. Mr. Cooke retired from the firm in 1819, and Mr. Waterhouse's three sons, Nicholas, Daniel, and Alfred, were admitted. In 1823 the office was removed to Oldhall Street, where it still remains. Mr. Nicholas Waterhouse, jun., died in 1830; shortly after which Mr. Thomas Bouch, 196 who had been with the firm since 1825, prior to which he had served an apprenticeship of seven years, 1818-25, with Messrs. Salisbury, Turner, and Earle, was taken into partnership. In 1833 or 1834 Mr. Waterhouse's fourth son, Mr. Eogers"\Vaterhouse, was admitted a partner. His third son, Alfred, retired in 1844^ or 1845.. In 1845 Mr. Henry Cox, and in 1846 Mr. James Cox, were taken into partnership. This partnership terminated in 1854, and the Messrs. Cox esta,blished a separate firm under the style of Cox Brothers. Mr. Rogers Waterhouse was President of the Cotton Brokers' Association in 1859 ; a few years later he^ retired from business. In the meantime Mr. Daniel Waterhouse died. In January, 1865, the firm consisted of Mr. Thomas Bouch; his son, Mr. John Bouch, admitted in 1854; Mr. John D. Waterhouse (son of Mr. Rogers Waterhouse), and Mr. William Waterhouse (son of Mr. Alfred). A few years later Mr. William Waterhouse died, and Mr. Thomas Wilkinson Bouch, second son of Mr. Thomas Bouch, was admitted. Mr. John D. Waterhouse- retired in 1876. Mr. Bouch, sen., retired in 1876. Mr. John Bouch died in 1882. There now remained only Mr. T. Wilkinson Bouch, who took into partnership Mr. Robert Morris, Mr. W. E. Stanley Clarke, and Mr. T. E. L. Maw, since which there have been no further changes. During the more than one hundred years which the firm has been in existence it has throughout occupied a foremost position in the commercial ranks of the town, and has always been held in the highest esteem on 'Change. The memory pf Mr. Rogers Waterhouse is especially fresh and green in the hearts of those who knew him. When Mr. Isaac Cooke withdrew from the firm of Nicholas Waterhouse and Co. he invited Mr. William Comer to join him in partnership. Mr. Comer was the only remaining member of' the firm of Holt, Davies, and Comer, founded somewhere about 1775 by Mr. Joshua Holt, who was joined by Mr. Thomas. Davies in 1790, and by Mr. Comer (when only nineteen years of age) in 1802. In Smithers' History of Liverpool, published in 1823, it is stated that the house of Holt, Davies, and Comer- was the origin of that of Cooke and Comer. But this was not 197 ■correct. Mr. Comer wound up the business, and closed the office, of Holt, Davies, and Comer, at 3, Exchange Street West, and joined Mr. Cooke in an entirely new firm, at new jsremises, 1, Exchange Buildings, under the style of Isaac Cooke and William Comer. The Rathbones of those days had for some time done the whole of their cotton business with the house of Waterhouse. In 1812 or 1813 they gave a portion to Mr. Henry Whitaker, who, after having served an apprenticeship with Mr. Waterhouse, commenced business on his own account. They now drew the remaining portion away and gave it to the new firm of Cooke and Comer, Mr. Cooke having been a great favourite with Mr. William Rathbone and his partners ; and ever since then the •connection between the two firms has been unbroken. As both Mr. Cooke and Mr. Comer were men of energy, the firm soon took a leading position in the market. They did business for the principal merchants of the day. Mr. Vincent Nolte, in his ^' Fifty Years in Both Hemispheres," relates that during a visit to Liverpool in 1823, he was made acquainted with a manifesto which was about to be issued by the Messrs. Cropper (Cropper, Benson, and Co.), showing that the consumption of cotton was ■overtaking production, and that as a consequence very high prices would shortly be witnessed. He was invited by Mr. David Hodgson, then a partner in the firm of Rathbone, Hodgson, and ■Co. (subsequently Rathbone Brothers and Co.), to attend a ■conference to be held at the counting-house of Messrs. Cropper, Eenson, and Co.,('') then in Paradise Street : — When we reached the place, the elder Mr. James Cropper, head of the firm, was in his sanrtum sanctorum, a homely sort of chamber, which touched the great hall of the general countiug-room, and possessed a double iron door. In this chamber we were mysteriously introduced .by Mr. David Hodgson, and after our entrance, the head of the greatest cotton- broking firm, Mr. Cooke, of the firm of Cooke and Comer, was sent for ; meanwhile the already mentioned, ever ready manifesto, was exhibited. (1) Mr. Robert Mason served an apprenticeship with the house of Cropper, Benson, and Co. In 1834 he commenced business on his own account. In 1836 he was joined by Mr. John Willis (Mason and Willis). This partnership was dissolved in 1838. Mr. Willis remained alone until his death in 1877. Mr. Mason was alone until 1853, when he took into partnership Mr. James Lister (Mason and Lister). Mr. J. E. Dudley Ryder 198 With the exception of a short period, 1820-1821, during -n-hich Mr. Isaac Hodgson(') (brother of Mr. Adam Hodgson) was a partner, and the style was Cooke, Comer, and Hodgson, there was no change until ] 828, in which year there was a dissolution of partnership. Mr. Cooke was subsequently joined by Mr. Henry Kobson, who had previously been in partnership with Mr. Eason (Eason and Eobson), and the firm became Isaac Cooke and Co. In 1833 Mr. Cooke's two sons, Mr. George Cooke and Mr. Isaac B. Cooke, were taken into partnership, and the style was altered to Isaac Cooke and Sons, and has since rem&,ined unchanged. Mr. Cooke, senior, retired in 1840, Mr. Eobson in 1858,f) and Mr. George Cooke in 1870. The present partners are Mr. Isaac B. Cooke, his son, Mr. Bancroft Cooke, admitted in 1870, and his cousin, Mr. Wm. H. Cooke, admitted in 1864. Mr. Cooke, the founder of the firm, was one of the founders and original Directors of the Bank of Liverpool. Mr. Isaac B. Cooke^ was President of the Cotton Brokers' Association in 1855,f) and was admitted January 1, 1872. Mr. Lister retired December 31, 1872. Mr. Wm. Naylor, nephew of Mr. Mason, was admitted January 1, 1873. He retired January 1, 1875, and Mr. Charles Edward Mason (son of the Senior) was admitted. Mr. Mason, Senior, retired in 1876, when the style of the- firm was altered to Mason and Ryder. Mr. Mason, Junior, retired in 1882. Mr. Thomas Fairclough served liis apprenticeship with Mr. Robert Mason. In 1864 he joined Mr. Albert Fenton, of Rochdale, who in that year coinmenoed as a cotton broker. On the retirement of Mr. Fenton to Manchester, Mr. Fairclough continued tlie business in his own name. He took his brother (Mr. James R. Fairclough) into partnership in 1873, and the style of the firm became Thomas Fairclovigh & Co. (') In 1821 Mr. Isaac Hodgson (on retiring from the firm of Cooke, Comer and Hodgson) became a partner in the firm of Sands, Hodgson and Co., merchants. Some twelve or fifteen years later he withdrew from this firm (which became Sands, Turner and Co.), and joined the Leicester Banking firm of Pares and Heygate, which became Pares, Heygate and Hodgson, now Pares' Leicestershire Banliing Company. C) Mr. Robson withdrew from the firm of Isaac Cooke and Sons in order to commence business with his son-in-law, Mr. Robert Atkinson Eskrigge, under the style of Robson and Eskrigge. This was in 1858. Mr. Robson retired in 1867. Mr. Frank Pooley was admitted in 1871, and Mr. Henry J. Legge in 1876. The style of the firm since 1876 has been Eskrigge, Pooley and Co. Mr. Eskrigge is a, J. P. for the Hundred of Wirral, (■'') The late Mr. Edward Franoeys was brought up in the house of Isaac Cooke and Sons. In 18.34 he entered into partnership with Mr. Tliomas Haigli (son of an extensive Manchester merchant), under the style of Haigh and Franceys. A little later they were jomed by Mr. William Comer (who had been in partnership with Mr. Isaac Cooke), but in 183S^ the style of the firm was again Haigh and Franceys. Twelve months. 199 in that capacity was appointed to report upon the raw cotton exhibited at the Paris Exposition in the same year. Mr. Henry Whitaker, mentioned above as one of the Water- house's apprentices, commenced business on his own account in 1812 or 1813, with an office in Exchange Alley. In 1816 he was joined by Mr. Matthew Miller (Miller and Whitaker), and the office was removed toEumford Street. In 1822 or 1823 Mr. Theodore Rathbone became a partner (Miller, Whitaker and Eathbone). In 1833 Mr. Miller retired, and the firm became Whitaker, Eathbone and Co. In 1838, on the retirement of Mr. Eathbone, it was changed to Whitaker, Carter and Co., Mr. Robert Pedder Carter being a partner. In 1850 it became Whitaker, Whitehead and Co., on the admission of Mr. Walter Horrocks Whitehead, a retired captain of the old East India Company's service, and has since remained without change. Mr. John Penson Whitaker, son of the founder, was a partner for many years, and retired a few years since. Mr. E. H. Harrison was admitted in 1852 ; Mr. E. Habershon (one of Gladstone and Serjeantson's apprentices) ' in 1862; and Mr. John Whitehead (son of Mr. W. H. Whitehead) and Mr. Charles W. Smith (brought afterwards there was a dissolution of partnership ; and henceforth there were two firms: T. Haigh and Co., consisting of Mr. Haigh and Mr. Cliarles Arthur Miller ; and Franceys and Comer, consisting of Mr. E. Franceys andMr. G-eorge Comer, son of William. At the close of 1846 Mr. Miller retired from the firm of T. Haigh and Co., and Mr. Haigh 's eldest son, Edwin, became a partner. Later on came Mr. Reginald Haigh. Mr. Alexander (afterwards Sir Alexander) Kamsay was admitted as partner in November, 1863. He retired a few years ago, prior to which Mr. Edwin Haigh had also retired. The only remaining partners are Mr. Reginald Haigh and Mr. Henry J. C. Anderson, who, after having been with the firm some two or three years, was in 1881 taken into partnership. He had sen'ed an apprenticeship with Mr. Lewis Lloyd. The late Mr. Haigh was President of the Cotton Brokers' Association in 1857. [Mr. G. C. H. Dunlop (O. C. H. Dunlop and Co.) served with Messrs. Haigh and Co., and commenced business in 1873. He was subsequently joined by his brother, Mr. R. tjr. "Dunlop.] The style of the firm of Franceys and Comer was not altered until 1864, when it was changed to Comer and Harrison. Meanwhile Mr. Franceys had retired in January, 1850, and Mr. James B. Harrison had been admitted in July, 1850. Mr. Arthur Franceys, son of one of the founders of the firm, was admitted in 1875, and Mr. Arthur Harrison, son of the second member of the firm, was adniitted in 1882. Amongst the old apprentices brought up in the house of Isaac Cooke and Sons are Mr. Arthur W. Biggs (Czarnicow and Cox), Mr. Henry Pearce, son of the founder of the firm of Henry Pearce and Co., and Mr. Richard Taylor (Roberts and Taylor), who commenced business in 1882. '200 up in the firm) in 1870. Mr. J. Whitehead retired in 1880, and Mr. Habershon in 1883, in which year also Mr. Harrison with- drew and established the firm of E. H. Harrison and Co. : Mr. Smith continuing to carry on business under- the old style of ^Yhitaker, Whitehead and Co. Mr. John Given and Mr. Edward S. Braddyll were both brought up in the house of Whitaker, Whitehead and Co. They commenced business in July, 1860, under the style of Given and Braddyll. Mr. Given was President of the Association in 1881. Mr. Braddyll was the author of an amusing brochure, entitled the " Lays of Cotton Broking," in which are hit off the men and manners of the market during the American war. (') One of Mr. Waterhouse's most eminent apprentices was Mr. Samuel Hope (son of Mr. William Hope, merchant), who commenced business on his own account in 1805 at No. 3, Water Street, and of whose valuable services as the pioneer statistician of the cotton market an account has been given in a previous chapter. Mr. Hope's most eminent apprentice was Mr. George Holt, son of Mr. Oliver Holt, woollen manufacturer, Eochdale. While in Liverpool in 1807, on a visit at Mr. Henry Holmes, head of the firm of Henry Holmes and Sons, merchants, Mr. Holt, sen., was informed that Mr. Samuel Hope, cotton broker, was in want of an apprentice. It occurred to him that the situation would suit his son George ; and he at once opened negotiations with Mr. Hope. The result was that George, then about seventeen years of age, left Eochdale on the 5th October for Manchester, where he stayed for the night, and was on the following day driven to Liverpool in a gig by his brother-in-law. (^) Mr. Braddyll died in 1881. Mr. Given retired in September this ye&v (1885). The firm now consists of Mr. A. Sankey, admitted in 1882 ; Mr. H. E E, U. Braddyll, admitted in 1882, and Jlr. H. H. Noltenius, admitted in 1883. One of Whitaker, Whitehead and Co;'s best known apprentices was the late Mr. William H. Smethurst. He was for some years head of the cotton department in the firm of Browne, Hunter and Co. In 1870 he commenced business in partnership with Mr. George Hartley, under the style of Smethurst and Hartley. This partnersliip was dissolved in 1872, and each partner for a time continued the business on his own account. Another of Whitaker, Whitehead and Co. 's apprentices was Mr. William Barcroft, who, along with Mr. I. S. Bulloch, commenced business in 1870, under the style of Bulloch and Barcroft. This partnership was dissolved in 1875, and the business has since been carried on by Mr. I. S. Bulloch, under the style of I. S. Bulloch and Co. 201 They arrived at the Angel Inn late in the evening of the 6th, and on the morning of the 7th October, 1807, he commenced his apprenticeship of five years. It was not at first a fixed intention that he should remain in Liverpool ; but he made such satisfactory progress that at the close of his five years service Mr. Hope oiTered him a partnership in the firm, "vvhioh of course vi^as accepted. The circular issued by Mr. Hope announcing the change in the firm is v^^orth quoting. It is dated November 28th, 1812 :— I have the pleasure to apprise you that I have taken Mr. George Holt into partnership with myself, under the firm of "Samuel Hope and Co." Having been invited to this measure by the assistance I have derived from Mr. Holt's ability and application during five years in which he has been acquiring a knowledge of the business in my ofiioe, I am encouraged to hope that these qualities will powerfully second my own exertions to merit a continuance of your patronage. Then follow the two signatures, which are so remarkably alike that they might both have been written by the same hand. Another feature is that the style of handwriting is exceptionally good. Mr. Samuel Hope's high appreciation of the good qualities of his apprentice were more than justified by the subsequent career of his eminent protegi. Mr. Holt became not only a successful cotton broker, but also a prominent citizen and an eminent philanthropist. He was a member of the Town Council from 1835 to 1856. He was a J.P. for the Eorough and County. He did invaluable service in connection with the Dock Estate, which he always maintained should be managed solely for the national good, and not for the benefit of local or private interests. His work as Chairman of the Water Committee was also of immense value to the town, as were also his services on the Library and Museum Committee. In addition to these public •duties he gave liberally of his time and money to the promotion of political freedom ; towards the support of the various public charities of the town ; but especially towards the furtherance of popular education. Through a long course of years he gave unwearied attention to the development of the Liverpool Mechanics Institution, now the Liverpool Institute, and particularly to that branch of it known as the Girls' School, Blackburn House, the 202 first school of the kind established in this country. Blackburn House was subsequently given to tha Directors of the Institute to- perpetuate the memory of Mr. Holt. The firm of Samuel Hope and Co. carried on business as bankers as well as cotton brokers. In 1821 the partnership was. dissolved,- Mr. Hope taking the banking department, and Mr. Holt the cotton department. The banking business was continued under the style of Samuel Hope and Co., and the cotton business- under the style of George Holt and Co., Mr. Holt taking into- partnership Mr. John Coward, who had been brought ujd in the old firm. In 18.31 Mr. Holt, Mr. Isaac Cooke, Mr. Adam Hodgson, and others, established the first joint stock bank in Liverpool, " The Bank of Liverpool." Some years later Mr. Samuel Ho23e, owing to failing health, disposed of his business to- a joint stock comiDany, under the style of the Liverpool Borough Bank. Mr. Holt was mainly instrumental in establishing the- Liverpool Fire and Life Insurance Company (now the Liverpool and London and Globe), through the instrumentality of which the premiums charged for Liverpool risks were considerably reduced. The style of the firm of George Holt and Co. has never- ^ been altered, though there have been several partnership changes. Mr. Coward retired on January 1st, 1847, and Mr. William Durning (cousin to Mrs. Holt) and Mr. W. Durning Holt were admitted. Mr. Holt died in 1861. Mr. Durning died in 1881, and his death, like that of Mr. Holt himself," was felt to be a great and more than usually distinct loss to the Cotton Brokers' Association. Mr. W. D. Holt retired several years ago. He is a J. P. for the County. His brother, Mr. E. Durning Holt, who became a partner in 1854, and Mr. Middleton Beckett, brought up in the house, and taken into partnership in 1881, now constitute the firm. The market reports issued by Mr. Samuel Hope were amongst the best circulars published. The annual tables, of supply and consumption were quite unique ; and for something like half-a-century they were the only figures on the movements of raw cotton quoted in the ^-arious editions of the Encyclopaedia 203 BrUannica, Macculloch's Commercial Dictionary, and other works, of reference. They are also cited by Mr. Baines, Dr. Ure, and other writers on cotton of a quarter to half a century ago. Moreover, they formed the basis of the annual tables issued by the Cotton Brokers' Association. When the new firm of George Holt and Co. was started, the compilation of the annual statistics was taken in hand by Mr. Coward, and on his retirement the work was continued by Mr. Durning, until the tables were merged in the annual circular of the Brokers' Association. Mr. Holt was the first President of the Association (1842), Mr. Durning the twenty- second (1863), andMr.EobertD.Holtthethirty-sixth(1877). The last-named is a J.P., and also D.L., for the County of Lancaster. He is also a member of the City -Council. When Mr. Samuel Hope left Mr. Waterhouse to commence business on his own account, the Messrs. Strutt, the eminent cotton spinners, of Derbyshire, went with him ; and the connection, first with Mr. Hope and then with Messrs. Holt, has remained unbroken for a period of eighty years. Messrs. George Holt and Co., besides supplying the Cotton Brokers' Association with its first President, also educated its first and only Secretary, Mr. Studley Martin, an apprentice of whom the firm may be very proud. Mr. Martin, after being for a short time with Messrs. Baring Brothers and Co. entered (in 1835) into partnership with Mr. Hew Stevenson, cotton broker, successor of Mr. William Stevenson, who commenced business about 1820. The style of the firm was Stevenson and Martin. The partnership was dissolved in 1840, and Mr. Martin continued in business on his own account. He acted as honorary secretary to the brokers several years before the formal e.stablishment of the Association in 1841, and has consequently filled the office for nearly half a century, during which period the consumption of cotton in Great Britain has risen from 20,000 bales (of 4001bs) per week to 72,000 bales. Mr. Martin's career is altogether unique in the annals of trade, and he has now become quite an institution in the market. His appointment as Secretary has been renewed with, if possible, increasing acclamation at every succeeding annual meeting of the Association, and one of the late 204 Presidents, in proposing his re-election, observed, that " Presidents come and Presidents go, but the Secretary remains for ever." In December, 1882, Mr. Martin was voted a very handsome testi- monial on the attainment of his seventieth birthday ; and the wish was heartily and unanimously expressed that he might long be spared to the Association. Mr. Mariin's immediate junior at George Holt and Co. was Mr. Henry Croihpton Booth, son of Mr. Henry Booth, treasurer to the Liverpool and Manchester Railway. On completing his apprenticeship, in 1837, he entered into partnership with Mr. Francis HoUins (who hailed from Notting- ham) under the style of Booth and Hollihs. This partnership ceased in 1840, and late in 1841 the style of the firm was Hollins and Turner. Mr. Turner was connected with the manufacturing ■districts. He retired in 1843. In 1847 Mr. Hollins was joined by Mr. John Pownall (Hollins and Pownall). This partnership was dissolved in 1852, and Mr. Hollins remained alone until January 1st, 1864, on which day he took into partnership his son, ]Mr. Herbert Hollins, and Mr. Robert Thomson Gladstone (Francis Hollins and Go.) Mr. C. H. Hollins was admitted in 1867. Mr. Gladstone died in 1871 and Mr. Herbert Hollins in 1876. Mr. Joseph H. Robinson, previously a partner in the firm of Hornby and Robinson, was admitted in 1876, and Mr. E. F. Hollins in 1878.(') The firm of Hornby and Robinson had been in existence since 1862. On the retirement of Mr. Robinson, Mr. H. H. Hornby was joined by Mr. Paul E. J. Hemelryk (Hornby, Hemelryk and Co.) Mr. Hornby is a Justice of the Peace for the City, and was President of the Cotton Brokers' Association in 1876. When Mr. Pownall withdrew from the firm of Hollins and Po^vnall (in 1852) he joined one of George Holt and Co.'s favourite apprentices, Mr. Francis Thornely, who had been in business on his own account since 1847. The style of the firm was Thornely and Pownall. (^) Mr. Pownall retired in 1883, Avhen his son, Mr. John Arthur Pownall was admitted. (^) Mr. H. H. Haumer served his apprenticeship with Francis Hollins and Co., and commenced business in 1873 (Hanmer and Co.) Mr. Tyson served with F. Hollins and Co., and commenced business in 1882. (^) Mr. James, of the firm of Coghill and James, was one of Messrs. Thornely and Pownall's apprentices. Mr. Coghill was brought up in the 205 Mr. Hugh Duckworth was another of Mr. Nicholas ^Vater- house's eminent apprentices. He commenced business on his own account in 180-5, opening a counting-house at 3, Eumford Street. The style of the firm has undergone several alterations during the- century — Duckworth and Lowe 1813 to 1815 — Hugh Duckworth 1816 to 1821~Duckworth and Watkins 1822 to 1827, and Duck- worth and Marsden in 1831. Mr. Duckworth's son, Mr. Nicholas- Duckworth, was admitted a partner a few years before the forma- tion of the Cotton Brokers' Association in 1841, and the style was- altered to Duckworths and Marsden. Mr. Hugh Duckworth retired in 1 844. Subsequently the firm became Duckworth and Eathbone (the partners being Mr. Nicholas Duckworth, Mr. Benson Eathbone, and Mr. Walter Duckworth). After a continuance of many years this partnership was dissolved, and t-tvo firms existed — namely, N. Duckworth and Sons (Walter and Charles), and Eathbone, C\a.y,Q} and Co. — but on the retirement of Mr. Duckworth the firms were again united under the style of Eathbone, Duckworth and Co. The partnership now consists of Mr. Benson Eathbone, Mr. T. Campbell Clay, Mr. Walter Duckworth (son of Mr. Nicholas Duckworth), Mr. Jerome Smith, Mr. Arthur B. Eathbone (son of the senior partner),, and Mr. Alexander Muir. Mr. Benson Eathbone was President of the Association in 1871. (^) house of Messrs. T. W. and J. C. Harrop and Co. He commenced business in 1873, and was joined by Mr. James in 1878. The firm of T. W. and J. C. Harrop and Co. was originally Harrop, Button and Co. , and was founded in 1847. ( 1 ) Mr. Thomas Campbell Clay was brought up in the house of Anthony Swainson and Sons. This firm was founded by Mr. Anthony Swainson, at, the opening of the present century. In 1821 the style was Swainson and Inman, merchants, and remained so until about 1829. In 1830 Mr. Swainson was by himself, and he was alone until the admission of his two sons, John and George, in 1857, when the style became Anthony Swainson and Sons. Mr. T. B. Blackbnrne was connected with the firm, though not actually a partner. He was President iu 1856, and Mr. John Swainson occupied that position in 1862. The only remaining partner is Mr. George Swainson. Mr. S. Smith, of the firm of S. and E. Smith, founded in 1869, was brought up in the house of Swainson and Sons. (2) Mr. W. H. Richards served his apprenticeship with Duckworth and Rathbone, and, along with Mr. John Owen, commenced business in 1867, as Richards, Owen and Co. This partnership has since been dissolved, and the firm is now W. H. Richards and Co. Mr. B. L. Tarleton was also brought up in the house of Duckworth and Rathbone. He was for a short time in partnership with Mr. Pim Clierry, under the style of Tarleton and Cherry, witli which firm Mr. W. H. L. Openshaw served his apprentice- ship, and who commenced business on his own account, in 1871. 206 Another of Mr. Waterhouse's apprentices who attained great -eminence in the market was Mr. Eobert G-ill, who somewhere about 1810 joined the firm of Richard Dobson and Co., who had commenced business in or about 1795, and whose office was in Cotton Court, Elbow Lane (now Sweeting Street). It stood on the present site of the Queen Insurance Buildings. In front of the court, facing Dale Street, was the old coaching-house, the Golden Lion Inn. Mr. Gill was one of the first to adopt an innovation in the method of offering cotton, which at the outset was strongly opposed by the majority of the brokers. Down to the opening of the present century the usual practice was for the seller to give to the buyer the marks, ship's name, and place of storage of any lot or lots of cotton which he might have for sale, in order that the buj^er might go to the warehouse and examine the bales for himself ; and it was an understanding that the cotton should not be offered to a second buyer until the first had given in his refusal. As the warehouses in those days were all within five to ten minutes' walk from the Exchange, and in many instances over the counting-houses of the owners of the cotton, in, or close to, the Exchange itself, there was no time ■of moment lost by this custom. Moreover, the practice was rendered absolutely necessary in consequence of the irregular way in which many of the bales were packed. But with the large in- crease in the production of cotton in the United States (rendered possible by the invention of the saw-gin in 1793), and the con- sequent considerable arrivals here of better and more regularly packed bales (or bags, as they were then), the necessitjr for examining each package at the warehouse before making a bid became less and less requisite. IIfi»6e-ai:Qse_yie custom, ..with-the origin of which Mr. Gill's name is associated, of offering .cottott by sample on a counter. This practice, as already stated,- was at first strongly opposed by many of the brokers, on the ground that if the dealers and spinners could purchase cotton by merely examining samples on a counter, they could see the samples at the office of the importer himself, and thus altogether dispense with the assistance of the broker. As a matter of fact, nothing 207 of the sort happened, and the obvious convenience of the new- system soon brought it into general practice, though the old practice was not entirely abandoned until many years after the new one had been commenced. In the course of the ninety years during which the firm of Gill, late Dobson, has been in existence there have been several changes in the style. In 1795 Richard Dobson and Co.; in 1805 Richard Dobson and Son; in 1807 Richard Dobson and Sons; in 1813 Richard Dobson and Co. (Mr. Robert Gill a partner); 1826 Dobson and Gill; 1838 Gill and Syers, on the admission of Mr. John Aspinall Syers; 1843 Gill, 8yers and Co., on -the admission of Mr. William Titherington; 1846 Gill, Titherington and Gill, on the retirement of ]\Ir. Syers, and- the admission of Mr. Robert Gill (nephew of the head of the firm), who had been thirteen years with Messrs. HoUinshead, Tetley and Co.; 1859, Titherington, Gill and Co., on the retire- ment of Mr. Robert Gill,senior, whose son, Mr. Chappie Gill, had been admitted in 1854; and 1867, R. and C. Gill, on the retire- ment of Mr. Titherington, who for a short time conducted a business on his own account, under the stylo of William Titherington and Co. Mr. Robert Gill, the elder, was President of the Association in 1847.(^) ( ' ) Mr. Thomas Postlethwaite served his apprenticeship with Gill and Syers, and commenced business on his own account in 1842. In 1855 Mr. Robert Norris Jones (brought up in AVaterhouse's) and Mr. James Robert Williams (for some years with the firm) were taken mto partnership. Mr. W. H. Williams and Mr. Edmund Buckley were brought up in this firm, and commenced business on their own accoitnt (Williams and Buckley) in 1864. On the retirement of Mr. Williams, Mr. Buckley took into partner- ship his brother, Mr. Henry A. Buckley (E. and H. Buckley), and these two now constitute the firm. Mr. William Fox was a fellow apprentice with Mr. Postlethwaite, in the office of Gill and Syers. Mr. Fox had a some- what varied business experience. He was at one time with a tea merchant ; then with a stock and share broker ; then with a leading firm of accountants ; afterwards in business on his own account, as a stock and share broker, then as an accountant. Later on he was for several years master of the Lyceum Newsroom. He was also for a time with Mr. Postlethwaite, and even- tually commenced business as a cotton broker, during which part of his career he had as an apprentice Mr. S. G. M. Pilkington, who, with Mr. William Burrill, commenced business in 1866, under the style of Filkington, Burrill and Co., which, on the retirement of Mr. Burrill in 1871, was altered S. C. M. Pilkington and Co. Mr. H. P. Forwood was brought up in the house of Gill, Titherington and Gill, and was from 1862 until 1866 in partnership with the late Mr. E. Meugens, and afterwards with the late Mr. Zigomala. Mr. Charles Williams was one of K. and C. Gill's appren- tices, and commenced business on his own account in 1874, and was later on joined by his brother, Mr. George Williams (Charles AMUiams and Co.) 208 One of the first clients of Eichard Dobson and Co. was Mr.. William Heaton, cotton merchant, of Blackburn. The connection- continued until somewhere about 1808, when Mr. Heaton, detect- ing a growing desire on the part of his spinning friends in Blackburn to purchase their cotton through brokers in Liverpool, instead of from merchants or dealers in their own town, gave uj:)- his warehouse in Blackburn, and commenced business here, in Tarleton Buildings, Chapel Street, as a buying broker. (^) He- died in 1835 or 18.36, and was succeeded by Mr. Edward Eccles,, who carried on the business in his own name until 1872, when the style was altered to Edward Eccles and Co., on the admission of Mr. Eobert Langley Wilson, son of Mr. J. Wilson, the well- known shipbuilder. Mr. Edward Eccles died in June, 1873, aged 66 years, and the firm has since been conducted by Mr. Wilson. Mr. Joseph Eccles was brought up in the office of his cousin Edward, and commenced business on his own account in 1841. He was subsequently joined by his brother Edward, and later on by their nephew, Mr. Alexander Eccles (who came from London University, after taking his degree of B.A., and was a son of Mr. Thomas Eccles, of Darwen). The style of the firm remained Joseph Eccles and Co. until the retirement of Mr. Joseph Eccles, in 1857, when it was altered to A. and E. Eccles, and later on to Alexander Eccles and Co. The late Mr. Eobert Cummins, (who, along with Mr. Hulley, exposed the deceptions of the Davenport Brothers,) was brought up in the firm, and was for several years a partner. He was a splendid athlete, a good musician, as well as a good cotton broker, and was exceedingly popular amongst an exceptionally wide circle of friends. The firm of Alexander Eccles and Co. now consists of Mr. Eccles, his brother, Mr. Eccles (^) About the time that Mr. Eccles came from Blackburn to succeed Mr. Heaton, the firm of Livesey and Thorpe was started, to represent other Blackburn spinners. The style was altered to Livesey, Sons, and Co. in 1869. They were succeeded by their apprentices, the present firm of Kelly, Bacheldor, and Co. Mr. R. Priestley served his apprenticeship with Livesey, Sons, and Co., and is now a partner with his brother, Mr. S. E. Eriestley, in the firm of Priestley and Nott, founded in 1872. Mr. S. E. Priestley was brought up in" the office of Mr. P. Mussabini, who commenced business as a cotton broker in 1860. Mr. J. B. Clarke also served his apprenticeship with Mr. Mussabini, and commenced business in 1873 as J. B. Clarke and Co. 209 Shorrock Eccles, Mr. Samuel Ravenscroft, and Mr. Charles Rawcliffe. Coming down to a later period, we have another of Messrs. Waterhouse's eminent apprentices, Mr. Richard Stead, who along with his brother, Mr. Fishwick Stead, brought up in the firm of Jee Brothers, commenced business in 1845. Mr. Fishwick Stead' is the Sir John Lubbock of the Association. It is mainly to his efforts, in years gone by, that the members of the Association are indebted for the periodical holidays which they now enjoy. A few years ago all holidays (other than those fixed by Act of Parliament) were either actively or passively opposed by many members of the Association, either as likely to interfere with business, or as unlikely to be strictly observed ; but, thanks to Mr. Stead's persevering and eloquent advocacy, the ojiposition was continually beaten, and finally dri^-en off' the field. (^) Another eminent and popular member of the Association — Mr. H. H. Nicholson — also served his apprenticeship in the house of Waterhouse. In 18.50 he became a partner in the firm of James Logan and Co.