,illustration3 ,,guaranty ,,trust ,,co',s ,,cotton ,,price ,,chart4 ,spot ,prices1 ,new ,york1 ,middling ,uplands ,the ,fabric of ,civilization ,a ,short ,survey of the ,cotton ,industry in the ,united ,states ,guaranty ,trust ,company of ,new ,york #adj ,broadway ,,fifth ,,avenue ,,office ,,madison ,,avenue ,,office ,fifth ,avenue and #dcrd ,street ,madison ,avenue and #fjth ,street ,,london ,,offices ,,liverpool ,,office #cb ,lombard ,street1 ,e4 ,c4 #bg ,cotton ,exchange ,buildings #e ,lower ,grosvenor ,pl41 ,s4 ,w4 ,,paris ,,office ,,havre ,,office ,,brussels ,,office #a and #c ,rue des ,italiens #abb ,boulevard ,strasbourg #aeh ,rue ,royale ,,copyright1 #aiai ,,guaranty ,,trust ,,company ,,of ,,new ,,york ,the cotton industry touches the lives of the vast majority of the peoples of the earth4 ,the ensuing survey does not pretend to cover the field in all its diversity4 ,it aims to give1 in brief compass1 such general facts concerning the industry in the ,united ,states as may enable the reader quickly to familiarize himself with its broader outlines4 ,contents ,,chapter ,,page ,i ,the ,importance and ,power of ,cotton #e ,,ii ,where ,cotton is ,grown and ,spun and ,why #aj ,,iii ,the ,raw ,cotton ,market #ag ,,iv ,the ,cloth ,market #bg ,v ,financing ,cotton and ,cotton ,cloth #cc ,,vi ,american ,cloth in ,foreign ,markets #ch ,,vii ,some of the ,grower's ,problems #da ,,viii ,in the ,cotton ,mill #de ,,ix ,the ,finishing ,operations #eg ,the ,fabric of ,civilization ,,chapter ,i ,the ,importance and ,power of ,cotton ,cotton is the fabric of civilization4 ,it has built up peoples1 and has riven them apart4 ,it has brought to the world vast and permanent wealth4 ,it has enlisted the vision of statesmen1 the genius of inventors1 the courage of pioneers1 the forcefulness of manufacturers1 the initiative of merchants and shipbuilders1 and the patient toil of many millions4 ,a whole library could be written on the economic aspects of cotton alone4 ,it could be told in detail1 how and why the domination of the field of its manufacture passed from ,india to ,spain1 to ,holland1 and finally to ,england1 which now shares it chiefly with the ,united ,states4 ,the interdependence of nations which it has brought about has been the subject of numerous books and articles4 ,genius that ,served ,the ,world's ,need ,nor is the history of the inventions which have made possible to-day's great production of cotton fabrics less impressive4 ,from the unnamed ,hindu genius of pre-,alexandrian days1 through ,arkwright and ,eli ,whitney1 down to ,jacquard and ,northrop1 the tale of cotton manufacture is a series of romances and tragedies1 any one of which would be a story worth telling in detail4 ,yet1 here is a work that is by no means finished4 ,great inventors who will apply their genius to the improvement of cotton growing and manufacture are still to be born4 ,the present purpose1 however1 is to explain1 as briefly as may be1 the growth of the cotton industry of the ,united ,states1 in its more important branches1 and to endeavor1 on the basis of recognized authority1 to indicate its position in relation to the cotton industries of the remainder of the world4 ,america the ,chief ,source of ,raw ,material ,for the present1 and for the future1 as far as that may be seen1 the ,united ,states will have to continue to supply the greater part of the world's raw cotton4 ,staples of unusual length and strength have been grown in some foreign regions1 and short and inferior fibers have come from still others4 ,but the cotton belt of the ,southern ,states1 producing millions of bales1 is the chief source of supply for all the world4 ,the following table1 taken from ,the ,world's ,cotton ,crops1 #aiae1 by ,j4 ,a4 ,todd1 gives the comparative production of the great cotton-growing areas1 for the #aiad-aiae season3 ,america #af1ejj1jjj bales of #ejj pounds ,india #e1jjj1jjj #ejj ,egypt #a1cjj1jjj #ejj ,russia #a1cjj1jjj #ejj ,china #d1jjj1jjj #ejj ,others #a1cjj1jjj #ejj ----------- ,total #bi1djj1jjj #ejj ,the ,american crop is thus approximately fifty-six per cent4 of the world's total4 ,the other producing countries have shown since the beginning of the century an interesting1 if not a remarkable growth1 that of ,china being the largest in quantity1 and that of ,russia1 the largest in proportion4 ,the ,american increase has been larger1 absolutely1 than that of any other region1 and there is little indication that it will not continue to hold first position4 ,english ,spinners ,dominate ,world ,market ,in the manufacture of cotton1 ,great ,britain's supremacy1 while not so great proportionately as that of ,america in growing it1 is for the present not likely to be challenged4 ,the following table of the number of spindles in the chief manufacturing countries is based on ,english figures compiled shortly before the outbreak of the ,world ,war4 ,the number of spindles is the usual basis upon which the size of the industry is judged4 ,it is not a perfect method1 but it has fewer objections than any other3 ,great ,britain #ee1egf1ajh ,united ,states #cj1egi1jjj ,germany #aj1ibj1dbf ,russia #h1iej1jjj ,france #g1djj1jjj ,india #f1djj1jjj ,austria #d1hfd1dec ,italy #d1ehj1jjj ,latin ,america #c1ajj1jjj ,japan #b1bej1jjj ,spain #b1bjj1jjj ,belgium #a1dfh1hch ,switzerland #a1cih1jfb ,scattering #b1dii1dba ----------- ,total ,spindles #adb1ahf1cjh ,such figures can be only approximate4 ,the war has brought growth in the ,united ,states and in ,japan1 but has certainly reduced the numbers of spindles in ,germany1 ,austria1 and ,russia4 ,it is doubtful1 moreover1 how well the ,french industry has been able to maintain itself4 ,but the tabulation is accurate enough to show the relative standing of the various countries4 ,there are1 as has been indicated1 other standards than the number of spindles4 ,the ,united ,states1 through the fact that it specializes1 generally speaking1 on the coarser fabrics1 uses about #e1jjj1jjj bales of cotton annually1 as compared with ,great ,britain's #d1jjj1jjj4 ,the ,british product1 however1 sells for much more4 ,thus the value of the spindle standard is affirmed4 ,england1 then1 produces well in excess of one-third of the cotton cloth of the world2 the ,united ,states considerably more than one-fifth of it1 with the other countries trailing far behind1 but prospering nevertheless4 ,the ,individuality of the ,cotton ,fiber ,illustration3 ,the cotton fiber--a highly magnified view1 showing the twist ,it is a curious ruling of fate which makes the spinning of cotton fiber possible4 ,there are many other short vegetable fibers1 but cotton is the only one which can profitably be spun into thread4 ,hemp and flax1 its chief vegetable competitors1 are both long fibered4 ,the individuality of the cotton fiber lies in its shape4 ,viewed through the microscope1 the fiber is seen to be1 not a hollow cylinder1 but rather a flattened cylinder1 shaped in cross-section something like the figure eight4 ,but the chief and valuable characteristic is that the flattened cylinder is not straight1 but twisted4 ,it is this twist which gives its peculiar and overwhelming importance to cotton1 for without this apparently fortuitous characteristic1 the spinning of cotton1 if possible at all1 would result in a much weaker and less durable thread4 ,the twist makes the threads kink together when they are spun1 and it is this kink which makes for strength and durability4 ,though the cotton plant seems to be native to ,south ,america1 ,southern ,asia1 ,africa1 and the ,west ,indies1 its cultivation1 was largely confined at first to ,india1 and later to ,india and the ,british ,west ,indies4 ,at the beginning of the eighteenth century1 the ,west ,indies1 because of their especial fitness for growing the longer staples were supplying about seventy per cent4 of the food of the ,lancashire spindles4 ,the ,united ,states having made unsuccessful attempts to produce cotton in the early days of the colonies1 first became an important producing country toward the end of the eighteenth century4 ,american ,upland cotton1 by reason of its comparatively short staple1 and the unevenness of the fibers1 as well as the difficulty of detaching it from the seed1 was decidedly inferior to some other accessible species4 ,the ,southern planters who grew it1 moreover1 found it next to impossible to gin it properly1 the primitive roller gin of the time being unsuited to the task1 and the work of pulling off the fibers by hand being both tedious and expensive4 ,in #agib1 the amount exported from the ,united ,states was equivalent to only #bge bales4 ,illustration3 ,eli ,whitney1 the schoolmaster inventor of the cotton gin ,the next year1 #agic1 is the most important in the history of cotton growing in the ,united ,states4 ,in the autumn of #agib1 ,eli ,whitney1 a young ,massachusetts man who had just been graduated from ,yale ,college1 sailed from ,new ,york to ,south ,carolina where he intended to teach school4 ,on shipboard he met the widow of ,nathaniel ,greene1 the ,revolutionary general4 ,mrs4 ,greene invited the youth to begin his residence in the ,south on her plantation at ,mulberry ,grove1 ,georgia4 ,here one evening1 some officers1 late of ,general ,greene's command1 were discussing the great wealth which might come to the ,south were there a suitable machine for removing stubborn ,upland fiber from its green seed4 ,the story goes that while the discussion was at its height1 ,mrs4 ,greene said3 ,gentlemen1 apply to my young friend1 ,mr4 ,whitney4 ,he can make anything4 ,whitney commenced work on the problem4 ,a room was set aside as his workshop1 and it was not long before he had produced the beginnings of the gin4 ,he fixed wire teeth in a board1 and found that by pulling the fibers through with his fingers he could leave the tenacious seed behind4 ,he carried this basic idea further by putting the teeth on a cylinder and by providing a rotating brush to clean the fiber from the teeth4 ,the changes which followed immediately upon the introduction of the cotton gin were tremendous in scope and almost innumerable4 ,there was a time1 before cotton became a staple1 when the ,south led ,new ,england in manufacturing4 ,that time passed almost immediately4 ,iron works and coal mines were abandoned1 and men turned their energies from the culture of corn1 rice1 and indigo largely to the raising of the cotton4 ,expansion in ,production ,the following figures1 giving production in the equivalent of #ejj pound bales for the year at the close of each ten-year period1 give some idea of the tremendous expansion which ensued4 #ejj ,pound ,year ,bales #agij #c1ach #ahjj #gc1bbb #ahaj #agg1hbd #ahbj #ccd1gbh #ahcj #gcb1bah #ahdj #a1cdg1fdj #ahej #b1acf1jhc #ahfj #c1hda1daf #ahgj #d1jbd1ebg #ahhj #f1cef1iih #ahij #h1efb1jhi #aijj #aj1abc1jbg #aiaj #aa1fjh1faf #aiag #aa1cjb1cge ,by this table it will be seen that the ,civil ,war and the freeing of the slaves held up production only temporarily4 ,in #aiad1 the banner year1 the crop reached the tremendous total of #af1acd1icj bales of five hundred pounds each4 ,some little spinning had been done in the seventeenth century1 but in #aghg-hh the first permanent factory1 built of brick1 and located in ,beverly1 ,massachusetts1 on the ,bass river1 was put into operation by a group headed by ,john ,cabot and ,joshua ,fisher4 ,this factory failed to justify itself economically1 chiefly because of the crudeness of its machinery4 ,but ,samuel ,slater1 newly come from ,england with models of the ,arkwright machinery in his brain1 set up a factory in ,pawtucket in #agij4 ,from that time forth the growth was steady and sure1 if not always extremely rapid4 ,the following table1,a which covers the whole country1 relates particularly to ,new ,england in the years before #ahhj1 because the cotton manufacturing industry until then was largely concentrated there4 ,it shows how the manufacturing interests of the country profited by the discovery that brought wealth to the agricultural ,south3 ,number ,cotton of ,number ,used ,number ,value of ,year ,estab- of in of ,product in lish- ,spindles ,million ,employes ,dollars ments ,pounds ---------------------------------------- ---------------------- #ahaj #hg1jjj #ahbj #bbj1jjj #ahcj #gie #a1bjj1jjj #gg4h #fb1agg #cb1jjj1jjj #ahdj #abdj #b1cjj1jjj #aac4a #gb1aai #df1djj1jjj #ahej #ajid #c1fjj1jjj #bgf4a #ib1bhf #fa1gjj1jjj #ahfj #ajia #e1bjj1jjj #dbb4g #abb1jbh #aae1gjj1jjj #ahgj #ief #g1ajj1jjj #cih4c #ace1cfi #agg1ejj1jjj #ahhj #gef #aj1gjj1jjj #gej4c #agd1fei #aib1ajj1jjj #ahij #ije #ad1bjj1jjj #a1aah4j #bah1hgf #bfh1jjj1jjj #aijj #igc #ai1jjj1jjj #a1had4j #big1ibi #ccb1hjj1jjj #aiaj #abjh #bg1djj1jjj #b1ccb4b #cga1abj #faf1ejj1jjj #aiah #cd1idj1hcj #c1bgh4b ,a ,this tabulation includes spinning and weaving establishments only4 ,the ,north1 having this growing interest in an industry struggling against the experience and ability of the more firmly established ,english market1 sought naturally for the protection given by a high tariff4 ,the ,south1 having definitely dropped manufacturing1 pleaded with ,congress always for a low tariff1 and the right to deal in human chattels4 ,there is little need to go further into the rift which began to develop almost immediately4 ,in #ahfa the split occurred4 ,the war between the ,states caused hardly more suffering than the blockade which cut off the spinners of ,manchester from the vegetable wool which supplied them the means of living4 ,cotton proved its power and its domination4 ,it was a beneficent monarch1 but it brooked no denial of its overlordship4 ,early ,exports to ,england ,heavy ,the invention of the ,whitney ,gin1 as we have just said1 found the ,united ,states able to use but a small part of the cotton grown4 ,what became of the remainder8 ,obviously1 it was exported to provide the means for operating the ,english mills4 ,here is a table which shows how ,american cotton left the ,southern ports for ,england and the ,continent in the alternate decennial years beginning in #agij1 three years before the invention of the cotton gin by ,eli ,whitney4 ,the figures are exclusive of linters4 ,exports in ,equivalent of #ejj ,year ,pound ,bales #agij #cgi #ahaj #abd1aaf #ahcj #eec1ifj #ahej #a1hed1dgd #ahgj #b1ibb1geg #ahij #e1hej1bai #aiaj #h1jbe1iia #aiag #d1ehg1jjj ,in #aiaj ,american cotton made up almost exactly three-quarters of the whole amount imported into ,great ,britain4 ,the other countries of ,europe have developed a spinning industry by no means inconsiderable4 ,american cotton is sent to almost all those ,european countries which spin and weave4 ,such a movement had of course a profound effect upon the currents of world trade4 ,the cotton crop is the second in value of all the crops produced in the ,united ,states1 and such a large part of it is exported that the credit it gives to its sellers enables them to buy in return some of the most valuable of the products manufactured in ,europe4 ,the following table gives the amount of cotton1 expressed in the equivalent of #ejj pound bales1 exported to the various countries named in the decennial years3 ,united ,nether- ,year ,kingdom,germany,france,italy,russia lands ,belgium ---------------------------------------- ------------------------ #ahba #age1dch #a1dif #ed1hgh #a1gif #fji #h1cgb #ahcj #dai1ffa #b1bdf #aej1bab #dga #bbc #ag1ace #ahdj #ihi1hcj #ah1cag #ceh1ahj #g1hje #d1djf #ba1fih #be1ghj #ahej #hfc1jfb #aj1jij #bea1ffh #ah1gjg #h1fgg #h1eij #be1dib #ahfj #b1ebh1bgd #acb1ade #efg1ice #ed1jcg #dc1cif #be1eae #bi1fja #ahgj #a1bih1ccb #agc1eeb #cjf1bic #ad1edi #cj1cda #ag1jej #c1deb #ahhj #b1dcc1bee #cjh1jde #cei1fic #ei1abfbjd1ejj #fe1cbe #ag1hif #ahij #b1ije1aeb #hcg1fda #dhd1geiabi1geaaic1afc #ag1dch #ic1ehh #aijj #b1cjb1abha1fai1agc #gcf1jibddc1iea #ed1iej #gd1fce #adh1cai #aiaj #b1ddd1eeha1hhg1feg #ifh1dbbcic1cbg #fg1bjc #ah1hbc #ajb1cdf #aiag #b1chg1aja #feh1eeccfi1bac #ae1ide #aj1jih ,,chapter ,,ii ,where ,cotton is ,grown and ,spun and ,why ,we have seen 7page #e7 that the world's cotton crop is produced chiefly by the ,united ,states1 with #ef2 ,india1 with #ag2 ,china1 with #ac-a_/b2 ,egypt and ,russia with #d-a_/b1 the remaining #d-a_/b being made up by ,brazil1 ,mexico1 ,peru1 ,turkey1 ,persia1 ,japan1 and several other countries4 ,primitive ,methods of ,growing in ,india ,india is the first country wherein1 so far as we have record1 the growing of cotton reached the stage of an industry4 ,there conditions are almost ideal1 apparently1 for the production of a great crop2 yet1 for many years the crop was a small one1 and was utilized locally in the domestic manufacture of the light clothing worn by the people4 ,nothing remotely resembling the present modern factory system developed during all the thousands of years that the ,indians had the field practically to themselves4 ,the plant grown in ,india for a long time produced a short1 uncertain staple1 difficult to gin and still more difficult to spin4 ,the greater part of the cotton growing districts are still given over to the short staple varieties 7about #c_/d inch7 but in recent years certain varieties of ,egyptian and ,american cotton have been produced with some success4 ,about #bj1jjj1jjj acres are given over to the culture of the plant1 but the methods used are to a great extent primitive in the extreme4 ,most of the crop1 being unsuited to the needs of the ,british spinners1 is either manufactured in ,indian mills1 of which the number is constantly growing1 or exported to ,japan4 ,before the war1 ,germany was a large consumer of ,indian cotton4 ,the figures given as representing the ,chinese crop probably are not any more accurate than the usual statistical figures concerning ,china4 ,the ,chinese are still largely in the domestic system of manufacture1 and much of their crop--probably a larger proportion than in ,india--is spun and woven in the neighborhood where it is grown1 without ever appearing in statistical tables4 ,the methods of growing are equally primitive4 ,the fiber is short1 and the mills of the country import more raw cotton1 yarn1 and textiles than they export4 ,the ,growing ,importance ,of ,egyptian ,staples ,the ,egyptian crop is one of the most interesting1 both in the methods of culture1 and in the product4 ,from the point of view of statistics--remembering the uncertainty of the size of the ,chinese crop--,egypt