Chapter V: Part 5

+--------------------------------------------------------------+--------------------+
| | Expressed as Per- |
| | centage of Average |
| |(1 Oct. to 31 July) |
| | Weekly Prices. |
+---------+---------+---------+---------+--------+------+------+------+------+------+
| | | | |Range of|Stan- | Mean |Range |Stan- | Mean |
| Year. | Average | Lowest | Highest | Move- |dard |Weekly| of |dard |Weekly|
| | Price. | Price. | Price. | ment. |Devia-|Move- |Move- |Devia-|Move- |
| | | | | |tion. | ment.|ment. |tion. | ment.|
+---------+---------+---------+---------+--------+------+------+------+------+------+
| | d. | d. | d. | d. | d. | d. | d. | d. | d. |
|1867-1868| 9-5/8 | 7-3/8 |12-7/8 | 5-1/2 | 1.74 | 0.31 | 57.1 | 18.1 | 3.22 |
|1868-1869|11-1/2 |10-1/2 |12-5/8 | 2-1/8 | 0.58 | 0.19 | 18.5 | 5.0 | 1.65 |
|1869-1870|11-1/8 | 7-3/4 |12-3/8 | 4-5/8 | 0.92 | 0.23 | 41.6 | 8.3 | 2.07 |
|1870-1871| 8-1/8 | 7-3/16 | 9-3/16 | 2 | 0.65 | 0.17 | 24.6 | 8.0 | 2.09 |
|1871-1872|10-7/8 | 9-3/8 |11-1/2 | 2-1/8 | 0.75 | 0.15 | 19.5 | 6.9 | 1.38 |
|1872-1873| 9-3/4 | 8-3/4 |10-5/16 | 1-9/16 | 0.53 | 0.10 | 16.9 | 5.7 | 1.08 |
|1873-1874| 8-5/16 | 7-3/4 | 9-1/8 | 1-3/8 | 0.32 | 0.10 | 16.5 | 3.9 | 1.20 |
|1874-1875| 7-11/16 | 6-15/16 | 8 | 1-1/16 | 0.26 | 0.07 | 13.8 | 3.4 | 0.89 |
|1875-1876| 6-1/2 | 5-7/8 | 7-1/8 | 1-1/4 | 0.37 | 0.08 | 19.2 | 5.7 | 1.23 |
|1876-1877| 6-5/16 | 5-7/8 | 7 | 1-1/8 | 0.33 | 0.11 | 17.8 | 5.2 | 1.74 |
|1877-1878| 6-3/4 | 5-7/8 | 6-9/16 | 1-11/16| 0.21 | 0.07 | 11.0 | 3.4 | 1.12 |
|1878-1879| 6 | 4-15/16 | 7-3/28 | 2-1/4 | 0.67 | 0.13 | 37.5 | 11.2 | 2.17 |
|1879-1880| 7 | 6-10/16 | 7-3/8 | 1-3/4 | 0.24 | 0.12 | 10.7 | 3.4 | 1.71 |
|1880-1881| 6-5/16 | 5-3/4 | 6-13/16 | 1-1/16 | 0.34 | 0.08 | 16.8 | 5.4 | 1.27 |
|1881-1882| 6-5/8 | 6-3/8 | 7-1/16 | 11/16 | 0.15 | 0.07 | 10.4 | 2.3 | 1.06 |
|1882-1883| 5-13/16 | 5-7/16 | 6-5/8 | 1-3/16 | 0.31 | 0.07 | 20.4 | 5.3 | 1.20 |
|1883-1884| 6-1/16 | 5-3/4 | 6-7/16 | 11/16 | 0.20 | 0.08 | 11.3 | 3.3 | 1.32 |
|1884-1885| 5-13/16 | 5-7/16 | 6-1/8 | 11/16 | 0.19 | 0.07 | 11.8 | 3.3 | 1.20 |
|1885-1886| 5-1/8 | 4-3/4 | 5-8/16 | 3/4 | 0.18 | 0.07 | 14.5 | 3.5 | 1.35 |
|1886-1887| 5-7/16 | 5-1/8 | 6 | 7/8 | 0.28 | 0.05 | 16.1 | 5.2 | 0.92 |
|1887-1888| 5-1/2 | 5-3/16 | 5-11/16 | 1/2 | 0.14 | 0.05 | 9.1 | 2.5 | 0.91 |
|1888-1889| 5-3/4 | 5-5/16 | 6-3/16 | 7/8 | 0.23 | 0.06 | 15.0 | 4.0 | 1.04 |
|1889-1890| 6-1/8 | 5-9/16 | 6-11/16 | 1/8 | 0.34 | 0.08 | 18.4 | 5.5 | 1.31 |
|1890-1891| 5 | 4-3/8 | 5-3/4 | 1-3/8 | 0.36 | 0.06 | 27.5 | 7.2 | 1.20 |
|1891-1892| 4-1/8 | 3-6/16 | 4-15/16 | 1-3/8 | 0.36 | 0.07 | 33.3 | 8.7 | 1.70 |
|1892-1893| 4-3/4 | 4-1/8 | 5-15/16 | 1-3/16 | 0.37 | 0.09 | 25.0 | 7.8 | 1.89 |
|1893-1894| 4-1/4 | 3-29/32 | 4-11/16 | 25/32 | 0.22 | 0.04 | 18.4 | 5.2 | 0.94 |
|1894-1895| 3-3/8 | 2-31/32 | 3-7/8 | 9/32 | 0.30 | 0.06 | 26.9 | 8.9 | 1.79 |
|1895-1896| 4-3/8 | 3-3/4 | 4-27/32 | 3/32 | 0.28 | 0.07 | 25.0 | 6.4 | 1.60 |
|1896-1897| 4-3/16 | 3-25/32 | 4-11/16 | 29/32 | 0.22 | 0.07 | 21.6 | 5.2 | 1.67 |
|1897-1898| 3-13/32 | 3-3/16 | 3-13/16 | 5/8 | 0.18 | 0.05 | 18.5 | 5.3 | 1.47 |
|1898-1899| 3-9/32 | 3 | 3-15/32 | 15/32 | 0.15 | 0.04 | 14.3 | 4.6 | 1.22 |
|1899-1900| 4-15/16 | 3-29/32 | 6-1/16 | 25/32 | 0.63 | 0.12 | 43.6 | 12.8 | 2.48 |
|1900-1901| 5-1/8 | 4-5/16 | 6-1/2 | 2-3/16 | 0.53 | 0.13 | 42.7 | 10.3 | 2.54 |
|1901-1902| 4-3/4 | 4-9/32 | 5-11/32 | 1-1/16 | 0.24 | 0.09 | 22.4 | 5.0 | 1.89 |
|1902-1903| 5.35 | 4.42 | 7.12 | 2.70 | 0.78 | 0.13 | 50.5 | 14.6 | 2.43 |
|1903-1904| 7.04 | 5.78 | 8.92 | 3.14 | 0.91 | 0.33 | 44.4 | 12.9 | 4.83 |
|1904-1905| 4.86 | 3.63 | 6.01 | 2.38 | 0.71 | 0.15 | 48.9 | 14.6 | 3.09 |
+---------+---------+---------+---------+--------+------+------+------+------+------+