(-; This partnership was dissolved in 1856, Mr. Nicholson commencing business on his own account. In 1862 he was joined by Mr. Arthur AVriglej- (previously in partnership with Mr. Samuel Withers, imder the style of Withers and Wrigley), grandson of Mr. John Wrigley, founder of the firm of John Wrigley and Sons ; and the style of the firm was altered to Nicholson and Wrigie}', which it still remains. Mr. Nicholson's ( ' ) Mr. Richard Hooton was brought up in the firm of Stead Brotliers. He was for a short time (in 1864 onwards) in partnership with Mr. James Wilkinson, one of Titherington, Gill, and Co. 's apprentices. Mr. Robert Stead Thorp was also brought up in the house of Stead Brothers. He, along with Mr. Sager, commenced business in 1874 (Thorp, Sager and Co.) Mr. Frederick Crowther Higgins was- subsequently admitted a partner. Later on Mr. Sager retired. ( " ) The firm of James Logan and Co. referred to above, was founded by the late Mr. James Logan, with M'hom Mr. Nicholson was for a time in partnership. Mr. Logan was succeeded by his son, Mr. James Logan, jun., who, in I860, took into partnership Mr. Jonathan Shaw, jun. (brought up in the house of J. and M. Joynson), the style of the firm being Logan and Shaw. This partnership Mas dissolved in 1865. In 1871 the style was altered to Logan, Fletcher, and Co. , on the admission as partner of Mr. George Fletcher. Mr. Logan died in 1883, and the firm now consists of Mr. Fletcher, Mr. E de Kuyper, admitted in 1876, and Mr. William Marcus, admitted in ISSl. 210 second son (Mr. Charles M. Nicholson) was ailmitted as partner in 1879. His third son (Mr. H. Nicholson) became a partner in 1881. Mr. Nicholson was President of the. Association in 1869. He is a City Alderman for Eodney Street AVard. When Mr. Nicholson withdrew from the firm of James Logan and Co. he left there one who was destined to become not only an exceptionally successful cotton broker, but one of the most popular citizens of Liverpool, as well as one of the most eminent philantrophists and social reformers of the time, namely, Mr. Samuel Smith, who, after serving his apprenticeship,' commenced business on his own account in 1860. In the spring of 1S63 he visited Bombay, and made a tour through the cotton districts of that Presidency. He published an account of his obser\ations and investigations in an interesting series of letters in the LirerpoolDai')/ Fust, which were subsequently reprinted in the form of ;i pamphlet. Amongst other conclusions at which he arrived was the im- portant one that the estimated production of cotton in India had hitherto been greatly exaggerated. Indian economists and statis- ticians had been in the habit of estimating the cotton crop of the peninsula at from 5,000,000 to' 7,-500,000 -bales of 400 lbs. each. As late as 1859 Dr. Forbes Watson estimated the yield at 6,000,000 bales. Mr. Smith, however, came to the conclusion that the total amount grown never equalled 2,000,000 bales ; and his conclusions were fully borne out by the investigutions made in all parts of India in l)-;69, by Mr. Eivett-Carnae, the Govern- ment Cotton Commis.sioner, w^ho estimated the crop at 2,297,000 bales, including 1,590,000 bales in the Presidency of Bombaj' and the districts irilnitary thereto. Shortly after his return from India, Mr. Smith and his brother, Mr. James Smith, entered into partnership with Mr. Edward Edwards (who had been brought up in the house of Haywood and M'Viccar, and had for seA'cialyears been in business on his own account,) under the stylo of Smith Edwards, and Co., This was on the 1st January, is'fU, Later on Mr. John Briscoe was admitted ; then followed Mr. .\nthony Smith and Mr. George M'Ferran. In the meantime, Mr. Edwards had retired. Mr. Briscoe retired about seven \ cars ago, when 211 Mr. John Trevor was admitted a partner. Some years ago Mr. Samuel Smith became a partner in the old and eminent Glasgow, London, and East Indian firm of James Finlay and Co., a branch ■of which house was established in Liverpool, but he still remained ■senior pai'tner in the firm of Smith, Edwards, and Co. Mr. George M'Ferran was Vice-President of the Cotton Brokers' Association at , the time of its amalgamation with the Cotton Exchange. At the very outset of his career, and before commencing business on his own account, Mr. Smith successfully essayed to tecome an authority in the Cotton Market. His first efforts in this direction took the form of occasional letters to the Liverpool Daily Post, over the signature of "Mercator."' These letters attracted considerable attention, and at once made their mark as able and exhaustive examinations of the cotton situation for the time being. After a while they were followed by the Monthly Circulars, whicli soon gained for their author a great reputation in all the cotton markets of the world. The circulars were issued regularly every month until the end of 1883, when they were discontinued in order to enable Mr. Smith to give more time •and attention to his new duties as one of the Members of Parlia- ment for Liverpool. Mr. Smith is a Justice of the Peace for the City ; his brother, Mr. James Smith, is a Justice of the Peace for the Hundred of Wirral; his late partner, Mr. Edwards, is also q, J.P. for the City. The firm of Haywood and M'Viccar (with Avhom Mr. Edwards served his apprenticeship) was founded in 1812, by Mr. Francis Haywood (whose father had been in business as a merchant before the close of the last century). Somewhere aboiit 1834 he was joined by Mr. Joseph Ridgway, (Haywood and Ridgway.) This partnership terminated in 1837 or 1838, and Mr. Haywood was joined by Mr. Duncan M'Viccar, (Haywood and M'Viccar.) Mr. Haywood was a man of ripe scholarship, and of considerable linguistic acquirements and varied literary tastes. His annual reports on the cotton trade were models of elegant diction and sound economic reasoning. He performed the difficult task of 212 translating into English Kant's " Cretique of Pure Eeason ;" and when the Cotton Market was idle, he spent his spare time in the perusal of some of his favourite classical authors, of whose works- he always had a few volumes in his private office. (?) (^) The late Mr. James Lea served his apprenticeship with Mr. Francis Haywood, and commenced business in 1821, with offices in Rnmford Street. Somewhere about 1839 he was joined by Mr.' William Henry Waddington, and the firm became Lea and Waddington. In 1856 Mr. Thomas Henry Walthew, who had been connected with the firm since 1827, first as appren- tice and subsequently as salesman, was taken into partnership, and the- style was changed to Lea, Waddington, and Walthew. In 1865 Mr. Waddington retired, and the firm became Lea and Walthew, which it still remains. Mr. Walthew died in 1880, and the business is now carried on> by the only remaining member, Mr. Andrew M'Donald, who commenced his apprenticeship with the firm in 1870, and succeeded to the business on the death of Mr. Walthew. Mr. A. R. Houghton was brought up in the house of Haywood and M'Viccar. He commenced business in 1858. In 1860 he was joined by Mr. Patrick Vance (previously in partnership with Mr. Edgar Musgrove), and the style became Houghton, Vance, and Co. There were subsequently several changes, and at the time when the Cotton Brokers' Association and the Cotton Exchange amalgamated Mr. Houghton and Mr. Vance were in business separately, Mr. Edward Melladew, son of the late Alderman Melladew, also graduated from the house of Haywoods. He commenced business in 1866, along with Mr^ Thomas Clarke (Melladew and Clarke), who was brought up in the house of Schofield and Blackburn, founded by Mr. Benjamin Schofield, a Rochdale cotton spinner, in 1840, Mr. Blackburn joming him some years, later. Mr. Philip H. Schofield seized his apprenticeship with this latter firm, and commenced business on his own account in 1871. Another apprentice- v\as Mr. Richard Hulse, who also began business in 1871. ■2U III. The eminent firm whose present st}le is that of Messrs. T. .and H. Littledale and Co. was founded in 1795 by Mr. Thomas Littledale and his cousin, Mr. Isaac Littledale (the latter was brother and the former cousin of the celebrated Mr. Justice Littledale), under the style of T. and I. Littledale. Their •first counting-house was in Lower Castle Street. Mr. Thomas Littledale resided at the top of Cook Street, Castle Street ; his cousin dwelt in Parr Street, Wdlstenholme Square. Later pn the)' both removed to Bold Street, and subsequently to Colquitt Street. In 1808 they removed their counting-house to Exchange Buildings. In 1825 Mr. Isaac Littledale retired, and Mr. Harold Littledale (nephew of Isaac), and Mr. Richard Aspinall, salesman with the old firm, were taken into partnership. The style 'was then changed to T. and H. Littledale and Co., and has not since undergone any alteration.. Mr. Harold Littledale was an apprentice with the old firm. His indentures were for seven years (the customary period in those days), and they dated from January 1st, 1820, so that he became a partner nearly ■eighteen months before the expiration of his term of appieritice- ship. Young Mr. Littledale had charge of the cotton department, and the story goes that while the inflation which preceded the panic of 1825 was at its height Mr. John Bolton, the fine old colonel (who was one of Messrs. Littledale 's principal constituents, -and was, moreover, related to them by marriage), being, as usual, anxious to "get out" at the top of the market, and having a shrewd idea that the "top"' was close at hand, promised Harold that if he succeeded in promptly clearing out a particular shipment vof 1,500 Demeraras at ]8d. per lb. or thereabouts, he would persuade Mr. Tom Littledale to take him into partnership at once .(for of course it was in contemiJation .that sooner or later he would become a partner). The smart salesman soon fulfilled his part of the bargain, and sure enough the partnership followed. 2U This is fifty-nine years ago, but the same energetic Harold' Littledale is yet amongst us, and, though in his eighty-third year,. is still the head of a great firm, besides being the embodiment- and the rep^esentati^•e of the times when the word of everj^ merchant and broker, even in the matter of the smallest detail, urts his bond ; when the merchants and brokers were true to each other ; and when the perpetration of the con- temptible j)ractices now either virtually sanctioned, or passed over without adequate condemnation, would ha^•e secured' for the guilty a rapid journey to Coventry. Mr. Thomas- Littledale, jun. (son of the head of the firm), was admitted a partner on the 1st January, 1842. On the 1st January, 1844,, Mr. Richard Aspinall retired, and Mr. John Torr (subsequently member for the borough), was admitted. Mr. John Bolton Littledale, brother of Thomas jun., and second son of the head of the firm, was admitted on the 1st January, 1847. Mr. Thomas- Littledale, senior, died on the 27th April, 1847. His son Thomas- died on the 27th March, 1861. At this date the remaining members of the firm were Mr. Harold Littledale, Mr. John Bolton Littledale, and Mr. Johi; Torr. Mr. John Arnaucl Tobyij was admitted on the 1st January, 1868. Mr. Torr retired on the 1st January, 1870 (and died 16th January, 1880). ]\lr. John Arnaud Tobin died on the 29th December, 1871. On the- retirement of Mr. Torr in 1870, Mr. Arthur Edwards and Mr. Alfred Fletcher were taken into partnership. Mr. Fletcher and Mr. Bolton Littledale retired on the 30th June, 1874, when Mr. James Aspinall Tobin and Mr. Hermann Koch were admitted- Mr. Arthur Edwards died in 1883, and the firm now consists, of Mr. Harold Littledale, Mr. James Aspinall Tobin, and Mr. Hermann Koch. Mr. Edward.s was brought up in the firm, and succeeded Mi". Torr, first as apprentice, then as cashier, and finallj- as partner. Although of a quiet and retiring disposition, his- genial manners, his fund of dry humour, and his thorough con- tempt for everything that was ignoble, endeared him to all who- had the privilege of being numbered amongst his friends, and earned for him the admiration and respect of those who were only- 215 casually biouglit into commimication with him. In the course of his long business career he had come into contact with the principal business celebrities of his time, and, ha\ing a retentive memory, he was able to give a considerable amount of information about the chief mercantile and political personages who have come and gone during the past half century, while he was also able to supply a fund of traditional lore, anecdotal and otherwise, about prominent people who flourished many years before his own time. Indeed, a great deal of information contained in these pages was derived from Mr. !^dwards's extensive and interesting remi- niscences. During the eighty-eight years which ha^e elapsed since the Messrs. Littledale commenced business, about two hundred and fifty apprentices have passed through their offices and salerooms, being an average of about three per annum. A considerable number of these are now engaged in mercantile pursuits abroad, many others are still amongst us, but a large number'have "gone over to the majority." One of the most eminent was the late Eev. James Aspinall, M.A., Eector of Althoipe. Mr. Aspinall was the son of John Bridge Aspinall, Esi]., who was Mayor of Liverpool in 180.3, and who at that time, and for some years previously, resided in Duke Street, where Master James was born in 1796. In course of time (January 1st, 1811), young Aspinall was apprenticed to Messrs. Littledale and Co. He fell in love with a daughter of one of the members of the Lake family, who, in the last century and the beginning of the present century, were eminent merchants and leading members of society, and were, moreover, for a time neighbours of the A spinalis in Duke Street. The attachment was fully reciprocated by the young lady, but as she had always had a desire to be the wife of a clergyman, her marriage with Mr. Aspinall, merchant or broker, would have seriously interfered with the realisation of her very amiable ambition. But young Aspinall, like a true knight of the olden times, promptly solved the difficulty. He obtained the cancelment of his indentures with Messrs. Littledale and Co., put on his intellectual armour, went down to Oxford, conquered the 216 position desired by his lady-love, and at the close of the tourna- ment claimed and obtained his bride. To this union Liverpool is indebted for her present grave and learned Eecorder (Mr. John Bridge Aspinall), and for her present learned and witty Coroner (Mr. Clarke Aspinall). The Rev. Mr. James Aspinajl's first ministerial appointment was at St. Michael's, Pitt Street ; he was shortly afterwards incumbent of St. Luke's, at the top of Bold Street, and finally rector of Althorpe, in Lincolnshire. He died in 186L He was an occasional contributor to the columns of The Albion, which in his days appeared on Mondays only ; and he was the author of an entertaining series of sketches, entitled " Liverpool a Few Years Since," by " An Old Stager.'' Of this little volume Sir James Picton truly says that "The reminiscences are. life-like and graphic. Every page sparkles with liveliness and wit.'' Messrs. Littledale and Co. not only supplied Liverpool with a clergyman, but they found also a Corporation Treasurer (Mr. John Wyburgh). Moreovei', they have supplied two Mayors (Mr. Thomas Littledale, sen., and Mr. Thomas Littledale, jun.), and one member of Parliament (Mr. John Torr). Mr. Thomas Littledale, jun., was also for some years chaii'man of the Dock Board. Mr. James Aspinall Tobin was Mayor of Liverpool in 1855, nineteen years prior to his becoming a partner in the firm of Littledale and Co. He is a Justice of the Peace for the County of Lancaster and City of Liverpool. Mr. Alfred Fletcher is a J. P. for the Countj'. One of the earliest of their apprentices (') was Mr. John Wyburgh, who entered their office in 1806, and some jears after- wards, as already stated, became Treasurer to the Corporation. ( ' ) Another of Messrs. Littledale and Co. 's apprentices was Mr. Walter Thompson, who commenced business on his own account in 1845, and was succeeded by his brother, Mr. J. VV. Tliompson, who for a time was in partnership with the late Mr. Robert Bradbury, under the style of Thompson and Bradbury. On the retirement of Mr. Bradbury the style of the firm was altered to J. W. Thompson and Co. , which is still retained. Mr. Henry Thomas Jefferson also served his appi-enticeship with Littledale and Co. He commenced business on his own account in 1850. Later on he was joined by Mr. J. R. Taylor, who had been broxight up in the house Whitaker, VVhitehead and Co. The style of this firm was Jefferson and Taylor. This partnership was dissolved in Januaiy, 1865. Mr. Taylor then took into partnership Mr. Louis Greg, son of Mr. W. R. Greg, the well- 217 Another early apprentice was Mr. John B. Brancker, son of P. W. Brancker, Esq., who was Mayor in 1801, and who, in 1790, resided in Duke Street, next door to Mr. Lake, whose daughter married the Rev. James Aspinall. He served the old-fasTiioned term of seven years between 1810 and 1817, and after a while ■commenced business on his own account as a general broker, with ■a counting-house in Exchange Court, Exchange Street East. He retired from business in 1861, arid was succeeded by his son, Mr. ■John Brancker, who had been taken into partnership in 1842, when the style was altered to J. B. Brancker and Son. Mr. William Boxwell was admitted in 1862, and Mr. W. S. Harris was admitted in 1879. The style of the firm was altered in 1862 to Brancker, Boxwell, and Co., and has since remained without ■change. Mr. John Brancker is a Justice of the Peace for the City. Mr. R. C. Hall served his apprenticeship with J. B. Brancker ^nd Son. He eventually became salesman for Mr. James Hobson. The latter, after having been for a short time first with Rushton, Johnson, and Co., and then with Eason and Barrj', commenced business on his own account, and became a member of the Cotton Brokers' Association in 18-1:7. He was shortly joined by Mi-. North, and the style of the firm was altered to North and Hobson. The latter retired in 1853, and Mr. Hobson then engaged Mr. Hall. TVlr. Hobson retired in 1856, and left the business to Mr Hall and Mr. J. P. Mellor, as Hall and Mellor. The old firm bought for the North Shore Mill Company. This mill was owned by the brothers Brogden, who had mai-ried two sisters, daughters ■of the previous proprietor of the mill, who had taken it over from the original shareholders. The Messrs. Brogden had just brought known author, and the firm became Taylor and Greg. A fe-«r years ago Mr. Greg withdrew, and Mr. Taylor took into partnership Mr. John Thorley Sykes, and the style was altered to Taylor, Sykes, and Co. [Mr. Arthur G. Haywood and Mr. W. L. Rooke (Haywood, Rooke, and Co.) graduated from Taylor, Sykes, and Co.'s office.] Mr. J. E. Sheppard, another of Littledale and Co.'s apprentices, commenced business in 1851. He was for a while a partner with Mr. Hyslop, the style being Sheppard and Hyslop. This partnership was dissolved some time ago, and since then Mr. Sheppard -has conduqted the business on his own account. Another apprentice of Littledale and Co. is Mr. J. R. Kewley, who is now a partner in the firm •of Buchanan, Wignal, and Co. 218 to perfection the mixing of American and Sural s, when the mill' was burnt down. This was in 1853. The premises are now occupied by the North Shore Flour and Eice Mills Company., The firm of Hall and Mellor purchased considerable quantities^ of cotton for shipment to New York and Boston during the- American war. In 1862 the total export to the States was 52,000 bales; in the same year only 62,000 bales, chiefly blockade- cotton, were imported. At the end of 1863 the firm dissolved. ^ They had dealt largely in American and Egyptian, and, oni separating, Mr. Mellor went chiefly into the Egyptian business,, under the style of Mellor and Co., while Mr. Hall went chiefly into American. Mr. Mellor became a partner in the Alexandria firm of Choremi, Mellor, and Co. He retired some years ago. Meanwhile, Mr. Thomas Davies, who had for some time been out in Alexandria, was taken into partnership. The present style of the firm is Davies, Benachi, and Co., but Mr. Davies- carries on the business of broker in his own name. Mr. Davies- is a Justice of Peace for the Borough of Bootle. 219 IV. Ninety to one hundred years ago there was a very fair quantity of cotton imported into Lancaster, chiefly from the West Indies. In 1788 the arrivals reached 6,000 bales, against 2-1,000 imported into Liverpool ; in 1791 the figures were 10,000 bales and 68,000 bales respectively. The cotton imported into Lancaster was sold sometimes direct to consumers, who paid occasional visits to the county capital in search of raw material ; but the bulk of it was sold to merchants or dealers for resale in Preston, Blackburn, Bolton, Manchester, &c. Amongst the merchants whose place of business was in Lancaster, during the closing years of the last century, was Mr. Eichard Bateson. He frequently sold cotton to the leading spinners of those days ; but there was one transaction aliout the result of which he was -^-ery proud. During one of the high-priced periods he purchased a lot of 130 bags "West Indian at 24d. per lb. The cotton had. just arrived, and he had examined the bales on the quay. His partner expressed some doubts as to the wisdom of buj-ing so much cotton at so high a price ; but young Bateson was sanguine of being able to find a customer at a good profit. In a day or two came one of the Arkwrights, to whom the lot was offered at 30d. per lb. The great spinner pooh-poohed the notion of paying such an exti'avagant price, no matter how good the cotton. Business in Manchester, said he, was so wretched that he could not sell any j-arn ; and under such circumstances he would not buy cotton. Nevertheless, after examining the bales, or bags, as they were in those days, and after a great deal of haggling, during which he made various bids, from 24d. per lb. upwards, he took the lot at 28d. per lb. : thereby justifying the judgment and foresight of the young merchant. , In the course of a few years it became apparent that the West Indian and American trades were concentrating themselves in Livci'pool ; and to that port, therefore, Mr. Bateson betook 220 himself, early in the present century — somewhere about 180G. He entered into partnership with Mr. Thomas Lowndes, jun., who, ;since 1800, had been a partner in the firm of Meek and Lowndes, but which partnership was dissolved in 1806. The style of the new firm was Lowndes and Bateson, and they did business both as merchants and brokers AVhen Mr. Bateson came from Lancaster he was accompanied by his nephew, Mr. James Bateson, who became a partner in the new firm in 1811, when the style was •altered to Lowndes, Bateson, and Co. Mr. Lowndes died at Hamburg in 1815; and, in 1816, the style of the firm became Richard Bateson and Co. The office was at the top of AVatcr Street. There was no chansre until 1833, in which xeax Mr. James Bateson retired from the firm and joined Mr. Robert H. Horsfall Q) (Bateson and Horsfall). Simultaneously Mr. Bateson's two sons (James Crlynne Bateson and Richard Wilding Bateson) were taken into partnership, and the style became Richard Bateson and Sons. In 184:3 Mr. James Glynne Bateson (-) with- drew and established a firm on his own account. In \>^iS (on the retirement of Mr. R. W. Bateson) Mr. Bateson's nephew, Mr. Philip Henry Chamljres (one of Gladstone and Seijeantson's apprentices) was taken into partnership, and the style was altered (') Mr. Horsfall had been in partnership with Mr. John Shand since 1829 (Shand and Horsfall) ; both were related to eminent firms of the same names. From 1833 to 1840 Mr. Shand continued the business in his own name. In the last named year he was succeeded by his cousin, Mr. William Walcott Shand, who, along with Mr. John Higson and Mr. Timothy Bristow Hughes, continued the business under the style of Shand, Higson, and Hughes. On the retirement of Mr. Hughes in 1846, the style was changed to bhand, Higson, and Co. , and has not since been altered. Mr. Peter Swinton Bimlt was admitted a partner in l.'-54 ; Mr. Higson retired at the end of 1883. Mr. Herbert S. Boult was admitted in January, 1885. Mr. Boult was President of the Cotton Brokers' Association in 1868. Mr. John Bridson, the eminent singer, served his apjirenticeship with Shand, Higson, and Co., and was for several years in business on his own account. The late Mr. Alfred Andersson was also brought up in the house of Shand, Higson, and Co. In 1862 he entered into partnership with Mr. George Mayall, under the style of Mayall and Andersson. This partnership was dissolved in 1870. The business was continued by Mr. Maya,ll (Mayall and Co. ) C) Mr. James Glynne Bateson remained by himself until 186.', when he was joined by Mr. Richard A. Hilton from Manchester, and the style Ijecame Bateson and Hilton. Subsequently Mr. Augustus F. Clarke became a partner. Jli-. Bateson died some years ago. Mr. Hilton and Mr. Clarke retired in 1882 in favor of their junior partners, Mr. Henry Mansergh and Mr. V. H. Pickworth. 