is the third cotton growing country of the world4 ,this is the more interesting because it was not until about #ahbj that ,egypt was considered as a source of supply4 ,the present area1 under extremely intensive cultivation1 is about #a1hjj1jjj acres1 and nine-tenths of this is in the ,nile delta4 ,climatic conditions are radically different from those of the ,united ,states4 ,little rain falls during the growing season1 but an elaborate system of irrigation provides a sufficient and probably more satisfactory water supply1 insomuch as the quantity of water can be regulated1 and there is little danger of either too much or too little moisture4 ,the regions where the soil is not composed exclusively of the black delta mud1 but is a mixture of sand and mud1 produce the best crops4 ,the land1 after being plowed1 is thrown up into ridges about three feet apart4 ,channels for water are formed at right angles to the ridges4 ,the seeds1 before being sown1 in ,march1 are thoroughly soaked1 and after the seedlings appear there is frequent hoeing and watering4 ,the total water is equivalent to a rainfall of about #ce inches4 ,there is little cultivation in the ,american fashion1 hand labor being employed almost exclusively4 ,the result of all this intensive effort is an abundant crop of long-stapled cotton with an extremely strong fiber1 bringing in the open market a price second only to that of the ,american ,sea ,island variety4 ,much of the ,egyptian cotton is used in the manufacture of hosiery and other knit goods1 sateens1 sewing thread1 etc41 but recently it has also been found to be exceedingly well fitted for the manufacture of the fabric used in pneumatic tires1 and for the duck or filter cloth used in such industries as the refining of sugar4 ,illustration3 ,pickers in ,delta ,field ,russian cotton1 so-called1 is really grown largely in ,turkestan though a small amount is produced in the ,southern ,caucasus4 ,the culture has been under way since very early times1 but had little more than local significance until about #ahge when the ,russian ,government took steps to foster it1 distributing ,american seed of the ,upland variety1 importing the necessary equipment1 and providing instructors1 frequently ,americans4 ,railroads to handle the crop were built1 and1 with all this favorable assistance1 progress was rapid4 ,about one-third of the cotton used in the ,russian mills up to the time of the war was grown on ,russian soil1 the remainder being brought largely from the ,united ,states4 ,the ,american ,crop ,as the ,world's ,basis ,but the bulk of the world's supply is the cotton grown in the ,united ,states4 ,the price for ,american ,upland ,cotton governs the price of the other varieties4 ,the acreage devoted to the cultivation of the cotton crop in the ,united ,states is approximately #cd1jjj1jjj4 ,the increase since #ahci1 when census figures covering this point were first obtained1 has been about seventeen fold4 ,the #aiaf acreage1 of the various ,states1 together with figures giving the value of the crop and the comparative rank1 is here given3 ,gross ,crop ,value ,equivalent #ejj;,approx- ,including ,states ,acreage ,pound ,bales imate ,seed ,exclusive of ,percent- and ,linters ,linters age ---------------------------------------- ----------------------- ,alabama #a1igg1jjj #eag1hij #d4f #hf1idj1jjj ,arizona #ba1gcg #j4a #f1cjj1jjj ,arkansas #b1gdj1jjj #igc1geb #h4f #afd1hdj1jjj ,california #eg1hbf #j4e #i1daj1jjj ,florida #ahc1jjj #cg1heh #j4c #aj1bfj1jjj ,georgia #e1aie1jjj #a1hhc1iaa #af4g #cbb1fjj1jjj ,louisiana #a1ded1jjj #fch1gbi #e4g #ajb1bfj1jjj ,mississippi #b1ghh1jjj #ije1eed #h4j #aeb1bgj1jjj ,missouri #cde1jjj #fj1hca #j4e #aj1ajj1jjj ,north ,carolina #a1eae1jjj #fag1ihi #e4e #ajc1idj1jjj ,oklahoma #b1ghc1jjj #iei1jha #h4e #aej1bgj1jjj ,south ,carolina #b1hcg1jjj #a1bcf1hga #aj4i #bjg1bbj1jjj ,tennessee #hhb1jjj #bdj1ebe #b4a #dj1acj1jjj ,texas #aa1jib1jjj #c1abe1cgh #bg4g #die1eij1jjj ,virginia #ej1jjj #ah1ggg #j4b #c1adj1jjj ,all ,other ,states #e1fff #j4a #igj1jjj ---------------------------------------- ------ ,totals #cc1hda1jjj #aa1cjb1cge #ajj4jj #a1hff1bdj1jjj ,there are generally speaking1 two kinds of cotton produced in the ,united ,states--,upland cotton1 and ,sea ,island cotton4 ,the former makes up the great bulk of the crop1 the relative percentages in #aiag being #ii4b and 4#h4 ,the ,constant ,search ,for ,long ,staples ,a few years ago the terms short-staple and ,upland were practically interchangeable1 but the great demand for long staple1 chiefly from the manufacturers of thread and of pneumatic tire fabrics has led to a successful attempt to grow the longer fibers in the ,upland districts1 so that now more than a million bales annually are being produced in the ,upland districts of cotton with a staple length of #a-a_/h inches and more4 ,the world's total production of long staple is in the neighborhood of #b1bej1jjj bales4 ,egypt is the chief producer outside the ,united ,states1 her product being approximately #a1jjj1jjj bales of #ejj pounds every year4 ,although the product is small1 the best ,sea ,island produced in the ,united ,states grows upon the small islands off the coast of ,south ,carolina4 ,the long-staple ,upland is grown chiefly in the ,mississippi delta1 where the product is called ,peeler1 benders1 etc41 though the percentage of long-staple produced elsewhere is steadily increasing4 ,the success of certain ,arizona growers in producing long-staple from ,egyptian seed is being watched with great interest4 ,more than #c1jjj bales came from this source in #aiaf1 the fiber averaging #a-a_/b inches in length4 ,there has recently been developed there1 the new and important ,pima variety1 which is superior to the native ,egyptian cotton1 being both longer and whiter1 and the growers are now planting ,pima almost exclusively4 ,the following table1 taken from the ,encyclopedia ,brittanica1 gives the comparative length of staple of the more important varieties of cotton4 ,the order in which they are given represents1 roughly1 their relative commercial value3 ,length of ,staple ,sea ,island ,cotton in ,inches ,carolina ,sea ,island #a4h ,florida ,sea ,island #a4h ,georgia ,sea ,island #a4g ,barbados ,sea ,island #b4 ,egyptian ,cottons ,yannovitch #a4e ,abassi #a4e ,good ,brown ,egyptian 7,mitafifi7 #a4b ,american ,cotton ,good ,middling ,memphis #a4c ,good ,middling ,texas #a4j ,good ,middling ,upland #a4j ,indian ,cottons ,fine ,tinnevelly 4#h ,fine ,bhaunagar #a4j ,fine ,amraoti #a4j ,fine ,broach 4#i ,fine ,bengal 4#i ,fine ginned ,sind 4#h ,good ginned ,kumta #a4j ,the table of the number of spindles in each country in the world1 given on page #f1 gives some idea of the relative position of the ,united ,states in the field of cotton manufacturing4 ,we have seen how the ,english industry1 having the prior start1 grew to imposing proportions and helped to bring about a change almost as great in its effects as the ,french ,revolution1 which was occurring at almost the same time4 ,british supremacy in cotton manufacturing has never been truly challenged1 but there has been an appreciable growth in several other countries1 and in ,germany and ,japan1 at least1 the recent development has been little short of phenomenal4 ,new figures will probably show that in the future ,japan will be the chief competitor of ,england and the ,united ,states for a share of the cotton trade of the world4 ,illustration3 ,fall ,river1 ,massachusetts ,the ,home ,market ,created ,an ,industry ,the chief factor in the growth of the ,american industry was probably not the nearness of the source of supply1 cheap fuel or labor1 nor any of these factors which operated in the case of ,england1 such as climate1 geographical position1 and shipping control1 but more than anything else the presence of a market close at hand which grew so rapidly1 more rapidly indeed than the industry could grow to meet it4 ,aided to some extent by an import tariff1 the manufacturers have weathered some short periods of depression1 but in the main the industry has grown in direct ratio to the growth of the country4 ,illustration3 ,a typical ,southern mill ,new ,england ,as ,home ,of ,american ,spinning ,the cotton mill1 as we have seen1 early chose ,new ,england as its domicile4 ,mills are scattered more or less throughout the entire region1 but there are several localities which stand out beyond all others1 and almost deserve the title they have acquired as the centers of the industry4 ,premier place for a long time was held by ,fall ,river1 and even now the race between that city and ,new ,bedford is strong1 with the lead slightly in favor of the former city4 ,bristol ,county1 ,mass41 in which these two centers1 and ,taunton1 are located1 ,providence1 ,r4 ,i41 and ,middlesex ,county1 ,mass41 together contained #aj1jhf1fhf spindles in #aiag1 or #bi4e of the country's total of #cd1bba1beb4 ,the growth in this one locality is due probably to the advantages which come with centralization1 as well as to the natural advantages they possessed4 ,these latter1 which include particularly water power and a moist climate1 are not as important now1 ,with steam power and mechanical humidifiers as they were a generation ago4 ,in the ,middle ,atlantic ,states1 the number of plants and the spindlage have remained about stationary over a long period of years1 and are even showing a tendency to decrease4 ,small weaving establishments which buy their yarn are particularly numerous around ,philadelphia1 and there are large cotton duck mills in and near ,baltimore4 ,mills in the ,midst of ,cotton ,plantations ,it has been in the ,south1 however1 that the growth of the cotton manufacturing industry in the last few decades has been most phenomenal4 ,in #ahfj there were #cbd1jeb spindles in the cotton growing ,states compared with #h1fcb1jhg in ,new ,england4 ,in #aiag1 the figures were3 ,northern ,states 7including ,connecticut1 ,illinois1 ,indiana1 ,maine1 ,massachusetts1 ,new ,hampshire1 ,new ,jersey1 ,new ,york1 ,pennsylvania1 ,rhode ,island1 and ,vermont71 #ai1hce1ffb spindles devoted to the spinning of cotton exclusively2 ,southern ,states 7including ,georgia1 ,kentucky1 ,louisiana1 ,maryland1 ,mississippi1 ,north ,carolina1 ,south ,carolina1 ,tennessee1 ,texas1 and ,virginia71 #ad1bib1iah spindles devoted to cotton exclusively4 ,the census figures do not give the number of spindles in each city except when the confines of the city and of the county happen to coincide4 ,but the appended table is presented as showing the spindlage of counties having more than #ajj1jjj spindles devoted to the spinning of cotton4 ,about #ahhj1 the ,southerner saw the opportunity that awaited him when he should manufacture his own cotton4 ,at that time he was consuming only #ahh1gdh bales1 while ,new ,england took #a1abi1dih4 ,in ten years1 he was utilizing more than half a million bales1 while ,new ,england had just passed the million and a half figure4 ,in #aije1 the ,south consumed #b1adj1aea bales1 while ,new ,england had climbed to only #a1gec1bhb4 ,the figures are ,scherer's1 who points out that the race was won in twenty-five years4 ,however1 as competition with the ,south increased1 ,new ,england1 following the earlier lead of ,old ,england1 has tended always to produce a finer and finer quality of cloth1 leaving the coarser grades of sheeting1 drills and ducks to the ,southern mills4 ,thus1 while the ,south is consuming an ever larger proportion of the cotton crop1 she is still far from receiving for her product the money that comes to the ,new ,englander1 who with a higher grade of labor and greater variation of output is constantly catering1 with dress fabrics and fine stuffs of various kinds1 to a discriminating well-to-do patronage4 ,spindles ,county 7,number7 ,bristol1 ,mass4 #g1bid1bba ,providence1 ,r4 ,i4 #a1gji1gac ,middlesex1 ,mass4 #a1jhb1geb ,hillsborough1 ,n4 ,h4 #ijg1bde ,spartanburg1 ,s4 ,c4 #hca1dgf ,windham1 ,conn4 #ghj1bcb ,worcester1 ,mass4 #gff1aaj ,greenville1 ,s4 ,c4 #geh1add ,essex1 ,mass4 #fde1jbj ,hampden1 ,mass4 #fdb1jif ,gaston1 ,n4 ,c4 #fjc1ajb ,kent1 ,r4,i4 #eid1chj ,anderson1 ,s4 ,c4 #ehb1dfd ,berkshire1 ,mass4 #eba1djh ,new ,london1 ,conn4 #eab1agj ,oneida1 ,n4 ,y4 #dai1bee ,york1 ,me4 #djh1fjj ,androscoggin1 ,me4 #djb1dga ,muscogee1 ,ga4 #cdf1gdj ,pittsylvania1 ,va4 #cdf1cbj ,union1 ,s4 ,c4 #ccj1fef ,strafford1 ,n4 ,h4 #cah1afj ,cabarrus1 ,n4 ,c4 #cae1haj ,mecklenburg1 ,n4 ,c4 #bgb1aih ,guilford1 ,n4 ,c4 #bfb1hfb ,richland1 ,s4 ,c4 #bdd1ffj ,essex1 ,n4 ,j4 #bcb1bia ,albany1 ,n4 ,y4 #bbf1efd ,madison1 ,ala4 #bbe1afh ,greenwood1 ,s4 ,c4 #bag1gdd ,pickens1 ,s4 ,c4 #baa1cbj ,bristol1 ,r4 ,i4 #baj1dhh ,hampshire1 ,mass4 #aih1gib ,york1 ,s4 ,c4 #aih1djd ,fulton1 ,ga4 #aih1jaf ,aiken1 ,s4 ,c4 #aic1ihi ,laurens1 ,s4 ,c4 #aic1cab ,richmond1 ,ga4 #aib1iad ,rockingham1 ,n4 ,c4 #aia1haj ,durham1 ,n4 ,c4 #agb1ecb ,newberry1 ,s4 ,c4 #afh1jdj ,chambers1 ,ala4 #afd1jjj ,cherokee1 ,s4 ,c4 #afc1hbj ,kennebec1 ,me4 #afc1hae ,alamance1 ,n4 ,c4 #aec1agf ,knox1 ,tenn4 #aeb1ajj ,lancaster1 ,s4 ,c4 #aea1gfh ,richmond1 ,n4 ,c4 #adi1gdh ,chester1 ,s4 ,c4 #adf1fib ,stanley1 ,n4 ,c4 #adf1jjj ,rutherford1 ,n4 ,c4 #adc1djj ,calhoun1 ,ala4 #ach1jdh ,troup1 ,ga4 #acf1bjd ,floyd1 ,ga4 #abf1bfd ,cleveland1 ,n4 ,c4 #abe1ahb ,cumberland1 ,me4 #abd1cib ,spalding1 ,ga4 #aba1beb ,talladega1 ,ala4 #aae1ddh ,philadelphia1 ,pa4 #aad1edg ,merrimack1 ,n4 ,h4 #aac1caf ,davidson1 ,n4 ,c4 #aaj1efd ,baltimore ,city4 #ajf1jjh ,halifax1 ,n4 ,c4 #ajd1aaf ,hall1 ,ga4 #ajb1ehh ,the wealth of the world--at least up to the time of the ,great ,war--was constantly increasing and while there is little likelihood that the demand for the coarser grades of goods will fall off1 the need for finer stuffs1 not only in the ,united ,states1 but abroad1 is constantly growing4 ,the greatest development of the ,south is probably still to come4 ,the locations of the world's cotton markets have been dictated by the location of the growing fields and the manufacturing centers4 ,thus we find that the great raw cotton markets of the ,united ,states are in ,new ,york and ,new ,orleans4 ,in ,europe they are at ,liverpool1 ,bremen and ,havre4 ,because of conditions imposed by the ,german government1 the ,bremen market is largely dependent upon ,new ,york and ,liverpool4 ,the other great world market is that of ,alexandria1 which1 although it handles but a comparatively small part of the world's crop1 is important on account of the quality of the staple which makes up the ,egyptian bale4 ,the two chief ,american markets1 ,new ,york and ,new ,orleans1 are sharply differentiated4 ,the ,new ,orleans market is a true trader's market4 ,the great bulk of the sales made on the ,new ,orleans floor are bona-fide sales1 in which cotton actually changes hands4 ,the ,new ,york market on the other hand is a merchants' and manufacturers' market1 in which business transactions are protected against loss by the purchase or sale of futures1 though1 of course1 there is always a large amount of speculating4 ,delivery is rarely demanded4 ,the function of the exchange1 therefore1 is largely that of insurance4 ,the intricacies of this market will be discussed later4 ,,chapter ,,iii ,the ,raw ,cotton ,market ,because of the ramifications of the cotton industry1 the cotton itself1 on its devious way from planter to consumer1 is successively the concern of a series of individuals and corporations4 ,the immense value of the product1 the expense of growing1 handling1 manufacturing1 and selling it all mean that great quantities of capital are utilized in bringing it at last to its final consumer4 ,at any stage of the process1 cotton represents no inconsiderable part of the nation's wealth1 and to expedite its journey1 merchandising and financial methods of a highly specialized technique have been developed4 ,there are two very clearly marked stages in this process4 ,the first has to do with the raw cotton1 as it goes from planter to mill4 ,the second has to do with the journey from mill to consumer4 ,the first is usually called the ,raw ,cotton ,market1 and the second the ,cloth ,market4 ,the planter begins his work early in the spring4 ,his crop is dependent upon his ability to secure and pay for the labor to work it1 for the tools and machinery which are used1 and his own expenses4 ,small planters are rarely sufficiently in funds to enable them to go through the growing season without financial assistance4 ,they must borrow money1 and they usually borrow it with the growing crop as a basis4 ,the ,local ,grower ,and the ,charge ,account ,they may borrow from the country merchant in the town near which their plantations are located4 ,credit here is usually furnished through the charge account system1 whereby the merchant supplies the planter's wants for the growing season1 even to the extent of giving credit to his farm hands4 ,tenant farmers live almost entirely on credit furnished by the store-keepers of the vicinity4 ,when the picking season begins1 in ,july1 ,august1 or ,september1 according to the region concerned1 the merchant1 in lieu of money1 may take the cotton as it comes from the gins1 crediting the grower thereof at the market price4 ,the cotton thus accumulated is sold to local buyers1 or1 occasionally1 to shippers or exporters4 ,in the case of the larger plantations1 or groups of plantations operated by syndicates or corporations1 the cotton is frequently shipped direct to the mill or1 more often1 to a warehouse4 ,the larger producers1 instead of getting their credit from the local stores1 as their tenant farmers do1 are financed either by their banks1 or by their buyers1 who in turn are financed by their bankers4 ,the ,street ,buyers ,of ,texas ,towns ,in some districts1 particularly in ,texas1 there is the small or local buyer1 usually called a street buyer1 who operates in the smaller towns1 buying his cotton at the gins in lots of from one to ten bales1 either from the small planters1 or from the country merchants4 ,this buying gives a certain concentration to the crop1 and enables the larger buyers to deal in lots of comparatively uniform quality from certain regions1 the general type of whose product is known4 ,illustration3 ,street buyer in a ,southern town ,cotton bought from the planters or from the country merchants is almost invariably paid for in cash4 ,cotton is frequently sold at the compress point1 rather