Price movements in different markets.

"Futures" are not used in all markets--for instance, they are not to be found at Bremen; and in those in which they are used they play parts of different prominence--at Havre, for instance, the transactions in "futures" are of incomparably less relative importance than they are at Liverpool. But it is futile to seek the effect of much dealing in "futures" in the differences between price movements in the various markets, because (1) demand expresses itself in different ways--in Germany, for example, spinners buy to hold large stocks--and (2) the markets are in telegraphic communication, so that their price movements are kept parallel. Mr Hooker has shown with reference to the wheat market how close is the correlation between prices in different places,[7] and the same has been observed of the cotton market, though the correlations have not been worked out.[8] It is worthy of note that Liverpool "futures" are largely used for hedging by continental cotton dealers.

+----------------+-----+------+------+------+------+------+------+-----+-----+------+------+-----+------+
| | | Jan.-| Feb.-| Mar.-| Apr.-| May- | June-|July-|Aug.-| Sep.-| Oct.-|Nov.-| Dec. |
| |Spot.| Feb. | Mar. | Apr. | May. | Jun. | July |Aug. |Sep. | Oct. | Nov. |Dec. | Jan. |
+----------------+-----+------+------+------+------+------+------+-----+-----+------+------+-----+------+
|Nov. 18th, 1895 | 4.34|27 |28 |28-1/2|29-1/2|31 |32 |3 | .. | .. | .. | 27 |27 |
|Jan. 18th, 1899 | 3.8 | 6-1/2| 6-1/2| 7-1/2| 8-1/2| 9-1/2|10-1/2|1-1/2| 12 |12-1/2| .. | .. | 6-1/2|
|Sept. 14th, 1899| 3.36|24-1/2|25 |25-1/2|26 |27 | .. | .. | 30 |28 |26-1/2| 25 |24-1/2|
+----------------+-----+------+------+------+------+------+------+-----+-----+------+------+-----+------+

Differences between the prices of near and distant "futures."