221 to Eicharcl Bateson and Chambres. In 1855 (January 25) Mr. Thomas Holder (brought up with Mr. Bateson) was admitted, and the style became Bateson, Chambres, and Co. In I860' (October 2nd) Mr. Bateson retired. In the circular announcing. his retirement he said : I beg to acquaint you that I have this clay retired from business, and that the partnership of Bateson, Chambres, and Co. is dissolved. In making this announcement I wish to express to my numeious friends my cordial thanks for the great kindness and support which I have received at their hands ; and I have also to acknowledge with much thankfulness the general confidence and favour which have been shown me thi^oughout my commercial life — a period of seventy-three years. Mr. Bateson was in his ninetieth year when he issued this circular, which extraordinary circumstance, and the great esteem in which he was held, caused his fellow brokers to present to him the following address : — To Richard Bateson, Esq., The Associated Cotton Brokers have observed witli great interest the- announoement of your retirement from business, an interest fully justified by the fact that you are the oldest member of the Association, have been 73- years in business, and in a few months will be 90 years of age ; they cannot, therefore, allow you to withdraw without the expression of their sincere respect for the integrity and courtesy that have characterised your dealings, with them, and of earnest ,hope that you may be spared many years to- enjoy thatquiet which you have so well earned. Signed on behalf the Association, James H. Macrae, President. Samuel Gath, Vice-President. Studley il.iRTlx, Secretary. Liverpool, October, 1860. Mr. Bateson died in 1863, aged 9.3. On the day upon which he retired the style of the firm was altered to Chambres, Holder,, and Co. On the same daj- Mr. AVilliam Chambres (brother of Mr.. P. H. Chambres) was admitted a partner. He had been brouffht. up in the cotton trade (being one of Marriott and Co.'s apprentices) and had gained further experience in the saleroom of Eichard Bateson and Sons, and in the United States ; but prior to joining the firm of Chambres, Holder, and Co. he had been in partnership. with his brother, Mr. C. C. Chambres (Wm. Chambres and, Co.), as stock and share brokers. On the death of this brother in 1866, he left cotton to resume ,and continue the business of stock and share broker. Mr. William Chambre.s and Mr. P. H. Chambres iiave both filled the office of High Sheriff of Denbighshire, and they tire both J.P.'s for the Borough and County of Denljigh and D.L.'s for the Shire. Mr. "Wni. Chambres is a J. P. for the City of Liver- pool, and Alderman for St. Peter's Ward. On the 1st January, 1876, the eldest sons of the two remaining members of the firm of Chambres, Holder, and Co., Mr. Henry C. Chambres and Mr. James Holder, were taken into partnership, since which there has been no change ('). Mr. Holder was President of the Cotton Brokers' Association in 1870. He is a Justice of the Peace for the city, and a member of the City Council for Exchange Ward. He is held in the highest esteem ])}' all classes of the commimity, and by all shades politicians. This accounts for the gratifying circumstance that in November, 1883, he was elected to the high office of Mayor of Liverpool by the unanimous \'oice of the Council, although difTer- ing in political ^iews from the party predominant in the chamber. The late Mr. H. E. Ingleby served his aj)prcnticeship witli Richard Bateson and- Sons. In 1845, after being for a short time with Mr. Arthur Thompson, he entered into partnership with (') The late Mr. George iSalisbury seived his apprenticeship witli Chambres, Holder, and Co., and commenced business in ISUG along with Mr. Henry Taylor Hariison, under the style of Salisbury and Harrison. This partnership was dissolved in 1870, and Mr. Salisbury ■ continued the business on his own account under the style (jf George Salisbury and Co. In 187(3 he took into partnership Mr. Dyson Malliuson, and the name of the firm was changed to' Salisbury and Mallinson. On the termination of this partnership Mr. Salisbury continued the business on his own account iinder the old style of (ieorge Salisbury and Co., and, just before his death, took into partnership Mr. Albert E. Hall, who had been brought up in the office of Thomas Lees and Co. Mr. Samuel Veevers, who graduated in the office of Mr. George Salisbury, connnenced business, on his own account in 1880, under the: style of Samuel Veevers and Co. Meanwhile Mr. Dyson Mallinscn started a new firm under the style of Dyson Mallinson, and Co. Mr. James Dunn, of the firm of Dunn, Hickson, • and Co., also sen'ed his apprenticeship -Hith Chambres, Hulder, and Co. He joined Mr. William Prowse in 1870 (Prowse, Dunn, and Co.) Between then and 1867 the style of the firm had been Prowse, Rigby, and Co , and for about a year hefore then Cleaton, Pi'owte, and Co. Mr. John Rigby joined the firm of Bushby and Co in 1870. Mr. Prowse left cotton for provisions. Another of Chambres, Holder, and Co.'s late appientices is Mr. E. W. Swetenham, who along with Mr. James Watkins, constitutes the firm of Edwards, Swetenham, and Co., late David Edwards and Co., and previously Edwards and Harrison, founded in 1862. Another is Mr. J. 0. Farrie (George Bridge and Co. ) There are a number of others who either hold responsible positions in the market as salesmen, or \\h.i are partners with merchants an plan of campaign. His conduct was closely watched by other operators, and the statement that " Newall was buying," or that " Newall was selling,'' had a marked influence on the course of the market for the time being. Mr. Timothy Bourne brought up several aj)prentices who' subsequently became eminent cotton brokers. Amongst the first was Mr. William Barry, who, in 1828, entered into partnership' with Mr. John Eason, under the style of Kason and Barry. Mr. Eason, early in the present century, commenced business as a merchant, after having built up a connection amongst American shippers, by a personal visit to the United States. In 1809 the style of his firm was John Eason and Co. ; a few years later it became Eason, Jenner, and Co.; afterwards Eason, Alston, and Co. On the expiration of this partnership, Mr. Eason started aS' a cotton broker, and in 1827 was joined by Mr. Henry Eobson ; the style of the new firm was Eason and Eobson, and their office was in Chapel Street. Previously to this, Mr. Eobson had for a short time been in partnership with Mr. George Harrison, under the style of Eobson and Harrison. In 1828 the partnership between Eason and Eobson was dissolved. Mr. Eason, as alreadj- stated, was then joined by Mr. William Barry, and their counting- house ivas in Exchange Chambers. Mr. Eason died in 1850, at the great age of eighty-two years. In the following year the style of the firm was altered to Eason, Barry, and Co., on the admission to partnership of Mr. Edward Quaile and Mr. Charles Barry, Mr. William Barry, jun., became a partner in 1869, and retired in 1880. Mr. Edward Wood was admitted in 1872. Mr. Barry, senior, was President of the Cotton Brokers' Association in 1864, and was for a time member of the Town Council for Exchange Ward. He died in 1870, universally respected. Mr. Quaile was President of the Association in 1879. Another of Mr. Bourne's apprentices was Mr. Thomas Joynson, who commenced business on his own account in 1834. In 1863, on the death of Mr. Joynson, Mr. J. Charlton Jones, who had for a short time been a partner, announced ;that the business would 239 be continued by himself and Mr. Tertius Joynson, under the style of Thomas Joynson and Co. Mr. Charlton Jones was one of the most ilseful and successful Presidents of the Association. It was during his term of office, in 1873, that the daily market report took its present form, and that several most important improvements were made in the rules relating to transactions in cotton to arrive. He retired from business shortly after filling the office of President. He was for some years Chairman of the Northern Hospital, and he took a deep personal interest in all that concerned the management ahd welfare of that institution. He died in 1882, at a comparatively early age, and just on the threshold, so to speak, of a career of public usefulness. Messrs. John and Moses Joynson, brothers of Mr. Thomas Joynson, were in his office, and commenced on their own account in 1843', and are to-day continuing the business which they started over forty years ago. Mr. Thomas Arthur Bushby also served his apprenticeship- with Mr. Timothy Bourne. His father, Mr. William Peatt Bushby, and Mr. Arthur Bowe founded the firm of Bowe and Bushby, in 1808 or 1809. They were general brokers, and their offices were first in Dale Street and subsequently in , Exchange Alley. Mr. Bowe retired in 1829, and a few years latter Mr. Bushby took into partnership his son, Mr. W. P. Bushby, junior, and the firm became W. P. Bushby and Son. There were several alterations in the style and changes in partnership thence to 1852, when the style became Bushby and Co. Mr. T. A. Bushby was- admitted in 1841 ; but cotton was not added to the general business until 1858. This department was taken in charge by the late Mr. Joseph Barnes (one of Musgrove's apprentices). He became a partner in 1861, and retired in 1870. Mr. T. A. Bushby, junior, and Mr. E. C. Beazley were taken into partnership in 1873, and the style was altered to Bushby, Son, and Beazley. Mr. John Eigby (late of Prowse, Eigby, and Co.) was admitted in 1875. Somewhere between 1800 and 1805 Mr. William Wiatt, son of Mr. Thomas Wiatt, attorney, commenced business as a cotton 240 broker. In a few years he was joined by Mr. Thomas Scowcroft, and the firm became Wiatt and Scowcroft. Their office was at 3, Eumford Street. They separated in 1810, Mr. Scowcroft taking an office in Exchange Alley. In 1814 or 1815 Mr. Wiatt was joined by Mr. William Lupton Wolstenholme, who came from Manchester, and the firni became William Wiatt and Co. About 1819 Mr. Wiatt died, and- thence down to 1857 Mr. Wolstenholme (') continued the business in his own name. In that year he died, and was succeeded by his son, Mr. Charles Wolstenholme, who had been in his office for many years. Mr. Stanley Percival, one of Mr. Wiatt's contemporaries, commenced business in 1813 as a broker for the sale of cotton and West India produce and copper sheathing, with an office in Bank Buildings, Castle Street. Somewhere about 1815 he was joined by a Mr. Hodson, and the firm became Percival, Hodson, and Co., with the offices in Eumford Street. This partnership ceased in 1817 or 1818, when Mr. Percival was joined by Mr. Joseph Parton, who had served an apprenticeship with Holt, Davies, and Comer. Mr. Parton had already gained a reputation as an excellent judge of long-stapled cotton. He was a man of very genial nature, and was endowed with a considerable fund of humour. Many of his witty sayings are still remembered on the "Flags," and not a few "wise saws," of which he could not claim the paternity, are put down to " Joe Parton." Somewhere about 1826 Mr. Charles Booth (son of Mr. Booth, of Booth and Walmsley, corn merchants) was taken into partnership, and the style was altered to Percival, Parton, and Booth, with offices in Exchange Street East, in buildings belonging to Mr. Percival, next door to the old " Crooked Billet." In 1838 Mr. Booth left cotton for corn, and the firm once more became Percival and Parton. In 1844 Mr. Percival retired from business (he died in 1877, at the advanced age of eighty-nine), and his son Mr. Charles Pei'cival and Mr. Arthur Thompson (1) Mr. Elias Montefiore Joseph was brought up in the ofSoe of W. L. Wolstenholme, and commenced business in 1839. He was subsequently joined by his brother, Mr. Morris Joseph, and the style becamfe Joseph Brothers. Both lived to between seventy and eighty years of age, and are succeeded by their cousin, Mr. Lewis P. Montefiore, who carries on the business imder the old style. 241 joined the firm, which became Parton, Thompson, and Co. Shortly afterwards Mr. Percival entered into a partnership arrange- ment with Mr. James Pitcairn Campbell, son of Eector Camp- bell. (^) Messrs. Parton and Thompson then started a new firm, with offices in Eumford Street. In a short time Mr. Thompson retired from business, and Mr. Parton took into partnership his nephew, Mr. Joseph Holland, and the style of the firm became Parton and Holland. Mr. Parton retired at the end of 1859, and died in 1865, aged seventy-six years. Mr. Holland continued the business. In 1870 he joined Mr. Charles Wolstenholme, and the old firms started by Mr. Wiatt nearly eighty years ago, and by Mr. Percival nearly seventy years since, are now united in the firm of Wolstenholme and Holland. (^) C-) The partnership of Percival, Campbell, and Co. was" dissolved at the end of June, 1861. The business was for awhile carried on by Mr. J. P. Campbell, and is now conducted by Mr. Matthew Horan. Mr. Johnson Gore Welsby served his apprenticeship with Percival, Campbell, and Co. In 1866 he joined Mr. Richard Taylor (previously Taylor and Nosworthy, merchants), and with him established the firm of Taylor and Welsby, brokers. In 1867 they admitted Mr. Richard Hobson, who was connected with the Egyptian trade, and the style of the firm became Welsby, Taylor, and Hobson. Mr. Welsby retired in 1869, and Mr. Taylor followed in 1870. Mr. Hobson continued the business under the present style of Richard Hobson and Co. Mr. C. F. Steel bpoame a partner a few years ago. {^) Mr. John Shaw Bradbury served his apprenticeship with Mr. Wolstenholme. In 1872 he became a partner in the fit-m of Coddington Brothers. This firm consisted of Mr. Chas. H. Coddington and Mr. Robert H. Coddington, of Blackburn, brothers of Mr. W. Coddington, M.P. They commenced business in 1858. Mr. C. H. Coddington had previously served his apprenticeship in the office and saleroom of Hyde and Fosbrooke (the successors of Mr. R. E. Hyde, one of the original members of the Cotton Brokers' Association). He died 1878. His brother Robert died in 1882, and Mr. Bradbury is now the only member of the firm of Coddington Brothers. B 242 VIII. In or about 1790, Mr. Thomas Tattersall commeuced business as a cotton broker. In 1812 he took into partnership his eldest son, Thomas, and the style of the firm was altered to Thomas Tattersall and Son. During the panic of 1825 a con- siderable number of cotton firms came to grief, as the saying is. The Messrs. Tattersall did a large business, and of course they could not escape from making considerable losses during the financial chaos ; but they pulled through, and the fact that they did so Avas so largely due to the energy and abilities of Mr. William Clare (who had served an apprenticeship with the firm) that they took him into partnership ; and the style was altered to Thomas Tattersall, Son, and Co. In 1839 it was Tattersall and Clare; in 1814, "William Clare and Son; and in 1847, William Clare and Sons. Mr. Clare was the fourth president of the Cotton Brokers' Asssociation, being elected to that office in 1S45. On retiring from business, in 1863, he was made an honorary member of the Association. He lived nineteen years after his retirement, and died in 1882, in his ninetj'-second year. He was the son of Mr. John Clare, Gent, (so described in the Directory for 1790), and was born in 1790, at No. 3, St. Paul's Square, Liverpool, when the cotton trade was in its early infancy. Only a few bales of cotton had been received from the United States : all hand cleaned, with the aid of the primitive roller-gin. The sawgin had not been invented, and no one dreamt that in a few years the then new; Republic would become the principal cotton-pro- ducing country of the world. The first steam engine used in a cotton factory was put up by Sir Eichard Arkwright, in the year in which Mr. Clare was born. The same year witnessed the first import of raw cotton from India. The supplies at that date were recei^-ed chiefly from the West Indies and the Levant. The total import in 1790 was 31,000,000 lbs., or 68,000 bales of to-day's average weight of American, and barely seven days' 243 consumption at the present rate. At that time 'the 40's mule twist was worth 10s. per lb. ; it is not now worth lOd. ! in fact, as good a yarn as the 40's of 1790 can be had at 9d. per lb. ! An 8^^1b. shirting of 39 yards in length was worth 82s. 6d., or over 2s. Id. per yard ; while a similar article is now purchasable at 7s. per piece, or less than 2|d. per yard ! Curiously enough, the first mention we have of the firm with which Mr. Clare eventually served his apprenticeship is in the year in which Mr. Clare himself was born. In 1790, Mr. Thomas Tattersall resided at 7, Richmond Street, Whitechapel, then a very different neighbourhood from what it is now. It was virtually in the outskirts of the town. Queen Square did not exist. There were no streets behind Clayton Square. Where St. John's Market now stands there were roperies, and beyond them fields, and there was not much change until several years after Mr. Clare was born. ' Amongst Mr. Clare's earliest contemporaries was Mr. James Stock. He commenced business at the opening of the present cen- 'tury, with an office and warehouse in Cumberland Street. Jn 1808 he removed to the new Exchange Buildings. In 1823 he took into partnership his son, Mr. John Stock, and the style of the firm was changed to James Stock and Son. The Exchange offices Avere retained for over half-a-century — that is, until the buildings were pulled down to make room for the present edifice. Mr. John Stock died in 1883 at the ripe age of eighty years. He was always held in the highest esteem by his fellow-brokers. He was president of the Cotton Brokers' Association in 18.50, and on his retirement from active business was elected an honorary life member of the Association. The business is continued by Mr. George Henry Brown under the old style. Talking of Mr. John Stock reminds one of Mr. John Slack ; not that there was any connection between them, but because of the alliterative similarity in their names. Mr. Slack was apprenticed to a firm of Manchester cotton dealers in 1779, and remained with them until the opening of the present century. Somewhere about 1813, possibly a little earlier, he commenced 2i4 business on his own account as a cotton broker and accountant^ with an office in Cook Street. In 1816 he published an interest- ing account of his thirty-five years' experience in the cotton trade. The principal object of the pamphlet was to point out "the ruinous effects in cotton and cotton goods occasioned by speculation," with a ^iew especially "to guard young tradesmen in the cotton business from being too precipitately led into speculations, without maturely considering the consequences ;" and some of Mr. Slack's remarks are just as applicable to the present day as they were when they were written, seventy years ago. Take, for instance, the following, about Merchants v. Brokers : — A great evil exists both in London and Liverpool, by brokers being' both merchants and dealers : the duty, and only duty, of a broker is to be a middleman between the buyer and seller, and not to buy and sell on his own account. In London, a sworn broker is obliged to give a bond for £500 to the chamberlain of the city, which subjects the party to that amount, if known and prosecuted, and would probably have a good effect, if occasionally enforced ; and this ought to be the case throughout the kingdom, but more especially in large commercial towns. This would sometimes prevent unwarrantable speculations, which too frequently disorganise a regular trade, and tend to fatal consequences ; for extremes seldom continue long. And if Mr. Slack had been amongst us now, he could not have' written anything more applicable to the cotton market of to-day than the following reflections on the situation as it existed in February, 1816, eight months after the battle of Waterloo : — As this country may now be said to enjoy a profound peace (and ever may it continue so is my ardent wish), it is to be hoped that the late extremes, not only in politics, but in commerce, should be at an end ; but I am sorry to say in commerce that it is not, for there are too many using their endeavours to keep up cotton. There may be many holders of cotton in this country at high prices, and of course they do not wish to lose very heavily by it, and it is believed that many houses in this country are large- holders of cotton now in America, and wish cottons to keep up, becaiise they hold forth cottons are at such and such prices in America. It may be . so, and it is hereby allowed to be so, but what does this signify ? A mere trifle, next to nothing ; the simple argument now to be considered is — What can cotton be grown for ? After some observations on the wide fluctuations in prices caused by war and speculation, Mr. Slack, proceeds to give an. 245 (estimate of the prices at which cotton could be imported, " leaving a moderate profit to all the parties concerned with it ; putting speculation out of the question." He particularises West Indian, American, Brazilian and East Indian cotton, but it will be sufficient to quote only the figures relating to American and Eas* Indian. They are as follow : — Upland. d. Price to the grower, 16 c. — about 8J Allow the middleman 5 per cent, out of which he will be at gome expense to port 0^ Expenses for shipping OJ Insurance, 3 per cent Oj Freight, per lb 1 .!, Duty l" Repairs in port OJ Loss in tares, 5 per cent. , 0^ Merchant's profits, 74 per cent... Oj Dealer's profit, 3f per cent Oi Total .. to Id. more. 14i SUKATS. d. Surats and Bengals are grown at less expense than any othei? cotton, and may be had at ... 5 Expenses in port OJ Interest for time 0| Freight 3i Insurance, 5 per cent J Duty 1 Merchant's profit, 12.', per cent. onSid .". OH Dealer's profit, 3| per cent 0^-g Total ... llj Madras Id. more, Manilla 2d. more Orleans }A Mr. Slack says, " I believe the items under each head will be found pretty correct." The East Indian merchant was given 5 per <;ent. more for profits than his American contemporary, to compen- sate him for the longer time which he had in those days to wait for his returns. Mr. Slack wrote in 1816. For fifteen years before, and five years after, that date the annual average quota- tions were as follows : — Uplands Surats Uplands Surats Uplands Surats d. d. d. d. d. d. ISOl. 18 16 1808. 22 194 1815. 20J 17 1S02, 16 14 1809 20 184 1816. 18i loi 1803. 12i 114 1810. m 15 1817. 20J 17 1804. 14 Hi 1811. 124 12 1818. i.0 15J 180.5. 16i 14 , 1812. 16f 14 1819. 131 9ft 1806. 18± 144 1813. 23 174 1820. Hi 84 1807. 144 13 1814. 29i 21 1821. , 94 7^ The course which the market took a few years after the date at which Mr. Slack wrote showed that his view of the matter- was correct. In Mr. Slack's day the principal buyers for consumption were not spinners, but dealers, who purchased what may be termed wholesale quantities of cotton in Liverpool, and then rstailed it to 246 the actual consumers in Manchester and other towns in Lancashire. Eespecting the policy which guided them in these operations- cur author says : — The regular and steady dealers are those who buy a moderate quantity, and an assortment to meet the demands of their customers, and such as- they may feasibly calculate to run off in a week or ten days, and then go- to market again. Mr. Slack was evidently a philosopher. The concluding- paragraph of his pamphlet is worth quoting : — Another and last remark : — Formerly it was the custom in ports, when any sales were made, to mention from whom they were bought, the price, and to whom sold ; biit that custom did not prevail long, as it was thought to bte prejudicial to the dealers to have these reports given to -the spinners, who were then but few, who bought in the port ; this was about twenty years ago — after it was adopted in the port to abandon the buyers' and sellers' names, and only to report the quantity and price, which is still continued. This method is a general one, and certainly a good one, if It could be continued with correctness ; but lately it has been deviated from by reporting what has not taken place, which could have no other object but to deceive, sometimes at a less than the current price of the day, but more generally at a, higher, which has led some unguarded people into speculations, by which they have become serious sufferers. These remarks are intended more particularly to be impressed upon the minds of young tradesmen, and if the observations contained in this work should be any check to the ruinous effects occasioned by speculation, and be the means of keeping cotton at a moderate price, allowing a fair profit to all who have any interest in it, so as to enable the export merchant to buy his goods at so low a price as to command a foreign trade, not to be rivalled by other competition ; which, if accomplished, will truly realize my own wishes, •when it may fairly be said, "Success to the cotton trade in all its branches. " It will be observed from the above that the art of " rigging " the cotton market is not so modern an accomplishment as it is generally supposed to be. 247 IX. Somewhere about 1800 Mr. John Audley Jee commenced business as a cotton and general broker. In 1811 he was joined by his brother, Mr. Matthew Jee, who had been with Edgar Corrie and Co., and the style of the iirm became Jee Brothers. Their office was in Hargreaves Buildings. In 1817 they took into partnership Mr. Michael Humble, and the style was altered to Jee Brothers and Humble. Mr. Humble retired in 1826, and the former style of Jee Brothers was resumed. A few years subsequently to this they were joined by Mr. Arthur Latham, of the firm of Latham and Gair, merchants, and the name of the firm was changed to Jee Brothers and Latham. Mr. Gair at the same time became a partner in the firm of Baring Brothers and Co. In 1843, on the retirement of Mr. Latham, the style was changed to Jee Brothers and Co., and remained without alteration until 1848, in which year there was a dissolution of partnership, resulting in two firms — J. A. Jee and Co. and Matthew Jee. Mr. J. A. Jee died in 1862, aged eighty- four, and the business, which had fallen from vast to small dimensions, was continued for a while by his son, Mr. Horace Jee. vMr. Matthew Jee took his son, Mr. William Audley Jee, into partnership in 1853, and the style became Matthew Jee and Son. Mr. Jee, who filled the office of President in 1858, died in 1867, aged seventy-eight years, and Mr. W. A. Jee died a few years later. The business is now carried on by Mr. Charles Matthew Jee, under the old style of Matthew Jee and Son. For about half-a-century Mr. J. A. Jee was a leading authority in cotton statistics, and his reports are invaluable as a record of the move- ments of the trade during the lengthened period to which they refer. A large number of apprentices were brought up in the house of Jee Brothers, many of whom became brokers on their own account. Some of them have already been mentioned in these pages. Mr. Courtenay Cruttendcn was one of Messrs. 248 Jee's apprentices. He commenced business in 1853. He was joined by Mr. Henry Oulton in January, 1855, and the style of the firm was Cruttenden and Oulton. Mr. Oulton retired some years ago. Mr. Cruttenden was President in 1880. He was subsequently unanimously elected Manager of the Clearing House and Bank. Mr. Daniel Buchanan commenced business about the same time as Mr. J. A. Jee, and, like his contemporary, he had a great reputation as a commercial statist and writer. His annual reports embraced an account of the imports, deliveries, stocks, and prices of every kind of foreign and colonial produce, including bread- stuffs and timber, imjDorted into Liverpool ; they were, conse- quently, in great request. His son, Mr. Daniel Cranmer Buchanan, was taken into partnership in or about 1835, when the style of the firm became Daniel Buchanan and Son. There were several alterations thence to the retirement of Mr. D. C. Buchanan, when the firm ceased to exist. Mr. D. C. Buchanan was a very popular and highly respected member of the Cotton Brokers' Association. He was President in 1866, and after his retirement from business was made an honorary member of the Association. He died in 1884, aged seventy-five years. Mr. Robert Bryson was for a short time a partner in the firm of D. C. Buchanan and Co. He com- menced business by himself in 1868, and a few years ago took into partnership Mr. James Thomas Cooper, when the style ■of the firm beame Bryson, Cooper, and Co. In 1813 the firm of Jones and Mann was founded by Mr. Richard Jones and Mr. Joseph Mann. Their office was in William Street, out of Dale Street; later on it was removed to 189, Dale Street, where Agnew's Art Gallery now stands. In 1829 Mr. Francis Foster was taken into partnership, and the style became Jones, Mann, and Forster. The firm occupied a leading position for many years, and ceased to exist about a quarter of a century ago, on the retirement of Mr. Foster, the only remaining repre- sentative. Mr. Mann, or " Joe Mann " as he was familarly called, looked after the cotton department. He was quite a character, and at times operated on a large scale for speculators. In his ■24:9 ■days "futures" were unknown, and the speculator could deal •only in the real article. In excited times it was not at all an uncommon thing for transactions to be entered into by candle light. Purchases made under such circumstances did not always look satisfactory on the samples being examined by the morrow's daylight, and in at least one instance an allowance of ^d. per lb. was made by the seller of a lot of cotton " Joe " had purchased in semi-darkness on the previous day. It would be impossible to think of "Joe Mann" without calling to mind his umbrella : a wonderful structure of the original " Gampy " type, with the ferule worn completely away. It was his constant companion in wet weather and dry, from year's end to year's end. When not using it as a walking-stick he carried it a la Paul Pry. One can fancy one can see him now examining the " staple " of a proposed purchase, with his precious " Gamp '' tucked under his arm, or placed carefully on the counter by his side. In the latter case it was frequently hidden away by some mischievous practical joker, bent on enjoying the discomfiture of the temporarily disconsolate owner. The firm, as "we have already stated, died out and left no -direct successors. Their offices were taken by the late firm of Browne, Hunter, and Co., who succeeded Edwards, Danson, and Co. Mr. John Coney and Mr. J. C. Barrett served their appren- ticeships with Browne, Hunter, and Co., and in January, 1865, com- menced business on their own account along with Mr. Eobert Henry Smith (brought up in the firm of Sill and Meugens) under the style of Smith, Coney, and Barrett. Mr. Barrett retired a few years ago, and Mr. Ainsworth, who also served his apprenticeship with Browne, Hunter, and Co., was taken into partnership. One of Jones, Mann, and Foster's most noted apprentices was Mr. Michael Belcher,, who, in 1839, entered into partnership with the late Mr. John "Walker (^), under the style of "Walker and (1 ) Mr. Walker commenced business in 1823. His counting-house was in Rumford Street. In 1 829 he was joined by the late Mr. Percival Witherby, and the firm became Walker, Witherby, and Co. , with offices in Exchange Build- incs. In 1832 this partnership was dissolved. Mr. Witherby started anew firm (as merchant) in Covent Garden, under the style of Percival Witherby and Co., subsequently Molyrieux, Witherby, and Co. Mr. Walker continued the old business in his own name until he was joined by Mr. Belcher. 250 Belcher. On the retirement of Mr. Walker, somewhere about 1854, the style was altered to Michael Belcher and Co., and has- since remained without change. Mr. Belcher retired from business- at the close of 1881, and he is now enjoying the happy and comfortable repose to which he is entitled after an active, honour- able, and successful business career, extending over a period of half a century. He is a Justice of the Peace for the city of Liverpool. The firm now consists of his son, Mr. W. M. Belcher admitted a partner in 1874, and Mr. Alexander Maculloch,, jun., admitted on the 1st January 1882. Mr. Henry Clark was also brought up in the house of Jones, Mann, and Foster, and towards the end of his apprenticeship- was cotton salesman under Mr. Mann. He commenced business- on his own account in 1847, as a general broker, and in 1849 entered into partnership with Mr. John Eichd. Pattinson, under the style of Pattinson and Clark. On the dissolution of this partner- ship in 1862 Mr. Clark carried on business in his own name. In 1863 he added cotton to his general business. In 1866 he took into partnership Mr. John Pilkington and Mr. William Rogerson, when the style became Henry Clark and Co., and has not since been altered. Mr. Eos'erson retired several years ago, and has since died. Mr. Arthur J. Buston became a partner in 1879. Another of Jones, Mann, and Foster's old apprentices- is Mr. James Campbell, who commenced business in 1852, as James Campbell and Co. Another is Mr. Edward Lawrence, J.P., of Edward Lawrence and Co., East India merchants. Mr. Joseph B. Morgan served his apprenticeship with Browne, Hunter, and Co. (') In September, 1856, he took charge of the- cotton department of Pryce and Case. In 1857 he commenced business on his own account. In 1864 he became a partner with (') Mr. Hugh Verdon was one of Browne, Hunter, and Co. 's apprentices. After being for a few years with Mr. A. S. Agelasto, he commenoed- business on his own account in 1869. Mr. Owen Jones graduated from Mr. Verdon's office. He and Mr. William Jones commenced business in 1882, as 0. and W. Jones and Co. Mr. J. E. Sherwood also served his apprentice- ship with Browne, Hunter, and Co. He was for a few years a partner in the firm of Matthew Jee and Son. He commenced business on his own- account in 1881. 251 Mr. William Dickenson and the Messrs. "Whitworth, of Manches- ter; the style of the firm being Morgan, Dickenson, and Co. This partnership was dissolved in 1867, since which the style has been J. B. Morgan and Co. Mr. Walter S. Christian was taken into partnership in 1881. Mr. Morgan took a leading part in the establishment of the Clearing House and Bank in connection with the Cotton Brokers' Association ; and it was chiefly in recognition of his valuable services during the formaition and floating of these two institutions that his fellow-brokers in 1878 elected him to the important office of President of the Association. This was followed by a more substantial acknowledgment in 1882, in which year at one of the last meetings of the Association (held after amalgamation with the Cotton Exchange) it was resolved, on the motion of Mr, , Eobert Durning Holt, seconded by Mr. Benson Rathbone, "That in consideration of the services rendered by Mr. Joseph B. Morgan, in the assistance given by him in organising and establishing the Cotton Brokers' Bank and Clearing House, a sum of £1,000 be presented to him out of the funds of the Association as a recogni- tion from his brother brokers of the able assistance and valuable time he so generously de-\-oted to their interests." Mr. Morgan has since then taken an active jsart in the introduction of the Telephone. X. Mr. Godfrey Barnsley commenced business as a cotton TDroker somewhere about 1806, in partnership with a. Mr. Hope, under the style of Godfrey Barnsley and Hope. Their office was at first in Dale Street; but in 1810 they removed to Old Hall ^Street, on the site subsequently occupied by the Waterhouses. This partnership was dissolved in 1811, and thence to about 1822 Mr. Barnsley was by himself. But in the last-named year he was joined by Mr. WilHam Eeynolds, when the firm became Godfrey Barnsley and Reynolds. Mr. Eeynolds had previously been with his father, Mr. Francis Eeynolds, who commenced business about 1810, with an office in Slater's Court. Between 1818 and 1821, the style of the firm was Francis Eeynolds and Son, and their counting-house was in Exchange Street West. On the death of Mr. Reynolds, senior, in 1822, his son William joined Mr. Barnsley. Their office was in Eumford Street. The partnership continued only a few years ; and, in 1826, Mr. William Eeynolds opened an office in Exchange Court, Exchange Street East. Mr. Barnsley remained in Eumford Street. In course of time he took into partnership his son George, and the style of the firm became Godfrey Barnsley and Son. About the same time Mr. Eeynolds was joined by' Mr. James Gibson, and the style became Eeynolds and Gibson. (^) For some years the offices of both firms (') Mr. Phythian Lees served his apprenticeship with Reynolds and 'Gibson, coniraeiicing business on his own account in 18B'2. He was shortly after joined by Mr. L. S. Galatti, who, in 1869 succeeded to the business, under the style of Galatti and Co. Mr. R. W. Wilkinson was brought up in this firm, and commenced business on his own account in 1875. Mr. W . W. Walmsley also served his apprenticeship with Reynolds and Gibson, .and commenced business on his own account in 1872, along with Mr. Moratini. On the retirement of the latter, he continued the business in his own name. He died in 1880 and was succeeded by the present firm of Adshead and Galatti ; Mr. Adshead having been brought up in the firm. Another of Reynolds and Gibson's apprentices, Mr. William Henry Hatch, is a partner in the firm of A. and M. Kalli, founded in 1871 by Mr. Alexander E. Ralli and Mr. Michael Ralli. Mr. A E. Ralli had, between 1867 and 1871, been a partner in the firm of Ralli and Tymbas Prior to 1867, Mr. Gregory Tymbas had been for a few years in business as a cotton broker oil his own acenunt, previous to which he had been a general merchant, commencing in 1848. 