than at the gin1 this course being pursued in the case of large producers1 or when the original buyer is a mere local operator4 ,one of the most important operations1 commercially as well as industrially1 is the grading of cotton1 which takes place as a rule at the compress point under the supervision of the buyer1 who employs experts for this purpose4 ,cotton mills as a rule operate on certain specified grades of cotton1 and any deviation from this grade means either a readjustment of machinery or disgruntled and dissatisfied employes1 or1 perhaps1 an inability to fill an order for cloth of certain types4 ,the manufacturer will usually refuse to accept any grades save those he has specifically commissioned the buyer to obtain for him4 ,the actual grades1 and the terms describing them have been established by the ,united ,states ,government1 and are rigidly adhered to by the trade4 ,prices are established on the grade known as middling as a basis1 and variation from this basis is taken up in the price4 ,standardization of ,american ,cotton ,grades ,the grades1 for white cotton1 as established by usage and confirmed by ,governmental standardization are3 ,middling ,fair ,strict ,low ,middling ,strict ,good ,middling ,low ,middling ,good ,middling ,strict ,good ,ordinary ,strict ,middling ,good ,ordinary ,middling ,for yellow tinged stock the grades are3 ,strict ,good ,middling ,middling ,good ,middling ,strict ,low ,middling ,strict ,middling ,low ,middling ,for yellow stained and blue stained there are only three grades quoted1 good middling1 strict middling1 and middling1 the inference here being that stained cotton below the basic grade1 is unsuited for most commercial purposes4 ,with cotton selling around thirty cents a pound1 the difference between the cost per pound of middling fair1 the highest market grade of white cotton1 and good ordinary1 the lowest market grade1 may amount to twelve or thirteen cents4 ,the value of the shipment1 and its use as a basis for credit1 is dependent upon its proper classification4 ,the large cotton buyers purchase for the account of mills1 for exporters1 or for clients abroad4 ,they are usually firms of strong financial standing1 and as we have seen1 they are bankers or factors themselves1 financing growers or small buyers during the growing of the crop1 and the first concentration of the cotton4 ,but when the large movement of cotton is on1 it is frequently necessary that they1 like the local banks1 must be financed in order that they may execute their orders1 or1 as is frequently the case1 accept cotton sent to them on consignment4 ,cotton sent on consignment must be stored until a market is found for it1 and in order that proper storage facilities may be supplied1 the provision of suitable warehouse facilities is an important matter4 ,warehousing as ,industry's ,great ,need ,until recently1 warehousing in its relations to the textile trade1 had not been developed to the extent which might have been expected in those methods which would make it of the greatest use and advantage to textile interests4 ,by means of the facilities which could properly be afforded by warehouses1 manufacturers1 or merchants should be able1 at times of favorable markets1 to lay in large stocks of materials1 and to finance them safely and easily4 ,today1 this need is being met in constantly increasing measure by the ,independent ,warehouses1 ,inc41 affiliated with the ,textile ,banking ,co41 and having1 like the latter1 the support of the ,guaranty ,trust ,company of ,new ,york1 and the ,liberty ,national ,bank of ,new ,york4 ,modern warehouses of approved type1 with all requisite facilities1 will be established by this company at various ports of entry throughout the country1 as well as at the important concentration points in the cotton belt1 and also in the great textile manufacturing centers4 ,illustration3 ,weighing cotton on the compress platform ,thus it is seen that the cotton merchant has an important economic function to perform4 ,his is the duty of gathering up the great aggregate of cotton1 from all parts of the cotton belt1 and distributing it in exactly the quantity and grade needed to the cotton manufacturers of the world4 ,in the performance of this function1 and in order that the supply of cotton may be fed out exactly as it is needed by the manufacturers1 the cotton merchants have found it convenient1 and even necessary to establish great common markets where they may meet and enter into the transactions with each other and the whole world which are necessary to bring the cotton into the channels of commerce and keep it moving to its multitudinous destinations4 ,these markets are in addition to the numerous local markets where the preliminary concentration takes place1 and to some extent they are subsidiary to the latter1 where the cotton of the actual quantity and quality they are seeking is to be had in the first instance4 ,yet it is the great markets which establish the prices1 for it is they which are in close and immediate touch with all the other markets of the world1 and it is on their floors that the merchants and brokers meet who deal in great quantities4 ,it is their connection with the numerous sources of information which gives these great markets their importance1 for it is they which register immediately and most accurately the resultant of the sum total of all the economic forces which determine the price4 ,illustration3 ,the ,new ,york ,cotton ,exchange ,the great cotton markets of the world are those of ,new ,york and ,new ,orleans1 in the ,united ,states2 ,liverpool1 in ,england2 ,bremen1 in ,germany2 ,havre1 in ,france2 ,alexandria1 in ,egypt2 and ,bombay1 in ,india4 ,there are differences between these markets which give a greater importance to some of them4 ,bremen1 which serves a large territory1 operates under governmental restrictions which make it necessary for ,bremen merchants to deal in other markets as well4 ,havre serves chiefly the needs of ,france1 which is not one of the large cotton consuming countries4 ,alexandria deals only in ,egyptian cottons1 and ,bombay1 whose dealings are confined mostly to the native staples1 has neither the responsiveness nor the completeness of the remaining markets4 ,thus1 by elimination1 the three great markets of the world1 wherein cotton of all kinds is dealt in1 and all forms of transactions in it are common are those of ,new ,york1 ,new ,orleans1 and ,liverpool4 ,to these1 the cotton world looks for guidance from day to day4 ,the prices established on their several floors are the prices of the world4 ,illustration3 ,cotton train going from gin to compress ,the ,liverpool ,exchange1 under different names1 has existed since #ahda1 having taken approximately its present form in #ahgj1 in the attempts to stabilize conditions after the great speculative period which resulted from the ,american ,civil ,war4 ,the ,new ,york and ,new ,orleans ,exchanges were both organized the following year4 ,the uniformity of rules and practices in the trade which resulted from the establishment of the exchanges have been of inestimable benefit to the industry and to the world1 and this despite occasional abuses1 which have usually been corrected as methods for correction have been evolved4 ,spot ,markets and ,those ,which ,deal in ,futures ,the ,new ,orleans ,cotton ,market1 and those of lesser cities1 are largely spot markets1 that is1 the dealings which takes place in the ,exchanges at those points involve the actual transferring of cotton which is on hand1 or1 at least1 contracted for4 ,the ,new ,york market deals preponderantly in what are known as contracts for future delivery1 or1 in the language of the ,exchange1 futures4 ,the ,liverpool ,cotton ,market is both a great spot cotton market1 and a great futures market4 ,the striking thing about these futures contracts is that but few of them are fulfilled by actual delivery4 ,the question then arises1 what function is fulfilled by the ,new ,york ,exchange that it should have such an important place in the cotton market8 ,to the uninitiated the speculative features of the market have often served to condemn it1 and at times of speculative fever1 or of manipulation such as has occurred on one or two occasions1 there has been public agitation calling for legislation against dealing in futures4 ,yet the ,new ,york ,exchange performs a very definite and valuable service1 and its trading methods have served to stabilize the whole industry1 and to remove from it much of that very speculation which is frequently charged against the ,exchange itself4 ,the justification of the ,exchange is found in the fact that the futures contracts common on its floor afford the cotton merchant and manufacturer a chance to insure themselves against losses occasioned by fluctuations in the market4 ,the method by which this is done is called hedging4 ,why the ,merchant ,must ,hedge ,his ,sales ,for the cotton merchant1 the situation as it develops is approximately this3 buying1 as he must1 all grades and quantities of cotton1 he may have an immediate market with the spinners whom he serves for only certain of these grades1 and thus may have left on his hands a large supply of cotton of other grades which came to him in his purchases which he has no call for at the time4 ,these overs are subject to the risk of a decline in value unless the merchant can find some way to protect himself4 ,nor is this risk the only one run by the cotton merchant4 ,the spinners frequently contract for months ahead for the output of their mills1 and it is part of the merchant's task to see that the cotton is available at a contract price when the spinners are in need of it4 ,such contracts for future deliveries are not only common but customary4 ,if it were impossible for the spinner to make such contracts1 it would1 of course1 be impossible for the weaver to make future contracts for the delivery of cloth4 ,such a condition unsettling the distributing markets1 would be intolerable4 ,hence1 the necessity of future contracts between merchants and spinners4 ,the situation would otherwise be a very difficult one for the merchant whose supply of cotton1 and the price he must pay for it1 are subject to the vagaries of nature1 which may grant a bountiful crop one year1 and a short and inferior one the next1 with consequent fluctuations in price sufficient not alone to wipe out his profit but his capital as well4 ,the ,hedge ,as a ,credit ,transaction ,hedging1 as has been said1 affords the protection1 against serious loss which these varying conditions make probable4 ,it may almost be said1 observes ,arthur ,r4 ,marsh1 former ,president of the ,new ,york ,cotton ,exchange1 that as the main business of banks today is not dealing in money1 but in credits1 so the main business of the cotton exchanges is now in credit transactions in cotton1 toward which the actual cotton 'on the spot' stands in much the same relation as the money in the banks to the sum total of their transactions in credit4 ,it serves as a reserve at once for the satisfaction of unliquidated credit balances and for the maintenance of sound credit values in all the credit operations4 ,elsewhere1 ,mr4 ,marsh describes the hedging process in these words3 ,a hedge is the purchase or sale of contracts for one hundred or more bales of cotton for future delivery1 made not for the purpose of receiving or delivering the actual cotton1 but as an insurance against fluctuations in the market that might unfavorably affect other ventures in which the buyer or seller of the hedge is actually engaged4 ,illustration3 ,the floor of the ,new ,york ,cotton ,exchange ,how ,merchants ,secure ,protection by ,hedging ,the cotton merchant1 in making a hedge1 would proceed in this fashion4 ,having made an actual sale of cotton to a spinner for future delivery1 the price being fixed according to current quotations in ,new ,york for deliveries to be made in the month specified in the contract1 he would buy futures for a corresponding amount of cotton on the ,new ,york ,cotton ,exchange4 ,if the price of cotton should have advanced when the time for the delivery of the actual cotton comes1 he will be able to sell his futures contract at a higher price1 thus offsetting the loss sustained upon the deal in actual cotton4 ,or1 if he prefers1 he may hold the futures contract until its maturity and sell it at the then prevailing figure4 ,the first course would be the customary one for a bona-fide merchant1 whose sole concern is protecting himself against loss by fluctuations in price4 ,if1 on the other hand1 cotton should fall before the merchant bought to fulfill his actual contract1 he would make a profit upon his sales to the spinner4 ,he would1 however1 suffer a loss upon his futures contract1 for the seller would be able to purchase the cotton to fulfill the contract at a lower point than the contract called for1 and would consequently be able to deliver to the merchant who made the hedge1 cotton which the latter would be forced to accept at a price higher than the then prevailing one1 and thus again the profit and loss would balance each other4 ,the usual custom is1 not for the merchant to accept delivery1 but to pay over to the seller of the futures contract the difference between the contract price and that prevailing4 ,this would be just the difference between his own purchasing and selling price in his actual dealing with the spinner1 and so would eliminate the profit1 due to change in price1 made in that transaction4 ,thus1 by the hedging process1 the merchant loses a possible profit on a falling market1 but at the same time fails to suffer a loss when the market is against him4 ,hedging as ,practiced ,by ,cotton ,manufacturers ,the manufacturer's hedging is necessarily somewhat different in practice1 though the same in principle4 ,if he accepts orders for cloth requiring more cotton than is being held in his warehouse1 he may buy futures contracts to the amount of the additional cotton he will need4 ,then in the event that his actual purchase of cotton may be at a figure which would tend to reduce or eliminate his profits on the sale of the cloth1 already fixed by contract1 he may sell his futures contract at a corresponding profit1 thereby preventing loss4 ,should the price of cotton fall in the interim1 his profit on the sale of the cloth will be larger1 but the settlement of his futures contract will be expensive to the same extent4 ,thus he sacrifices the chance of a greater possible profit in order to be insured against loss4 ,illustration3 ,compress bales bound for ,new ,orleans ,it is probably more common for the cotton merchant to hedge than for the manufacturer to adopt that proceeding4 ,the manufacturer1 as a rule1 has been accustomed to buy his cotton during the buying season1 that is1 in ,october1 ,november1 ,december1 and ,january1 and he makes his arrangements with his selling agents on the basis of the price paid1 trusting to his own judgment1 and the comparatively small fluctuations in the price of cloth in normal times1 to protect him against loss4 ,it is usually believed that the ,southern mills1 being newer1 and frequently of a different financial standing1 have found it more desirable to have recourse to this form of insurance than their older competitors in the ,north4 ,then1 too1 the rapid development of the cotton warehousing system has made it less necessary for the manufacturers to tie their money up in great quantities of cotton1 as they can buy when the market appears favorable4 ,protection for ,mills ,running for ,stock ,a very important point1 however1 and one which all manufacturers would do well to consider carefully is the protection which a futures market gives to a manufacturer making plain goods for stock1 particularly on a falling raw material market1 which1 of course1 would also mean a falling goods market4 ,to stop the mill because values were falling would be impossible without utter disorganization1 and its attendant heavy loss1 while to keep on manufacturing stock goods with a certainty that they would be worth less each succeeding month is a disheartening prospect for the mill4 ,if1 however1 the manufacturer sells futures for the succeeding months to the extent of the cotton which he would require each month to manufacture the goods1 he can run his machinery as usual and have a perfectly free mind1 as he has safeguarded himself against any loss due to a falling value of the raw material4 ,suppose1 for instance1 the cotton market fell off1 say one cent a pound each month1 with a corresponding fall in the value of the woven goods4 ,in such an event1 the manufacturer could1 as each month arrived1 buy a contract for an amount corresponding to what he had sold1 and at a proportionately less price1 thus making a profit on the futures which he had sold to an extent which would correspond1 approximately1 to the smaller value which his manufactured goods would then have in the market4 ,thus the profit on the one side would take care of the loss on the other4 ,if the market rose instead of falling1 he would make a loss in replacing his futures contract1 but his goods would then command a higher value1 and again no loss would be experienced4 ,this method of hedging is the regular and standard practice of the ,english cotton mills1 and1 of course1 of many of our domestic mills1 but there are some manufacturers who1 through their unfamiliarity with the operations of the futures market1 are quite unaware of the protection which they thus have at hand4 ,the ,responsiveness of the ,great ,exchanges ,the great exchanges1 and the ,new ,york ,exchange in particular1 are thus used by cotton merchants and manufacturers in every part of the world to protect themselves in their buying and selling operations4 ,the value of middling cotton in ,new ,york is kept upon par with the value of the same cotton in any growing or manufacturing point1 such factors as freight1 insurance1 brokerage1 etc41 being allowed for in the quoted price4 ,quotations on the ,liverpool ,exchange are thus higher than quotations in ,new ,york by the difference between the amount it costs to deliver cotton in ,liverpool and to deliver it in ,new ,york4 ,thus the merchant and manufacturer is able to buy and sell hedge contracts on the ,new ,york ,exchange1 knowing that operations at the ,new ,york price in ,new ,york