Conceivably some indication of the working of "futures" might be gleaned from observation of the relations of near and distant "futures" to one another and of both to "spot." The complete explanation of changes in these relations is still a mystery.[9] Probably an infinitude of subtle influences came into play, and among these there seems reason to include the intentional and unintentional "bulling" or "bearing" of the market. Some examples of the diverse relations to be found, even when all the "futures" fall in the same crop year, may be quoted here--quotations running into the new crop year are obviously affected by anticipations of the new crop.

As we pass from the "future" of the month in which the quotation is made to the most distant "future" it will be observed that in the first and second cases price rises continuously, in the second case even passing "spot," whereas in the third case it falls first and then rises. Instances might be given of its falling unintermittently. It seems a plausible conjecture that if "futures" were "bulling" the market in the first case, they were at least "bulling" it less in the second case _ceteris paribus_, and probably "bearing" it in the last case. A closer examination will reveal further that the magnitude of these gaps varies a great deal; and if the "futures" do "bear" and "bull," as has been supposed, they probably influence these magnitudes. It might be thought that the "futures" of different months, being substitutes in proportion to their temporal proximity to one another, should vary together exactly; but it would seem to be a sufficient reply that as they are not perfect substitutes they are in some slight degree independent variables. The "spot" market might be judged generally as too high, in view of crops and the probable normal demand of the year, but it might not therefore drop immediately, owing partly to the pressure of demand that must be satisfied instantaneously. "Current futures" would be affected more than "spot" by this impression as to the relation of "spot" to a conceived normal price for the year, and they might therefore be expected to drop more than "spot" when this impression was at all widely entertained. But the fall of "current futures" would be checked by the demands that must be satisfied in the near future. Probably the prices of the more distant "futures" are determined in a higher degree by far-reaching imagination than the prices of nearer futures. This explains what has been called above the unintentional "bearing" of "spot" by "futures." And it is immediately evident that the deliberate "bear" works by selling "futures," and that the effect of his sales is propagated to "spot." These statements are equally true of "bulling." The influence of expectations of the new crop on "futures" running into the new crop is plain on inspection; but owing to the gap between the two crop years it would be astonishing if "futures" against which cotton from a new crop could be delivered were not appreciably independent of "spot" at the time of their quotation. However, it is noticeable that they are still so closely bound up with "futures" culminating in the old crop year that the daily movements of the former are closely correlated with those of the latter. Concluding cautiously, we may admit the probability of the relations between near and distant "futures" and "spot" (even in respect of "futures" running out in the same crop year) indicating sometimes at least the intentional or unintentional "bulling" or "bearing" or "spot" by "futures." But nothing has yet been proved from these facts as to the effect "futures" are having upon the steadiness of prices. In the case of any crop year, if the relations which are suggested as indicating the "bulling" work of "futures" usually corresponded with "spot" prices being below the normal price of the crop year, or of what was left of the crop year, while the relations which are suggested to indicate the "bearing" work of "futures" on the whole corresponded with a relatively abnormal height of "spot," it would be a legitimate inference that "futures" were tending to smooth prices. However, it is made clear as the result of an elaborate examination that the generality of these correspondences cannot be affirmed.[10] The outcome of the whole matter is that the investigator is still baffled in his attempt to discover what effect the use of "futures" is having upon prices to-day. The sole piece of evidence, from which probable conclusions may be drawn, is that three separate measurements of price fluctuations over some forty years reveal a growing unsteadiness of late, whether they be expressed absolutely or as percentages of price.

Recent attempts to open up new cotton-fields.

The uneasiness caused by the excessive dependence of Great Britain upon the United States for cotton, coupled with the belief that shortages of supply are more frequent than they ought to be, and the fear that diminishing returns may operate in America, occasioned the formation in England of the British Cotton Growing Association on the 12th of June 1902. The proportions of England's supplies drawn from different fields is indicated in the table below.

British dependence on American supplies is greater even than that of the continent of Europe, for Russia possesses some internal supplies, and more Indian cotton is used in continental countries than in England.