253 were in India Buildings ; and the styles of both remain the same- as nearly half-a-century ago. Mr. Godfrey Barnsley died in 1836. Mr. George Barnsley died in 1874, prior to which he had taken into partnership his son, Mr. Arthur Barnsley, and his brother-in- law, Mr. John Milne (one of Priestley, Griffiths, and Cox's apprentices), and these two now constitute the firm of Godfrey Barnsley and Son. In the meantime, concerning the house of Reynolds and Gibson, Mr. Francis W. Eeynolds and Mr. James E. Eeynolds, sons of the head of the firm, were taken into partnership in 1847 and 1858, respectively. Mr. Eeynolds, senior, died in 1857. Mr. Gibson retired in 1857. Mr. Thomas Walmsley (brought up in the firm) was admitted in 1865. Mr. William F. Eeynolds and Mr. Arthur Eeynolds, sons of Mr. Francis W. Eeynolds, and great grandsons of the founders of the firm, were admitted in 1875 and 1878, respectively. Mr. Francis W. Eeynolds was vice-president of the Cotton Brokers' Associa- tion in 1875 ; but declined the office of president. Mr. James E. Eeynolds is a J. P. for the City. The late Mr James Howell served his apprenticeship with Godfrey Barnsley and Reynolds, and commenced business on his own account in 1827. There was no change in the style of the firm until 1854, in which year his son, Mr. John J. Howell, and his son-in-law, Mr. E. H. Job, were admitted. The firm then became James Howell and Sons. Subsequently, Mr. Howell retired in favour of his youngest son, Mr. James E. Howell, who withdrew a few years ago. The firm now consists- of Mr. John J. Howell and Mr. Job. Mr. Howell, senior, died in June, 1872, aged seventy years. Mr. Job is the grandson of one of the founders of the Newfoundland trading firm of Bulley and Job, established here in 1806; now Job, Brothers and Co.. The firm of Bulley and Job consisted of Messrs. Samuel and Thomas Bulley (brothers) and Mr. John Job. They began business at Teignmouth, Devon, then, with Pool, in Dorset, the centre of the Newfoundland trade. The risks of capture, and the losses suffered during the wars with France, caused them tO' transfer their business to Liverpool, as a safer port. On one- 254 occasion Mri Job was taken prisoner by the French, and confined in the fortress of Saumur, where he found, as a fellow-prisoner, Mr. John Eason, subsequently the head of the firm of Eason and Barry. They were liberated in an' exchange, after some six or nine months' detention. On another occasion, one of the firm's quick-sailing vessels was taken by Jerome Buonaparte, and burnt off the coast. The sailors were taken on board the Frenchman ; but the captain, Mr. Thomas B alley, was put on shore, to find his way home as best he could. Mr. Samuel Bulley was the father of Mr. Samuel Bulley, junior, who commenced business as a cotton broker in 1838. Mr. Thomas Bulley (who, by the way, was one of the first Aldermen of the Town Council after the passage of the Reform Bill of 1832) was the father of Mr. Samuel Marshall Bulley, who was for a time in partnership with Mr. Lawrence Heyworth, as cotton spinners at Oakwood. They were together for only a short time, however, and Mr. S. M. Bulley, after gaining some experience in the office of his cousin, Samuel Bulley, junior, commenced business as a cotton broker on his own account. Shortly after this, Mr. Samuel Bulley (like several other cotton brokers during the first railway mania) retired from cotton to the Stock Exchange. After some years he rejoined Mr. S. M. Bulley, and held a prominent position in the office and saleroom until his death in 1881, aged seventy years. In January, 1864, Mr. S. M. Bulley took into partnership his brother-in-law, Mr. W. Winter Raffles, who had been with him for six years, and the style of the firm was Bulley and Raffles. (^) On this partnership being dissolved, Mr. Bulley continued the business in the old premises on his own account. On the admission of his son, Mr. Thomas Raffles Bulley, the style was altered to S. M. Bulley and Son. Later on his second son, Mr. S. M. Bulley, junior, was admitted. Mr. Bulley, senior, died in 1880, aged sixty-nine years, and -the firm is now carried on by his two sons, under the old style. After the dissolution of partner- (1) Mr. John Jones, publisher of several very useful cotton publications, served his apprenticeship partly with Bulley and Raffles, and partly with W. W. Raffles. ^ 255 ship between himself and his brother-in-law, Mr. Raffles com- menced business in his own name. He retired in 1868.(^) One of the best-known of Godfrey Barnsley and Son's apprentices was the late Mr. Maurice Williams. He commenced business on his own account in 1849 along with the late Mr. William Smallpage, of Burnley, under the style of Williams and Smallpage. This partnership was dissolved in 1857, and the two partners founded separate firms. Mr. Smallpage shortly left the market for another branch of trade, but Mr. Williams remained, and for some years carried on the business of cotton broker, under the style of Maurice Williams and Co. He was a man of untiring energy and of considerable ability ; and was a prominent j)olitician, as well as an extensive operator in cotton. He was for a short time member of the Town Council for St. Paul's Ward. On the outbreak of the American war he took the Northern view of the question, and in the expectation that the \struggle would be a long one, he went heavily into cotton specu- lations, chiefly in East Indian to arrive. His ventures were very successful, and he realised a large fortune. He made a voyage to the States during the war, and visited various points in the North and South- West, going as far down as Vicksburg. On his return he did very little in cotton beyond selling the balance of his stock, and for about twelve months he kept almost aloof from the market, except as a broker for others. After prices had iallen to what he considered to be a safe level, he recommenced operations on a large scale. For a time it appeared as if his view of the future was the correct one ; but eventually there came a collapse ; and as he held a large stock both on the spot and afloat, and as, like most other sanguine speculators, he was a (^ ) On the retirement of Mr. Raffles, his salesmen, Mr. John D. Dempster (one of Chambres, Holder, and Co.'s apprentices) and Mr. iS. R. Eichardson ^brought up in the firm of Covvie, Duckworth, and Co.) commercd business on their own account, under the style of Dempster and Richardson. The firm r.f Cowie, Duckworth, and Co. was founded in 1852 by Mr. Alfred Cowie and Mr. William Smith (Cowie, Smith, and Co.). This' partnership was dissolved in 1863. Mr. Covvie was by himself until 1866, when he was joined by Mr. William Maclver (Cowie, Maclver, and Co.). This partnership was dissolved in 1870, and in the following year the firm took the Style of Cowie, Duckworth, and Co., on the admission of Mr. Henry Duckworth 1!, Tom- linson, and Mr. R. P. West. 287 which were promptly found out, the tills were as empty at the' end of each day as at the beginning. It was a simple kind of cash-keeping, in which the incomings and outgoings were the same to a penny. By and by, after the establishment of the Cotton Bank, all payments were made into the Bank, and repa}- ments by " credit vouchers." The daily attendance of a member of the Committee was continued even after the voucher-system was substituted for the clumsy handling of cash, until his services' were dispensed with by the appointment of a permanent OiRcial Superintendent in January, 1881. 288 CHAPTER VI. THE COTTON BANK. The success of the Clearing House for "futures " suggested the formation of a similar institution to facilitate the settlements of transactions in spot cotton. — Object of the Bank to secure an easier and safer method of making pq,yments. — Brief description of the modus operandi of the Bank. — Many of the brokers did not at first avail themselves of the advantages offered by the scheme, but by degrees they all came in ; and eventually the Clearing House and Bank were amalgamated. The undoubted success which attended the operations of the ■Clearing House, estabhshed for the arrangement and settlement of accounts in connection with transactions in cotton to arrive or for forward delivery, led to the formation of a similar institution, designed, amongst other objects, to give to the spot department nf the market the manifest advantages already enjoyed by the arrival department, through the instrumentahty of the Clearing House. The new institution, entitled the Cotton Brokers' Bank (Limited), was opened for business on the 14th April, 1878. The first Directors were Messrs. Harold Cunningham, John Given, Robert Hinshaw, Henry H. Hornby, Joseph B. Morgan, Hugh H. Nicholson, Benson Eathbone, and George H. Robertson. The idea of the Bank was originally broached , by Mr. J. B. Morgan, to whom the Association was mainly indebted for the estabhshment of the Clearing House. But the notion was too novel to be received at once with favour, and too original to inspire confidence in its practicability. Precisely the same objections were raised against it that had been urged against the establishment of the Clearing House, while it lacked the support of the irritating annoyances which eventually compelled the brokers, in sheer despair, to adopt the clearing system for 289 " futures." Time, however, made numerous converts to the Bank scheme, while the unquestionable success of the Clearing House proved that the scheme could be worked to the advantage of all parties concerned. The main object of the Bank was to do away with the then primitive and very risky method of making cotton payments. Practically, all settlements were made in cash, for even in the few cases in which payment was made by cheque^ the cheque had almost invariably to be collected by the selling broker, in order that he might hand over the proceeds to his principal. The result was that a huge amount of cash, ranging, on an average, from £100,000 to £150,000, was carried about the market from day to day. The undesirability of the continuance of such a state of things had long been admitted by everyone in the trade. The necessity for a change had been demonstrated over and over .again, by the losses which had been suffered, either through mis- adventure or embezzlement. On several occasions attempts had been made to remedy the evil by the introduction of the system of payment by cheque; but these movements never received support sufficient to carry them to a successful issue. So strong, indeed, was the opposition in some quarters to the change, that it appeared as if the system of payment by cheque was regarded as a cunningly-devised scheme for evading payment altogether. It was chiefly, if not entirely, owing to the failure of these movements that the Cotton Brokers' Bank was established. It is not necessary to enter into a minute description of the tnodus operandi of the institution. Suffice it to say that the machinery is exceedingly simple, and very easily worked. A buying broker who has, say, a dozen payments to make, pays the whole amount of cash in one sum into the Bank of England, to the credit of the "Brokers' account." He then issues "statements" and "credit vouchers" to the various selling brokers to whom the payments are due. These "credit vouchers" are then deposited by the selling brokers with the Cotton Bank, and can be drawn against, either by new " credit vouchers " in 290 favour of other brokers, or by cheque on the Bank of England at the close of the clearing, or the amount may be left until next day. A " credit voucher " started by one broker may, either in part or whole, pass through many firms, and settle a number of accounts during the day, and thus greatly- economise the use of •cash. At the close of the day, the cash remaining in the Bank of England is tranferred by cheque to the last receivers, who, if they have not accounts at the Bank of England, can collect the amount through their own bankers, so that the only cash actually handled may be that paid into the Bank of England at the opening of the day. Those merchants who sell cotton through several brokers receive the payments due to them in one sum at the close of each clearing, instead of, as formerly, from a number of brokers, and often in several payments from each broker during the day. Arrangements have been made for the payment of money into the branch Bank of England, Manchester, to the credit of the " Brokers' account " at the Liverpool branch. Xow, as all the local banks in the various manufacturing towns have accounts with the Bank of England, spinners are able to make all their cotton payments to Liverpool through their own banks, ria the Bank of England. So that no cash need pass, except between the local banks and the Bank of England ; and the spinner, instead of sending money to Liverpool, has merely to send an intimation to his broker that he has paid into the Bank of England so much cash against cotton bought, upon which the buying broker sends the necessary notification to the selling, broker or merchant and to the Cotton Bank. At first, man}- of the brokers and merchants did not avail themselves of the facilities afforded by the Cotton Bank, but by degrees, as the advantages of the scheme became more and more apparent, they came in ; and eventually the Clearing House and Bank were amalgamated, after which the whole of the payments- in connection with " futures " were paid through the Bank, and distributed by " credit vouchers," instead of in cash, over the counter of the Clearing House. 291 CHAPTER YII. PEEIODICAL SETTLEMENTS. Fruitless eflforta were made for a nximber of years to introduce a system of margins or periodical settlements in connection with the speculative- business in arrivals. — Committee after committee reported that there would be no difficulty in formulating such a system, capable of being easily worked ; but its adoption was opposed on the ground that it would intensify the bad features of speculation, while it would be a hindrance to legitimate business. — The Ranger failures, however,, forced the Inatter to the front, and caused a number of brokers and merchants to establish a Periodical Settlement Association, the practical experience of which led to the adoption of the system by the^ Cotton Association as a body. More than -twenty years ago, during the gigantic speculative- business, and the frequent financial ups and downs occasioned by the wide fluctuations in prices, incidental to the cotton famine, efforts- were made to put the arrival department of the market upon a sounder basis, by the introduction of a system of "margins"; but, although the system was thoroughly ventilated, and the desirability that something should be done was universally admitted, nothing practical came out of the discussion ; and for a number of years after the American war had ended, public interest in the matter abated. But shortly after the establishment of the Clearing|House — owing, in fact, to- the largely-increased business to which the successful working of that institution gave rise — the necessity of placing the speculative business in forward deliveries upon a sounder basis than that upon which it had hitherto stood,' forced itself upon the attention of members of the Cotton Brokers' Association. From time to- time committees were appointed to take the matter into con- sideration, and to draw up a scheme calculated to accompHsh the 292 object ill view. Every committee reported that there would be no difficulty whatever in formulating a system of periodical settlements, capable of being easily worked, and formed so as to keep speculation within reasonable bounds, without in the least interfering with the coui'se of legitimate trade. But no scheme propounded was fortunate enough to secure a sufficient number of adherents to obtain for it the official sanction of the Association. A large number of brokers and merchants, particularl)' those of the more old-fashioned type, regarded with abhorrence any movement designed to introduce the methods of the Stock Exchange into the sober arena of the cotton market. They ignored the fact that a very objectionable style of speculative business h^id forced itself into the market, and that it would be to the interest of sober trade to have this clas^ of business put under some sort of control. They objected to periodical settle- ments in cotton as a species of commercial heresy, the introduc- tion of which no orthodox man of business ought to support, and they accordingly voted against every settlement scheme brought forward. Much the same kind of reasoning actuated other opponents of the reform, who maintained that the adoption of settlements would increase and intensify the bad features of the market which it was said they were intended to control. The present state of things, with its "rigs" and "corners," "bulls" and " bears," was, they said, quite bad enough; but with a system of periodical settlements the " rigs " and " corners " would be increased tenfold. The legitimate merchants and spinners of Lancashire were at present only harassed occasionally by the gambling operations of the "bulls" and "bears"; but with a system of periodical settlements they would have the market "cornered" or "squeezed" every month or every fortnight; so they elected rather to l)ear the ills they had than fly to those they knew not of. The strongest opposition, however, came from those merchants and brokers who thought that the adoption of a system of periodical settlements would, aside from any fluctuations it might cause in prices, interfere with them in the working of their 293 individual businesses. There are in Li-^crpool a number of small merchants, who have branch houses or agents in some one or more of the various ports or interior towns of America. They are industrious and honest, but they have not much capital, and they can only do '^^■hat is for them a large business by obtaining financial assistance from either bankers or brokers. This assist- ance is gi\'en chiefly by, or through, the latter. The method of doing the business is as follows : — The American agent advises ■the shipment of, say, 500 bales of cotton, against which he draivs for about £5,000, either upon the Liverpool merchant, or his broker, or the banker of the latter. The paj'ment of this accept- ance is guaranteed by the broker, Avho protects himself and the small merchant from any loss that might occur by a fall in prices before the arrival of the cotton or its sale on floating terms, hy selling 500 bales of " futures." All this being done, the merchant is ready to enter into another transaction of a similar kind. He may easily ha;'e a dozen such going on at the same time. Under the non-settlement system of doing business in " futures " no " mai'gin " is required in the event of a rise or fall in prices ; but" under a system of periodical settlements, the merchant might, in the event of an important rise in the market, be called, upon to find a considerable sum of money to pa^' to buyers of •' futures " sold against shipments from the other side. If, during the course of a few weeks, he had purchased 5,000 or 6,000 bales, and soil " futures " against them, he would, if prices fell id. per lb., h.a\& to pay from £5,000 to £6,000 to the purchasers of the "futures." As this loss would be covered by a corresponding profit on the cotton afloat, he would no doubt be able to borrow the money from his broker ; but this would entail the payment of bank commission, while the liability of having to find money for margins or differences would compel both merchant and broker to keep a larger reser\'e of spare cash than is needed under the non- settlement system. The effect of this would be to reduce the amount of business done; and this was the main reason why the small merchants, almost in a body, opposed the introduction of a system of settlements. The same was true also of most of the brokers who " financed " the small merchants. 294 The objections against the reform, however, lost their influence with the general body of merchants and brokers after the shocking state of affairs disclosed by the Eanger failures at the end of 1882. Those who objected to periodical settlements, as calculated to increase the amount of gambling in " futures," began to see that' as the gambling element in the market could not be eliminated, it ought to be jjlaced under control ; while, as respected the small merchants, it was urged that theii' business, so long as it was non-speculative, could still be conducted, either under the old system or by the deposit of the shijjping documents of cotton bought and the contracts of " futures " sold against such cotton with some bank, against any advance that might be required. As a step towards bringing the system into operation, about sixty firms of brokers and merchants, in December, 1882, formed themselves into a Settlement Association, and began at once to deal amongst themselves, on the basis of the following rules and bye-laws : — Rules. 1. That an association be formed, to be called the "Settlement Association. " 2. That the a:«ociation shall consist of the firms whose names are appended, and of those firms, members of the Cotton Association, Limited, who may afterwards suljscribe to these rules. 3. The management of the association shall be entrusted to a committee of five members, to be appointed by the association. The committee to «lect its own cliairman. 4. That the object of the association shall be to promote a system of periodical cash settlements in the Liverpool cotton market. 5. All members shall subscribe to the rules, and shall pay a subscription •of one guinea. 6. Members shall cause the following clauses to be printed on all contracts for deliveries of American cotton made with members of' the ^Settlement Association : — (a) " And subject to the regulations for payment of differences adopted by the Settlement Association." (6) " The persons whose names appear on the face of the contract as the contracting parties, whether entering into it on their own account, or on account of other parties, shall be deemed to be principals, and shall have the same rights of set-off and settlement between themselves I'.s if they were principals acting on their sole behalf, and no person 295 other than those whose names appear on the face of the contract shall have any right to sue, or to be under any liability thereon.'' Bye-Laws. 1. Settlements shall be made every second Friday, which shall be called " settlement day." 2. On each Tuesday before ' ' settlement day " prices shall be struck at 1,45 p.m. by the Arrival Quotation Committee, and on the day following ■ members shall render to each other, on authorised forms, statements of all running transactions, based upon these prices. Should any member fail to make such statement, he shall be deemed, for the purpose of this settlement, to have accepted the statement made to him. 3. Cash balances due on these statements shall be paid to the members to whom they are due at the first clearing of the Cotton Bank on the settlement day, and any default shall in itself give the power to close all contracts against the defaulter at the price fixed by the Arrival Quotation Committee on that day. 4 Should the day for striking prices, or the settlement day fall upon a holiday fixed by the Liverpool Cotton Association, the prices shall be struck, or the settlement day shall be, on the next succeeding business day. 5. Interest shall be allowed at the rate of 5 per cent, per annum on the 10th day of the mouth after that named in the contract, when the contract is for delivery during a single month, or the 10th day of the second month named, when more than one nionth is named in the contract. 6. Purchases from, and sales to the same member of the same quantity and months shall be deemed " closed contracts," and shall be " rung out " at each settlement, and only the balance of bales, if any, shall be carried forward to the next account. It will be advisable far members acting for clients, that they obtam their signature to a form, owning receipt of the contract, and that the same is subject to settlement terms. The leading spirit in the movement, and the first Chairman of the ^Association was Mr. Paul E. J. Hemelryk (Hornby, Hemelryk, and Co.). He ^"s'as ably assisted by Messrs. T. Raffles, Bulley, A. S. Hannay, George McFerran,- and James D. Thorburn, who, with himself, formed the first Committee. Mr. Peter Brown, Secretary of the Cotton Association, acted as Honorary Secretary. The promoters of the movement did not put forward their scheme as the best that could be devised, but they were anxious that a start should be made, and they hoped that by practically demonstrating the value and utility of a system of periodical settlements, they would succeed in gaining over to their side the whole of the members of the Liverpool Cotton Association. 296 There were many shakings of heads over the matter amongst the quid nuncs in the market, and for some months the Association had to fight a rather uphill battle ; but the faith of the jjromoters never wavered, and after two years of successful work, during which period they had been joined by many of their fellow- merchants and brokers, they had the satisfaction of seeing their scheme adopted by the Cotton Association at large — with the saving clause (to which they had always been agreeable) that, although it was desirable, it was not compulsory upon the members of the Association, that they should do all their business in " futures " upon settlement terms. This exception was made upon behalf of those merchants whose business was of a non- speculative character : to the natuie of which reference has been made above. Several changes have been made in the original rules and bye-laws, of which the most important is that the settlement shall be weekly instead of fortnightly. The other alterations are merely matters of detail, having for their object the smoother working of the system. 297 SUPPLEMENTARY CHAPTER TO PAP.T I, THE COTTON INDUSTRY, 18S3— 1885. (I.) The maximum consumption of cotton reached in 1883. — Annual movement, 1874 to 1885. — General over-production, consequent unsatis- factory condition of the industry. — Review of the course of business in Europe and America, 1873-85. — Influence of Limited Liability Act in bringing about excessive production. — Enforced reduced production everywhere in 1883-85. Immediate causes of depression. — (II.) Profit and loss account 1871-85. — (III.) Continental complaints of English competition. — Particulars of Britisli export to '-'protected," and "open" markets of tlie world 1876-84:. — An accoiint of the import and export trade of various Continental countries and the United States. — Lancashire so far has little occasion to complain of American or Conti- nental competition except within tlieir own protected borders. — (IV.) But every reason to be afraid of Indian competition. — Recent rapid progress of the comparatively new Indian cotton industry. — The serious- competition of tlie Bombay and other Indian mills in India itself, and in China and Japan. — (V.) The Factory Returns for 1S85. I. The annual avei-age deliveries of cotton to both European and American spinners in the three years ended 1882 were on an unprecedently extensive scale, but they were entirely eclipsed in magnitude by the enormous figures of 1883 ; and there cannot now be any doubt that to this circumstance is traceable much of the miserable condition of the industry which has since obtained. In the following statement will be found particulars of the weekly average deliveries to British, Continental, and American spinners- in the twelve years ended 1885, in bales of the uniform weight of 400 lbs.; to which are added columns giving the average price of middling uplands, the. yield of the American crops in lOOO's 298 •of bales of ordinary weights, and the exports of yarns and goods from Great Britain, in millions of lbs. and yards : — 1874., 1875-, 1876., G. Brit. ..61,000 ..59,000 . ..62,000 . 60,700 . Deliveries of Cotton per week ; Bales of 400 lb Cojitinent. U. States. .. 43,000 ... 27,000 .. ,. 47,000 ... 25,000 .. .. 49,000 ... 28,000 .. Total. . 131,000 . . 131,000 . . 139,000 . Mid. Upls., per lb. d. .. 8 .. ..71 .. .. 6i .. - 7A. .. 6;v. ..6J .. .. 6tV.. .. 6i .. ..6if.. ..6tV. ..6i .. ..6i .. .. 5i .. .. 6 .. .. 5i .. U.S. Crop, lOOO'sof Bales. . 4,170 . . 3,833 . . 4,669 . .. 4,224 . ,. 4,485 .. 4,812 . .. 5,073 . .. 4,790 . ,. 5,757 . ,. 6,589 . . 5,435 . .. 5,927 . . 6,992 . . 5,714 . . 5,669 . Y'arns ai Expi Y'arn. lb. .. 220 .. .. 215 . ..232 . .. 222 . 228 . .. 250 . .. 236 . .. 23S . .. 216 . .. 2.i5 ., ..233 .. .. 236 . .. 265 . .. 271 .. .. 216 .. id Goods Drted. Goods. yards. .. 3,606 .. 3,562 .. 3,669 Aver. .. 46,300 . .. 26,600 .. . 133,600 . .. 3,612 1877. 1878., 1879. . 58,000 . ..57,000 , . 57,OuO . .. 43,000 . .. 49,000 . . 52,000 . .. 30,000 .. ,. 33,000 .. .. 33,000 .. . 131,000 . . 1.39,000 . . 142,000 . . 137,300 . .. 3,838 .. 3,618 .. 3,718 Aver. 57,300 . .. 48,000 . .. 32,000 .. .. 38,000 .. 41,000 .. .. 41,000 .. .. 3,725 lf:80. 1881., 1SS2., ..67,ono . ..70,000 . .69,000 . .. 54,000 . .. 60,000 . .. 60,000 . 159,000 . . 171,000 . . 170,000 . .. 4,496 .. 4,777 . 4,349 Aver. 6S,60O . .. 58,000 . .. 40,000 .. . 166,600 . .. 4,541 1883., 1884., 1885., ..73,000 . . 72.000 . ..62,000. .. 70,000 . .. 63,000 . .. 62,000 .. .. 46,000 .. .. 41,000 .. . 36,000 .. . 189,000 . . 176,000 . . 160,000 . .. 4,.539 .. 4,417 .. 4,374 Aver. 69,000 ... 05,000 ... 41,000 ... 175,000 ... 5^... 6,125 ... 261 ... 