are on a parity with operations at the ,liverpool price in ,liverpool1 or at the ,havre price in ,havre4 ,thus the hedge contract which a ,southern merchant sells in ,atlanta1 through his broker on the ,new ,york ,exchange1 may be bought by a spinner in ,tokyo or ,manchester1 anxious to insure his supply of cotton at a price which would make his contracts profitable4 ,in normal times the selling of merchants and the buying of manufacturing engaged in actual and bona fide hedging transaction has been estimated by competent authorities to make up fully seventy-five per cent4 of the trading done on the ,new ,york ,exchange4 ,the remaining twenty-five per cent4 may thus be attributed to speculative operations1 that is operations entered into by outsiders through brokers1 on the chance of a rise or a fall in the market4 ,nor is such speculation without its value4 ,it is the speculators1 as a rule1 who are the first to take advantage of crop reports or weather conditions1 or news likely to affect the market favorably or unfavorably1 and buy or sell as their judgment dictates4 ,their operations serve to discount such changes to some extent1 or at least to make the breaks and rises more gradual than they would otherwise be4 ,in abnormal times1 that is times of great scarcity and great demand1 or bumper crops and small demand1 the speculative element plays a larger part1 for it is in such times that the greatest fluctuations in price take place4 ,merchants or manufacturers holding hedging contracts are under a greater incentive to buy or sell1 as they see their opportunities for profit growing greater or less1 as the case may be1 and in consequence more contracts are made1 and they pass from hand to hand with greater rapidity1 the gain or loss thus being distributed among a greater number of persons than would otherwise be the case4 ,it is the operations of speculators1 and the manipulation that once or twice during its history has been possible by unscrupulous traders which has brought about at such times public agitation for the abolition of the ,exchange4 ,recent changes in the form of the cotton contract have made it almost impossible for such operations1 if repeated1 to be successful1 and thus there is little likelihood that the very important economic function of the ,exchange will be interfered with by legislation4 ,,chapter ,,iv ,the ,cloth ,market ,the output of the manufacturer finds its way to the ultimate consumer through a variety of channels4 ,what these are will depend upon the manner in which the various mills are organized1 and their respective policies as to the marketing of their products4 ,some mills1 usually very large organizations1 will have plants completely equipped1 in every department1 spinning1 weaving1 dyeing1 printing1 finishing1 etc41 and will process all of their goods themselves in every detail1 offering them on the market in their finished form4 ,some of these may make a wide variety of fabrics suitable for one class of trade1 or for many classes of trade1 while others will specialize on a few articles4 ,a good many concerns that are not of the largest size1 but which confine their production to a few articles1 may also put the goods through every operation themselves4 ,then there are a great number of cotton mills1 many of them of very large size1 which do no weaving at all1 but confine themselves to spinning1 finding a market for their yarns with the many weaving mills which have no spinning plants4 ,many ,large ,mills ,do ,no ,finishing ,numerous mills1 both large and small1 manufacturing1 principally1 goods of a staple grade1 which may either be of fine or coarse character1 sell their entire product in the gray1 or unfinished state1 because they do not wish to burden themselves with the task of putting the goods through the various finishing treatments necessary to fit them for the market4 ,this method of disposing of the product appeals to many for it reduces the manufacturing operations to the spinning of the yarn1 and to the weaving of the cloth4 ,the owners or managers of the mills may have had no experience outside of these branches1 and if they themselves were to attempt to finish1 or convert1 the goods they would be entering strange fields4 ,whatever method of merchandising may be adopted1 it is certainly obvious that the product of large mills is so great that it must be disposed of in a large way1 and hence various channels of outlet have grown up to satisfy the requirements of the case4 ,dealing ,direct ,with ,dry ,goods ,jobbers ,a substantial portion of the output of the mills 7but nothing like what it was years ago1 and it grows relatively smaller every year71 is disposed of directly to dry goods jobbing houses1 and by them to retail dealers1 who sell it by the yard to the consumer4 ,this practice was formerly more widespread1 but has diminished greatly in recent years4 ,a further enormous yardage passes eventually through the cutting-up houses1 which manufacture garments of every kind1 from overalls to pajamas1 or from raincoats to shirts1 and dispose of their products to distributors1 who eventually sell them to the public4 ,then there are retailers whose requirements for goods of particular kinds are so considerable that their orders are of sufficient magnitude to warrant the mills in dealing with them direct4 ,again1 there are the great mail-order houses1 with a gigantic annual turnover1 whose catalogues go to every part of the land1 and which handle great quantities of piece goods1 as well as made-up garments1 and whose custom is eagerly sought for4 ,illustration3 ,thousands of looms in a single room ,other mills make fabrics suitable for use in the military and naval establishments of the country1 and in other public channels1 and which1 in selling these fabrics1 will deal directly with the ,government1 or indirectly through intermediaries4 ,in addition to these1 and other domestic outlets1 there is a great quantity of goods produced for export1 which are handled through houses specially organized for that trade4 ,merchandising by ,dry ,goods ,jobber ,one of the oldest established agencies for handling mill products is the dry goods jobber1 and it is to be remarked that many large retail houses do also a substantial jobbing business1 though generally less so in cottons than in other classes of fabrics4 ,the jobber will buy finished products from those mills which sell goods in that state1 and will also buy large amounts of gray goods4 ,these he will sell principally to retail distributors1 but his transactions1 in addition1 will extend into a multitude of channels1 and1 he will deal with small garment manufacturers and makers of all kinds of wares1 and will also sell considerable quantities to the larger cutters when they are unable1 for one reason or another1 to buy direct from the mills or from the converters4 ,there are also numerous small jobbing concerns which buy substantial quantities from the larger jobbers as occasion may require4 ,one of the greatest avenues of outlet is through a class of dealers known as converters1 and there are converters operating in every kind of fabric from cotton to silk4 ,in the last forty or fifty years1 this business has developed into immense proportions1 and the converter performs a real and important service in the trade4 ,he is intimately acquainted with the needs of his customers1 and possesses a fair knowledge of the kinds of goods put out by the various mills and the different constructions in which they are sold1 and is well acquainted with all of the market dyeing1 finishing1 bleaching1 and printing concerns1 having also a fair understanding of the various treatments accorded to the goods4 ,he buys his goods in the gray from the mills1 and sends them to the finishers1 printers1 etc41 to be treated1 according to his instructions4 ,by a careful studying of the fabric constructions1 and of the subsequent treatments1 he is able to create fabrics of a suitable and marketable character1 which are in some respects different from those offered by any of his competitors1 and which are brought out with an exact knowledge of the requirements of the trade to which he is catering4 ,he is able to make a profit1 and generally a very substantial one1 by handling the goods in this way4 ,considerable capital is required by the converter1 as goods bought in the gray have to be paid for on practically a cash basis1 and he may have to carry them for a time before they are finally marketed4 ,the converter sells to the cutting-up houses1 to jobbers1 and to retailers1 or1 in fact1 to whatever trade he seeks4 ,large and profitable businesses have thus been built up4 ,many converters have adopted their own distinctive trade marks1 and since the goods that they handle are known by these trade marks1 the identity of the mill which made them originally is often entirely unknown to the ultimate consumer4 ,the converter can give his business to whatever mill1 at the time1 will give him the best value for his money4 ,jobbers ,must ,know ,status of ,mills ,these operations are facilitated by the services of another class of intermediaries1 the cloth brokers4 ,if a buyer1 whether he be retailer1 jobber1 converter1 or what not1 wishes to secure goods of a certain kind1 he would have a very difficult task if he had to canvass the entire market1 and ascertain what was being offered4 ,hence he is likely to go to the cloth brokers4 ,they are in touch with all the principal manufacturing sources of supply1 and will have daily quotations of the offerings of the different mills2 he will know which mills are sold up1 and which are open for business1 and what class of goods they desire to sell4 ,consequently the cloth brokers are in a position to offer to would-be purchasers a wide variety of the different cloths which are available on the market1 and it is their business to buy from the mills as cheaply as they can1 and so get the best possible price for their customers4 ,the transactions are handled on a small commission1 and the average buyer1 in many kinds of goods1 is able to do much better by working through a broker than by opening negotiations directly with the mill4 ,most ,mills ,have ,offices in ,chief ,markets ,mills selling their products through brokers in this manner may1 or may not1 have a representative stationed in the goods market1 according to circumstances4 ,mills1 manufacturing a limited number of plain fabrics1 and which do not sell through brokers1 may also be without representatives in the primary goods market1 and will dispose of their product directly from the mills1 partly by correspondence1 and partly through the efforts of their travelers4 ,the great mass of the mills1 however1 are regularly and efficiently represented in the great central goods markets1 principally ,new ,york1 though also in ,boston1 ,philadelphia1 ,baltimore1 and elsewhere1 and their selling agencies are very highly organized institutions4 ,these establishments which have sufficient capital to enable them to finance themselves--with or without the assistance of regular bankers' loans--may maintain their own selling offices1 and market their product in their own names directly to their customers4 ,the amount of capital required to handle a business in this way is proportionately very large1 for the concern must be able to keep itself sufficiently supplied with raw materials1 and then to carry the expenses as these materials pass through the slow stages of manufacture until the goods are finally finished1 after which they may have to be kept in stock for a time until the delivery dates1 and then1 after shipment1 the accounts have to be carried until the bills are paid1 so that1 from the time the manufacturer pays for his raw material until he finally receives pay for his goods is a very long period4 ,loans ,made ,upon ,warehouse ,receipts ,the financing of a business conducted in this way can be assisted by loans from warehouses upon stocks of raw material stored there1 by bank accommodation1 and by facilities which certain banks give for the cashing of a substantial percentage of those accounts on the books of the concern which the customers have not discounted themselves4 ,also1 in handling his merchandise in this way1 the manufacturer must have a thorough understanding of the best means of marketing his product1 and this care of the selling end is1 of course1 an added burden upon his shoulders which1 in many cases1 he may not feel competent to handle properly4 ,therefore1 the comparatively few concerns which do have sufficient capital to sell directly1 in addition to the many from great to small who have not1 will market their product through what are known as dry goods commission houses1 sometimes referred to as factors1 and simply as commercial bankers4 ,the commission house system1 as we have it here1 does not exist anywhere else1 and its great growth in the ,united ,states has been largely due to certain peculiarities in our banking methods1 which have prevented mills--even those with a reasonably sufficient supply of capital--from obtaining the amount of direct banking accommodation necessary for their needs4 ,the commission house1 in its usual relations with its mills1 undertakes to conduct the sale of their products4 ,some commission agents insist upon having the entire selling control of all of the goods the mill produces1 or at any rate1 of all the goods of the kind which they are equipped to sell4 ,others1 again1 will take over a partial selling control of the product of a mill1 and various lines of the same manufacturer may be found offering through different channels4 ,there are some obvious disadvantages connected with this latter procedure4 ,if the mill is a very large one1 the selling agent may handle no goods except the product of that mill1 but in the great majority of cases1 the factor will represent a considerable number of mills4 ,immediately on receipt of the invoices of the goods consigned to the selling agent1 the mill can draw against them a percentage of their value1 previously agreed upon1 usually about two-thirds of their net selling price1 and upon these loans interest at the rate of #f is charged4 ,the difference between the rate at which the commission house can borrow money1 7in normal times perhaps #d to #d-a_/b71 and the #f which is usually charged to the mills1 constitutes a considerable part of the profits of the factor's business4 ,factors ,provide ,selling ,facilities ,the factor often provides a store1 together with a complete selling and office force1 and every facility for receiving1 storing1 selling1 and shipping the goods1 and for financing the business4 ,the salesmen of the house travel throughout the country1 reaching all the important markets1 and the managers of the different departments1 who thus understand the needs of the market1 are in a position to advise the mill with intelligence and exactness as to the kind of goods which should be made to meet the requirements of the trade4 ,the cost of warehousing and of insurance on the merchandise is also paid by the commission agent4 ,illustration3 ,spinning room in a large mill4 ,these are all ring spindles ,the prices at which the goods are to be sold are fixed by the mill1 but1 of course1 they will finally sell at prices determined by the market conditions4 ,as the goods are sold1 the amounts which they bring are credited to the mill1 less whatever has been advanced against them4 ,the selling agent also stands ready1 no matter on what time and terms the goods may be sold1 to credit the mill with the net value of the sale1 less #f interest for the unexpired time within which the customer may pay1 and from this interest charge also he secures part of his return4 ,of course if bank rates are very high1 as they sometimes are for short periods1 the factor may be out of pocket on the interest account1 instead of making profit4 ,as the goods are sold1 so are the equities in them released1 and the balance is credited to the mill4 ,if1 however1 the goods sell at a loss there will be no equities coming to the mill1 and1 in fact1 there are not infrequently deficiencies to make up4 ,for these services1 and according to the nature of the goods being sold1 various commissions are charged1 usually ranging between the limits of #d and #h of the net returns of the sales4 ,plain unfinished goods which are marketed in large quantities are charged for at a relatively low figure1 while fancy goods1 sold in smaller quantities and requiring more effort and expense to sell them1 are charged for at a higher figure4 ,the selling agent also guarantees the credits of the firms to which he sells1 so that no losses for bad debts can fall upon the manufacturer1 but1 at the same time1 he will decline orders from any concerns except those with whose credit he is entirely satisfied4 ,not infrequently when the manufacturer conducts his own selling operations1 he will use the facilities afforded by the commission house for the financial part of the business only1 taking advances on his goods1 having his sales cashed1 and his credits guaranteed1 etc4 ,for these lesser services1 of course1 the commissions charged are smaller4 ,when goods are charged out1 the bills are payable to the commission house1 and so1 as far as the customer is concerned1 the commission house is the principal in the transaction4 ,in many cases certain modified arrangements are made1 but in most instances the business is conducted as herein described1 and it may fairly be said that the bulk of the dry goods of all kinds produced in the ,united ,states finds its way into the market through commission house channels4 ,making ,plain ,goods for ,future ,orders ,it is the policy of most cotton mills1 and certainly of those making plain goods1 to run steadily all the year round1 and thus the commission agent1 whether he has secured advance orders on the goods or not1 has constantly flowing into his hands an assured stream of merchandise which must eventually1 when sold1 pay him a commission4 ,thus the securing of a good account means an assured source of revenue to the commission agent4 ,there are no more important selling organizations for textiles than these dry goods commission houses1 many of them having an immense and profitable turnover1 and their businesses are conducted on a very high plane of efficiency1 and probity1 although1 in itself1 there