4,443 The rate of consumption was in some years sniallei', and in other years larger, tlu.n the deliveries ; but the latter afford a better indication of the condition and tendency of the trade than the former. _ The causes which influenced the statistical move- ments and the course of business in 1874-79 have already been dwelt upon in Chapter IX., Part 1, page 106 ; and the figures are merely inserted abo\e in order that the reader may see, at a glance, the course of trade immediately preceding the "boom" which ■commenced in 1880 and culminated in 1883. There had been some complaints of over-stocked markets for yarns and goods in LS76 ; but all surplus stocks were worked off during the depressed period of 1877-79. In 1880 there was a sharp reaction, especially in Great Britain and in the United States. The increased business made further progress in 1881, especially on the ■Continent, but in 1882 came a pause : the deliveries to English spinners showed a small decrease, and those to Continental and American consumer.s remained stationery. There were complaints 299 everywhere that business avus less satisfactory than in either 1881 or 1880. We wrote at the time that "the year opened with a generally mistaken view of the influence of the reduced American •crop upon the probable course of prices. Too much importance was attached to the decreased supply of cotton from the United States, and too little weight was given to the large surplus left from the previous crop, and to the increased supplies from other countries. Moreo\'er, it v/as overlooked that the great markets of the world had been filled with goods during the previous two }'ears, and that the demand was, consequently, not likely to be very active until these stocks had been absorbed, especially as a higher range of value was apparently about to be witnessed." The iidvent of an enormous American crop caused a sharp decline in prices towards the close of the year. Middling upland, which in August had been at Tiird., was in November at .Shld. for spots, iind close to SHd. for' near deliveries, and in December at 5|d. and 5 grd., respectively. In January, 1883, there was a fall to iinrd., and in July, after an intermediate recovery, the (jiiotation was at only r)|d. — a fall of Ifd., or '2^ per cent, in less than twelve months. The average price for the season was 5ffd., against 6:Tld. — a fall of Hd. per lb. or 14 per cent. This decline gave rise to a gigantic business — largely -speculative — the previous excessive accumulation of goods not- withstanding. The result was that the season (October 1, 1882 — .September 30, 1883) ended amidst a wail of complaint from all quarters. At the end of September we wrote that " spite of the ■circumstances that the season opened with large stocks of goods in the whole of the great distributing markets of the World, people thought that they could not have too much on the basis of 6d. per lb. for cotton. In the first three months, therefore, an enormous speculative and anticipatory business was done in Manchester, accompanied by correspondingly large transactions in Liverpool : the confidence of buyers increasing with every fractional decline in values. This was all well enough so long as it lasted ; and the contracts made by spinners and manufacturers, but especially the former, showed fair profits. While these were 300 maturing there were few complaints, except from shippers, who found that what was here considered to be a cheap price was not abroad regarded as a very tempting figure. It was discovered that markets ah'eady full were now surfeited. As the year advanced, therefore, manufacturers found that as their orders ran out they could not be replaced, except at unprofitable rates, and finally at prices showing a very serious loss. So long, however, as the looms were kept at work yarns did not follow the decline in cloth, and spinners continued to make a profit — the manufac- turer, in fact, had to sell his cloth in a weak and overloaded market, but to buy his yarn in a market firm and without stock. By and by looms began to be stopped, either voluntarily, or through bankruptcy, or in consequence of strikes against reduced wages. In this way the demand for yarn was diminished, and the margins of spinners began to shrink. . Producers- found it no longer easy to sell the out-turn of their mills, and although there was no systematic resort to " short time," spinners in most instances extended the usual autumn holidays, and in August and September the consumption of cotton was probably reduced by about 2,000 bales per week. The rise in cotton, which took place between the middle of July and the end of September, was only partially participated in by yai-n, and the season closed un- satisfactorily to ereiy department of the cotton industry, but especially to manufacturers." With respect to the Continent, wo stated that " from almost every point the season was reported as^ closing less favouraljly, and in most instances ilistinctly worse^ than it had opened, owing to over-production ; while Germany,. France, Austria, and Switzerland all complained of revived English competition : Manchester, it was alleged, having flooded the markets with her products at ruinously low prices, in- consequence of the diminished trade with the East." In reference to the goods trade of the United States, the Kew York Financial Chronicle said that the depression in all branches of the trade, and the slackened consumption, had developed an excessive supply. Buying, throughout the season, had been of a sluggish, hand-to- mouth, character, \erj damaging to values ; sellers being all the 301 time more willing than purchasers — a condition -which has resulted in a considerable accumulation of stocks in first hands. At the close of-1883 Middling Upland was M. per Hi. higher than at the end of 1882, while 32's Cop. twist was f\d. per lb., and 8} lb. shirtings -Rd. per lb. loiinrr. The situation had become so unbearable, especially to •manufacturers, that some -50,000 to 60,000 looms (out of a total of 550,000) had been stopped. The .secret of this unsatisfactory condition of things was, as already explained, that producers had kept the markets of the world in a chronic state of o-^er supply. Prices were so low, it was said, that a further depreciation was unlikely to occui', ^vhile a re-^ired and increasing demand AA'as, sooner or later, certain to come. This faith in the action of mere price upon demand led to an active business in the opening months of 1884, especially as it was expected that the general situation would be improved by the reduced production of ffoods occasioned by the nine weeks' strike (ended in February) at Blackburn, and by the diminished supply of cotton owing to the decrease of about one million bales in the out-turn of the American crop. As a matter of fact prices did advance ; but there was not the slightest response from the dis- tributing markets, because they were already well supplied, while the purchasing power of our largest customers had been materially curtailed by the serious fall which had taken place in the prices of all kinds of foreign and colonial produce. The consequence was that in the summer and autumn both spinners and manufac- turers were compelled to resort to " short time": the consumption of raw cotton being reduced to about 68,000 bales of 400 lbs., against 72,000 at the close of 1883. On the Continent trade was depressed, not only by over production, but also by various local adverse influences : financial stringency in Russia ; the fall in the value of agricultural produce in Germany and Austria ; and the ajjpearance of the cholera in France and Italy. In the United States the unsatisfactory state of the cotton business occasioned by over-production was intensified by the financial pressure which for many months had seriously affected every department of industry. 302 The season 1884-5 opened without any change for the better either on tlie Continent or in the United States, but i\'ith a distinct re\i'\'al of business in Liverpool and Manchester. There was an impression that the surplus stocks of yarns and goods had been reduced to a manageable compass; and that with two small American crops in succession, an important advance in- prices was inevitalile. Under the iutiucnce of these views, an enormous speculative and anticipatory business was done, during the first three or four months of the season. Buyers of all classes bought more cotton or yarn or cloth than they could subsequently sell, either here or abroad, and as the season advanced they dis- covered that the distributing markets everj'where had been, and continued to be, over-supplied. In the markets for the raw mate- rial the consumer had anticipated the speculator, instead of the- speculator the consumer. Hence the misery and disajjpoint- ment experienced during the liquidation of the winter and early spring business, which obtained between March and the end of the season Cotton, which had risen from Sxird. in October to 6^d. (6|]d. for distant delivery) in February, fell to .5^d, in May and to 5id. in September; and 32's cop twist, after rising from 8fd. in October to 8^d. in December, fell to SrVd. in June. The weekly rate of consumption, which in the ■^^-inter had been at 72,000 bales of 400 lbs., fell to 68,000 in the early summer, and (owing to the Oldham strike) to only 52,000 in the autumn. No doubt diminished power of purchase, on the part of some of our customers, accounted for a portion of the excessive accu- mulation of stock which led to enforced reduced production; but unquestionably the main cause was the outturn of more' yarn and cloth than coidd have been absorbed under the most favourable circumstances. That is to say, the increased rate of production was more rajsid than the increased rate of consumption would have been even if it had not been arrested by such adverse circum- stances as political disquietude, universally bad trade, and a general dechne in the values of the leading kinds of agricultural produce, which temporarily reduced the demand for all kinds of manufactures. Here are the average weekly deliveries of cotton 303 to English spinners during the sixteen years ended December 31,. 1884, in bales of the uniform weight of 400 lbs.: — years. Bales. Years. Bales. Years. Bales. Years. Bales, 1869. ,.45,000 ., .. 1S73., ,.60,000 . .. 1877. ..5S,000 .. . 1881., ,.70,000 1870, .52,000 . .. 1S74. ,61,000 . .. 1878. ..o7,000 .. . 1882.. .69,000 1571. .,60,000 . .. 1875., ..59,000 . .. 1879. ..57,000 .. . 1883., ,,73,000 1872. ..55,000 . .. 1876, ,.62,000 . .. 1880. ,,67,000 .. . 1884., ,.72,000 Average 53,000 60,500 59,750 71,000 Now it is difficult to conceive how, under any circumstances, the- wants of the world could have suddenly jumped up to the average of the last four years. We know from what happened in 1877-79 that there had been over-production in 1873-76; and we kno^\- now that there was o\'er-production in 1881-84, at all events in 1883 and 1884. In this connection the following account of tlie number and nominal capital of the Limited Liability Cotton Mills projected in each of the past twelve years is very suggesti-\e; — No. £ No. ' .£ No. £ 1873... 40 ... 1,784,600 1877...19 ... 1,180,000 1881,. , 25 ,,, 1,74-2,000 1874,,, 101 ,,, 5,790,400 1878,,,10 ... 328,500 ]S82 ,24 ,.. 1,908,500 1875,,, 84 ,.. 3,992,700 1879... 6 ... 257,000 1883,., 24 ,,, 1,580,000 1876,.. 17 ... 953,000 1880...23 ... 867,000 1884,,, 45 .,. 2,597,500 Total ...242 £12,5-20,700 58 £2,632,500 118 £7,828,000 Average ) Capital [ ,£51,740 £45,390 £66,340 per Mill ) A very large proportion of the companies projected in 1873-7.'i con- sisting of the already existing private mills, converted into Limited Liability Companies; but the bulk of the companies projected in 1881-84 consisted of entirely new- concerns, and the 118 mills represented a greater increciHed power of production than the 225 mills projected in 1873-75. There can be no doubt that what may be termed the abuse of the Limited Liability Act of 1862, has largely contributed to bring about the long-continued unsatis- factory condition of the cotton industry. The above figures shew how easy it is ,to float a number of gigantic spinning companies. Given a promoter, an architect, a builder, and a machine maker; select a period when the industry has just recovered from a long spell of depression, when the existing mills have recommenced to pay dividends, and when the public takes a sanguine view of the future — and the thing is done. Occasional periods of depression. 304 are unavoidably incidental to, and inseparable from, vigorous industrial progress. It is impossible, and it would be undesirable if possible, to so nicely adjust supply and demand that they shall run in exact parallel lines. The efforts of competing producers to meet the fluctuating requirements of consumers necessarily lead to occasional o"\'er-production ; while the reluctance to bring production back to the limits of consumption, results in such a serious diminution of profits that, before the equilibrium between supply and demand is restored, a h-ost of weak producers are crushed in the struggle for existence. But these periods of depression have been more frequent, of longer duration, and more Avidespread in their ramifications, since, than before, the passing of the Limited Liability Act The extent to which the production of cotton goods in the season 1882-3 exceeded the current requirements of the world ma}- he gathered from the following comparison of the estimated actual consumption of raw cotton in Europe and America in the tln'ce quinquennial periods ended with the season 1884-5, and in the separate seasons 1882-3, 1883-4, and 1884-5, in lOOO's of bales of 400 lbs. Average periods of five seasons The seasons ended ended Sept. 30. Sept. 30. 1871-75 1876-80 1881-85 1882-3 1883-4 1884-6 Great Britain 3,0.53 3,118 3,614 3,770 3,640 3,447 Continent 2,081 2,542 3,227 3,473 .3,287 3,224 United States 1,305 1,696 2,160 2,360 2,2,34 1,901 Total 6,439 7,356 9,001 9,603 9,161 8,572 It is quite clear that the production of 1882-3, following as it did the three seasons of activity after 1878-9, was very much larger than the world could reasonably have been expected to consume. The total increase in 1876-80 over 1871-75 was only 917,000 bales, but in the next quinquennial period there was an increase of 1,645,000 bales, the serious decrease in the two seasons ended 1884-85 notwithstanding. If any proof is required that the augmented rate of production had outrun any increase that might reasonably have been expected in the rate of consumption, it is afforded by the enforced reduced rate of production in the seasons 1883-4 and 1884-5. The extent of the falling back is unprece- 305 dented in the history of the industry, except during the cotton famine occasioned by the American war; but it is possible that something of the kind would have occurred after the season 1860-61, owing to over-production in that and the previous two- seasons, if the war had not broken out. 306 II. The following is an account of the weight of yarns and goods produced, the weight exported, and the weight left for home consumption and stock, in lOOO's of lbs. Yarns and Goods. Yarns and Goods. Left for Home produced. exported. Consumption and Stock, lbs. lbs. lbs. ' 1871 - 1,137,100 890,600 246,500 1872 1,106,700 935,400 171,300 1873 1,151,400 928,000 22.3,400 1874 1,192,700 953,400 239,300 1875 1,158,900 941,700 217,200 1876 1,188,100 976,700 211,400 1877 .- 1.170,100 1,002,100 168,000 1878 1.091,.300 986,100 105,200 1879 1,111,100 984,900 126,2U0 1880 1,300,600 1,082,000 218,600 1881 1,345,800 1,183,100 162,700 1882 1,352,300 1,115,900 236,400 1883 1,420,000 1,176,000 244,000 1884 1,387,200 1,163,000 224,200 1885 1,272,800 1,115,600 157,200 Total... 18,386,100 15,434,500 2,951,600 In reducing cotton to yarn, we haie assumed that of the 10 per cent, in American and long staples, and 18 per cent, in East Indian, usually put down as loss by the first spinners, one-half consists of waste which is used in coarse counts by other spinners. We have also made an extra allowance of 2|- to 3 per cent. , for the inferior American crops of 1873, 1876, 1878, 1881, and 1883. The goods exported are reduced to weight in accordance with estimates recently obtained from the leading shipping houses and cloth agents. The quantity taken for home consumption in 1871 was unusually large, owing partly to the reduced state of stocks everywhere, and partly to the increased demand for cotton fabrics occasioned by the extraordinary advance which took place in the price of woollen goods, the raw material of which rose about 50 per cent, in that year compared with 1870. We have estimated the real consumption in 1871 at 6| lbs. per head of populatioii, at 307 %l lbs. in 1872 and 1873, at about 6 lbs. in 1874, 1875, and 1876, at 5^ lbs. in 1877, and at 5 lbs. in 1878 and 1879. The consumption in 1880 and 1881 we estimate as equal to the whole of the balance of production left after deducting the weight exported. In 1882 and 1883 it was equal to about 6 J lbs. per head, since which it has fallen off a little. The consumption for the four years was about equal to the quantity left after allowing for export. During the fifteen years the population increased from 37,513,000 in 1871 to 36,825,000 in 1885. On the basis of these estimates the distribution of the quantity left for consump- tion and stock during the past fifteen years was as follows : — Estimated Left for Surplus Consumption Consumption. Stoclc. and Export, lbs. lbs. lbs. 1871 204,800 41,700 1,095,400 1872 199,000 14,000 1,134,400 1873 200,800 36,600 1,128,800 1874 194,000 73,200 1,147,400 1875 196,500 102,600 1,138,200 1876 19.5,800 118,200 1,172,500 1877 178,900 102,200 1,181,000 1878 168,900 43,600 1,155,000 1879 169,800 1,154,700 1880 190,000 28,600 1,272,000 1881 191,300 1,374,400 1882 220,000 16,400 1,335,900 1883 230,000 30,400 1,406,000 1884 210,000 44,400 1,373,200 1885 201,800 1,317,200 Total 2,951,600 18,386,100 We assume that there were no surplus stocks of goods at the commencement of 1871, and that the accumulations down to 1876 were cleared off by the end of 1879; that the surplus shown at the end of 1880 was used up in 1881; and that the accumulations of 1882-1884 were cleared off in 1885. In estimating the value of the total quantity of cotton products delivered each year, for export or consumption, we have taken the value of the exports as given by the Board of Trade, and we have assumed that the goods consumed at home are twice more valuable per pound than the goods exported. This assump- tion is based upon the figures given on page 123. In 1859-61, the average annual value of yarns and goods produced was about .£77,000,000; in 1880-82 it was about £107,000,000. The 308 average weight of yam and goods produced was about 910,000,000 lbs. and 1,332,900,000 lbs., respectively— valued and apportioned as follows in 1,000's : — 1859-61. 1880-82. lb. £ Per lb. lb. £ Per lb. Exp'd in yarn . . . 189,000 . .. 9,270 . .. 11-7 ... ... 236,300 . . 12,636 . .. 12-8 ,, goods, &c, , 536,000 . .. 39,759 . .. 17-7 ... ... 890,700 . .. 64,180 , . 17-3 Left for consum. 185,000 , ... 27,971 . ..36-3 ... .. 20-3 ... ... 205,900 . .. 30,184 . .. 35-1 Total \ 910,000 . . 77,000 . ...1,332,900 . . 107,000 . .. 19-2 It will be seen that in both instances the value of the ,goods retained for home consumption is about double the value per lb. ■ of the goods exported. This is owing to the better quality and to the superior finish of the products required for home use. On the basis of the foregoing assumption as to the value of the cotton products consumed at home we get the value of the total deliveries as follow, in 1,000 of £'s : — Value of Goods and Value of ■\'alue of Total Yams Exported. Home Consumption. Deliveries. £ £ £ 1871 72,821 33,587 10fi,408 t 1872 80,164 34,543 114,707 1873 77,363 34,169 111,532 1874 74,247 31,669 105,916 1875 71,772 ■31,128 102,900 1876 67,641 28,293 95,934 1877 69,228 25,880 95,108 1878' .- 65,909 23,800 89,709 1879 63,946 23,022 86,968 1880 75,564 26,679 102,243 1881 79,030 27,164 106,244 1882 75,826 31,551 107,377 1883 76,446 31,759 ' 108,205 1884 72,748 27,737 100,485 1185 66,972 2.5,960 92,932 In our Annual Review for 188.5, from which, for the most part, these figures are re-printed, we have estimated the value of the cotton products consumed at home at only one-third more per pound than the average value of the goods exported ; but we are now satisfied that the computations given on page 123 of the- present volume, and further analysed above, are much nearer the actual value, and we have accordingly revised the column which gives the "Value of Home Consumption," and made the necessary alterations in the " Value of the Total Deliveries." The cost of the raw cotton required to produce the goods so 309 delivered is given in the following table, along with the amount paid for wages, and the balance left for other expenses, &c. Balance for other expenses, &c. Paid for Paid for Per lb. of goods Cotton. Wages. Total. &c., delivered. £ £ £ d. 1871 39,297 25,102 42,009 924 1872 49,2.'il 25,996 39,460 8-35 1873 44,587 25,868 41,077 873 1874 38,676 26,292 40,948 8-56 1875 35,863 26,083 40,964 8-63 1876 32,341 2fi,869 36,724 7-52 1877 32,821 27,064 35,223 7-15 1878 32,099 25,145 .32,465 6-74 1879 32,042 23,155 31,771 6-60 1H80 37,047 26,500 38,696 7-30 1881 38,254 28,633 39,357 6'87 1882 39,075 27,831 40,471 7-27 1883 37,786 29,291 41,128 7'02 1884 36,676 28,608 35,201 6'16 1885 32,930 27,441 32.561 5-93 According to the census for 1871, the number of hands employed in the cotton industry, in all its branches, was about 660,000. The average rate of wages was about 15s. per week, or £39 per annum. This on the weight of yarn produced was equal to 5|d. per lb. We have calculated the wages for each year on this basis for the years 1871-77, at 5 per cent, less for 1878, say 5|d. per lb,, and at \2^ per cent, less for 1879, say 4-81d. per lb. Since 1879 we have calculated the rate at 5cl. per lb., or about 5 per cent, less than in 1878. In 1881 there were, according to the census for that year, 686,000 persons employed in the cotton industry. The average rate of wages was about £42 per annum, or £28,812,000. This, on the weight of yarn produced, gives an average of 5'03d. per lb. The "balance left for other expenses, &c.," includes every outlay except wages, such as rent, taxes gas, coal, oils, dyes, repairs. &c. It also includes interest of capital and profits. The last column of all shows how much " the balance left for other expenses is per lb. of the weight of goods, &a, delivered." 1871 was a year of exceptional prosperity, 1872 was almost the reverse. The years 1873, 1874, and 1875, were years of moderate profits. The high price of coal in 1873 was an exceptional source of loss to the millowners, and the result of the year's business was 310 less favourable than appears in our figures. In 1876 commenced the disastrous course of trade, which culminated in 1879. 1880 to 1883 were distinctly better than 1879, but not so good as 1871-75. 1884 and 1885 were both unprofitable : worse in fact than 1878 or 1879. It should be borne in mind, however, that the cost of production per lb. has diminished somewhat during the past few years (we see that partly in the item of wages), and it may be that the balance sheets of 1884 and 1885 were not actually worse than those of 1878 and 1879, but in any case they were exceedingly unsatisfactory. Although, in the nature of things, the foregoing calculations cannot be absolutely correct, practically, they accurately represent the econoniical condition of the cotton industry for the period over which they extend, while the results which they give are in strict accordance with the experience of spinners, manufacturers, and others engaged in the business. Moreover, they are borne out by the course of prices in the Liverpool and Manchester markets, as shown in the following statement of the average prices of cotton, yarn, and piece goods for the periods named : — Periods of Cotton Yarn Cloth Yarn Cloth Balance in three yeara. per lb. per lb. per lb. margin. margin, above table. d. d. d. d. ' d! ' d. 1871-73 9§ .. Ug 1874-76 7A ••• 12i 1877-79 6i ... lOA 1880-82 6§ ... 10^ 1883-85 511 ... 9§ UH ... 5 ... 5A ... Si 12^^ ... 4H ... 5i ... Si lOS ... 3H ... ii ... 6ii Hi ... 3J ... 4g ... 74 9i} ... 3A ... 4 ... 6f The cotton quotation for each period is that of middling uplands, and is the average of 156 weekly quotations. The yarn quotation is the combined average of good 2nds 30's water twist, and good 2nds 40's mule yarn. The cloth quotation is the combined average of 4|lb. and 5Jlb. printers, and 71b. and 8^1b. shirtings. The figures for each triennial period are the averages of 36 quotations (one a month) of a specific description of yam or cloth, as given in the monthly reports of Messrs. George Fraser, Son, and Co., of Manchester. The "yarn margin" is the differ- ence between the first and second columns. The " cloth margin " is the difi"erence between the first and third columns. The "Balance in above statement" is the triennial average of the 311 " Balance for other expenses, &c., per lb. of goods, &c., delivered," given in the final column of the previous table — which of course includes the expenses in connection with the production of the higher counts of yarn, and the finer makes of piece goods. The character of the fluctuations is the same throughout. Each of the last three columns show diminished margins from 1871-73 down tq 1877-9 ; a recovery in 1880-82 ; and a falling "back in 1883-5. All agree in making 1871-3 the most prosperous, and 1883-5 the least prosperous of the series. The total decline in the "yarn margin" (5d. to 3A-d.) is 29 per cent. ; that in the "cloth margin" (5Ad. to 4d.), 28 per cent. ; and that in the "balance, &c." (8fd. to 6fd.), 27|d. percent. The figu.res for the years showing the widest fluctuations compare as follows : — Cotton Yarn Cloth Yarn Cloth Balance in Years. per lb. per lb. per lb. margin. margin, above table. d. d. d. d. d. d. 1671 8A .-. 13s .. 14A . 5tV .... r,v ... 9J 1879 6^^ . . dit ... lO^V . . 3tV ... 4 ... 6g 1880 ...... GH ... 114 ... IIA ... 4fV ... 4g ... 7fV 1885 5f ... 8H ... S^w ... 3A ... 3^ ... 6i Cloth did not recover so promptly as yarn from the depression which ended in 1879 ; hence, in 1880, the margin was only |-d. per lb. better 'than in 1879, against a recovery of |d. per lb. shown by yam ; but in 1881 the "cloth margin" was iHd., and in 1882, 4|d., while the " yarn margin" fell back to 3fd. and 3fd., respectively. The quotations for 1885, compared with 1871, show a fall of 34'6 per cent, in the " yarn margin," one of 35*9 per cent, in the " cloth margin," and one of 35'9 per cent, in the "balance, &c."; showing a substantial agreement between our calculations for the fifteen years, and the actual course of prices. The shrinkage in the balance left for other expenses than wages is due, partly to improvements in machinery, whereby the cost of production per lb. has been materially lessened, partly to the reduced cost of mill building, and partly to the fall in the prices of the various materials used, such as coal, oils, dyes, &c. ; but unquestionably an important portion of the shrinkage represents the partial or entire disappearance of interest of capital and profits. 312 Labour has not yet borne any appreciable share in the unsatisfactory pecuniary results shown by the foregoing state- ments, except, of course, the losses occasioned by " short time '' and " strikes " ; but if Lancashire is to hold her own against the increasing severity of foreign, but especially of Indian, com- petition, the wages of labour, per pound of cotton spun and manufactured, must, in the immediate future, undergo an important reduction. This may be brought about either by improvements in machinery, which shall economise the employ- ment of labour; or by an actual reduction in the rate of wages ; or by a combination of both ; but in one form or another it must be accomplished, oc the business of Manchester will suffer a permanent diminution. The remedy most popular amongst the •operatives is "short time"; but "short time" would increase the cost of production, and render our spinners and manufacturers less able than before to hold their own against American, Con- tinental, and Indian competition. The only remedy likely to succeed would be, not to produce less, at an advanced cost, but to produce more, at a reduced cost. To adopt any other course would be tantamount to retiring from business in favour of our competitors. 313 III. As already stated, in many portions of the Continent much of the unsatisfactory state of trade is attributed to the severity of English competition ; but the increase in the exports from -Great Britain to the Continent down to 1 884 was not very important, while in 1885 there was a decrease. The complaints, however, show that England has held her ground fairly well in spite of protective tariffs. On page 110 we show that the weight of yam (118,205,000 lbs) exported to the Continent (exclusive of Russia, Turkey, Greece, and the English Possessions in the Mediter- ranean) averaged 0-61 lb. per head; the cloth (386,130,000 yards) 2 yards per head; and the total value of all kinds of exports (£13,856,000) 17.22d. per head. In 1884, the latest year for which complete returns are available, the population was about 198,000,000; the yarn exported 140,249,000 lbs. or 0-70 lb. per head; the cloth exported 390,670,000 yards or 1-97 yards per head; and the value of all kinds exported £15,334,000 or 18-58d. per head. Up to the end of 1 884, therefore, Lancashire had not been injured by Continental competition. On page 111 the consum^ption of cotton on the Continent (exclusive of Russia, &c.) in 1881 is given as 974,000,000 lbs. or 5-04 lbs. per head; in 1884 it was 1,144,000,000 lbs. or 5-77 lbs. per head, equal to about 28'8 yards per head against 25'2 yards in 1881. In the meantime the yarn exported from Great Britain to the same countries, at five yards to the pound, amounted to 704,245,000 yards against 591,025,000 yards in 1881, and the cloth 390,670,000 yards against 386,130,000, or a total of 1,094,915,000 yards against 977,155,000 yards or 5-5 yards per head, against 5-0 yards in 1881, 5.3 yards in 1871, and 5-8 yards in 1861, which, as we have observed on page 111, is by no means a bad exhibit. As respects the open markets of the world, Lancashire is 314 practically unassailable by either Continental or American com- petitors. At all events, this was so up to the end of 1884, the latest date for which complete statistics are available This is shown in the following table, which is a continuation of one given on page 112. The figures give the average annual value and weight of piece goods and yarn exported in the five j'ears 1876-80, and the four years 1881-84, to the "protected markets" and to the "open markets" of the world : — Protected Markets. Open Markets. Grand Total. Value Value Value , 1876-80 n,'n7,000 50,680,000 68,457,000 1881-84 18,015,000 58,006,000 76,021,000 Increase £238,000 £7,326,000 £7,564,000 Weight Weight Weight. Lbs. Lbs. . Lbs. 1876-80 219,500,000 793,700,000 1,013,200,000 1881-84 236,000,000 923,500,000 1,159,500,000 Increase 16,500,000 129,800,000 146,300,000 The increase in weight brings the shipments to the " protected markets " up to a larger total than the high figure touched in 1871-75—233,800,000 lbs. which was the largest movement achieved up to that date. The shipments to the "open markets" in 1881-4 were also the largest on record. The small increase in value, compared with the increase in ireight, is due to the fall in prices. On page 113 we give an account of the average annual value of cotton goods and yarn imported into, and exported from, France, Belgium, Holland, and the United States in the two quinquennial periods of 1871-75 and 1876-80. To these figures we now add the particulars for the four j-ears 1881-84, in lOOO's of £'s :— IMPOKTR. EXPORTS. 