are many evils attendant upon this method of the distribution of merchandise1 and which exercise at times a most adverse influence upon the well being of the mills whose product is thus disposed of4 ,strength of ,agents ,makes ,paper ,acceptable ,it is evident that no ordinary capital would be sufficient for the supplying of money on call to mills in the immense quantity needed1 and it is here that the banker's capital is called into use4 ,the commission house is usually a concern of substantial means1 sometimes very rich1 and nearly always of a financial standing1 which will give it1 on its own account1 an assured credit4 ,at certain times of the year the calls for money from the mills are greater than at other times1 and as shipments come forward1 and advances are required1 the commission house1 in order to put itself in funds1 will issue a series of its own notes in convenient sized amounts1 #e1jjj to #aj1jjj each1 for instance1 and will offer these for sale1 through its note broker4 ,this paper1 which commands an advantageously low rate of interest1 and which is issued for convenient periods of time1 averaging perhaps four months1 is much sought after by banks and other institutions in primary markets and throughout the country wishing to invest current funds in a safe and not unprofitable medium4 ,this paper is so acceptable to banks not only because the credit of the issuing firm is behind it1 but also because it is known that the money which is obtained for the notes will be lent out to mills on ample collateral4 ,the issuing house is in a position so entirely safe that hardly ever can a question arise as to its ability to take care of its borrowings4 ,,chapter ,v ,financing ,cotton and ,cotton ,cloth ,no industry shows better than the cotton industry the economic importance of banking service4 ,no industry1 perhaps1 utilizes to such a complete extent the modern instruments of credit1 nor is so dependent upon these instruments for its proper functioning4 ,at no point in the progress from seed to cloth is the capital represented by the cotton necessarily or even customarily tied up4 ,and not only may the cotton itself at any stage be the basis of credit accommodation1 but also1 the actual added value which the labor of any factor in the chain may give to the cotton may itself be realized upon in advance4 ,the credit possibilities of the industry have grown with the admission of acceptances to rediscount in the ,federal ,reserve ,banks1 and this admissibility has likewise played a part in the present growth of the warehouse system1 the lack of which was a handicap to the industry in past years4 ,credit ,necessary from ,seed to ,finished ,product ,in considering the raw cotton and the cloth market it was necessary to include some account of the financial and banking processes involved in the various commercial transactions undertaken4 ,it is perhaps advisable1 however1 even at the risk of some repetition1 to give a quick survey of the financial and credit aspects of the industry as a whole from the time the cotton is placed in the ground up to the actual sale to the cutter-up or the jobber4 ,the utilization of credit begins1 as we have seen1 with the very planting of the crop4 ,many of the growers1 even those who own their farms1 are men of limited means1 and are not able to pay for the necessaries of life and of labor during the long growing season4 ,the country storekeeper1 accordingly1 in return for a lien on the crop1 allows them credit at his store1 usually charging interest based on the monthly statement of their ledger accounts4 ,he in turn receives the necessary accommodation for his own purchases from the local bank1 or from the local buyer or factor with whom he is affiliated4 ,the high prices prevailing during the past few years have undoubtedly changed to some extent the small grower's financial position4 ,cash for the ,grower ,from the ,local ,bank ,the larger growers1 or the great corporations which let out cotton lands to renters1 usually operate the stores in their villages upon the same basis1 credit being advanced against the renter's share of the growing crop4 ,even these large corporations are seldom able to meet the heavy demands of the growing season without recourse to the credit service of those to whom they sell their cotton1 or to the local banks4 ,the banks1 or buyers1 in turn discount at least a proportion of the commercial paper thus created with their correspondent banks in ,new ,york1 ,boston1 or other financial centers4 ,this credit arrangement1 it will be seen1 is almost entirely based on a moral risk1 the lien being made upon the growing cotton which cannot be liquidated until it is grown1 picked1 and ginned4 ,when the crop is picked1 it is weighed by the merchant before it is ginned1 and the farmer is credited on the merchant's books with the amount due him1 the balance in his favor being given him in cash4 ,his concern with the cotton is thus ended4 ,in the event that he is able to finance himself through the season he takes the cotton directly to the gin1 and has it ginned and baled there1 paying the ginnery for the operation1 and selling the cotton directly to a local buyer and the seed to an oil mill4 ,if the gin warehouse is available1 and he desires to wait for a more favorable opportunity to sell1 he may store the cotton1 taking a gin receipt for it1 against which the cotton will eventually be delivered4 ,the gin receipt may be collateral for a loan from a cotton factor1 or from a local bank4 ,thus1 it will be seen that the grower receives accommodation throughout his season1 and is paid cash for his product when it is delivered4 ,this arrangement puts a heavy strain upon the cotton buyers1 particularly upon those who deal in large lots for the mills4 ,the method by which the buyers pay the growers is thus described3 ,the buyers make arrangements with the local bankers where the gins are located for the payment of the cotton1 the banks furnishing the actual cash against tickets issued by the buyer's representatives1 holding the tickets in question as their collateral in the meantime4 ,when a sufficient amount of cotton has been accumulated the local banker1 at the request of the buyer's agent1 delivers the tickets in question to the local agent of the railroad1 who in turn issues a bill of lading covering the shipment to the compress point1 which then is attached to the draft drawn by the buyer's agent upon the buyer's head office1 which draft includes the price paid for the cotton plus interest and exchange charged by the local banker1 who is reimbursed for the amount of the draft thus drawn4 ,when this cotton is ready for export 7or for shipment to the mill in the ,united ,states7 local bills of lading1 covering shipment from point of origin to compress point1 are exchanged by the cotton buyer's banker for local bills of lading to port or for through bills of lading4 ,illustration3 ,picked #ajj pounds today ,when cotton is bought at compress points1 compress receipts instead of tickets are delivered to the local banker1 who pays for the cotton as purchased by the buyer's representative from time to time4 ,when a sufficient amount of cotton is ready for shipment the compress receipts are exchanged by the banker for local bills of lading to port 7or to mill71 or through bills of lading1 as the case may be4 ,these bills of lading are attached to the draft drawn by the representative on the head office of the buyer1 the local bank being reimbursed for the amount thus drawn4 ,buyers must necessarily hold great quantities of cotton in storage1 for they buy whatever cotton is offered1 and must sell1 as we have seen1 certain grades and qualities to the mills in order that they may weave the cloth for which their orders call4 ,cotton must1 therefore1 be held in storage1 either at the compress points1 which is usual1 or at warehouses operated by factors1 or by independent corporations1 or in their own warehouses4 ,while the buyers by cash payments are concentrating the cotton necessary to fill their domestic or foreign orders1 their need for funds is a pressing one4 ,their arrangements with local banks we have seen4 ,when the cotton is shipped1 the local bank1 by means of drafts on the buyer's head office1 is relieved of the burden it has been carrying1 but the cotton still represents capital1 and if that capital is to continue to earn its wages it must be the basis for credit4 ,the factors and large banks in ,new ,york or ,boston1 which have been assisting the local bank1 must now assist the buyer and the warehouseman4 ,the methods by which this burden is shifted to the larger banks are varied1 and we can consider only one or two of their aspects4 ,same ,mills ,pay ,cash1 ,relieving ,factors of ,burden ,some of the larger ,new ,england mills pay cash for the cotton which is shipped to them1 buying sufficient in the season to carry them through1 or nearly through1 the year4 ,their buyers1 therefore1 need support1 if they need it at all1 only during the period of concentration4 ,they may have their private banking arrangements1 and may be able to utilize their warehouse receipts or bills of lading1 or their mere notes based upon mixed collateral1 for an advance of sixty to seventy-five per cent4 of the value of the cotton1 the line having been arranged in advance4 ,credit may be obtained by the buyer directly from the warehouseman1 who thus becomes a factor in his own right1 being supported by arrangements previously made with his own bank4 ,credit may also be obtained from a bank1 upon bills of lading which are exchanged for warehouse receipts when the cotton is delivered at the port or at any warehousing point2 or the credit obtained from the bank may be settled and a new credit opened with the warehouseman when the cotton is shifted from cars to storage4 ,warehousemen as ,factors of ,growing ,importance ,the growing importance of the warehouseman has been mentioned4 ,his services have developed with the need of mills for greater credit1 and their unwillingness to tie up their working capital in cotton held in their own warehouses4 ,mills which formerly bought all their year's supply during the buying season1 so-called1 now take their cotton from warehouses as they want it1 buying it from their buyers1 and making payment according to the individual standing arrangements4 ,the advent of the warehouseman who is either a banker1 or closely affiliated with a bank1 has undoubtedly done much to make the financing of cotton a more elastic and feasible proposition1 distributing the risk over a wider circle and making credit more readily available at any point in the succession4 ,illustration3 ,weighing gin bales in a ginnery yard ,illustration3 ,cotton warehouses in the ,south ,the mill1 we have seen1 frequently pays cash for its raw stock1 or else buys upon short term notes4 ,the average mill does not have a working capital large enough to enable it to tie up the thousands of dollars necessary for such a proceeding1 as well as the funds which must constantly be paid out for wages1 for operation expenses of all kinds1 for upkeep1 and all other overhead4 ,mills1 as a matter of fact1 are frequent borrowers1 either from general banks1 or from textile banks or factors1 or from their selling agents1 who1 as we have seen1 combine their primary and original function of selling with that of supplying financial assistance4 ,mills which purchase cotton from their buyers and pay cash1 or approximately cash1 for it1 usually buy such cotton to fill orders which they have already received from their selling agents4 ,they may1 in certain instances1 obtain an advance from their agents of a proportion of the whole selling price of the order1 and out of that advance pay for the purchase of cotton1 or they may hold the cotton in warehouses1 using it only as needed1 and putting up the warehouse receipts as collateral for loans4 ,the raw cotton itself1 however1 represents only a portion of the mill's operating expenses and it cannot be the entire basis for financial operations of the magnitude often needed4 ,these broader financial wants may be met out of the prospective selling price of the cloth by means of loans from the selling agent2 or1 they may be met by direct relations with a commercial bank1 which may make loans on ordinary collateral1 on acceptances1 or1 as frequently happens in the case of mills of undoubted integrity1 on the mere note of the company operating the mill4 ,selling ,agent ,may ,shift ,burden to ,banks ,when the burden is assumed by the selling agent1 or factor1 he in turn may shift it to the bank1 either by indorsing the note of the mill1 or by indorsing the note of the purchaser of the cloth or by borrowing directly from the bank on his own paper4 ,the converter1 as a rule1 is not a factor1 but a merchant pure and simple1 seeking accommodations from a factor or a bank as his needs may require it4 ,inasmuch as he usually buys for cash or on short-term notes1 and sells to jobbers or retailers upon more extended terms1 his needs are frequently heavy4 ,his relation with his factor may be1 and frequently is1 upon the basis of accounts receivable1 or he may borrow upon his own collateral1 or1 if he is counted an ,a#a risk1 upon his unsecured note4 ,these1 in brief are the financial steps in the progress of cotton from the grower to the jobber4 ,a cursory view is all that is possible1 because in the words of a textile banker of standing every textile banking transaction is a law unto itself4 ,yet enough has been said to show the all-important part which banking plays in the cotton industry1 and to indicate how dependent are the turning of wheels and the distribution of cotton and of cloth upon the credit which banks and bankers are able to provide4 ,factors and ,their ,wide ,financial ,service ,frequent use has been made of the word factor1 and no adequate definition of its meaning has yet been given4 ,the factor is1 briefly1 the commercial banker of the industry1 and his duty is to provide1 at any stage of the cotton process1 the financial assistance which may be necessary1 either from his own resources or through his affiliations with some large bank4 ,it is true1 of course1 that some factors work only with those dealing in raw stock1 and some confine their services to mills4 ,some factors are cotton buyers1 some are selling agents1 some deal with buyers and some deal with selling agents4 ,some are employed only by the mills4 ,recently1 however1 the tendency has been to develop under one roof a unit institution capable of handling every textile banking transaction4 ,it will be interesting to enumerate here1 briefly1 the various functions and facilities of one such institution3 #a4 ,it makes loans to cotton buyers and to mills on cotton held in warehouses or in transit4 #b4 ,it checks the credit of the mill's prospective customers4 #c4 ,it cashes accounts receivable4 #d4 ,it makes advances against merchandise for the account of mill1 converter1 or jobber4 #e4 ,it finances merchandise and raw material requirements1 and current operations4 #f4 ,it deals in acceptances1 specializing1 of course1 upon paper arising out of transactions in the textile industry4 #g4 ,it maintains an ,industrial ,department1 which includes3 7a7 the services of a consulting architect1 expert in mill construction4 7b7 the services of a production engineer1 skilled in the laying out of plants in the line of greatest efficiency1 and in diagnosing and correcting the production mistakes of an inefficient mill4 7c7 information as to the newest mill practice1 which it is ready to provide for its clients and others4 7d7 readiness to assist customers in the expansion of their business either by financing new mill construction or by providing sales representatives in other countries4 7e7 maintenance offices abroad1 either for the buying or selling of textiles or equipment1 or raw materials1 or for the complete and direct financing of such transactions4 ,,chapter ,,vi ,american ,cloth in ,foreign ,markets ,we have seen that the ,american cotton grower supplies more than half of the world's demand for raw cotton4 ,the cotton manufacturer in the ,united ,states is in no such position4 ,this is not to say that ,american cotton goods are not exported in very considerable amounts4 ,from the inception of the industry in this country varying percentages of the total product have been sent abroad4 ,the following table1 taken from the ,united ,states ,statistical ,abstract 7#aiaj7 shows the average annual exports of cotton goods for the five year periods named1 expressed in millions of dollars3 ,uncolored ,colored ,total ,cloth ,cloth ,other #ahef-fj #g4e #b4d #b4c #b4h #ahfa-fe #c4g 4#d 4#i #b4d #ahff-gj #d4a 4#i 4#c #b4h #ahga-ge #c4a #a4g 4#f 4#g #ahgf-hj #aj4j #f4a #b4f #a4b #ahha-he #ac4j #h4j #b4i #b4a #ahhf-ij #ab4d #g4d #c4b #a4f #ahia-ie #ac4c #g4g #c4j #b4e #ahif-aijj #bj4d #aa4f #d4d #d4c #aija-je #ca4c #ag4b #g4j #g4j #aijf-aj #ce4a #af4h #g4b #aa4j ,the irregularity of the export trade1 as shown by these figures1 has been explained on several grounds1 the chief factors being1 apparently1 the fluctuations in the prosperity and consequently in the buying power of the home market1 and the pressure upon the home market exerted by the rapid growth of cotton manufacturing in the ,south4 ,the normal position of the ,united ,states as an exporter of cotton goods is shown by the following table1 which gives the exports of the chief manufacturing countries in the year before the war 7the figures for #aiae are also given because they show the changes which had already begun73 #aiac #aiae ,united ,kingdom #fah1jjj1jjj #dah1jjj1jjj ,germany #aag1jjj1jjj #cj1ajj1jjj ,france #gh1jjj1jjj #fj1jjj1jjj ,japan #eh1jjj1jjj #ie1hjj1jjj ,united ,states #ee1ejj1jjj #fj1bjj1jjj ,switzerland #ej1cjj1jjj #fe1hjj1jjj ,italy #dg1hjj1jjj #cj1ejj1jjj ,india #ch1ijj1jjj #bg1cjj1jjj ,holland #cj1ijj1jjj ,austria ,hungary #bg1hjj1jjj ,belgium #bc1gjj1jjj ,russia #bb1ejj1jjj #ai1gjj1jjj;,b ,spain #h1cjj1jjj #ag1djj1jjj ,china #a1djj1jjj #b1ajj1jjj ----- ,b ,eleven months4 ,thus1 despite the very remarkable growth which had taken place between #aiaj and #aiac1 the ,united ,states ranked fifth among the nations exporting cotton goods4 ,the reasons for this might be summed up in almost a word4 ,the attractiveness and rapid growth of the home market provided an outlet