1S71-6 1876-80 1881-4 1871 5 1876-80 1881-4 £■ £, £ £ £ £ France 3,796 4,308 4,464 2,856 2,616 3,704 Belgium 507 475 568 697 770 883 Holland 3,161 2,920 4,048 2,845 2,218 2,739 United States 6,444 4,423 6,644 631 2,008 2,561 Total 13,908 12,126 15,724 7,029 7,612 9,887 315 The increase in 18814 upon 1879-80 is 30-1 per cent, in respect of imports and 29-8 per cent, in respect of exports. As the imports are received chiefly from Great Britain, Lancashire has not lost any ground in the race ; but she has gained very little, and we are afraid that the figures for 1885 will show a less favourable exhibit. The exports from the United States show a very respectable increase, bnt the average for 1881-4 was almost touched in 1878, in which year the value of the shipments was £2,288,000, while in 1884 the total was only £2,294,000 against £2,714,000 in 1881. There are no official records of the value of cotton products exported from Germany earlier than 1880, in which year the value of goods exported was £2,726,800 and of yarns £2,568,100 or a total of £5,294,000. As the figures are important we give them below, along with those of Austria, and the four countries named above : — 1880 IMPORTS. 1881 1882 1883 1884 & £ £ £ £ Geraiany 2,603,700 3,059,500 3,658,900 3,933,500 4,033,100 Austria 2,045,200 2,034,300 2,200,300 2,337,900 2,379,700 France 3,908,000 4,395,000 4,413,000 4,457,000 4,591,000 Belgium 545,000 557,000 553,000 604,000 558,000 Holland 2,690,000 2,583,000 2,807,000 3,306,000 3,449,000 Total Europe 11,791,900 12,628,800 13.632,200 14,638,400 15,010,800 United States 5,986,000 6,244,000 6,870,000 7,371,000 6,091,000 Grand Total 17,777,900 18,872,800 20,502,200 22,009,400 21,101,800 f. EXPORTS, £ £ £ £ Germany 5,294,900 4,607,100 5,271,100 4,938,000 5,147,000 Austria 684,100 802,900 732,200 922,700 814,300 France 3,164,000 3.528,000 3,912,000 3,738,000 3,641,000 Belgium 1,130,000 957,000 904,000 834,000 838,000 Holland 2,336,000 2,552,000 2,514,000 13,333,300 2,923,000 2,968,000 Total Europe 12,609,000 12,447,000 13,355,700 13,408,300 United States 1,996,000 2,714,000 2,644,000 2,590,000 2,295,000 Grand Total 14,605,000 15,161,000 15,977,300 ,15,945,700 15,703,300 The imports as already stated are chiefly from Great Britain. They show a steady increase, except in respect of the United States. The exports include fabrics woven from English yarn imported. The exports from the United States since 1881 have gradually declined; and, remarking upon this feature of the 1871-5 1876-80 1881 > 1882 1883 1884 £ a £ £ £ £ 1,577 2,525 2,954 2,899 2,777 2,669 347 486 634 570 460 412 316 American trade, the New York Financial Chranicle in September, 1885, said " It is a very sorry exhibit, showing not only how small this trade is in volume in its relation to the field to be covered, but, what is more surprising still, that it is annually decreasing." Part of the exports from the Continent come to Great Britain, but the figures are quite insignificant. Here they are for the quinquennial periods 1871-5 and 1876-80, and the years 1881 to 1884, in lOOO's of £'s :— Imports Re-exports Consumption 1,230 2,039 2,320 2,329 2,317 2,257 Of the £2,669,000 worth of cotton products imported in 1884, there came £428,000 worth from Germany, consisting chiefly of yarn and sundries; £863,000 from Holland, consisting chiefly of hosiery and sundries; £519,000 from Belgium and £508,000 from France, chiefly sundries ; £249,000 from the United States, chiefly piece goods; and £51,000 from India, also principally piece goods. The remaining £42,000 came from other places, including £2,000 worth from China. There is nothing formidable in any of these figures, and up to the present time Manchester has had little occasion to complain of the competition of either the Continent or the United States, - except within their own protected borders, while even there no ground has been lost in recent years. Sheer necessity, however, is forcing increased economy in the cost of production in both America and the „ Continent, and it is not at all unlikely that their competition in the open markets of the world will be severely felt as time goes on. 317 IV. But although Lancashire hiis not yet suffered severely from American or Continental competition in the outside markets of the world, the same cannot be said of the competition of the rapidly increasing cotton industry of India, to which reference has already been made on pages" 104-5. The most recent develop- ments of this comparatively new branch of Indian enterprise are quite surprising. Fifteen years ago the consumption of cotton by the Bombay and other mills in India was only 87,000 bales of 400 lbs. per annum; eight years ago it was 231,000 bales; last year it was 585,000 bales! Part of this rapid development of cotton spinning by machinery imported from England is, no doubt, at the expense of the ancient domestic spinning and weaving- industries of India; but, unquestionably, a large jjart is at the expense of Lancashire, whose trade with India and the East has been either retarded or diminished by the competition of the yarn turned out by the new Indian mills. The progress of the Indian cotton industry between 1877 and 1885 is shown in the following statemeut. In 1,000's of lbs: — Yeai- Cotton Yam Yarn and Goods Left for Home ended Spun. Produced. Exported. Consumption. March 31 Lbs. Lbs. Lbs. 7. Lbs. la 1876-77 88,600 76,520 11,905 15-6 64,615 8,4-4 1877-78 114,000 99,750 20,685 20.7 79,065 79-3 1878-79 104,600 91,520 28,511 312 63,009 68-8 1879-80 129,600 113,400 32,476 28'7 80,924 71-3 1880-81 148,800 130,200 35,472 27-2 94,728 72-8 1881-82 154,400 135,100 39,211 29-0 95,889 71-0 1882-83 172,400 150,850 56,412 37-4 94,438 62-6 1883-84 204,500 178,940 63,814 357 115,126 64-3 1884-85 234,000 204,750 78,478 38-3 126,272 61-7 It will be observed that an increasingly large proportion of the out-turn of the mills is exported. Of course these shijjments come into competition with similar products from England. The annual particulars are as follow, in 1,000 lbs. : — 318 Export of Indtan Yarxs and Goods from India. Y/irn anc i Thread. Piece Goods. All kinds. Lbs. £ Yds. £ Lbs. £ 1876-77 8,796 368 15,544 434 11,905 812 1877-78 17,176 683 17,545 442 20,685 1,143 1878-79 24,008 886 22,518 479 28,511 1,398 1879-80 27,316 1,110 25,800 487 32,476 1,622 1880-81 29,447 1,283 30,424 585 35,472 1,909 1881-82 33,230 1,370 29,911 600 39,211 2,011 1882-83 48,106 1,818 41,534 729 56,412 2,578 1883-84 52,702 1,928 55,564 896 63,814 2,853 1884-85 68,897 2,442 47,908 814 78,478 3,286 It is assumed that five yards of cloth ai'e equal to one pound of yarn. It is possible that there may be rather more than five yards to the pound; but the difference will be made up by the weight of sundry articles, entered at value only, and included in the last column of the table. The total consumption of cotton in India (aside from the primitive domestic industry still carried on in many parts of the country) compares as follows, in 1,000's of lbs. : — Total Net Impoi-t from Produced at Consumption Great Britain. Home Lbs. Lbs. 7. Lbs. 7. 1876-77 315,417 250,802 79 '5 64,615 20-5 1877-78 353,962 274,897 77'7 79,065 22-3 1878-79 321,749 258,740 80-0 63,009 20-0 1879-80 339,421 258,497 76-2 80,924 23 '8 1880-81 458,610 363,882 79-3 ~ 94,728 20-7 1881-82 450,001 354,112 78-7 95,889 21-3 1882-83 425,966 331,528 77-8 94,438 22-2 1883-84 468,1.30 353,004 75-4 115,126 24-6 1884-85 484,403 358,131 73-9 126,272 26'1 The proportion of Indian made goods consumed at home is gradually increasing. This is especially marked since 1880-81, since which year the imports from Great Britain have diminished, while the consumption of Indian made 2:)i'oducts has largely increased. The increase in the four years ended 1885 was 31,544,000 lbs., or 78,000 bales of 400 lbs., equal to 1,500 bales per week. The increase between 1876-77 and 1884-85 was 61,657,000 lbs., or 154,000 bales, equal to nearly 3,000 bales per week. Now it would take a large number of Oldham mills to, use 3,000 bales of cotton per week, and yet this is what Lancashire has lost since 1877 in consequence of the progress of the cotton .spinning industry in India. The Indian official year ends on March 31st, In the above 319 table the imports from England are for the years ended December 31st immediately preceding the Indian year — that is to say, the English figures for 1876 are added to the Indian figures for 1876-77. The full particulars are as follow, in 1,000's: — Exports from Great Britain to Inma. Ya: ni. Goods. All kinds. Lbs. £ Yards. .€ Lbs. £ 1876 31,663 2,062 1,166,230 12,758 262,909 14,934 1877 36,030 2,256 1,304,935 14,261 287,017 16,693 1878 33,392 2,106 1,189,060 12,825 271,204 15,078 1879 29,363 1,846 1,205,563 12,421 270,475 14,415 1880 44,098 2,833 1,670,310 18,042 .376,160 21,098 1881 40,183 2,518 1,639,743 17,480 368,131 20,169 1882 42,082 2,625 1,521,970 16,689 346,476 19,522 1883 42,172 2,555 1,653,073 17,475 369,186 20,280 1884 45,585 2,795 1,642,731 16,119 374,131 19,160 The total value includes sundry articles entered at value only. The particulars of the re-export of British yarn and cloth are as follow, 1,000's:— R E-EXPORI ; OF Bb ilTISH YaT IN, &c., FROM India. Yarn. Goods. All kinds. Lbs. £ Yards e Lbs. £ 1876 77 839- 58 56,341 1,061 12,107 1,123 1877-78 934 63 55,931 1,084 12,120 1,152 1878-79 755 51 58,544 1,216 12,464 1,184 1879-80 870 55 55,540 1,053 11,978 '■ 1,106 1880-81 661 47 58,086 1,141 12,278 1,199 1881-82 776 52 66,216 1,265 14,019 1,324 1882-83 917 57 70,158 1,322 14,948 1,389 1883-84 1,319 67 74,314 1,387 16,182 1,456 The particulars for 1884-85 are not yet published, but we estimate the weight at 16,000,0001bs., which leaves 358,131,0001bs. for consumption in India. The official report on the trade of India in 1884-85, says, in reference to the cotton imports: — "Grey and coloured piece-goods come under the head of increases, white piece-goods and twill under that of decreases; the increases were however due, not to an increased demand, but to the endeavour of manufacturers to find some outlet for their stocks. The trade generally suffered from the low range of prices in the English market, while it also seems clear that local manufacturers are to a good extent displacing foreign importations." The same report gives the number of spindles at work in India in 1885 as 2,047,801 against 1,895,284 in 1884, and 1,654,108 in 1883. Seven new mills were got to work in 1885, and twelve in 1884. 320 But the Indian mills, besides being dangerous competitors of Manchester in India its,elf, are even more active competitors in the outside markets of the East. In the following table we give particulars of the exports of yarn from Great Britain and India to China and Japan, in 1,000's of lbs. : — ExpoKT TO China Export to Japan From From England. India. Total. England. India. Total. Lbs. Lbs. LbB Lbs. Lbe. Lbs. 1876-77 12,475 6,330 18,805 17,323 261 17,584 1877-78 17,962 13,762 31,724 15,125 81 15,206 1878-79 11,058 18,146 29,204 25,409 1,194 26,603 1879-80 14,343 23,567 37,910 24,608 1,814 26,422 1880-81 19,514 22,946 42,460 26,912 2,143 29,055 1881-82 19,149 25,717 44,866 28,330 2,921 31,251 1882-83 15,226 37,.372 52,598 19,144 5,600 24,744 1883-84 13,370 41,041 54,411 20,129 6,247 26,376 It will be seen that India is rapidly driving England out of the China market, while within the past few years she has made considerable progress in the same direction in Japan. In the following statement the two sets of figures are added together : — Total Exports to China and Japan. From England. From India. Total. Lbs. 7, Lbs. 7. Lbs. 1876-77 29,798 891 6,591 10-9 36,389 1877-78 33,087 70-5 13,843 29-5 46,930 1878-79 36,467 65-3 19,340 34-7 55,807 1879-80 38,951 60-5 25,381 39-5 64,332 1880-81 46,426 64-9 25,089 351 71,515 1881-82 47,479 62-4 28,638 37-6 76,117 1882-83 34,370 44-4 42,972 55-6 77,342 1883-84 33,499 41-5 47,288 58-5 80,787 At one time England monopolised the^ yarn trade with China and Japan. Even in 1877 she supplied 89 ■! per cent, of the imports, leaving only 10-9 per cent, for India; but in 1883-4 England's proportion had fallen to 411^ per cent., while that of India had risen to 58-| per cent, The details of the separate exports from India to China and Japan in 1884-5 are not yet (March, 1886) issued. The total to all parts is given above under the head of "Exports of Indian Yarns and Goods from India." The exports of piece goods from India are much less impor- tant than the exports of yarn, but the business is rapidly increasing, the shipments having risen to 55,564,000 yards in 1883-4, against only 15,544,000 yards seven years previously. These goods go 321 chiefly to the Eastern markets. The total weight of Indian yams and goods exported to all parts added together compares as follows with the weight of yarns and piece goods exported from Great Britain to China and Japan in millions of lbs. : — EKpovted fr om Great Bi'itaiii. From India. Grand Piece < Hoods. Yarn. Total. Total. Total. Yds. Lbs. Lbs. Lbs. 7. Lbs. 7. Lbs. 1876-77 493-5 98-7 29-8 128-5 91-5 11-9 8.5 140-4 1877-78 394-5 78-9 .33-1 112-0 84.4 20.7 15-6 132.7 1878-79 382-3 76-4 36-5 1129 80-0 28-5 20-0 141-4 1879 80 .523-9 104-8 38-9 143-7 81-6 .32.5 18.4 176.2 1880-81 509-1 101.8 46-4 148-2 82.9 35.5 17.1 183.7 1881-82 .587.2 117-4 47.-5 164-9 80-8 39-2 19-2 204-1 1882-83 454-9 91-0 34-4 125-4 69-0 56-4 31-0 181-8 1883-84 415-9 83-2 33-5 116-7 64-6 63-8 .35-4 180-5 1884-85 449-9 90-0 38 -S 128-8 62-1 78-5 37-9 207-3 These figures, like those in the table relating to yarns only, show greatly to the disadvantage of Great Britain. Of the total exports of goods and yarn to China and Japan in 1876-77, 91^ per cent, were from Great Britain and 8 J from India; but in 1884-85 Great Britain's share had fallen to 62-1 per cent., while that of India had risen to 37-9 per cent. If we divide the figures into three periods of three years each the annual averages .compare as follow, in 1,000's of lbs.: — 1S70-70 1879-82 lS82-Sr, From Total. Total. Total. Lbs. 7. Lbs. 7. Lbs. 7. Great Britain 117,800 85-2 152,300 81-0 123,600 65-1 India 20,400 14-8 35,700 19.0 66,200 34-9 Total 138,200 100-0 188,000 1000 189,800 100-0 Between 1879 and 1882 the exports from Great Britain increased 34,500,000 or 29-2 per cent., but between 1882 and 1885 they decreased 28,700,000 lbs. or 18-9 per cent; in the meantime the exports from India increased 15,300,000 lbs. or 75 per cent, in the first period, and 30,500,000 lbs. or 82-6 per cent, in the second period. The total export to China and Japan in 1882-85 averaged 189,800,00 lbs. or an increase of 51,600,000 lbs. over 1876-9: of - this increase India supplied 45,800,000 lbs., leaving only 5,800,000 lbs. for Great Britain. The values of the exports, of Avhich the quantities are given W 322 above, and of sundry articles entered neither in lbs. nor yards, compare as follow : — From Great Britain India 1876-77 6,392,000 812,000 1877-78 £ 5,496,000 1,143,000 1878-79 5,650,000 1,398,000 Average for ^ 5,846,000 1,118,000 6,964,000 Average for i £ 7,284,000 1,847,000 9,131,000 Average for 3 £ 5,697,000 2,906,000 i years. Per% 83-9 16-1 Total Great Britain India 7,204,000 1879-80 £ 6,570,000 1,622,000 6,639,000 1880-81 7,322,000 1,909,000 7,048,000 1881-82 £ 7,959,000 2,011,000 9,970,000 1884-85 5,593,000 3,286,000 100-0 i years. Per^ 79 '8 20-2 Total Great Britain India 8,192,000 1882-83 £ 6,059,000 2,578,000 9,231,000 l«83-84 £- 5,439,000 2,853,000 1000 1 years. Per*/ 66 -^ 33-8 Total 8,637,000 8,292,000 8,879,000 8,603,000 lOO'O' This table of values tells the same story as that relating to quantities. Between 1877-79 and 1880-82 the exports from Great Britain increased £1,438,000, or 24-6 per cent., but in the last three years (1882-85) decreased £1,587,000, or 21 -S- per cent. ; while from India there was a continuous increase : £729,000, or 65-2 per cent., in 1880-82 over 1.877-79, and £1,059,000, or 57-3 per cent., in 1883-85 over 1880-82. In the third triennial period, compared with the first, there is a decrease of £149,000 in the exports from Great Britain, but an increase of £1,788,000! in the shipments from India. In 1877-9 Great Britain shipped 83-9 per cent, and India 16'1 per cent, of the total value of British and Indian cotton products exported tO' China and Japan ; but in ] 883-85 the proportions were only 66'2 per cent, of the British against 33-8 per cent of Indian, The severity of this Indian competition has only been felt within the past few years, and its serious significance is not yet adequately appreciated by those immediately concerned. In an interesting paper on "The Cotton Trade of India," written by Mr. Lewis Rushworth, formerly manager of the Hollinwood Spinning Co., Oldham ; and no*v manager of the City of Bombay Manufacturing Co., the author concludes as follows : — Having taken into consideration all the facts mentioned we are brought to the following results : — First, that the cotton trade of India is at present 323 in a fairly remunerative condition, and also that it is only in its infancy ; and that it is in the centre of the consuming markets of the East, which are the largest in the world, and, as time goes on, there is every {jrobablity that the cotton manufacturing industry here will be very much increased ; also that the workpeople will, year by year, become more efficient, conse- quently will individually produce more at a less cost to the spinner in consequence of this greater efficiency. Secondly, that it is very probable ■American cotton will be imported here before long, and consequently more direct competition with Lancashire cotton mills, as the same kind of goods will be produced, and, in my opinion, at less cost. -Thirdly, that there is every reason to believe that with increased railways the people will become richer in consequence of being able to sell the produce of their lands, and also will be enabled to grow cotton very similar to American cotton, as by becoming richer they can devise means for irrigating their lands. Fourthly, I am forced to the conclusion that there is a good future in store for the Indian cotton industry, and I shall not be surprised to see that in the next few years the industry will make very rapid strides indeed, and Artll become a, very great competitor against Lancashire manufactured goods. The following account of the cotton-spinning and weaving mills working and in course of erection in India is from the latest (1885) official returns : — No. of Mills. Bombay Presidency ... 68 .. Central India 1 .. Central Provinces 2 .. Berars I .. Nizam's Territoiy 1 . . North- West Provinces. 3 .. Bengal Presidency 6 .. Madras Presidency 5 .. Total 87 ... 7,664,050 .. 2,145,646 ... 16,537 ... 67,186 Of the 68 mills in the Bombay Presidency, 49 are in the i.sland of Bombay. They contain 1,347,390 spindles, and their annual consumption of cotton is estimated at 153,759,206 lbs., or 114 lbs. per spindle. The 19 mills in the up-country districts of Bombay contain 302,646 spindles. They consume 28,804,944 lbs., or 95 lbs. per spindle per annum. The 19 mills in all other districts in India contain 495,610 spindles. They consume 51,261,448 lbs. of cotton per annum, or nearly 103 lbs. per spindle. The total estimated consumption for all India is 233,925,608 lbs., or about 109 lbs. per spindle per annum. Capital paid up. No. of No. of No. of £ Spindles. Looms. Handsi. 5,934,460 .. 1,650,036 . . 14,588 . ,. 51,426. 80,000 .. 26,036 . 464 . .. 714 185,000 .. 42,576 .. 365 . .. 2,306 45,640 .. 16,380 . — . 537 70,000 .. 15,172 .. 205 . 60;> 275,000 .. 80,356 . . 779 . .. 2,659 760,350 .. 229,098 . — . .. 6,341 > 313,600 .. 85,992 . 136 . .. 2,599 ■Mi We conclude with a comparison of the average annual delimii's of cotton in Europe, America, and India in the two periods— 1866-70 and 1881-S5^1,000's of bales of 400 lbs.:— 1866 -70_ 1881-85 Increase Increase iDCrann, Bales. Bales. Bales. "7. Bales. 7. (xreat Britain 2,435 47.7 3,610 38-0 1,175 48-7 78 3-2 Continent 1,633 32 3,285 34 S 1,652 lOM no 6-7 United States 960 19 2,142 225 ).1S2 123-1 79 8.2 East Indies 70 1-3 471 5.0 401 572.8 27 38-6 Total 5,098 lOO'O 9-5d8 lOO'O 4;410 SB'O 294 5-9 Part of the increase on the Continent is due to the improved material condition of the people, and part to the substitution of cotton for linen clothing — similar to the movement which took place in England between 1840 and 1860. As the increase in the population of the United States is abont 3 per cent, per annum, against an average of only 1 per cent, in Europe, there is a, correspondingly large increase in the demand for clothing. Moreover, more bagging is required to move the increased production of flour and other products, for tlic packing of which cotton bagging is used. The increase in India is, as already stated, partly at the expense of the ancient cotton industries of the interior, which are being gradually .supplanted b}' European methods. Y. The last factory returns give the numher of spinilles in Great Britain as follows, compared with previous 3rears : — Avei'ag;e Annual No. of Increase Increase Spindles. Total. Per Cent. Total Per Ct. 1850 20,977,017 — — — ~ 1861 30,387,467 9,410,450 44-8 855,495.. .4-1 1870 38,218,758 7,831,291 25-7 87o,143...2.8 1874 41,881,789 3,663,031 9-6 915,758. ..2-4 1878 44,206,690 2,324,901 5-5 581,250.. .14 1885 44,348,921 142,231 0-23 20,318. ..0-03 Now, anyone acquainted with the movements of the cotton industry will know that the figures foi' 1 885 are wrong. It is nonsense to suppose that during the last seven years only 142,231 spindles have been added to the previous total. The increase in the Oldham district alone is about 3,000,000. The discrepancy is probably due to some variation in the method of collecting the returns at the several dates. The retiu'ns for 1850 and 1861 give the "number of spindles'" without any further specification ; that for 1870 gives the " number of spinning spindles " and the " number of doubling spindles " separately, anTIONS. American Brazilian Egyptian W. Indian, ic. East Indian 2,392,690 209,990 285,160 60,710 366,620 IMPORT. 36 1884 2,682,030 245,820 276,830 48,620 801,460 EXPORT. 1885 200,620 2,920 15,260 6,790 249,240 1884 199,430 4,730 9,880 7,400 41J,680 NET IMPORT. 1885 2,191,970 207.070 269,900 44,920 117,380 1884 2,482,600 • 241,090 266,950 41,120 388,770 Total 3,306,060 4,054,660 . 473,820 634,120 2,831,240 3,420,630 DELIVERIES TO CONSUMERS. STOCK, 31ST Dec. Desckiptio.x.s. Total 62 Weeks. AVEinGE PER Week. 1885 1884 1886 1884 1885 •1884 American 2,164,040 2,618.980 41,616 48,442 409,190 381,260 Brazilian 186,750 287,680 3,591 6,630 32,030 11,710 Egyptian 280,860 264,800 E,401 6,092 62,070 73,030 VV. Indian, &o. 36,720 41,790 70S 802 18,980 10,780 East Indian 223,330 382,590 4,295 7,359 36,050 142,000 Total 2,891,700 3,496,740 66,609 67,226 668,320 618,780 Stocks held by Spinners. — The stocks held at the mills we estimate as follow, compared with the previous five years :- 1885 1884 1883 1882 1881 1880 American. 130,000 231,000 131,000 120,000 176,000 130,000 Brazil. 6,000 6,0OT 10,000 6,000 2,000 3,000 TSgyptian. 27,000 3 ',000 30,000 10,000 25,000 30,000 '. India. 2,000 3,000 3,000 2,000 2,000 2,0CO E. India. 6,000 12,000 13,000 16,900 6,000 6,000 Total. 170,000 282,000 187,000 152,000 210,000 170,000 Home Consumption. — The deliveries to home consumers were 2,891,700 bales, or 604,040 bales less than in 1884. The actual consumption was 3,003,700 bales, or only 397,044 less than in 1884, there being a decrease of 112,000 bales in the stocks at the mills. AVeight of Imports, Delivekies, &o. — The following is an account of the weight of each description of cotton imported, exported, and consumed in 1885, and the quantities left in the ports at the end of the year, compared with the figures for 1884 : — Import. Export. Consumption. Stocli, Dec. 31. 1SS.1 Lbs. Lbs. Lbs. Lhs. American 1,086,235,860 90,479,620 1,026,716,0)0 184,644,690 Brazil 35,488,310 493,480 31,668,910 5,413,070 Egyptian 191,060,600 10,217,600 189,2.58,930 41,686,900 Pemvian W. I. &c. 9,633,480 1,088,620 6,843,320 3,668,240 Ea^t Indian 142,981,800 96,705,120 89,085,180 14,059,,500 1,465,289,950 198,984,240 1,343,561,370 249,172,400 Import. E.xport. Consumption. Stock, Dec. 31 1S84 Lbs. Lbs. Lbs. ■ Lbs. American 1,204,242,470 89,644,070 1,088,733,480 170,804,480 Brazil 40, .560, 300 780,4.50 48,451,700 1,932,150 Eg:}-ptian 182,984,630 6,530,680 174,528,400 48.272,830 Peruvian AV. I. &c. 8,248,400 1,268,000 7,115,760 1,832,600 East Indian 307,756,800 156,818,400 264,931,600 147,597,080 1,466,426,410 54,628,000 1,743-,792,600 277,370,060 The average weight of the bales imported was about 443 lbs., against 430 lbs. in 1884, 432 lbs. in 1883, 418 lbs. in 1882, 434 lbs. in 1881, and 436 lbs. in 1880. The average of each growth compares as follows : — United W. India, All States. Brazil. Egypt. &c. E. Indies. kinds. lb. lb. lb! lb. lb. lb. 1886 454 169 670 188 390 443 1884 449 166 661 170 3S4 430 lSS.-i 4r,4 170 056 171 382 432 1882 447 173 668 160 378 418- isai 463 180 661 170 384 434 1880 464 190 B22 162 368 436 The average weight of cotton exported was 420 lbs., against 402 lbs. in 1884, 395 lbs. in 1883, 387 lbs. in 1882, 400 lbs. in 1881, and 378 lbs. in 1880; and of cotton consumed, 447 lbs. against 432 lbs. in 1884, 435 lbs. in 1883, 429 lbs. in 1882, 443 lbs. in 1881, and 444 lbs. in 1880. Recapitul.\tiox. — The entire movement of the year is shown in the following statement : — ISSn 1884 Lbs. Lbs. Stock in the Poi-ts 1st January 277,370,060 298,754.470 Stock held by Spinners 1st January 129,729,000 85,910,000 Import during- the year 1,466,289,960 1,743,792,600 Supply Export during' the year Stock in the Ports '31st December Stock held by Spinners 31st December Total Home Consumption 1,872,389,010 198 984,240 249,172,400 80,671,000 538,827,640 1,343,561,370 2,128,467,070 2.54,931,600 277,370,060 129,729,000 662,030,660 1,466,426,410 CoNsrMPTiON or Gkeat Britain por Ten Years. — The following is a comparative statement of the consumption of cotton in Great Britain for the past ten years : — Bales. Pounds. Hales. 1885 8,003,700 1,343,561,370 1880 :!,078,2eO 1,372,636,630 1884 3,400,740 1,466,426,410 1879 2,707,360 1.173,325,990 1883 3,430,150 1,497,601,900 1878 2,682.310 1,178,461,070 1882 3,408,140 1,461,440,980 1877 3,020 540 1,2,37,373,500 1881 3,244,370 1,439,393,160 1870 3,084,960 1,274,370,760 Total. 188S 3,368,900 1884 3,666,060 1883 3,744,000 1882 3,6.>3,600 1881 3,698,480 , Total. Per week. 3,i31,690 65,920 2,933,310 57,410 2,941,120 .56,660 3,024,430 59,510 3,18.'),94U 01,260 333 In order to give a coi-rect comparison of the amount of cotton consumed, we have reduced the bales to the uniform weight of 400 lbs. each, as follows : — Per week 64,590 1880 70,600 1879 72,000 1878 70,260 1877 69,200 1876 The figures for 1885 show a decrease of 5,910 bales per week, or 8 '4 per cent. Compared with 1883 there is a decrease of 7,410 bales, or 10-3 per cent. Average Value per Lb. of Imports, &c.— The following is a state- ment of the average price per lb. of raw cotton imported, exported, consumed, &c. , for the past ten years : — 1886 1884 1883 1882 1881 1880 1879 1878 1877 1876 d. d. d. d. d. d. d. d. d. d. Import 6fJ 6,Ib IJ 6\ i>i\ 6i ,6i U,'„ (jj 6^ Export 5i 5i 6J b% .■■■,», 6}8 5-^ 6|.', 5|;! 6? Consumption 6^1 0,',, 6,», 6i 6i ef 6|.'i 6J e,-', 6;^ At the foregoing average prices, the values of the cotton imported, exported, and consumed compare as follow, in 1,000's : — IMPORT. EXPOKT. CONSU.MPTION. Ycar«. VVei^-ht. Value. Weight. Value. Weight. Value. Lbs. £ Lbs. ii Lbs. £ 1885 1,409,917 33,045 198,984 4,363 1,343,661 31,839 1884 1,743,792 44,497 264,931 6,443 1,466,426 37,042 1883 1,742,139 43,663 239,863 6,117 1,610,600 38,168 1882 1,769,223 46,073 269,982 6,822 1,461,440 39,680 1881 1,676,122 43,109 216,228 4,938 1,439,393 37,484 1880 1,588,072 37,890 200,798 4,863 1,372,637 37,890 1879 1,449,526 37,747 186 000 4,466 1,173,326 30,861 1878 1.306,747 33,323 144,973 3,410 1,176,451 30,330 1877 1,306,213 34,016 166,291 4,003 1,237,373 32,.545 1876 1,469,970 37,260 193,525 4,233 1,274,377 32,866 Pro (lUCTioN AND Distribution of British Cotton Goous, &c. — Subjoined are particulars of the production and export of cotton manufactures and yarns, with the quantity left for home consumption and stock, in the years 1883, 1884, and 1885, in 1,000's of lbs., &c. :— Productios. 1883 1884 1885 Cotton Consumed Lbs. 1,510,600 1,466,400 1,343.600 Less Waste in Spinning; „ 90,600 79,200 70,700 Yam Produced „ 1,420,000 1,387,200 1,272,800 Exported in Goods and Yarn „ 1,176,000 1,163,000 1,115,600 Home Consumption and Stock Lbs. 244,000 224,200 157,200 Qlantities op Goods and Yar.ns Exported. Piece Goods— White or plain Yards. 3,136,891 3,096,064 3,160,114 Printed or Dved „ 1,379,430 1,321,236 1,224,160 of mixed materials ,, 22,836 281 206 Total _ Yards. 4,639,167 4,417,481 4,374,479 Hosierj— Stockings ,, Sundries Lace Sundries unenumerated Yarn Thread for Sewing Value of Goods and Yarns Exported. ^'alue of Piece Goods „ Ho-siery, Lace, etc. ,, Yarn ,, Thread Total Value of all kinds Exported Doz. pairs. 1,711 1,820 1,731 Value & 634 611 374 2,707 2,462 2,381 ,, 1,168 1,269 1,198 Lbs. 264,847 271,077 245,732 .. 14,456 14,682 61,661 16,059 XPORTED. £ 55,533 48,274 £ 6,046 4,791 4,473 £ 13,511 13,812 11,869 £ 2,368 2,472 2,366 334 Fluctuations in Pkicem. — The opening, lowest, highest, closing, and average quotations for middling uplands for the last five years compare as- follow : — 1885 1884 1883 1882 1881 1880 d. d. d. d. d. .d. Opening- 6 6J 0% 6| «:} m Lowest *H 6a 5^- ii 5| c? Highest e| 6h 6i 7A 7/. n Closing m 6 6-J ''i 6* 6J Average n 6 6J 66 6,', 6} if The diiference between the highest and lowest prices in 1885 was Ix^d., against Id. in 1884, Jd. in 1883, l^d- in 1S82, Ittd. in 1881, and Jd. in 1880. The opening, lowest, highest, closing, and average prices of Middling Upland, 32's cop twist, and 8J shirtings, compare as follows for three- years : — Mid, Uplands. 32's Cop Twist. SJ lb. Shirtings. 1886 1884 1883 1885 1884 1883 1S86 1884 1883 d. d. d. d. d. d. s. d. s. d. s. d. Opening 6 5| 6 J 8} S,", 8} -3 a ii 6 6i 7 OJ Lowest 4}j 6?j 5S 7| 8^ Sy", 6 9J 6 ij 6 SJ Highest 6J 6^, 6i 8)g 8};> S\i 6 4j 6 lOJ 7 0.f Closing 4}| 6 6J 7J 8} 8/, 5 11 6 4i 8 6^ Average SJ 6 SJ 8J 8| 8i 6 6 6 6 7 The quotations for 32's twist and 8J lb. shirtings are in each case the average of the highest and lowest quotations given by several firms. Distribution of Goods and Yakns Expoeted. — The following is an account of the exports of piece goods and yam to the principal districts of the world, in ],000's of yards and lbs. in 1883, 1884, and 1885, as per the Monthly Board of Trade Returns. These figures are in continuation of these given on pages 63 and 64 : — 1883 1884 1886 Piece Goods. Yards. Per cent. Yards. Per cent. Yards. Percent. Europe (except Turkey) 382-4 8-42 440-2 9-97 397-1 9-08 Turkey, Egypt, and Africa 618-0 13-64 662-8 12-74 554-7 12-6& America (except U.S.) 730-2 16-08 717-3 16-24 693-1 is-ee- United States 62-7 1-36 .53-3 1-21 46-2 1-06 British East Indies 1,799-7 39-68 1,791-5 40-65 1,796-2 41-07 China, Japan, Java, etc. 696-8 13-14 600-7 13-60 729-1 16-67 AH other countries 363-0 4,539-2 7-78 251-6 4,417-4 5-69 258-0 4,374-4 5-89- Total Yards 100- 100- 100- Total Value £ 65-5 61-6 48-2 Yarn. Lbs. Per cent. Lbs. Per cent. Lbs. Percent. Europe (except Turkey) 141-8 63-55 149-4 55-13 136-1 64-98- Turkey 23-0 8-59 23-0 8-49 23-7 9-66 British East Indies 46-3 17-11 49-1 18-12 44-6 18-11 China, Japan, Java, etc. 33-6 12-65 38-9 14-36 33 13-43 All other countries 21-2 264-8 8-10 10-e 271-0 3-91 9-4 3-88- Total Lbs. 100- 100- 245-7 100- Total Value £ 13-0 13-8 11-9 33.J II.— THE AMERICAN COTTON CROP AND ITS DISTRIBUTION. The last American croii reached 5,069,021 bales, according to the New Yorlc Financial Chronicle, and 5,706, IGJ bales, according to the National Cotton Exchancje. The particulars compare as follows : — Financial Chronicle. National Exchaiiffe. 1884-85 1883-84 1884-86 1883-84 Receipts at Ports 4,776,199 4,850,675 4,773,541 4,800,554 Overland at Mills 626,822 529,477 633,241 691,580 Southern Consumption 266,000 334,000 299,383 321,066 Total Crop 6,669,021 6,714,052 6,706,166 6,713,200 The distribution of the crops for the two seasons compare as follows,, according to the authorities already named : — Finaticial Chronicb'. National Excha^T^p. Crop as above Stocks, September 1st 1884-85 6,669,021 116,190 5,785,211 132,421 6,662,790 2,412,281 65,223 403,762 1,027,176 3,908,442 9,537 1888-84 6,714,052 287,117 1884-85 6,706,165 126,721 1883-84 6,713,200 235,484 Supply Stocks, 31st August Deliveries 6,051,109 116,190 6,834,079 2,409,326 11,977 469,368 913,511 6,832,880 120,488 6,703,393 6,948,634 126,721 5,821,06;J Exports to Great Britain ,, Channel „ France „ Continent 2,360,016 66,223 403,720 1,059,611 3,888,576 2,484,836 11,997 468,996 . 928,375 Total Less foreign included 3,894,202 13,736 3,894,204 Total to Europe Export to Mexico, &c. Sent to Canada Burnt North and South Northern Consumption Southern Consumption 3,898,905 31,053 32,942 4,201 1,419,689 266,000 1,763,885 3,880,466 22,377 28,100 14,873 1,555,103 334,000 3,888,576 31,063 28,343 2,301 1,437,063 316,062 3,894,204 ' 22,377 22,052 6,647 1,637,166 339,617 Total for America 1,964,613 1,814,832 1,927,759 Grand Total, as above 5,652,790 5,834,979 5,703,308 6,821,%3 The deliveries, mill stocks, and the estimated consumption for the past nine seasons compare as follow : — Deliveries Mill Stocks Total North & South. Sept. 30, Supply. 1876-77 1,485,4)8 46,698 1,482,016 1877-78 1,646,298 47,016 1,693,314 1878-79 1,568,960 63,314 1,632,274 1879-80 1,803,806 27,274 1,831,079 1880-81 1,891,804 01,079 1,982,883 1881-82 1,899,206 127,883 2,027,089 1882-83 2,103,912 60,883 2,164,795 1883-84 1,889,163 103,795 1,992,958 1884-85 1,685,689 15,441 1,701,130 The Chronicle gives the number of spindles at the close of the past four seasons as follow : — 1886 1884 1883 1882 North 12,100,000 12,100,000 11,800,000 11,320,009 South 1,150,000 1,100,000 860,000 680,000 Total 13,260,000 13,2u0,000 12,660,000 12,000,000 Mill Stocks Consumption Aug. 31. Total. Per week. 47,016 1,435,000 27,600 63,314 1,630,000 29,420 27,274 1,605,000 30,860 91,079 1,740,000 33,000 127,883 1,866,000 35,670 60,883 1,066,206 87,811 103,795 2,061,000 39,634 15,441 1,077,517 38,798 16,000 1,686,130 32,425 336 III.— EXPORTS OF COTTON FROM INDIA TO EUROPE. The following is an account of the exports of cotton from the various East Indian ports in the ten years ended 1885. Exports to Geeat Britain. Year. Bombay, &c. Calcutta, &c. Madras. Tuticorin. Coconada, &c. Total. 188.5 240,208 67,184 13,660 43,497 2.7S1 367,220 1884 627,467 83,8j8 66,016 67,179 2,710 737,020 1883 610,002 90,104 61,000 66,348 2,216 719,670 1882 819,538 120,675 72,477 17,002 13,029 1,042,621 1881 886,025 116,970 20,674 7,444 6,326 643,438 1880 395,887 117,976 34,925 11,236 13,684 673,607 1879 204,930 132,639 46,389 32,,327 11,811 489,096 1878 334,164 12,263 30,970 52,929 10,427 440,743 1877 397,242 74,717 1,413 13,404 14,080 600,866 1876 668,076 26,912 92,960 39,316 6,970 722,234 ExfOETS TO THE CONTINENT. Year. Bombay, &(:. Calcutta, ic, Madras. Tuticorin. Coconada, &c. Total. 1885 528,213 19,270 670 31,284. .... .21,662 600,989 1884 709,389 39,314 640 32,683 24,109 806,035 1883 887,863 9,011 1,263 47,963 11,399 907,479 1SS2 667,336 35,120 7,696 2,400 21,263 733,815 1881 630,130 36,440 3,012 — 8,799 678,881 ISSO 646,816 31,020 2,676 4,000 3,844 587,856 1S79 392,970 6.5,775 4,642 12,185 6,141 470,713 1878 406,673 13,669 2,246 20,630 6,600 449,818 1877 466,582 3,768 — .'i,514 1,000 466,854 ]S7li 435,065.... 860 7,446 21,746 23,664 488,669 Total Exports to Europe. Year. Bombay, &c. Calcutta, &c. Madras. Tuticorin. Coconada, &c. Total. 1885 768,411 86,454 14,220 74,781 24,333 968,199 1884 1,230,746 122,972.. . . 65,666 99,802 26,819 1642,065 1S83 1,347,866 99,116 62,263 114,301 13,616 1,627,149 1882 1,486,874 165,696 80,173 19,402 34,292.... 1776 436 1881 1,016,155 163,410 29,686 7,444 15,124 1221,819 1880 942,202 148,996 87,601 1.6,236 17,428 ... 1161462 1879 657,900 189,414 51,031 44,.612 16,952 969,809 1878 740,827 26,932 33,216 73,.669 17,027 890,661 1877 863,824 78,476 1,413 18,918 15,080 967 710 1876 993,141 26,762 100,406 61,061 29,624 1,210,893 Bombay, &c., includes Kurrachee and Carwar ; Cakutta, &c., includes Rangoon ; Coconada, &c. includes Masulipatam. The figures are from Messrs. Wallace and Co.'s reports. The receipts into Bombay from the principal districts compare as follow : — Oonn-a and Comptali, Persia Year. Hingenghat. DhoUera. Broach. Dharw.-ir, &c. and Scinde Total 1886 378,742 389,316 126,316 200,184 48,316 ' 1142 873 1884 463,421 624,514 162,478 373,651 48 633.... 'iWeg? 1883 641,967 679,362 210,883 330,288 23,260... . 1786 750 1882 732,088 617,790 127,737 349,887 48,765 .. . 1 776 217 1881 602,689 622,967 116,691 209,461 26 239 1 378 037 1880 417,856 339,119 218 659 211,603 32 541 ' "' I'aw'??? 1879 426,839 142,966 88,344 179,620 46357!;'..;; WciS 1»78 592,731 111,820 75,663 136.409 19819.. .. 936442 18" 491,!'43 377,673 175,062 37,297 26 336 .. 1107101 1876 417,855 416,106 137,722 133,473 10;837 l|l21,'993 The receipts from Hingenghat have averaged about 16,000 for the past- ten years. The receipts from Comptah, &c., include arrivals from Bencal and Madras. 337 IV.— THE EGYPTIAN COTTON CROP, The following is a comparative statement of the receipts of cotton at Alexandria for the twelve seasons ended 1884-5, in cantars of 93 lbs. net each. Cantare. Cantars. 1884-86 3,615,760 1878-79 1,68S,749 1883-84 2,894,000 1877-78 2,693,670 1882-83 2,284,250 1876-77 2,773,258 18?l-82 2,912,073 1876-76 2,928,498 1880-81 : 2,776,400 1874-75 2,106,699 1879-80 3,198,800 1873-74 2,638,351 The following is an account of the exports from Alexandria for the fiime twelve seasons. 1884-85. 1883-84. 1882-83. 1881-82. Bales. Bales. Bales. Bales. England 296,439 252,286 237,952 242,176 France and Spain.... 61,514 38,841 28,673 42,899 Austria 39,680 30,949 18,781 22,929 Italy ,.. 41,616 26,663 26,667 22,240 Russia :... 48,742 26,697 16,867 74,769 Total 487,741 373,336 328,820 406,013 Average weight 670 lb 661 lb 656 lb 668 lb. 1880-81. 1879-80. 1878-79. 1877-78. Bales. Bales. Bales. Bales. England 268,017 291,191 173,962 237,168 France and Spain 36,786 47,464 31,302 62,740 Austria 16,697 17,396 12,642 17,660 Italy 29,228 32,702 14,630 22,981 Eussia 66,469 67,006 22,332 69,106 Total 405,096 455,758 254,668 399,664 Average weight 661 lb 622 lb 629 lb 611 lb. 1876-77. 1875-76. 1874-75. 1873-74. Bales. Bales. Bales. Bales. England 300,606 311,386 273,019 312,172 France and Spain 63,669 60,508 34,644 64,640 Austria 22,923 12,713 7,232 10,962 Italy 29,618 41,310 14,697 19,703 Russia 31,840 45,723 17,722 12,890 Total 438,556 471,640 347,314 410,267 Average weight 596 lb 601 lb 602 lb. 674 lb. The figures are pai'tly from Messrs. Davies, Benachi, and Co. 's reports, and partly from those of Messrs. R. J. Moss and Co. The following estimate of the crop produced in each province in Egypt, is from the " Annuaire Egyptien Statistique et Commercial Pour 1886." Edited by M. Jean Stadelman : — Area Planted. Crop Produced. 1884-8. 1883-4. 1882-3. 1884-6. 1883-4. 1882-3. Provinces. Feddans. Feddans. Feddans. Cantars. Cantars. Cantars. Garbich 350,000. . . .300,000. . . .280,000 1,400,000. . . .1,060,000. . . . 830,000 Behera 92,000.... 90,000.... 86,000...... 322,000.... 260,000.... 260,000 Charkich 137,000.. ..128,000.. .100,000 682,000.... 450,000.... 300,000 Dakhalleh 116,000. .. .106,000.. .. 78,000 568,000.... 420,000.... 350,000 Menoufleh 110,000.. ..100, 000.... 100,000 623,000.... 360,000.... 360,000 Calioubieh 62,000 46,000.... 40,000 234,000 135,000 140,000 J^y™™"""*. I .• 13,000.... 10,000.... 10,000 71,000.... 45,000.... 40,0 Upper Egypt) ■■ "• ' ' Total. ...869,000. ...778,000 ...693,000 3,700,000. . ..2,700,000.. ..2,270,000 The feddan is about equal to a statute acre. X 338 v.— COST OF PRODUCING YARN. On page 46 it is stated that on tlie basis of 6d. per lb. for cotton, the cost of producing 32's twist would be about 8Jd. The cost of management, and all other wages is estimated at Jd. per lb. The further sum of Id. per lb. is put down as the cost of coal, oil, tallow, carriage, &c. , including an allowance of 2| per cent, for depreciation on the biiilding, and 7^ per cent, on the machinery, and a charge of 5 per cent, on one half of the capital (assumed to be borrowed), making If d. for labour and capital. If to this we add 6d. per lb. for the price of the raw material plus 10 per cent, for waste, or say 6gd. , we get Slil. as the cost of producing an average quality of 32 s- twist, in a well managed modern mill. This gives a margin of 2Jd. per lb. between the price of the raw material and the value of the yarn when produced. In some of the older mills a margin of 2Jd. per lb. would not be sufficient to cover cost ; but in mills containing the latest improvements in machinery, a little less than 2Jd. would suffice. Since this calculation was made, cotton has fallen Id. per lb., wages, and the various material named above, have also come down, while the out- put per spindle per week has been increased by expediting the speed of the machinery, and by improvements in the machinery itself, especially the Ring Throstle. The result is that the best appointed, and most recently constructed mills, can now prodiice an average quality of 32's twist at a margin of 2fVd. between the price of cotton and the cost of yarn ; say management and wages Hd., all other expenses, and depreciation xfd., waste in spimiing cotton costing 5d. per lb., f'^d. ; total 2i",d. per lb., or 7Adj)er lb. for the yam when produced. The following statement (supplied by one of the largest spinning firms in Lancashire) gives the price of a specific quality of 32's twist, and of the cotton used in its production, at the commencement of each quarter. since January, 1880 : — 32'3 twist. Cotton. Margin, 1S83. d. d. d. 32's twist. Cotton. Margin. 1380. d. d. d. 7A January.... 10{. April lOJ June 9J October 9,'^ 1881. January .... 10 April 9 June October 9;\ 1882. January .... 9^ April 95 June 9{5 October .... 9| 1883. January.... 8J .... 6J 2J 61 .... 2} ViV ■••• 21S ef, .... 3H 6i .... 2| n .... 2A 7 .... 2S 6-IS .... 2fJ fit* .... i1 en •■■■ 2,', April 8| .... 5H .... 2fJ June ...... 88 .... 6J .... 2J October.... 8^ 6 2''- 1884. January 8g 6^ 2 April 8}| .... 6^ .... 2 June 9 6i 2, October 8| ... Si 2- 1886. January.... 8,»5' .. 6i .... 2,1, AprU 8i .... ej .... 2i June 8 6^ .... iTj October.... 8S ... 5}l 2M 1886. lu ••■• i. January.... 7| .... 6i .... 2i Apvil 7A .... 6,:V ■■■■ l| On page 61, we give the selling price of 40's and lOO's mule yam, and the balance left for labour and capital, at various dates down to 1882, and we here add the figures for 1885 coompared with 1882 : 40's Yarn. lOQ's Yarn. 1882. 1885. 1882. 188B. , „. . ^- d- s- d- 8. d. s. d. feellmgpnce 10J....0 9i 1 10 ...1 7} Cost of cotton, 18oz.. 7J CJ 9J 7 Labour and capital ... 3^ .... 3 i O'- 1 Qi As the consumption of cotton was almQst as large in 1880-82 as in 1883-85, there is nothing further to add to the figures in Chapter V. of Part I., than has been already given in Section I of this Appendix. 339 VI.— COTTONS, WOLLENS, AND LINENS. On page 128, we give some particulars of the supply and consumption of Cotton, Wool, and Flax in various years down to 1883. Here are the figures for 1884 and 18J'5; those for the last named year being from the Monthly Board of Trade Returns, the Annual Statement not being yet published. The particulars for 1883 are added to complete the comparison. The figures are in millions of lbs. : — 1883. 18S4. 1886. Cotton; lbs. lbs. lbs. Imported 1,734 1,749 1,465 Exported 249 252 206 Retained for consumption 1,485 1,497 1,259 Actual consumption 1,498 1,466 1,344 Wool : lbs. lbs. lbs. Sheep, Lamb, &c. imported 495 526 506 Taken from Sheepskins imported . 14 16 15 Produced at home 129 132 136 Goat's Hair imported 13 17 14 Woolen Bags imported 81 69 ... 73 Total 732 760 744 Foreign Wool exported 277 277 268 Domestic Wool exported 19 18 2S Total 296 Retained for consumption 436 465 453 Actual consumption — 455 449 454 Flax and Tow : lbs. lbs. lbs. Imported 173 179 186 Produced at home 47 35 45 Total 220 214 231 Exported 3 4 4 Retained for consumption 217 210 227 Actual consumption 257 210 225 In the last column of the table on page 128, the cotton figures for 1882 are inadvertantly given instead of those for 1883. The error is corrected in the above comparison. The estimated actual consumption of the three textiles compares as follows : — Millions of Pounds. Proportion. Cotton. Wool. Flax. Total. Cotton. Wool. Flax, lbs. lbs. lbs. lbs. % % % 1883. .. 1,498 .... 455 .... 257 .... 2,210 67.78 .... 20.59 .... 11.63 1884 1 466 .... 449 .... 210 .... 2,126 68.99 .... 21.13 .... 9.88 1885;'..'!..;. 1,343 .... 454 .... 225 .... 2,022 .... 66.41 .... 22.45 .... 11.14 Cotton fell behind owing to bad trade, "short time," and "strikes;" linen also lost ground in consequence of a diminished demand ; but wool remained almost unchanged. The following is an account of the value of all kinds of cotton, woollen, and linen products (yarns and goods) exported in the three years, in lOOO'a of £s :— Value. Cotton. Woollen. Linen. Total. Cotton. £ £ £ £ % 1883 .... 76,447 .... 21,587 .... 6,498 .... 104,632 73-13 1884 .. 72,738 .... 24,027 .... 6,316 .... 103,081 70-66 1886 .... 66,973 .... 23,229 .... 6,947 .. . 96,149 69-65 In the cottons exported in 1883 there were about £500,000 worth of fabrics Proportion. Woollen. Linen. X »/ .... 20-66 .. .. 6-22 .... 23-31 .. .. 61S .... 24-16 .. .. 619 340 ■which ought to have been entevecl under the head of woollens. With this correction, the proportions come out as 72'65 per cent, of cottons and 21 '43 per cent, of woollens. The quantities of cotton, woollen, and linen yarns and piece goods exported compare as follows, in 1 ,000's of pounds and yards : — Cotton. Cotton Piece Goods. Yarn. Thread. Plain. Coloured. Mixed. Total. lbs. lbs. Yards. Yards. Yards. Yards. 1883 264,847 .... 14,445 3,136,891 1,379,430 22,836 .. 4,639,157 1884.... 270,904 14,711 3,095,354 1,321,645 .... 281 4,417,280 1885.... 245,732 .... 15,059 ..... 3,150,114 .. 1,224,160 205 4,374,479 Woollen and Worsted. Woollen and Worsted Piece Goods. Yarn. Cloths, &c. Worsteds. Flannels, &c. Carpets. Total. Ihs. Yards. Yards. Yards. Yards. Yards. 1883.... 33,491 41,888 .... 189,823 .... 13,400 10,676 .... 255,787 1884 39,272 45,969 217,121 .... 15,663 .... 11,640 290,273 1885 48,497 46,012 .... 198,717 12,208 .... 11,083 268,020 Linen. Lhien Piece Goods. Yarn. Thread. Plain. Coloured. Sailcloth. Total, lbs. lbs. Yards. Yards. Yards. Yards. 1883.... 17,678.... 2,263 152,163.... 6,577.... 3,.516.... 162,266 1884.... 19,633.... 2,680 143,673.... 6,983.... 4,661.... 155,317 1885.... 16,666.... 2,639 138,192.... 7,237.... 4,060.... 149,479 Down to 1883, large quantities of piece goods of mixed materials, in which wool predominated, were erroneously entered as cotton manufactures, but are now included in woollen and worsted stuffs. This accounts for the extraordinary reduction of over 20,000,000 yards in the exports of mixed cotton piece goods, in 1884 and 18S5 ; and the large increase in the exports of worsted piece goods in the same years. 341 VII.— THE CONTINENTAL COTTON INDUSTRY. The following account of the condition and prospects of the cotton industry of the Continent of Europe is compiled from answers received to a list of questions sent to the principal cotton ports and cotton manufactur- ing centres in each country in the month of September, 1885, and is reprinted from oiir " Annual Review of the Cotton Trade for the season 1884-1885 " :— Russia and Poland. Moscow.— The Pasi iSeasore was during the first half worse than the l^revious one, owing to depressing agricultural circumstances in Middle and South Russia ; but since Easter there has been a better inquiry and prices have advanced 5 to 6 per cent. ; though there is not much prospect of any great improvement, as the crops are on the whole unsatisfactory. The Nijni-Novgorod ' fair was more satisfactory than the previous one, owing to the diminished stock, but much of the business was on ever longer credit than usual, extending in some instances to eighteen months. The consumption of cotton was about the same as last season, which was alreadj' on a greatly reduced scale. The factory law, prohibiting the employment of women and children at night, comes into operation on the 1st (13th) October. There will be little if any increase in the consumption of cotton during the coming season. The stocks of American are smaller than last yea,r, but there are fair supplies of Egyption. Stocks of yarns are smaller than last year, but there is very little reduction in the stock of goods. There is no increase in spindles. Out of a tolal of 1,900,000 about 250,000 are idle. Lodz. — The Past Season opened hopefully, but there was no improye- ment of moment until recently, when, owing to fair reports from Nijni, the demand became better and prices advanced _a little. The Prospects are in favour of a further improvement, especially as the new factory law, limiting the employment of women and children, will restrict the productions of yarns and cloth. There is no change of importance in stocks •of either cloth or yarn. There is no increase in spindles. Sweden. The Past Season has not realised the hopes of better trade entertained at the opening. Consumption has been less than production owing to bad trade generally, and at present there is little Prospect of any improvement. There is no increase in the consumption of cotton. The stocks at the mills are rather smaller than at this time last year. The stocks of yarn are also smaller ; but those of goods are larger. There is no increase in spindles. Germany. A Bremen correspondent writes ; — "The cotton business was pretty good this year, but our importers are disgusted by the downward tendency ■ prevailing these last months, and they have only done a very small business in new crop cotton. People wait for prices below 5d. and then, we sup- pose, they will try to make up their losses by larger importations. We do not believe the consumption has increased this year, as business has been by no means satisfactory for our spinning friends. Especially in Bohemia and Switzerland business is reported to be very bad. We consider the stocks to be only limited, and we do not think that spinners will buy more freely at present prices. A new cotton mill has been built at Grohn, near Bremen ; number of spindles is bow 35,000 to 40,000, but they intend to increase the same to 60,000." 342 Pkussia. — The Pcist Season worse than the previous one, owing to ■over-production and English competition. No great Prospect 61 improve- ment. No decrease in the consumption of cotton ; stocks rather less than last year. Stocks of yarn and goods larger than last year. No change in spindles. Westphalia. — Past Season worse than the last one, owing to the unre- munerative prices, caused by excessive competition from all sides ; spinners preferring to sell at cost price rather than to go into stock. Warp spinners and fine spinners better off than the spinners of coarse yarns, whose position is worse owing to the short supply and high price of East India Cotton. Prospects not very promising ; but demand has improved, and the stocks are being reduced. The consumption of cotton has in most places been less than last season ' owing to the want of lower qualities; but in occasional iQStances there has been a slight increase. The stocks ar the mills are smaller than last year, though in some case spinners who bought freely hold a slight increase of East Indian. Stocks of yarns and goods are unchanged, smaller in some cases, but larger in others. No appreciable increase in ■spindles. Saxony. — Some say that the Past Season was not so good as the previous «ne. but the majority say that it was better. There are complaints of over- production and of Eaglish competition aggravated by the bad trade with India and China ; but all are agreed that the consumption of cotton has increased — in some cases as much as 10 per cent. The Prospects are favourable. Stocks of cotton are much smaller than last year ; but as to yams and goods the answers are conflicting. There is no appreciable in- crease in spindles ; but new machinery has been introduced into some mills ; and about 60, 000 new spindles will be started next season. Bavaria. — One of our correspondents writes as follows : — " During the Sieasoii 188i-85 business was decidedly unfavourable, as far as German ■cotton spinning was concerned. Not only did prices of yarn go lower from month to month — no matter what course cotton prices were pursuing — but the further calamity occurred that manufacturers boxight but very sparingly, ■even at the comparatively low prices. This would go to prove that their wants were fully covered with the stocks of yarns with which they started the season, and the purchases which they made during the first four or five months. Add to this the pressure on the market of the imported foreign yarns, although these imports have considerably decreased, amounting during the first seven months of 1885 only to 8,300 tons balance of imports, against 9,200 tons same time of previous year. The relative jjrices of cotton and yarn had not grown worse as compared with the year before, but there was this difference, that last year sales could be easily made on this basis, while this year, and especially during the second half, only little could be sold, if altogether losing prices were not accepted. This has reference to yarns No. 36/42. Still more unfavourable are the relative prices of coarse bundle yarns. Spinners had a chance to buy American cotton during Sep- tember, October, and November, 1881, while none such presented itself for purchasing East India cotton. The reason for the bad state of business is undoubtedly over-production in the German Empire, to which came, of ■course, the heavy imports from England, where the cotton industry was during this season also very unsatisfactory, as you know. Regarding future Prospects they are anything but rosy. However, it is reasonable to con- clude that we have now — September— reached the lowest yarn prices, and that — barring some forced sales here and there at still somewhat lower figures, in order to clear off stocks, prices will henceforth tend upwards rather. Trees don't grow into the sky, and just as little can prices of inanufactures rule for long below cost price. The position will correct itself, although we may not see an advance as decided as in 1879. Con- 343 sumption. of cotton has remained about stationery. Stocks of cotton in my district are this year not only as large as but larger than last year, and we have to add to the stocks actually in warehouses the purchases of ship- ments made in August and September. 5gd. to 5iVd- cost freight, and 6 per cent, steam to Bremen, for Middling Orleans, have had a magnetic power. The figures of the German customs statistics further prove that we oannot suflFer from a want of raw material. The net imports of cotton were, ill the first eleven months of the season, as follows :t- Season. Metrical Quintals. Season. Metrical Quintals. 1884-85 1,547,175 — " - -" "- 1883-84 1,432,148 1882-83 1,497,929 .Stocks of yarns, I think, are, elsewhere in the German Empire, as well as here, not smaller, but distinctly larger than the previous year. As regards stocks of goods, I cannot correctly estimate them, but it may be assumed that these also must be of large dimensions, or else a largely increased home consumption has made up for the falling off of exports. During the first eleven months of the season the net export of cotton goods was — Metrical Quintals. Metrical Quintals. 1881-82 1,317,003 1880-81 1,416,834 1881-82 215,8 1880-81 209,546 1884-85 203,739 1883-84 208.608 1882-83 189,460 The reports from other correspondents are similar to the above. They all complain of bad trade and English competition. They report a slight increase in the consumption of cotton. All except one say that the stocks of cotton at the mills are much smaller than last year. Stocks of yarns larger ; but all are agreed that the stocks of goods are much smaller. In- ■crease in spindles 20,000 to 30,000. M. Gladbach, Rhenish Prussia. — /"a.?* rovemeut on the present low and unremunerative prices will be slow and distant, if English offers do not cease. The decrease in the consump- tion of cotton is generally estimated at 20 per cent. Stocks, on an average, may be from 15 to 20 per cent, smaller. We hear of many complaints about the quality of the last Surat crop not working well, therefore; the consumption of this growth is likely to decrease, spinners turning their attention to the new American crop. Stocks of yarns andgoods, iu spite of the reduced production, are much larger than twelve months ago, especially for the low numbers of yarns (6-20) for there seems to be little or no demand. The estimates vary from 25 to 100 per cent. No other increase in the number of spindles has taken place than through those mills which were in course of erection last year ; on the contrary, some mills are closed ; one destroyed by fire. Bohemia. —The Past Season was decidedly worse than the previous 345 one, owing to a long-continuecl over-production, and to the diminished power of consumption, in consequence of the low prices obtainable for the grain and beet crops. The bad condition of trade was further aggravated by English competition. The position is not so bad as at the opening of the season, and people hope for some improvement, but there are as yet no distinct signs of the near approach of a better state of things. The reduc- tion in the consumption of cotton is variously estimated at from 10 to 20 ' per cent. : due in part to short time, and in part to the spinning of finer counts of yarn. The stocks at the mills are much smaller — in some instances SO to 80 per cent. less. There are great complaints of the bad quality of the East Indian crop, and more American will be used in the coming season, especially if there should be a good supply of low grades. Stocks of yarns and goods everywhere considerably larger than last year. There is no increase in spindles : from 10 to 15 per cent, of the total in existence are idle. Tyrol and Voralberg. — Past Season considerably worse than the previous one, owing to over-productian, to English competition occasioned by bad trade in the East, and to poor prices for agricultural produce. The Prospects are not good. The home crops are abundant, but their realiza- tion is difficult and uncertain, especially for export, in consequence of the -unsatisfactory condition of the currency and exchange. " Only when the totally demoralized state of business in England improves may we hope that the slaughtering sales on the part of English spumers in our markets will cease, and prices become less ruinous." The consumption of cotton is variously estimated at slightly less than last season up to a reduction of 20 per cent. The stocks at tlie mills are estimated at from the same as, down to 15 per cent, less than, last year. The stocks of yarns and goods are slightly to much larger. Increase in spindles .S5,000, less 11,000 not yet at work. From 5 to 10 per cent, of the spindles ia existance are idle, chiefly old machinery. Lower Austria. — The same unfavourable circumstances which forced themselves into prominence at the end of last year have influenced business to even a greater extent during the season now expiring. We must, therefore, call business during 1884-85 as having been decidedly bad and unprofitable. The fruits of the soil of Austria and Hungary cannot be used even at the ruinously low prices ; this more than anything causes consumption to be restrained all over the country. Numerous failures have also caused heavy losses. It is hoped that a change for the better is coming, although there are not any sure indications of it. Consumption of cotton has decreased 20 per cent. Stocks of raw cotton are about 25 per cent, smaller than last year. Stocks of yarns and goods are, spite of the reduced production, larger than same time 1884, especially in yarns ; we should say 20 to 25 per cent, larger. The number of spindles has not increased, but has, on the contrary, been reduced, as two mills, with about 10,000 spindles, have entirely ceased working. Upper Austria. — Pant Season worse than the previous one, owing to the accumulation of stocks, in consequence of the bad state of the manu- facturing busmess. Large stocks of yam have been forced off below cost price. At present the Prospects are rather better as regards demand, but prices are miserable. Consumption of cotton has slightly increased, as more spindles have come into operation. The stocks of cotton at the mills are smaller than last year. The stocks of yarns are larger, but of goods smaller. Increase in spindles, 12,000 ; others in course of erection not yet at work. SwiTZBRLAKD. The reports are somewhat variable. The majority say that the season 346 'throughout was worse than the previous one, but some complain only of the second half. All complain of over-production and English competition. (5ne correspondent says " England, not being able to dispose of her products in distant markets, threw her surplus on the Continent of Europe, which caused an unprecedented depression in the trade ; and the margin between cotton and yarn is so small that even with the present low prices for the former nothing but loss is the result. Many mills have, in ■consequence, come to grief." Another correspondent says that "English competition has everywhere destroyed healthy business, and no wonder, therefore, that there is a cry for higher protective tariffs. " No one hopes for any improvement until business is better in Manchester, or until Bolton spinners adopt short time. Consumption of cotton about the same as the 3jrevious season : In some places there is a decrease, in others an increae. More Egyptian and less East Indian has been used. In some instances i-ather lower counts of yarn have been produced. In others the spindles have occasionally been stopped, owing to the temporary want of water power. Stocks of Egyptian cotton larger than last year, but of American and East Indian much smaller. The stocks of yarns are larger than last year ; but the stocks of goods are insignificant. There is no increase in spindles. Holland. Although more cotton has been spun and more goods produced than in" the previous season, the character of the business has been worse, owing to the bad trade in nearly every branch, and to the low prices of manufactured goods, both for home markets and export. The business with Java was worse owing tothe sugar crisis, and to the low prices of coffee and other produce. The prospects are not good, but they will probably improve if ■cotton prices retriain low. The consumption of cotton has slightly increased, owing to two mills, burnt down last season, having been rebuilt. The stocks of cotton are very small, especially of American, and much smaller than last year. The stocks of yarn are either about the same as last year or slightly smaller, but the stocks of goods are heavier. There is ■an increase of 10,000 to 15,000 in spindles. Belgium. The Past Season was not so good as the previous one, owing to excessive production and dull trade in general. The Prospects do not indicate any immediate improvement. There has been no increase in the consumption of cotton. The stocks at the mills are much smaller than last year. The i^tocks of yarns are larger, and those of goods much larger. There is no increase in spindles. France. Respecting the state of the cotton industry in France, one of our correspondents says— Although 1883-4 was not prosperous for those interested in the cotton industry, 1SS4-5 