for practically the whole output of ,american mills4 ,with high prices prevailing in the home market1 the manufacturer was not called upon to exert himself to stimulate sales in regions where competition would inevitably be keen and profits small4 ,minor ,handicaps to ,trade ,development ,supporting this main objection there have been others4 ,until recently the banking facilities abroad were insufficient to the needs of a greater commerce2 and shipping facilities1 in pre-war days1 were not such as to make regular shipments possible to many foreign markets4 ,over these conditions manufacturers had not direct control1 but there were other matters in which their own short-comings were all too evident4 ,there is little need to list again the familiar complaints1 known to every reader of ,commerce ,reports and the export magazines4 ,faulty packing and insufficient attention to orders were the most frequent4 ,the former was undoubtedly due to inexperience1 and the latter to the tendency of the manufacturer or merchant to consider the foreign market as a place for disposing of a surplus unsalable at home4 ,to this attitude may also be attributed the frequency with which shipments for which orders had been accepted have been delayed or overlooked altogether4 ,illustration3 ,compress bales awaiting export on a ,savannah wharf ,the foreign market remained for the ,american manufacturer a prize so distant and of such questionable value that he was simply not willing to make the effort and spend the money that would be necessary to compete with ,british1 ,german1 ,french1 and other sellers4 ,he would have had to know local customs and tastes1 and all the details that he had so arduously acquired a knowledge of for the home market4 ,the time was not ripe4 ,u4 ,s4 ,export ,trade ,as ,affected ,by ,war ,the war served to disarrange the system of cotton cloth distribution of the whole world4 ,it is now a commonplace to say that the ,united ,states1 by the cutting off of the usual sources of supply1 succeeded for the first time in entering in force markets which hitherto had been closed4 ,it would probably be truer to say that foreign buyers1 finding it impossible to secure their customary supply from their regular sources1 came to the ,united ,states and asked ,american manufacturers to supply their imperative wants4 ,just what this meant is found in the statement that while in #aiac our total exports of cotton goods amounted to about #dde1jjj1jjj yards1 in #aiag the figure was about #fij1jjj1jjj yards1 an increase of fifty-five per cent4 ,the increase1 moreover1 has been in the colored cottons1 the uncolored cloths showing an actual decrease4 ,the ,united ,kingdom1 during #aiag1 exported nearly #e1jjj1jjj1jjj yards of cloth1 so there is no immediate prospect that the ,united ,states will be a dangerous competitor for that country1 except in a few limited lines and in a few markets4 ,the chief gain to the ,american cotton industry brought by the war was the opportunity it gave merchants to introduce their goods abroad at a time when loss was next to impossible4 ,operating at an assured profit they were able to learn the markets without the long and discouraging fight which would have been necessary had the competitive power of the other nations been at full force4 ,if1 as seems likely1 the economic forces which projected the ,united ,states so suddenly and dramatically into the world's markets shall continue to operate1 then the future will see a further development of our sales4 ,future of ,foreign ,sales ,and ,probable ,markets ,our best and most permanent markets are probably to be found in such countries as ,cuba1 ,mexico1 the ,philippines1 ,central and ,south ,america1 and1 to a certain extent1 ,canada and ,australia1 and parts of ,asia and ,africa4 ,to be sure1 competition will have to be met both from ,european countries and from ,japan1 whose development in the cotton industry in recent years has been nothing short of phenomenal4 ,she has practically doubled the number of her spindles in the last ten years1 and her competition has already been felt1 for instance1 in ,china1 where ,american gray goods have been practically eliminated from the market4 ,other growing markets for ,japanese cotton goods are ,south ,africa1 ,australia1 ,india1 and the west coast of ,south ,america4 ,in ,cuba and the ,philippine ,islands1 the ,united ,states has the advantage of a preferential tariff agreement and excellent shipping facilities4 ,in ,canada and ,australia our cotton goods are popular but the tariff duties are in favor of ,great ,britain4 ,in the ,dutch ,east ,indies there is at present a good opportunity for getting a foothold in the white goods trade4 ,argentina has lately been our best market for cotton goods1 and as the imports of cotton products into that country amounted to #fe1jjj1jjj in #aiaf1 this trade is worth the intensive efforts which are now being made to clinch it4 ,future ,development ,up to ,merchants ,on the west coast of ,south ,america1 as in the ,manila market1 there are established ,american trading firms that are doing extensive development work and their efforts have produced favorable results4 ,in the other ,latin-,american markets there are practically no local ,american firms and in none of them have the possibilities of the trade been more than touched4 ,the general opinion seems to be that if the ,united ,states is to keep what she has gained by the war in the cotton goods trade the same care and aggressiveness will have to be shown in the foreign as in the domestic trade4 ,england's position today as the foremost exporter of cotton manufactures is the result of careful study of foreign markets and their requirements1 of catering to the tastes of the people1 of aggressive advertising1 of competent foreign salesmen1 of reliability in filling orders1 of good packing1 and of more or less liberal credit terms4 ,manufacturers in the ,united ,states will have to follow the same procedure if this country is to keep her present position in international trade4 ,,chapter ,,vii ,some of the ,grower's ,problems ,early in the spring1 the farm hands begin the work of getting the seed beds ready4 ,upland fields have to be terraced1 ditched1 and drained by an elaborate process before the work is well begun4 ,plowing and sub-soiling are the least of the planter's worries4 ,he must often chop last year's stalks with a disc harrow or with a stalk cutter4 ,the spike tooth or the disc harrow must work again after the plowing is finished4 ,it is customary to plant cotton in a slightly raised bed1 in order that thinning may be more easily done1 and that the soil may be more quickly warmed4 ,much planting is still done by hand1 one man dropping the seeds in the long straight furrow and another following close behind him with a hoe1 covering them up2 but of late years the one-horse planter and the two-horse combined lister and planter have come into vogue1 and1 now that the tractor is both cheap and serviceable1 it is possible to plant two or more rows at a time4 ,the ,long ,season of ,intensive ,cultivation ,when the tiny seedlings first appear above the fragrant mellow soil1 the planter's work is well begun1 but it is only begun1 for then comes the season of cultivating and thinning out4 ,as soon as there are two or three inches of growth1 the first cultivation takes place4 ,how many times the field is cultivated depends on the planter1 the nature of the soil1 the availability of labor and other factors4 ,but the general rule is1 the more cultivations1 the more cotton4 ,the first cultivation scrapes away the soil from the plants1 leaving them on a small ridge1 where the thinning-out process can easily be done with a hoe4 ,the stalks are left from fifteen to twenty inches apart in the hill1 the rows being usually about three and a half feet apart4 ,the next cultivation1 usually with a sweep1 pushes the soil back against the plants4 ,then begins the farmer's fight against the weeds1 each of which seems sturdier and harder to eradicate than its predecessor4 ,usually cultivation must take place about every three weeks4 ,in ,june1 on the average1 the bell-shaped blossoms appear4 ,on the first day they are cream colored or white2 on the second day1 they change to a beautiful wild-rose pink1 deepening toward evening to a deeper magenta or carnation4 ,on the third day they fade completely1 and the development of the boll begins4 ,the ,many ,enemies of the ,growing ,boll ,of the plants upon which humanity depends1 the various species of the genus ,gossypium have probably more enemies1 and more relentless enemies1 than any other4 ,besides army worms1 cut worms1 locusts1 green flies1 leaf bugs1 blister mites1 and several others1 nature has produced and rendered extremely prolific and hardy1 these two particular pests1 the boll weevil and the boll worm4 ,it is said that the collective attacks of all the insects which feed upon cotton cost the country in the neighborhood of #fj1jjj1jjj every year at pre-war prices4 ,the little gray beetle that the world knows as the cotton boll weevil is responsible for most of this4 ,the mother weevil lays her eggs in the bud4 ,as the grubs from the eggs develop1 the bud drops4 ,if a weevil arrives on the scene after the bolls have begun to form1 she lays her eggs in those with a fine indifference4 ,these bolls will not drop1 but the grubs ruin the cotton they contain4 ,there have been numerous investigations and experiments made to develop a variety of cotton impervious to the weevil's attacks1 as well as to find another insect willing to meet him in combat and overcome him4 ,guatamalan cotton is said to be immune and efforts are being made to transplant it to the ,united ,states4 ,a small ant-like creature called a kelep has also been found1 which attacks1 kills and devours the weevil1 but1 unfortunately1 the kelep prefers a warmer clime1 and pines away and dies in even the mild winters of the cotton belt4 ,the boll worm is very similar to the corn worm with which all housewives are familiar1 and indeed corn is its favorite diet4 ,but cotton will do in a pinch1 and1 next to the weevil1 he ruins more cotton than any other pest4 ,the boll weevil cost the country about #be1jjj1jjj yearly1 pre-war prices1 and the boll worm about #ab1ejj1jjj yearly1 enough to justify an even greater expenditure for investigation and eradication than has yet been made4 ,despite the ravage of insects and diseases1 when a well-tended field of cotton is ripening1 one would think from the number of bolls per plant1 that the owner's fortune was surely made4 ,unfortunately1 the plants shed bolls as well as buds and flowers1 in great numbers4 ,it has frequently been noted that even well-fertilized plants upon good1 carefully cultivated soil1 will mature only fifteen to twenty per cent4 of the bolls produced4 ,illustration3 ,cotton blossoms and bolls at various stages of growth ,the planter will tell you that he would be willing to stand the boll weevil1 the dropped bolls1 the extra cultivations1 and all the remainder of it1 if he could only be sure that cotton which did mature would be picked when it should be picked1 and picked with rapidity and care4 ,picking is the most laborious1 as it is the most picturesque operation on the plantation4 ,many types of machine pickers have been introduced1 but there are few planters who will admit that any of them suits his particular needs4 ,now1 as a hundred years ago1 the picking is done by hand4 ,it is a simple operation1 so simple that children ten years old can do it1 and women excel in it4 ,but the best pickers rarely average more than a hundred pounds a day1 and most of them pull much less4 ,careless work plays its part1 too1 for cotton is easily dropped from the boll and soiled or lost altogether4 ,leaves and twigs as well as the shell of the boll frequently cling to the fiber1 and are picked with it1 and all these things tend to dirty and discolor it1 and lessen its marketability4 ,it requires about three pounds of cotton with the seed in it1 as picked1 to produce one pound of ginned or lint cotton4 ,there were in the ,united ,states1 in #aiag1 a total of #bd1bgb ginneries1 of which #c1iba were idle4 ,each active gin produced an average of #ebf bales running bales of cotton4 ,the number of gins shows a tendency to decrease every year1 not rapidly1 but surely1 and this despite the opposite tendency of the crop4 ,the ,whitney gin of the old days has been improved beyond the dreams of its inventor4 ,he boasted that one man could do as much with his machine as ten men without it4 ,today's gin averages about five bales a day--a quantity which the negro of old would find difficult to turn out in a year4 ,to the gin then1 which is located either on the plantation or in the immediate neighborhood1 the mule drawn wagons1 driven by negroes as a rule1 bring their loads of cotton4 ,illustration3 ,gin bale and compress bale showing reduced bulk of latter ,as the downy lint1 pulled from the tenacious seeds1 rolls into the receiving bin of the gin1 the huge compressors are put to work4 ,the coarse jute bagging is on hand1 and the steel straps spread out4 ,the gin balers as a rule turn out a bale measuring approximately #bh by #ef by #db inches1 and weighing approximately #ejj pounds including twenty pounds of bagging and straps4 ,the cotton1 in being separated from its seeds1 has lost about two-thirds of its weight4 ,but the first process in the long series that manufacturing entails has been completed1 and the cotton is ready to begin its long journey to the mill4 ,it is usually carted to the nearest railroad station1 and from there shipped to the compressing point4 ,the small farmer almost always gets his money for the cotton as it leaves the gin4 ,his interest in it1 therefore1 is ended when the buyer there pays him the current price4 ,the cotton is a market commodity from that time forth4 ,the compress is a large and powerful hydraulic press1 whose function is to force the loosely packed gin bale into a density that will make its handling by the railroads1 ships1 and warehouses more easy and economical4 ,the compresses are frequently owned by the railroads4 ,gin ,bales and ,compress ,bales ,before being compressed1 the bales are sorted according to grade1 and are then compressed into a smaller sized bale1 measuring approximately #bh by #ef by #ah inches1 with a density of from twenty-eight to thirty pounds a square foot4 ,it is this bale which is handled from that time forth1 whether it be for export1 for consumption in ,northern or ,southern mills1 or whether1 as sometimes happens1 it is shipped from place to place as market conditions change1 and the price offered makes reshipment profitable4 ,movement for ,improving the ,bale ,it is encouraging to note that the war brought about1 under ,government auspices1 a very definite movement for the improvement of the bale4 ,the proposal demands the installation of high pressure baling machines at the gin1 capable of producing a bale with a density of thirty-five pounds a cubic foot4 ,the trading unit in cotton is one hundred bales1 and such a compression would mean that one hundred bales could be loaded into a single freight car1 and shipped directly to the export point or warehouse4 ,the present practice requires three cars to carry the ginnery bales to the compressor1 and two cars to carry the compressed bales to the port1 warehouse1 or mill4 ,the saving in freight and handling is obvious4 ,it needs only a glance at the photograph of the two bales side by side to see the possible saving in waste and city crop1 or tare4 ,the obstacles in the way of such an improvement are those which face any revolutionary change in commercial methods4 ,established practice1 invested capital1 and the natural conservatism of human nature militate against quick improvement4 ,,chapter ,,viii ,in the ,cotton ,mill ,the manufacture of cotton cloth may be divided into five departments3 #a4 ,preparatory processes3 ,opening1 carding1 combing1 and drawing4 #b4 ,spinning4 #c4 ,spooling1 warping1 sizing1 slashing1 entering or drawing-in4 #d4 ,weaving4 #e4 ,converting and finishing1 including bleaching1 mercerizing1 dying1 printing1 and finishing4 ,before the cotton fiber can be spun into the yarn from which the cloth is woven1 the bales must be broken open1 the impurities removed1 and the fibers arranged so that they are parallel and contain no bunches or tangles4 ,care in these processes has become more and more necessary and important as the demand for a higher quality of cloth1 possessing greater strength and evenness1 has been developed4 ,hence1 some of the most elaborate1 complex1 and admirable machinery in the mill is that devoted to these preparatory processes4 ,the principle involved is always that of thoroughly cleaning the material1 then opening it so that every fiber shall be thoroughly separated from its fellows1 and then straightening out the fibers1 no matter what types of machines may be used4 ,conveying ,fiber ,by ,air ,blast ,the heavy laps of cotton are first thrown directly from the bale into the breaker1 and the cotton is then usually blown through large pipes from the room in which the bales are broken to the room in which the openers are located4 ,the functions of the opener are two4 ,the first is to clean from the cotton the dirt and bits of leaf1 pod1 and foreign substances1 which may have clung to the fiber as it passed through the gin back on the plantation4 ,the second is to roll the cotton into a more or less regular lap1 as it is called4 ,the ,energetic ,opener ,at ,work ,as the cotton goes into the opener 7see diagram on following page71 dusty and dirty1 it is seized by strong teeth fastened upon a large cylinder 7,a71 revolving rapidly1 and is flung by centrifugal force against an iron grid 7,b7 time after time4 ,sometimes there is a strong current of air blowing through the tangled mass1 helping to loosen the particles4 ,the dirt comes out through the grid and is carried away1 while the lint itself1 after being carried around an indefinite number of times1 gradually works its way along a channel1 and finally out between two large rollers 7,c71 which compress it once more1 so that it is1 in effect1 a sheet of batting4 ,this sheet1 or lap1 is rolled up in a large roll 7,g71 which may be two or three feet in diameter1 and is then ready for the first