has been still more disappointing, the more so, as rather sanguine hopes were entertained at the beginning, in consequence of the strong statistical position, which led people to believe that stocks would run down to unpreoedentedly low figures, owing to small crops in America and India. But as the season advanced business every- where was checked by political uneasiness, while still later it was discovered that consumption had been over estimated, so much so that even the great strike at Oldham and its incidental important reduetion in the ■out-turn of yarn and cloth, has failed to clear off surplus stocks. If cotton ■keeps low in price the Prospects may become better, but at the moment they are not very encouraging. The consumption of cotton in Prance has Ijeen dimmished owing, first to bad trade, which has forced some spinners 347 ■to lic|iiidation, and others (dviring the past few months) to short time ; second, to the better quality of the American crop ; and, third, to the relatively high prices and bad quality of East Indian, which has caused spinners to use more American. It is difficult to estimate the total reduction, but it cannot well have exceeded five per cent. The stocks of cotton at the mills are very small, probably 50 to 60 per cent, than at this time last year. The stocks of yarns and goods are much larger, owing to English composition and to the hopes of better prices later on, which prevented manufacturers from selling in the spring, and to the general •election which always interferes with all branches of business. The total increase inay be about 30 to 50 per cent. There is no increase in spindles, but some destroyed by fire have been replaced by new ones. The following are summaries of reports received from the principal centres of the cotton industry ; — Lille, Tourooing, Eoubaix, &c. — The Past Season was worse than the previous one, owing to the decline in prices having entailed losses on spinners and manufacturers. Moreover, politics were perplexing, and ■commercial treaties burthensome. Prospects bad. Consumption of cotton has increased about 5 per cent. Stocks, at the mills about 20,000 bales. Stocks of yarns and goods 400,000 to 500,000 kilos. Increase in spindles 20,000 to 25,000. VosGBS, (fee. — The Past Season was very similar to the previous one : Inisiness was poor throughout owing to the unsatisfactory state of trade in .all Europe. There appears to be little Prospect of any immediate change for the better. The consumption of cotton has not increased. The stocks at the mills are larger than last year. The stocks of yarns are insignificant. The stocks of goods are about the same as last year. Some new spindles have been put up instead of old ones, but there is no net increase. Rouen. — Business, after a slight revival at the end of last season became very inactive and has since been very unsatisfactory, owing to over- production all over the world. The Prospects are not bright, but after so BO long a depression a reaction may be near. The consumption of cotton lias slightly decreased. The stocks at the mills are only about half what they were last year ; but there is a corresponding increase in the stocks of yarns and goods. There is no increase in spindles. CoNDB, Flers, Mayenne, AiiD Leval. — The Past Season was worse than the previous one, owing to the insignificant demand for cloth, which iifter two good agricultural years ought to have been better. Cloth agents complain generally that they are badly paid by their clients. There are as yet no indications of any improvement. There has been some short time during the past few weeks. The consumption of cotton was about the same as in the previous season. The stocks at the mills are ten per cent, smaller, but the stock of yarns and goods are 20 to 25 per cent, larger. There is no increase in spindles. Sl'AIN. The Past Season was worse than the previous one, owing partly to the disturbances in business occasioned by the cholera visitation, and partly to the monetary crisis. The consumption of cotton goods.has been constantly Taelow the rate of production, especially of late. The Prospects are not favourable, as manufacturers are over- stocked with goods, while the mone- tary stringency continues. The consumption of cotton has decreased about 15 per cent. The stocks at the mills are about the same as last year. The stocks of yarns and goods are very large, producers having sold very little during the past three months. There is no increase in spindles. There has been much short time since the month of June. 348 Italy. Genoa. — PtMt Season decidedly worse than the previous one, owing to diminished power of consumption in consequence of the agricultural crisis, short crops, and cholera locally ; and of general overproduction every- ' where, and the relatively high price of cotton. The only hope of improve- ment is founded upon the expectation of abundant cotton crops and correspondingly low prices. The consumption of cotton has slightly decreased. The stocks at the mills are smaller than this time last year. The stocks of goods are probably 10 per cent, larger. There is no increase in spindles, but there has been a partial substitution of modern for worn- out machinery. TvRiN. — Past Season no better, if anything rather worse, than the previous one, especially for fine yarns. The Prospects are better, provided the cholera disappears. The consumption of cotton has increased 5 to 8 per cent. The stocks at the mills are about the same as last year. The stocks of yarns are smaller, but the stocks of goods are 20 per cent, larger. There is an increase of 15,000 to 20,000 in spindles. Milan. — Past Season worse than the previous one owing to over- production, political uncertainty, and stagnation in general business. The Prospects are favourable, as the present low prices for the raw material leave manufacturers a better margin. The consumption of cotton has decreased 7 to 8 per cent. , as night- work has been reduced, and people, owing to the bad state of trade, are not inclined to work at their full capacity. Stocks of cotton at the mills 12 to 15 per cent, smaller than last year. Stocks of yams and goods larger. The quantity unsold probably amounts to three months' production. There is an increase of 15,000 in in spindles. Imports, Deliveries, &c., for the Costixent, 1884 and 1885. DESCEU'TIOKS. Direct. IMPORT. IXDIRECT. Total. 1886 1884 1886 1884 1885 1884 American 1,468,170 1,404,980 200,620 199,430 1,668,790 1,604,410 Brazilian 24,840 69,670 2,920 4,730 27,260 74,300 Egyptian 197,190 132,860 16,260 9,880 212,440 142,740 Smyrna 74,690 71,560 — — 74,690 71,550 West Indian 22,810 20,460 5,790 7,400 28,600 27,860 East Indian 601,110 2,378,310 816,060 2,616,480 249,240 473,820 412,680 860,340 2,8,62,120 1,228,740 Total 634,120 3,149,600 DELIVERIES TO CONSUMERS. Total 62 Weeks. Per Week. 1885 1884 1886 1886 1886 1884 American 1,689,110 1,600,660 32,484 30,782 193,670 223,990 Brazilian 24,120 77,880 463 1,498 4,630 1,490 Egj'ptian 211,610 140,740 4,067 2,706 3,230 2,300 Smyrna, &c. 75,660 69,760 1,466 1,341 4,530 6,600 West Indian 28,660 27,600 650 629 8,230 8,280 East Indian 910,810 1,200,940 17,515 23,096 43,170 103,640 Total 2,939,800 3,117,470 66,534 69,951 257,460 345,200 Number of Spindles. The following is an estimate of the number of spindles in Europe, America, and India : — Great Britain Continent United .States East Indies Total 1885. 43,000,000 22,760,000 13,250,000 2,060,000 81,050,000 1884. 42,600,000 22,660,000 13,200,000 1,950,000 80,300,000 1383. 42,000,000 22,500,000 12,660,000 1,700,000 7S,!S00,000 1882. 41,000,000 21,855,000 12,000,000 1,620,000- 76,476,000 349 Deliveries of Cotton is 1876-80 and 1881-85. The average annual deliveries of cotton to European and American spinners in the two quinquennial periods ended 1885, compare as follow : — In ),000's of Bales. In MUIions of Lbs. Increase I.— Consumption, 1876-80 1881-6 1876-80 1881-5 Per cent. Great Britain 2,924 3,299 1,264-7 1,444-1 16-1 Continent 2,465 8,092 1,026-7 1,314 9 ■28-0 United States 1,543 6,922 1,894 8,285 685-8 866-7 26-0 Total 2,967-2 3,616-7 21-8 II. — Sources of Supply. America 5,015 6,003 2,231-6 2,717-2 21-1 Brazil 256 316 48-7 64-1 j- 10-2 West India, etc. 92 71 15-9 11-6 East India, etc. 1,090 1,431 407-4 640-3 32-6 Egypt, Symrna, etc 469 466 268 7 292-5 10-0 Total 6,922 8,286 2,967-2 3,616-7 21-8 The figures for the preceding period, as far back as 1821-25, will be found on page 99. 350 VIII.— THE COTTON INDUSTRY OF MANCHESTER IN 1769. The following interesting account of the state of the Cotton industry of Mancliester in 1769 is from Arthur Young's "Six Months' Tour in the North of England." Vol. III., pages 242-250. Published in 1770. The Manchester manufactures are divided into four branches : — 1, The Fustian ; 2, The Check ; 3, The Hat ; and 4, The Worsted Smallwares. All these are subdivided into numerous branches of distinct and separate work, In that of Fustians are thirteen; — No. 1, Corded Dimities : wages, men 3s. to 8s. per week ; women the same ; no chidren employed in it. No. 2, Velvets : wages, men 5s. to 10s. per week ; no women or children. No. 3, Velverets : wages, men from 5s. to 10s. (average 5s. 6d.) per week ;. women as much ; children 3s. per week. No. 4, Thicksets : wages, men from 5s. to 10s. (average 5s. 6d.) per week; women as much; children 3s. per week. No. 5, Pillaws : wages, men from 4s. to 5s. ; women the same ; children 2s. 6d. per week. No. 6, Quilts : wages, men from 63. to 12s. ; neither women nor children. No. 7, Petticoats : wages, men from 6s. to 12s. ; neither women nor children. No. 8, Draw-boys ; wages, men at an average 6s., but a boy paid out of it; no women. No. 9, Diapers : wages, men from 4s. to 6s. ; women as much ; no children. No. 10, Herringbones: all children, ls.*6d. No. 11, Jeans: wages, men from 4s. to 10s. ; no women or children. No. 12, Jeanets : wages, women Is. 6d. to 3s. 6d. ; children the same. No. 13, Counterpanes : wages, men from 3s. to 7s. ; neither women nor children. These goods are worked up of cotton alone, of flax and cotton, and of Hamborough yarn. All sorts of cotton are used, but chiefly the West Indian. These branches of manufacture work both for exportation and home consumption. Many low-priced goods they make for North America, and many fine ones for the West Indies. The whole business was exceedingly brisk during the war, and very bad after the peace ; but now are pretty good again, though not equal to what they were during the war. All the revolutions of late in the North American aflairs are felt severely by this branch. It was never known in this branch that poor people applied for work but could not get it, except in the stagnation caused by the Stamp Act. I enqiiired the effects of high or low prices of provisions, and found that in the former the manufacturers were industrious, and their families easy and happy ; but that in times of low prices the latter starved, for half the time of the father was spent in the ale-house. That both for the good of the masters, and the working people, high prices were far more advan- tageous than low ones ; and the highest that were ever known much better than the lowest. All in general .may constantly have work that will, and the employment is very regular, the master manufacturers not staying for orders before the people are set to work, but keep, on the contrary, a great ]nany hands in pay, in expectation of spring orders. The principal subdivisions of the Check branch are the following : — No. 1, Handkerchiefs: wages, men 7s.; women 7s.; children 2s. to 5s. No. 2, Bedticking : wages, men 6s. to 10s.; neither women nor children are employed. No. 3, Cotton Hollands : wages, men and women 7s. ; children, a few, 2s. to 5s. No. 4, Gowns : wages, men 8s. ; neither women nor children. No. 5, Furniture Checks : wages, men and women 7s. ; no children. No. 6, Silk and Cotton Ginghams : wages, men 7s. 6d. ; neither women nor children. No. 7, Sousees : wages, men 7s. 6d. ; neither women nor children. No. 8, Damascus's : wages, men 7s. 6d. ; neither women nor chidren. No. 9, African goods, in imitation of the East Indian : wages. 351 men and women 6s. to Os. ; no children. Most of these articles liaye many preparers; among others, dyers at Vs. 6d., bleachers 6s. 6d., and finishers 7s. 6d. per week. ■ The check branch, like the fustian, Avorks both for exportation and home consumption, but vastly more for the former than the latter. During the war the demand was extremely brisk ; very dull upon the peace, but lately has arisen greatly, though not equal to the war ; and the interruptions- caused by the convulsions in America, very severely felt l>y every workman in this branch. None ever offered for work Init they at oiice had it, except upon the regulations of the Colonies cutting oif their trade with the Spaniards, and the Stamp Act. The last advices received from America have had a similar effect, for many hands were paid oif in consequence of them. In the Hat branch the principal subdivisions are : — No. 1 , Preparers : wages, women 3s. 6d. to 7s. ; no men or children are employed. Ko. 2, Makers : wages, men 7s. 6d. ; children 2s. 6d. to 6s. ; no women are ■employed. No. 3, Finishers : wages, men 12s. ; children 7s. 6d. ; no women are employed. No. 4, Liners : wages, no men ; women 4s. to 7s. 6d. ; children 2s. 6d. to 6s. No. 5, Trimmers: wages, no men; women 4s. to 7s. 6d. ; children 2s. 6d. to 6s. This branch works chiefly for exportation. During the v.-a.v it was surprisingly brisk ; after the peace (juite low ; latelj' It has been middling. In the branch of Smallwaies are numerous little articles, but the earnings in general run as follows: — Men from 5s. to 12s.; women from 2s. 6d. to 7s. ; children from Is. 6d. to 6s. The number of spinners employed in and out of Manchester is immense. They reckon 30,000 souls in that town, and 50,000 manufacturers employed out of it. Cotton spinners earn — women 2s. to5s. ; girls, from six to twelve- years. Is. to Is. 6d. In general all these branches find that their best friend is high prices- of provisions. I was particular in my enquiries on this head, and found the sentiment universal. The manufacturers themselves, as well as their families, are in such times better clothed, better fed, happier, and in easier circumstances than when prices are low, for at such times they never worked six days in the week ; numbers not five, nor even four ; the idle time spent at ale-houses, or at receptacles of low diversion ; the remainder of their time of little value ; for it is a known fact, that a man who sticks to his- loom regularly will perform his work much better, and do more of it, than one who idles away half his time, and especially in drunkenness. The master manufacturers of Manchester wish that pi-ices might always be high enough to enforce a general industry ; to keep the hands employed for six days for a week's work ; as they find that even one idle day, in the chance- of its being a drunken one, damages all the other five, or rather the work of them. But at the same time they are sensible that provisions may be too high, and that the poor may suffer in spite of the utmost industry. The line of separation is too delicate to attempt the drawing, but it is well kiiown by every master, manufacturer at Manchester, that the workmen who are industrious, rather more so than the common run of their brethren, have never been in want in the highest of the late prices. Large families^ in this place are no incumbrance : all are set to work. America takes- three-fourths of all the manufactures of Manchester. I am obliged to Mr. Archibald Bell, of St. Ann's Square, and Mr. . Hamilton, two of the principal manufacturers in the town, the first in the fustian branch, and the latter in the check, for the heads of the preceding intelligence. Had I been fortunate enough to meet with gentlemen equally knowing and obliging at many other manufacturing towns, I should have been able to give a much better account of them ; but the success of such undertaking as this tour must depend, in a good measure, on the people- one meets with. 352 IX.— THE LIVERPOOL COTTON BROKERS ASSOCIATION. T he following isalistof the firms which constituted the Cotton Brokers ' Association at the date of amalgamation with the Liverpool Cotton Exchange. Changes which have taken place since the amalgamation are given in foot-notes, along with sundry other corrections and additions. The figures refer to pages of the present volume : — Adshead and Galatti 252 Agnew, Jones, and Co. (')... — Allen, W. H., and Co. ( = ) .. — Annesley Brothers 230 Armour and Co 270 Armstrong and Berey 265 Arrowsmith, P. R., and Co.. 260 Barclay, C. , and Co. ( ' ) — Bamsley, Godfrey, and Son( * ) 252 Barton, Miles, and Son 261 Bateson and Hilton ( >> ) 220 Bateson,Jas.,Sons,andCo.(°) 269 Belcher, Michael, and Co.... 249 Bell, Nott, and Co. ( ' ) 262 Berner, Frederick, and Co... 267 Biggs, Arthur W 199 Blundell, .James, and Co. (•*) 237 Bohtlingk, Robert ( » ) — Bower, William, and Son .. 192 Bowers and Leather 1 94 Bodill, A., and Co 256 Brancker, Boxwell, and Co.. 217 Bridge, George, and Co 256 Bright, William, and Sons ... 234 Bryson, Cooper, and Co. (i») 248 Buchanan, D. C. C^) 248 Buchanan, Wignall, and Co. 265 Buckley, E. and H 207 BuUey, S. Marshall, and Son 2.54 Bulloch, I. S. , and Co 200 Bushby, Son, and Beaaley . . . 239 Byerley, R. N., and Co. (»2) — Campbell, Colin, Son, and Co. 191 Campbell, James, and Co. ... 250 Catterall, Wm., and Co. (i = ) — Chambres, Holder, and Co. 219-22 Clarke, J. B., and Co 208 Clark, Henry, and Co 250 Coddington Brothers 24 1 Coghill and James 204 Comer and Harrison 198-9 Cooke, Isaac, and Sons 196-8 Cookson, W. A., and Co. ... 192 Corrie and Co 225 Cowie, Duckworth, and Co.. 255 Cowell, Richard Jno. ('*) ... — Cox and Elliot 192, 234 Cruttenden, Courtenay 247 CuUen, James, and Co. {^'>).. 230 Cunningham and Hinshaw... 193 Cunningham, J. U 229 Dale and Eccles 268 Daly Brothers 267 Davies, Thomas 218 Dempster and Richardson(i<') 254 Dodd, Frederick, and Co.. (") — (') From London ; established in 1868, flret as S. Ruokev and Co., tlien Rucker, Agnew, and Co., and afterwards Agnew, Jones, and Co. (2) Brought up in the house of Littledale and Co., and commenced business in 1881 i (-1) Previously How and Barclay. (*) Mr. George Barnsley retired in 1870, and died in 1874. (») Mr. F. H. Piokwoi-th is now the only member of this firm, and the style is F H Pickworth and Co. («) Mr. John Bateson retired in 1882. (') Mr. Bell retired in 1884. (Mr. Gouldie joined Mr. Oughtereon and Mr. Bell in 1834 On the death of Mr. Oughterson, the style became Bell, Gouldie, and Co. See page 262 ) (») Mr. Philip Henry Morton was admitted into partnership on the same day as Mr. Blundell's son. ' (») Brought up in the house of Nicholas Mahs and Co. Mr. Mahs commenced business as a merchant m 1861 ; became a member of the Cotton Brokers' Association in 1871 and retired m 1875 in favour of Mr. Bohtlingk. ' (i») Mr. Cooper joined Mr. Bryson in 1876 ; the latter died in 1886. (lA) Mr. Bucnanan died in 1884, aged 76. ('^. Mr. Byerley was one of Chambres, Holder, and Co.'s apprentices, and commenced (^■') Mr. Catterall came from Preston and commenced business in 1866. ('*) Was originally a cotton spinner. Commenc«d as a broker in 1877' ■■OQ, '"^ The partnership between Mr. Cullen and Mr. W. F. Richardson was dissolved in 18S3, smce which there have been two firms. Mr S*'r W h P^'''"'^''^'*''' ™^ dissolved in 1883, and the business is now conducted by (")■ Brought up in the firm of Hollinshead, Tetley, and Co., and was afterwards for some tunc m Alexandria. Commenced business as a broker in 1882. 353 Duckworth, Charles Eyes ... 205 Dunlop, George C. H.,andCo. 199 Dunn, Hlokson, and Co 222 Eason , Barry, and Co. ( ^ « ) . . . 238 Eecles, Edward, and Co. ... 208 Eocles, Alexander, and Co... 208 Edwards,Swetenham,andCo. 222 Ellison and Co 2."i6 Eskrigge, Pooley, and Co. ... 198 Evans, Maurice AV 250 Fairolough, Thomas, and Co. 198 Finlay, Robertson, andCo. ( ' '■' ) 270 Forman R. H., and Co. { = »).. — Gardner, Wm. C 270 Gask'ell, .James, and Son 2.58 Gibbons, H. W., and Co. ... 230 Gill, R. and C 205 Given and Braddyll 200 Goebel, W., andCo 189 Gorst, W. Arthur, and Co... 230 Haigh, Thomas, and Co 198-9 Hall, R. C 217 Hanmer and Co 204 Hannay , A , and Co 232 Harpin and Co 229 Harrop,T.W.&J.C.&Co.(") 204 Haywuod, Rooke, andCo.(^-) 217 Henderson, Morris, and Co. . 228 Hetherington,W.F.S.andCo. 267 Hobson, Richard, and Co. ... 241 HoUins, Francis, and Co. ( = ■' ) 204 HoUinshead, Tetley, and Co. 263 Holt, George, and Co 200 Horan, Matthew 241 Hornby, Hemelryk, and Co. 204 Houghton, Andrew R. ... 212, 229 Howell, Janies, and Sons(") 253 Hughes, Hugh 223 Hulse, Richard 212 Hutchinson, John H, andCo. 191 Ingleby, J.loyd, and Co.("). 223. Jardine, E., and Co 205 Jee, Matthew, and Son 247 Johnson, John, and Co. [-°). — Jones, 0. and W., and Co.... 250 Joseph Brothers 240' Joynson, J. and M 239 Kearsley and Cunningham 192, 193 Kellock, Robert 230 Lea and Walthew 212 Lees, Thomas, and Co 260' Littledale, T. andtL,andCo. 213 Livesey, Sons, and Co. (-')... 208 Livingstone, Charles S. (-*).. — Lloyd, Lewis 228 Logan, Fletcher, and Co. ... 209' Major.-Wm., and Co. ('") ... — Mallinson, Dyson, and Co... 222 Marriott, Wm. , and Co 1 94 Martin, Studley 203 Mason and Ryder (s») 197 Mayall and Co. (") 220 Melladew and Clarke 212 Mellor, Cunningham, and Co. 266 Mellor and Fenton (") _ Moffatt Brothers 19» Molyneux, Taylor, and Co. . . . 230 Moon, Bower, and Co 227 Morgan, Joseph B., and Co.. 250 Musgrove, Edgar, and Co. . . . 228 Mussabini, Pierre 208 Newall and Clayton 237 Nicholson and Wrigley 209 Nimmo, Wm. , and Son 259' Ogden, John, and Co 259 Openshaw, W. H. L 205 Parkinson, Clifton, and Co. . 267 Pearce, Henry, and Co. ("). 264 (> ») Mr. Quaile retired in 1885. (13) Now Thompson, Mell.y, and Co. (2u) One of Mr. S. Withers' apprentices. Firm ceased. (31) Previously Harrop, Hutton, and Co. (not Button, as on page 204). (23) This partnership was dissolved in 1883, and the business is now conducted by Mr. Arthur G. Haywood. (3») Mr. Hollins retired in 1882, and died in 1886. Mr. James Tyson (James Tyson and Co.) was one of F. Hollins and Co.'s apprentices. (»*) Mr. Job retired in 1885. (25) Mr. Ingleby died in 1885. (2«) Mr. Johnson was one of Shand, Higson, and Co.'s apprentices. He oommenoeo business in 1882. „ „ „ j /^ (") Succeeded by Kelly, Batcheldor, and Co. ; now F. Kelly, and Co. (28) Mr Livingstone came from Glasgow, and established himself in Livei-pool in 1866. (2») Brought up in the firm of Newall and Clayt™. Commenced business 1881. (»") Mr. John E. Callender, jun. (Callender, Heaton, and Co.) was one of Mason and '^ ^(.fi) Mr. Mayail died in 1884, and was succeeded by Mr. Joseph Warlow and Mr. Ulric C. Andersson, under the old style. , . (■") Mr W M. Mellor commenced business in 1863, in partnership with Mr. J. D. Phillipps (Mellor and Phillipps). After this partnership was dissolved, Mr. Mellor was ioined by the late Mr. Albert Fenton, of Eochdale (see page 198). " the late Mr. Justice Mellor, and is a J.P. for the Hundred of Wirrall. (3=) Now Horbuiy, Pearce, and Co. Y Mr. Mellor is a son of 35-t Peers, James, and Sons (=*).. . 236 Pennefather,Miller,antlCo. ( ■' = ) — Pilkington, S. C. M., and Co. 207 Pitt, Alexander, Jun. , andCo. 223 Prescotfc and Twyf ord (»«)... 230 Priestley and Knott 208 Ralli, A. andM 252 Radcliffe, J. , and (Jo. ( " ) . . . — E,atlibone,Diickworth,andCo. 205 Rew, John, and Co 269 Reynolds and Gibson 2.12 Richardson, W. F 2.30 Richards, W. H., and Co. ... 20."> Roberts and Taylor 199 Rogers and Calder 237 Rouse, West, and Co. ('*)... — Ryley, Arthur, and Co 262 Salisbury, Geo. , and Co. . . . 222 Sohofield, Philip H. , and Co. 212 ■Seville and Co 223 Shakespeare, Isaac, and Co. {") 267 .Shand, Higson, and Co 220 Shaw, Albert, and Co 232 Sheppard, J. E 217 Sherwood, J. A 2.i0 Smith,Coney, andBarrett(* ° ) 249 Smith, Edwards, and Co. ... 210 .Smith, S. audE 205 Stead Brothers 209 Stock, J. , Son, and Co 243 Stowe, Holmes, and Co 194 nStrafford Brothers and Co. . . . 230 Swainson, A., and Sons 205 Tarleton, Blakeley L 205 Taylor, Joseph, and Co 268 Taylor, Sykes, and Co. {" ) . . . 217 Taylor, J. \V., and Co 192 Thomson, J. B., and Co...... 189 Thompson, J. W., and Co. ("") 216 Thorburn, Thomas, and Co... 262 Thornely and Pownall (")... 204 Thorp, Higgins, and Co. ... 209 Tipton, R. S. , and Co. ( " ) . . . — Topp, Nathaniel, and Co. ... 259 Turner, Atkinson, and Co.... 192 Tyson, .James, and Co 204 Vance, Patrick ( " ) " 229 Veevers, Samuel, and Co. ... 222 Verdon, Hugh 250 Von Arnim, Jones, and Co... 259 Walsh, George (•'") — Waterhouse, N., and Sons... 195-6 Whitehead, Jonathan W. ... 267 Whitaker, Whitehead, and Co 199-200 Wild, Wm. , and Sons 235 Wilkinson, R. W 252 Williains, E. B. (*') — Williams, C. and G., and Co. 207 Williams, 0. H., and Co. ... 235 Williams, S. H., and Co. ... 235 Wilson, A. H., and Co.(*').. 230 Wilson, Hy. Talbot 265 Withers and Co 266 Witter, Geo. Johnson (")... 229 (") Mr. Peers died in 1886. ("■■■) Mr. dc F. Pennefather was one of Mr. J. E. Sheppard's apprentices, and was joined Ijj- Mr. John J. Miller in 18S2. (■"') This partnership was dissolved in 1885, and each partner now conducts a separate Arm. (^') The firm was commenced by Jlr. S. W. Radcliffe in 1866, was continued by Mr. Joshua Radcliffe from 1867, and was altered to Joshua Radcliffe and Co. in 1881, on the .admission of Mr. John McDonald to partnership. (■'") Came from London in 1869 : at first under the style of R. J. Rouse and Co. (■^■') Mr. Badger retired in 1886, and the firm ceased. (*") Mr. Robei-t Henry Smith commenced business in 1862, and was Joined by Messrs. Ooney and.Barrett in 1865. — (See pag:e 249.) (*i) Mr. Sykes withdrew in 1885, and commenced a new firm as J. T. Sykes and Co. Mr. Taylor took into partnership Mr. Walter Gair and j\[r. Arthur "Warburton, and the style is now Taylor, Gair, and Warbur-ton. (*'-^) Mr. George Charnley was admitted into partnership in 1882. Mr. Thompson died in 1886. (< ^) On the day that ^Iv. Pownall retired there were admitted to partnership Mr. C. E. Hudson, Mr. R. M. Thornely, and Mr. J. A. Pownall. Mr. Thornely, senior, retired in 1885. (") From 1858 to 1870, E. S. Tipton, and Co. ; afterwards Tipton and Falcon. Mr. Falcon retired in 1882, prior to which Mr. John W. Tipton, son of the senior, had been admitted. (*'') Mr. Vance died in December, 1885, aged 75 years. (**) Originally Vance, Walsh, and Co.— (See page 220.) (*0 One of Hodgson Ryley's apprentices. Commenced business in 1867. (*«) Now Wilson and Arkle. (^") Mr. Robert Jackson was admitted a partner in 1885, and- style was altered to •f!. J. Witter and Co. Mr. Witter died in 1886. "Wolstenholme and Holland , Woods, Robert A. ( ° » ) Wi-igley, John, and Sons .. 240 Wylie, Leonard, and Co. {'■*) Secretaries — Studley Martin. 203 Peter Brown ( " - ) The following is u, list of the Presidents of the Association since formation in 1841 : — George Holt 1S42 James Hardy Wrigley 184.3 John Marriott 1844 William Clare 1845 Peter Serjeantson 1846 Robert Gill 1847 James Ryley 1848 Hardman Earle 1849 John Stock 18.50 Miles Barton 1851 Jaaues Myers 18.V2 William Bower 1853 James Buchanan 1854 Isaac B. Cooke 1855 Thomas B. Blackburne 1856 Thomas Haigh 1857 Matthew Jee 1 1858 Rogers Waterhouse 1859 James Hardy Macrae 1860 Samuel Gath 1861 John Swainson 1862 William Duruing 1863 William Barry 1864 Edgar Musgrove 1865 Daniel C. Buchanan 1866 Fletcher Rogers 1 867 Peter S. Boult 1868 Hugh H. Nicholson 1869 Thomas Holder 1870 Benson Rathbone 1871 ,Tohn Bateson 1872 J. Charlton Jones 1873 .John Bethune Thomson 1874 John Bethune Thomson 1875 Henry H. Hornby '. 1876 Robert Burning Holt 1877 Joseph B. Morgan 1878 Edward Quaile 1879 Courteney Cruttenden 1880 ,Tohn Given 1881 Helenus Robertson 1882 George M'Ferran (Vice) 1882 (''") Came from London in 1875. (■"•') One of W. D. Tomlinson and Co.'s apprentices. Connnencod business in 1S81. l=~) Brought up in the firm of Stitt Brothers, afterwards Stitt and Cunningham. Appointed UJider-Secretary in 1870. At one of the last meetings of the Cotton Broilers' Association, prior to amalgamation with the Cotton Exchange^ it was resolved, on the motion of the President, seconded by the Vice-President, "To present to Mr. Brown £100 And a gold watch and chain, in acknowlcdgrment of his valuable services, particularly in the past year." Printed at the "Daily Post" and "Echo" OfHces, Victoria Street,. Liverpool. INCE 1826-27. Add ;ual eries. Total Distribution. Home Manufactures Exported. Years. Burnt or L08t. Stoolt Close of Season. / 967,281 232,000 1826-27 720,693 202,000 1827-28 16,662 867,744 262,000 1828-29 :>06 7,803 20,898 993,407 263,000 1829-30 ),322 119,423 1,069,746 225,000 1830-31 i,301 41,699 1,106,900 246,000 1831-32 1,832 48,205 1,112,037 246,000 1832-33 1,982 29,617 1,253,599 417,000 1833-34 1,901 2,421 41,623 1,283,945 ■ 671,000 1834-36 1,777 6,230 43,341 1,402,348 461,000 1835-36 1,346 2,7E1 76,820 1,468,916 566,000 1838-37 ,711 16,601 40,305 1,880,617 761,000 1837-38 1,963 2,611 62,244 1,403,708 696,000 1838-39 1,601 6,960 68,442 2,233,993 710,000 1839-40 ,073 6,664 82,068 1,697,795 624,000 1840-41 ,396 1,640 31,807 1,770,743 594,000 1841-42 1,524 1,000 94,486 2,426,010 645,TO0 1842-43 1,709 10,684 159,772 2,203,065 679,000 1843-44 ,727 16,681 94,126 2,644,434 865,000 1844-46 ,746 2,796 107,122 2,264,663 709,000 1846-46 1,664 2,100 214,837 1,967,601 816,000 1846-47 ,090 1,392 171,468 2,638,960 1,123,000 1847-48 ,761 660 164,753 2,980,064 986,000 1848-49 ,683 6,946 167,930 2,326,469 947,000 1849-50 ,741 3,142 128,304 2,683,187 1,449,000 1850-61 ,132 6,026 91,176 3,218,333 1,634,0''0 1861-52 ,554 20,861 136,643 3,444,068 1,763,000 1862-53 ,154 1,913 136,603 3,170,670 1,107,000 1863-64 ,902 2,704 143,336 3,067,942 1,175,000 1864-65 ,010 600 64,171 3,788,681 1,396,000 1856-66 1,634 798 49,268 3,120,690 1,223,000 1856-57 ,583 711 102,926 3,288,220 1,130,000 1867-58 1,678 11,492 149,237 4,097,407 1,663,000 1868-69 ,884 7,416 227,708 4,973,007 2,187,000 1869-60 1,217 4,390 83,187 4,053,794 1,691,400 1860-61 1861-65 1865-66 1,672 21,690 282,439 2,662,601 366,000 1,640 13,672 80,216 2,486,528 922,000 1866-67 ,091 1,890 38,130 2,579,111 974,000 1867-68 ,826 12,343 2,477,169 1,176,000 1868-69 ,370 4,172 69,747 3,167,289 767,000 1869-70 ,715 6,635 104,814 4,412,064 711,000 1870'71 ,644 1,000 64,521 3,079,166 461,000 1871-72 ,040 1,000 90,989 3,986,029 589,000 1872-73 ,226 2,000 108,162 4,261,377 606,000 1873-74 ,146 3,938 66,059 3,941,14S 814,000 1874-76 1,798 4,169 120,380 4,735,347 1,544,000 1876-76 ,668 3,697 119,638 4,606,803 2,047,000 1876-77 ,688 6,386 46,784 4,941,768 2,288,000 1877-78 1,488 14,879 66,948 6,119,315 2,171,000 1878-79 1,546 3,381 141,418 5,823,346 1,996,000 1879-80 1,777 ,137 ,939 8,927 218,043 6,730,747 2,714,000 1880-81 6,619 124,232 6,653,883 - 2,644,000 1881-82 1,410 237,117 7,116,466 2,590,000 1882-83 1,106 14,873 116,190 696,169 2,377,000 1883-84 umers direct f ron ii the pianta tions was app roximatel.v e tiniated. the V ^hole of th e Cotton BO delivered wa s not consum ed at the jumed on the Ohi o, the amoi. nt put down to the South s 178,107 in a fe w thousam I bales of th e total delive 'ies given abo ve. The Table No. 5. IMPOETS, DELIVERIES TO CONSUMERS, AI Import Direct. American 1884 1883 1882 1881 1880 1 1,404,980 69,570 204,410 20,460 816,060 1,749,660 82,900 138,460 20,290 904,010 1,396,710 84,670 177,280 21,240 720,780 1,510,250 72,070 216,990 19,200 627,660 1,348,860 42,980 167,460 16,020 581,710 1,4 1 4 Total 2,615,480 2,895,220 2,400,680 2,445,170 2,146,030 2,0 Import from Great Britain. 199,430 4,730 9,880 7,400 412,680 162,240 9,770 9,723 16,110 409,410 208,790 18,920 14,110 16,460 412,490 208,710 18,610 11,940 16,760 281,660 170,400 6,040 8,920 26,270 320,660 1