doubling or blending process4 ,in mills where strength and evenness of yarn are at a premium1 the sheets from three or four laps may be fed through another opener1 usually called a scutcher1 which breaks them all apart again1 mixes up the fibers1 cleans out more of the dirt1 and produces a more even lap4 ,the cotton1 as it comes from the opener and the scutcher1 is much cleaner and more attractive4 ,it begins to look like the riches it contains4 ,illustration3 ,cross-section diagram of opener ,to convey the heavy opener-lap from the opener to the carding room1 the more modern mills are doing away rapidly with hand-power1 and carry the lap on a sort of travelling mono-rail conveyor4 ,the fibers of the lap which comes from the opening room are by no means parallel1 but lie in all directions just as they happened to come from the grid of the opener4 ,the function of the card is to straighten them1 and at the same time to remove those which are knotted or immature and of a length below that required for the yarn to be spun1 and to take out practically all of the impurities which may have escaped in the opening operations4 ,the principle of carding is one of the oldest of textile mechanical principles1 and all the improvements that have been made have been in developments rather than in basic ideas4 ,hargreaves1 inventor of the jenny1 and ,sir ,richard ,arkwright both expended their ingenuity upon it1 the latter seeming to have been the first to provide a carding machine operated by other than hand-power4 ,the basic principle involved is the straightening out of the fibers by combing or brushing them with wire brushes or cards4 ,illustration3 ,scutchers at work ,in the revolving flat card1 which dominates the field today1 there are1 as a rule1 three principal cylinders4 ,the lap passes first under the smallest of the three1 called the taker-in1 which is covered with very fine saw-teeth all in one long strip of steel1 wound and fixed spirally in the surface of the cylinder4 ,the taker-in receives the cotton from a feed-roller 7,c7 that turns above a smooth iron plate 7,d7 called the feed plate4 ,the saw-teeth comb the fibers which are imbedded1 so to speak1 in the lap1 and deliver the loose ones to the second cylinder1 which is the largest of the group4 ,this main cylinder is covered with wire teeth all bent at exactly the same angle4 ,the cotton clings to them1 and is carried around to the top of the cylinder1 where it is engaged by teeth on the revolving-flat card which are bent in the opposite direction4 ,this card-clothing arranged in strip1 crosswise on a travelling lattice1 moves in the same direction as the cylinder but moves very slowly1 and so the fibers are carded between the two sets of wire points1 the short and immature fibers remaining on the card wires of the lattice and the perfect and now almost entirely parallel ones being carried over from the main cylinder to the doffer cylinder1 the third of the trio4 ,from this they are removed by an oscillating comb 7,f71 coming off in a light1 fleecy lap1 which is condensed through a funnel into a soft untwisted roping1 or sliver1 about the diameter of a man's thumb1 and is then coiled into a can1 usually about #de inches high by #h inches diameter4 ,illustration3 ,view of ,modern ,motor-,driven ,opener ,picker ,the conveying of the sliver 7pronounced with a long or short i7 into the can is in itself an exceedingly ingenious operation1 although a very simple one4 ,the device is attached directly to the card1 and is called a coiler4 ,the sliver passes into it from the funnel4 ,the hole from which the sliver emerges is off the center of a steel plate which revolves slowly1 so that the sliver1 as it comes out1 has an eccentric motion which causes it to fall into the can in regular coils4 ,tangling is thus prevented1 and ease of handling secured4 ,combing ,necessary in ,spinning ,fine ,counts ,combing is necessary in the preparation of cotton for the spinning of fine counts or coarser yarns where great smoothness and regularity are desired4 ,they are now quite extensively used in the ,united ,states1 and it is significant of the trend of the industry here that the number is rapidly growing4 ,the first cotton comber was invented by a ,frenchman of ,alsace named ,heilmann4 ,the patent was issued in #ahde4 ,now there are on the market other machines1 both ,english and ,american1 similar in principle but improved in many ways4 ,illustration3 ,revolving flat cards ,the first of these preliminary processes is that which is done by the sliver-lapper4 ,the slivers from #ad to #bj cans are drawn along side-by-side1 passing between three pairs of drawing rollers which will be described later4 ,from the drawing rollers the slivers now reduced in size1 pass between two pairs of calendar rollers from which they emerge1 not as a sliver1 of course1 but once more as a lap about a foot wide4 ,these laps are usually passed to a ribbon lapper1 where six of them are placed end-to-end1 and unrolled simultaneously1 passed between four pairs of drawing rollers1 and then superimposed1 one upon the other1 and1 calendered once more1 issued as a lap a little less than a foot wide4 ,this process may be repeated as many times as the quality of the yarn desired may require1 for each drawing process served to straighten the fibers and so to render the thread more even and capable of finer spinning4 ,combing is exactly what its name implies4 ,the lap is actually raked by a fine-tooth comb with needle-like teeth of steel ranging from #af to #ij per inch4 ,this involves breaking the lap again and the intricacy of the comber rests in the mechanism which it employs for joining the separated ends4 ,illustration3 ,cross-section diagram of revolving flat card ,six or eight laps go through the machine at once1 and the product is combined1 condensed1 formed into a continuous sliver1 and deposited once more into cans4 ,the process is not a fast one at best1 and the chief contribution of ,american inventors is in the direction of speed4 ,each nip combs only #d_/af to #d_/aj of an inch of fiber4 ,the ,heilman machine made about #he or #ij nips per minute4 ,the ,american improvement makes #acj to #ace4 ,the width of the lap in the ,american machine is likewise increased1 and the saving in labor1 therefore1 is considerable4 ,english improvements have been in the same direction1 the resultant saving being almost as great4 ,illustration3 ,ribbon lappers ,though many of the processes already described might be called drawing1 in a sense1 insomuch as they involve a continual lengthening and straightening of the lap or sliver1 yet drawing in the strictest sense has not yet begun4 ,it may be done only once1 for coarse and cheap yarn1 or it may be repeated a half dozen or more times to produce the finer and more expensive products4 ,the frame for each repetition is slightly different1 but several types may be isolated4 ,they are1 in the order of their use1 the drawing frame1 the fly frame1 or slubber1 the intermediate frame1 and the roving and jack frames4 ,for fine counts the slivers from the comber1 and for other grades that which comes directly from the card1 are taken1 then to the drawing frame4 ,the slivers from the cans1 six or eight in number1 are fed through one aperture1 and pass1 thus combined1 between several 7usually four7 pairs of rollers1 so arranged that each succeeding pair revolves at a more rapid rate than that which preceded it4 ,the last pair in the series revolve probably six or eight times as fast as the first pair4 ,this combination of rollers pulls constantly on the more or less irregular slivers1 rendering them always more nearly uniform in diameter and density1 the thickness of one of the entering slivers serving to counterbalance the thinness of the other4 ,the drawing frame consists usually of four or five heads1 and the sliver1 after it passes through one of these heads1 is put through a second one1 along with other slivers1 so that the doubling and redoubling goes on constantly4 ,there is an electric device to stop the machine when a sliver breaks1 either at the back or the front of the frame4 ,illustration3 ,combers at work in a mill spinning fine counts ,from the last head of the drawing frame1 the sliver passes to the fly frame or slubber1 which not only continues the drawing and doubling1 usually between three pairs of rollers1 but through the aid of a device which gives the sliver a slight twist and winds it1 for the first time1 upon a spindle4 ,this device is known as the flyer1 and is1 roughly1 a ,u-shaped piece of metal1 which1 revolving1 inverted1 over the spindle1 gives the thread a slight lateral twist as it coils upon the spindle4 ,the latter also revolves1 but with a diminishing motion so that the amount of twist may be kept uniform as the diameter of the coil upon the spindle increases4 ,the sliver1 now being twisted1 is called a sliver no longer1 but the slubbing4 ,the slubbing is passed between the rollers in pairs1 the emerging product being less in diameter than the diameter of a single slubbing4 ,the machine combines the fourfold process of combination1 attenuation1 twisting and winding4 ,there are more spindles upon this frame than upon the slubber4 ,the last drawing frame1 except for very fine yarns spun from ,egyptian or ,sea ,island staples1 is the roving frame1 similar in principle to the last two but containing still more spindles4 ,it receives the rovings from the intermediate frame1 combines two of them into one1 twists them a little more1 and winds them upon the spindle tubes4 ,the ,jack frame is similar except that its product is finer and smoother4 ,illustration3 ,sliver lappers in a ,northern mill ,it is interesting to note1 however1 that the majority of improvements have been the fruit of the brains1 not of ,americans1 but of ,englishmen4 ,copeland points out that this may be due to the ,english desire to save in the consumption of cotton1 but that more probably it is due to the development of fine spinning in ,england1 in which most of the machines here described are chiefly valuable2 and he ventures the prediction that now that ,american mills have definitely gone in for the finer counts1 it may be expected that engineers here will apply themselves to the improvement of this machinery4 ,illustration3 ,drawing frames1 turning slivers into roving ,the ,mule ,versus the ,ring ,spindle ,spinning is the final process which turns the cotton into firm1 coherent yarn1 sufficiently twisted1 and ready for the loom4 ,the twist given to the thread by the previous machines has been only enough to make the fibers hold together4 ,they are still comparatively loose and fluffy1 and their tensile strength is slight4 ,there are1 in general1 two types of spinning machines4 ,the first1 the mule1 an ,english product4 ,the second1 radically different1 is entirely ,american4 ,it was invented in #ahbh by ,james ,thorpe1 and immediately found some favor1 but it was not until the ,civil ,war that it was received on equal terms with the mule4 ,today1 however1 it dominates in the ,united ,states1 the comparative figures in #aiag being3 ring spindles #cj1bfd1jgd2 mule spindles #c1fcd1gfa4 ,the disparity is growing greater every year1 and the use of the ring is firmly established in other countries as well4 ,the figures for #aijg were3 ,mule ,ring ,england 7#aiji7 #ci1hjj1jjj #g1ijj1jjj ,germany #e1gdj1jjj #c1gbb1jjj ,france #d1abb1jjj #b1dha1jjj ,austria #b1cjg1jjj #a1bgg1jjj ,italy #a1jae1jjj #a1heb1jjj ,russia #a1jca1jjj #a1cbj1jjj ,the mule1 by reason of the great size to which it has been developed1 and the impressiveness of its large1 rhythmic motion1 is one of the most formidable of all cotton machines1 as indeed it is one of the most complex4 ,it received its name from the fact that1 performing two principal functions--drawing and spinning--it was regarded as a hybrid1 just as the mule is a hybrid cross between the horse and the donkey4 ,in the mule 7see diagram on page #ec71 which is a long and wide machine1 carrying sometimes1 in new models1 as many as #a1cjj spindles1 the drawing and twisting are not continuous but consecutive4 ,the rovings 7,b7 are held on a creel 7,a7 at the back of the machine1 usually in three or four tiers1 or on long beams or spools4 ,they pass from the creel1 or spools1 between three pairs of drawing rollers 7,c47 ,coming out of the rollers1 they are fed to the spindles on the carriage which backs away from the creel and recedes somewhat faster than the rovings are unwound4 ,this receding is the essential motion of the mule1 for thus the cotton receives its final drawing4 ,the spindles1 meanwhile1 are revolving rapidly1 spinning the yarn4 ,the twist goes first to the thin places where the least resistance is offered4 ,then1 as the carriage carrying the whirling spindles continues to back away1 the thicker parts of the thread1 being comparatively untwisted are pulled down to the average diameter and are twisted in turn4 ,the carriage usually runs back about sixty-three inches4 ,at the termination of its run1 or stretch1 the spindles increase their speed until the twisting is completed and the carriage starts on its return trip4 ,this reverses the spindles1 and the thread which has been wound upon them is unwound1 the slack being taken up by one guide wire 7,d7 while the other guides the thread to the winding point1 and winds it up in the opposite direction on the cone-shaped cops on the spindles4 ,the rollers do not feed out more roving as the carriage returns4 ,hence1 there is no slack when the round trip is completed4 ,illustration3 ,slubbers1 showing the ,u-shaped flyers ,except for the use of drawing rollers1 there is little similarity between the mule and the ring frame4 ,the latter has no movable carriage1 none of the splendid sweep of motion that makes the mule so fascinating to watch4 ,the ring-frame is simple and business-like1 and its speed is amazing4 ,the bobbins holding the roving are placed directly over the spindles4 ,around each of the latter is a steel ring4 ,there are at least #aab spindles on each machine1 and all the machine rings for the spindles are fixed in a single frame4 ,the upper edge of the ring is flanged1 like a miniature railroad track1 and snapped over the flange is a small but important ,c-shaped steel ring1 called the traveler4 ,how ,thread is ,spun on the ,ring ,spindle ,when the machine is in operation 7,see diagram on page #ef7 each roving 7,h7 leaving its bobbin1 runs through the usual drawing rollers 7,g7 then through a guiding wire to the ring1 where it is passed through its traveler 7,b7 which is always at the winding point on the spindle4 ,as the spindle and the rollers revolve1 the roving is fed out at a considerably slower rate than the spindle takes it up1 so that there is always a tension on the thread4 ,the whirling spindle thus pulls on the traveler1 drawing it round and round on its flanged track 7,a74 ,it revolves just a little more slowly than the spindle and thus the yarn receives its twist4 ,meanwhile1 the frame 7,c7 on which the rings are fixed moves slowly up and down1 so that the winding is properly regulated4 ,it is possible to operate the spindles at a remarkable speed4 ,so perfect are the bearings which have been evolved that the average speed is ten thousand revolutions a minute1 and on fine yarns it is sometimes #ab1jjj to #ac1jjj revolutions4 ,the speed is limited by only two factors3 the first is the ability of the operator to make splicings when threads break1 and the second is the tendency of the traveler to fly off when the speed is too high4 ,the number of travelers consumed is high at best1 and in a mill which has long been in operation the floor in the front of the frame is likely to be paved with the little steel rings which have fallen and been ground into the planks by the heels of the worker4 ,illustration3 ,diagram of mule ,the battle between the advocates of the ring frame and those who favor the mule is still on4 ,for the ,american spinner the ring has undoubtedly many advantages4 ,because it spins continuously1 and not intermittently1 it turns out about a third more yarn per operator4 ,it is usually admitted1 however1 that the thread from the mule is more even in diameter4 ,advocates of the mule say1 moreover1 that the thread from the mule is softer and loftier1 and that cloth woven from it has a more clothy feel4 ,but others say they can produce soft yarn with the ring4 ,in the ,united ,states1 where the labor cost is a vital item1 the ring-spindle has an assured place4 ,illustration3 ,mules at work ,the yarn is now a finished product4 ,it may be sold by the spinner to the weaver or it may be woven in the mill in which it is spun4 ,before it is ready for the loom1 however1 there are a number of operations which must be completed4 ,the yarn from the ring frame1 or mule1 is wound in a large cop1 or on a bobbin4 ,it must be put upon spools before it can be warped4 ,the spooler is a simple machine1 but one that requires constant attendance4 ,in the spooler1 bobbins are placed upon holders or spindles1 and the thread is passed over a series of guides to the spool1 up above4 ,the spool revolves at a high rate of speed1 and the thread is wound evenly upon it4 ,the operator must watch for broken threads1 retie them1 replace the empty bobbins by full ones and see that the empty ones are gathered up uninjured4 ,she--the operator is usually a girl or woman--must be alert and active1 and especially nimble fingered4 ,illustration3 ,close-up of ,ring ,spindle in ,american mill ,one of the most important inventions1 one that was received with acclaim by the ,american manufacturer1 and one which actually reduced his labor cost on spooling no less than ten per cent4 at one clip1 is a tiny little thing that is held in the palm of the hand4 ,this is the ,barber knotter4 ,when a thread breaks1 the attendant places the two ends together in the machine and by the mere pressure of her thumb ties the knot much better than she could do it without the knotter4 ,the economies which it effects extend beyond the mere spooling1 for better knots mean fewer breaks in the warping process1 and a better cloth at the end of weaving4 ,the spools from the spooler are placed on a large frame1 called a creel4 ,the creels have an average capacity of about #fjj spools1 and there are usually #af to #bj in one tier4 ,the threads from the spools are drawn between the dents of an adjustable reed1 then under and over a series of rollers4 ,from here they are led down to the beam1 upon which they are wound4 ,the revolving of the beam unwinds the yarn from the spools and winds it regularly and evenly upon the beam itself4 ,there is a device for measuring the length of the warp wound1 and stop motions for arresting the operation should a thread break or other accident occur4 ,illustration3 ,each operator at these spoolers has a ,barber knotter on her hand ,the yarn of the warp must usually be impregnated with a sizing which will smooth out and stick down its furry surface and add as well to the tensile strength so that the strain of weaving may be withstood4 ,for this the most effective and most generally used machine is the slasher1 the chief feature of which is a roller1 whose lower side is immersed in the sizing solution4 ,threads from the warp beam are run around this roller through the solution and then dried1 after which it is finally wound on another beam for the loom4 ,a considerable number of loom beams can be filled from one set of the warper beams mounted in the slasher4 ,the lengthwise threads of a fabric are called the warp4 ,the crosswise threads are called the weft or filling4 ,to make cloth1 the warp and weft must be interlaced with each other in a suitable manner4 ,the operation is called weaving1 the machine in which it is performed is1 of course1 the loom4 ,the principal operations of weaving are as follows3 #a4 ,shedding1 or the raising and lowering of the alternate threads of the warp1 so that the weft may pass under and over them4 ,this is done by means of the harnesses and their heddles4 #b4 ,picking1 or placing a thread of the weft between the warp threads so raised and lowered by means of the shuttle4 #c4 ,beating-up1 or pushing1 each thread of the weft into its position close against the thread which has preceded it by means of the reed4 #d4 ,letting-off1 or permitting the warp to unwind from the beam only just as fast as is needed by the speed of the weaving4 ,this is accomplished by friction bands and weights on the warp beam4 #e4 ,taking-up1 or winding upon a roller the cloth as it is manufactured4 ,in addition to these primary operations1 the loom has attachments for performing several other functions1 such as stop-motions for stopping the loom when warp or filling threads break1 or when the shuttle fails to cross the loom completely2 temples for holding out the cloth laterally as the weaving proceeds2 a mechanism--in the most modern looms--for changing the shuttles1 or the cops in the shuttles1 as the weft thread on the cops becomes exhausted1 etc4 ,illustration3 ,diagram of ring spindle ,the modern cotton loom1 which automatically removes the filling bobbins without stopping the loom1 is rapidly displacing the older types1 and one weaver can now attend to a surprisingly large number of looms1 being greatly assisted also by the automatic warp and filling stop motions4 ,,chapter ,,ix ,the ,finishing ,operations ,following the manufacture of the cloth1 come the operations necessary to prepare it for the market4 ,these involve such treatments as bleaching1 printing1 mercerizing1 dyeing1 and finishing 7in the narrow sense74 ,the number of machines involved in these various processes rivals the number which are used in the actual spinning and weaving operations4 ,modern bleaching is a highly technical science1 conceived and planned by engineers1 and carried out with elaborate machinery by skilled workers4 ,gray cloth1 as it comes from the loom1 is of an unattractive color1 a dirty grayish yellow1 and contains not only those impurities which it has picked up on its journey through the mill but those inherent in its natural state as well1 all totalling some five per cent4 more or less1 of the total weight4 ,in addition there may be numerous bits of leaf from the boll which have clung to the fibers through all the processing1 and which appear finally in the cloth as little brownish specks1 known to the trade as motes4 ,finally1 there is the sizing which was put into the warp4 ,illustration3 ,warping--,the creel in the rear ,bleaching an ,intricate ,chemical ,process ,in the bleaching of cotton1 there is a series of operations which have for their object the elimination of the waxy1 fatty matters embodied in the fiber1 as well as any dirt which it may have acquired4 ,then1 there is the actual whitening and the bleaching of the cloth which destroys any coloring matter which it may contain and finally there are treatments designed to neutralize the effect of the chemicals used in the bleaching4 ,thus1 the sequence of treatments might be3 first1 boiling in plain water1 which removes certain soluble substances2 next1 an extended boiling in a strong alkaline solution1 which saponifies the waxy1 fatty matters in the fiber1 and thus removes them from the cloth or yarn4 ,third1 a steeping in a bleaching solution--a solution of chloride of lime being largely employed for this purpose1 and which treatment is known as the chemic4 ,next1 after another thorough washing there is a treatment in diluted sulphuric acid to neutralize the effects of the chemic1 and finally this is followed again by another thorough washing with possibly an additional mild alkaline treatment4 ,the nature and the method of all these treatments varies considerably1 and depends upon the character of the goods being treated1 but1 at the conclusion1 if all has gone well1 the cloth should be a good white and should not be impaired in strength4 ,singeing ,necessary in ,some ,finishes ,for a certain class of goods1 where a clean1 smooth surface is required1 it is desirable to singe the goods before the bleaching4 ,this is accomplished by passing the cloth1 stretched out at full width1 very rapidly over heated plates1 or through gas flames1 so that the fine hairs or fuzz are singed off1 but the fabric itself has not had time to take fire4 ,both sides may be singed and the goods may be passed more than once through the flame4 ,when yarns are singed1 the threads are passed through the flame very rapidly1 being unwound from one set of bobbins and wound up on another4 ,illustration3 ,front view of an automatic loom ,in the dyeing operation the cotton piece goods pass through a series of machines1 the goods being in rope form as already explained1 so that a number of pieces can be put into each machine1 side by side4 ,the wash boxes1 dye vats1 etc4 are equipped with overhead rollers1 by means of which the goods1 which have been sewn end to end1 so as to make a continuous string of them1 pass out of the dye1 over the roller and down into the bath on the other side1 continuing to circulate around thus until the desired results have been obtained4 ,in addition to the preparatory washing and boiling1 mordanting and dyeing1 there are subsequent washings to free the goods from loose coloring matter1 and other special treatments are frequently accorded them4 ,finishing in its special and restricted sense1 implies a series of treatments1 such as stretching1 starching1 dampening1 drying1 pressing1 smoothing1 lustreing1 glazing1 stiffening1 softening1 and whatnot1 which are given to them according to the use to which they are to be put4 ,the printing press is constructed with a large main cylinder 7,d71 the size being dictated by the number of colors which it must take care of4 ,as the printing operation is a continuous one1 there must be a continuous feeding of the cloth1 a continuous inking of the engraved rollers 7,c71 and a continuous cleaning off of the unengraved surface after the inking4 ,under each roller1 where it is fixed in its place in the press1 is a long copper trough or pan carrying the coloring material1 and in the pan under the roller1 and extending into the coloring matter1 is an intermediate roller known as the furnisher roller1 and1 as the press revolves1 this covers the surface of the copper roller with a heavy film of coloring4 ,the surplus coloring is scraped off as the roller revolves1 by a long1 sharp blade or knife1 known as the doctor1 and after the roller passes this it is quite clean1 no coloring remaining on it except that in the engraved portion4 ,each roller has its color pan with its own color in it4 ,then1 as the cloth 7,a7 passes between the main cylinder1 properly covered by suitable intervening materials and the series of rollers1 each roller in turn prints its own color1 and1 collectively1 the finished pattern is produced4 ,illustration3 ,diagram of cloth printing machine ,the goods then pass into a drying room and are afterwards introduced into a steaming chamber1 where they are given a good steaming at a slight pressure4 ,this steaming develops the colors and causes them to impregnate the fibers more thoroughly4 ,subsequently1 for good work1 the goods should be washed to get rid of the thickening matters that are mixed with the coloring1 and then the printing appears in all its beauty4 ,printing on ,full ,ground ,colors ,the foregoing briefly describes the processes of direct printing4 ,in this case1 the penetration of the colors to the opposite side of the goods is not very good4 ,if a solid and full ground color is needed both on the face and back of the goods1 it can be had either by the ,resist or ,reserve method1 or by the ,extract or ,discharge method4 ,in the ,resist method1 when a white figure is wanted on a black or colored ground1 the goods are first printed with some substance which will resist the action of the dye stuffs4 ,then1 when the goods are dyed1 the treated part does not take the color and the substance used as a resist is washed out1 and thus a white figure is obtained on a solid colored ground4 ,in the ,discharge method1 the goods are first dyed in a solid color1 and are then treated with certain chemicals which destroy the dyed color wherever they touch the fabric1 these chemicals being subsequently washed out where they have been applied1 and thus again a white figure can be had in the colored ground4 ,by the ,discharge method1 moreover1 colored figures can also be printed on colored grounds1 as certain colorings have been developed which are not affected by the discharge materials used1 hence1 a whole series of beautiful colors can be printed on goods previously dyed with black or colored grounds1 each color being mixed with a suitable chemical for discharging the ground color1 and thus the colors of the printed pattern come out as desired4 ,another important process which is applied to both cotton yarn and cotton fabrics is that known as mercerization1 called after ,mercer an ,english chemist who introduced the process4 ,cotton when subjected to the action of strong1 caustic alkali contracts violently1 but when again stretched and straightened it is found to have acquired a distinct silkiness of appearance1 and under the microscope the twisted ribbon-like fibers of the material--already referred to--will be found to have become straight1 glossy and rodlike1 just as a bicycle tire would appear after air was blown into it4 ,cotton may be mercerized either in the yarn1 warp1 skein1 or in the piece1 the first being more effective4 ,the best and most satisfactory results are achieved when the material treated is made of fine long staple cotton1 either ,sea ,island or ,egyptian1 the shorter cottons being relatively much less improved by the treatment4 ,the mercerizing does not diminish the strength of the material1 and gives to it a greater affinity for dye stuffs4 ,internal ,organization of ,cotton ,mills ,the foremen are specialists in their particular departments4 ,the warehouseman1 at one end1 is a judge of cotton stock1 and the foreman of the weaving room at the other knows how many automatic looms may safely be trusted to each weaver on his staff4 ,in between these two there are1 according to the individual mill1 a dozen or more other foremen1 all reporting regularly to the superintendent1 all captains of their own companies of workers1 and all keen1 in the interests of their own reputations1 to operate their departments as intelligently1 as efficiently1 and with as little friction with their individual operators as possible4 ,for it is generally recognized throughout the cotton industry that profitable business depends as much upon the whole-hearted cooperation of the wage-earners1 as upon any other single factor4 ,the ,question of ,individual ,efficiency ,as for the operators themselves1 they are so varied1 there are so many problems which they have to face1 and such difficulties which those who employ and direct them have to solve1 that anything like adequate consideration is impossible4 ,from the impersonal viewpoint1 leaving out of account the human elements1 the problems of wages1 and the correlated problem of trade organization1 there remains the question of individual efficiency4 ,it is that which we have chiefly to consider4 ,illustration3 ,inspecting finished cloth ,the number of men1 women1 and children employed in the cotton mills of the country has increased at a very high rate1 but there has been an interesting diminution in the proportionate percentage of women and children under sixteen years of age employed4 ,the ,united ,states ,census of ,manufacturers gives the following figures3 ,,average ,,number ,,of ,,employes ,,in ,,american ,,cotton ,,mills ,men ,women ,children ,total #ahgj #db1gij #fi1fcg #bb1idb #ace1cfi #ahhj #ei1fhe #hd1eci #bh1cbj #agb1edd #ahij #hh1hcg #ajf1fjg #bc1dcb #bah1hgf #aijj #acd1ced #abc1gji #ci1hff #big1ibi #aiaj #aij1eca #ada1gbh #ch1hfa #cga1abj ,in percentages these figures express themselves as follows3 ,men ,women ,children #ahgj #ca4e #ea4d #ag4a #ahhj #cd4f #di4j #af4d #ahij #dj4f #dh4g #aj4g #aijj #de4a #da4e #ac4d #aiaj #ea4c #ch4b #aj4e ,the question of nationality has had an important bearing upon the development of the industry in the ,united ,states4 ,the constant influx into the country of successive waves of immigration from the different countries of ,europe has often served in a decade to change the whole complexion of the labor question4 ,in the original ,new ,england mills1 the employees were of almost pure ,english stock4 ,the sons and daughters of the ,yankee farmers entered the mills1 not as a permanent occupation1 but merely as a means of getting a start in life4 ,just before the ,civil ,war1 the ,irish began to come rapidly1 and the actual advent of that struggle saw a great number of the remaining natives leaving for the army1 or thrown out of work4 ,when the fighting was over they did not return1 but the ,irish came in even greater numbers4 ,the next decade saw the arrival of the ,french ,canadians in the ,new ,england states1 and there also came1 in quick succession1 natives of ,italy1 and of the various states of eastern ,europe4 ,illustration3 ,baled cloth being put aboard waiting freight cars ,this change in the national complexion had two very important results4 ,it brought into the country a constant stream of cheap labor1 polyglot1 and lacking in homogeneity1 and consequently slow at first to unionize and strike4 ,this characteristic brought another in its train--a lack of stability1 and a proneness to transiency4 ,the second result was hardly less important4 ,it meant that though labor was relatively plentiful1 much of it was unskilled4 ,this lack of skill put a premium upon quantity production1 and led to efforts to develop automatic machinery and labor-saving devices of all kinds4 ,it compelled most ,american manufacturers to specialize upon the coarser kinds of yarns and cloths1 made in simple weaves and patterns1 in the making of which the minimum amount of skilled labor was required4 ,native ,stock in ,southern ,mills ,conditions in the ,south were somewhat different4 ,from the beginning1 the employes here have been almost entirely of native stock4 ,they came from a class which previously had little opportunity for any employment of a regular character outside of farming4 ,when the mills were built these folks were given1 for the first time1 an opportunity for continuous employment4 ,whole families entered the mills1 fathers1 mothers and children serving in different or in the same departments4 ,the ,south at first specialized on ducks1 twills1 denims1 and such coarse work4 ,now1 however1 there is a growing tendency to diversify the product4 ,the reason is found in the increasing capability of the workers1 many of whom have by now spent many years of their lives in the mills1 and whose fathers before them were operatives4 ,unless present conditions change and the ,south becomes the mecca of immigrants--a development probably less likely now than in the years before the war--there seems to be a strong possibility that a class of operatives1 rivalling eventually in skill those of the ,english mill towns1 will be developed4 ,the stock is the same1 and the latent capabilities are all there4 ,the determining factors will probably be the economic changes of the next few years4 ,a remaining factor in the organization of the mill is the size of the individual plant1 the number of spindles and looms it contains1 the number of workers employed1 etc4 ,it is in just this particular that some of the most characteristic developments of the ,american industry are found4 ,about the time of the ,civil ,war1 the average ,new ,england mill had less than ten thousand spindles4 ,today the average is probably between fifty and one hundred thousand1 and perhaps nearer the latter figure than the former4 ,some of the mills have nearly1 if not quite1 a full million spindles in several buildings4 ,the average in the ,south is much less than the ,new ,england average4 ,the industry in the older section is definitely localized1 even to the extent of having whole towns devoted almost exclusively to the manufacture of single grades of cloth4 ,in the ,south the mills are more widely scattered1 advantage having been taken of labor supply1 water power1 and other conditions4 ,local pride has sometimes caused the establishment of mills in regions economically unfitted for them4 ,such mills do not long survive4 ,the advantage of large scale production has thus been seized chiefly by the ,new ,england mills1 but the generally lower wages of the ,south have tended to equalize the situation4 ,illustration3 ,original ,whitney cotton gin1 preserved in ,smithsonian ,institute in ,washington