_Average Quantities of Raw Cotton imported Annually into the United
Kingdom from the following Countries in the Periods 1896-1900 and
1901-1904._

+----------------------------------------+-------------+-------------+
| Country | 1896-1900. | 1901-1904. |
| | Million lb. | Million lb. |
+----------------------------------------+-------------+-------------+
| United States | 1436 | 1424 |
| Brazil | 13.8 | 31.5 |
| Peru | 8.5 | 8.6 |
| Chile (including the Pacific coast of | .8 | 2.2 |
| Patagonia) | | |
| Venezuela and Republic of Colombia | .5 | .5 |
| British West Indies and British Guiana | .3 | .6 |
| Turkey (European and Asiatic) | .5 | 1.1 |
| Egypt | 295.7 | 314.4 |
| British possessions in the East Indies | 40.7 | 61.9 |
| Australasia | .035 | .041 |
| All other countries | 2.3 | 3.8 |
| +-------------+-------------+
| Total | 1800 | 1849 |
| +-------------+-------------+
| Re-exported | 223 | 260 |
+----------------------------------------+-------------+-------------+

The annual average shipments from Bombay to the European continent and to Great Britain in 1900-1904 were as follows:--

To the continent 600 bales of 3-1/2 cwt.
To Great Britain 50 " " "

At the end of the 18th century the bulk of British cotton was obtained from the West Indies. Approximately the supplies were as follows in million lb.:--

British West Indies 6.6
French and Spanish settlements 6
Dutch settlements 1.7
Portuguese " 2.5
East Indies " .1
Smyrna or Turkey 5.7

The British Cotton Growing Association works under the sanction of a royal charter and has met with valuable official support. Financial assistance and assurances as to sales and prices have been given liberally by the association where they are needed; ginning and buying centres have been established; experts have been engaged to distribute seed and afford instruction; and some land has been acquired for working under the direct management of the association. The governments of some colonies have aided the efforts of the association. Professor Wyndham Dunstan of the Imperial Institute, on a reference from the government, made favourable reports as to the possibilities of extending cotton cultivation. The results may be seen in the approximate estimates below of cotton grown more or less directly under the auspices of the association.

_Bales of 400 lb._

+-------------------+---------+---------+-----------+-----------+
| | 1903. | 1904. | 1905. | 1906. |
+-------------------+---------+---------+-----------+-----------+
| Gambia | 50 | 100 | 300 | .. |
| Sierra Leone | 50 | 100 | 200 | 250 |
| Gold Coast | 50 | 150 | 200 | 250 |
| Lagos | 500 | 2,000 | 3,200 | 6,300 |
| Nigeria | 100 | 200 | 650 | 1,200 |
| | ----- | ----- | ----- | ----- |
| West Africa | 750 | 2,550 | 4,550 | 8,000 |
| West Indies | 1,000 | 2,000 | 4,000 | 6,000 |
| East Africa | 150 | 850 | 2,000 | 3,500 |
| Sind | .. | .. | 500 | 2,000 |
| Sundries | .. | 100 | 250 | 500 |
+-------------------+---------+---------+-----------+-----------+
| Total | 1,900 | 5,500 | 11,300 | 20,000 |
+-------------------+---------+---------+-----------+-----------+
| Approximate value |L29,000 |L75,000 | L150,000 | L270,000 |
+-------------------+---------+---------+-----------+-----------+

In the West Indies results are most favourable, both as regards quantity and quality of the crops. West Indian grown cotton has realized even higher prices than American grown Sea Island. In West Africa also prospects appear encouraging. In Sierra Leone little success has been met with, but on the Gold Coast some cotton better than middling American has been grown, and the association has concluded an agreement with the government for an extension of its work. In Lagos crops increased rapidly. The cotton is almost entirely grown by natives in small patches round their villages, and generally it has sold for about the same price as middling American, though some of it realized as much as 25 to 30 "points on." The quality in greatest demand in England, it should be observed, is worth about 1/4d. to 1/2d. per lb. above middling American. In Southern Nigeria the association has met with only slight success; in Northern Nigeria, a working arrangement was entered into with the Niger Company, and a small ginning establishment was set to work in February 1906. In British Central Africa, the results on the whole have not been satisfactory. Though planters who confined their efforts to the lower lying grounds--of which there is a fairly large tract--succeeded, all the cotton planted on the highlands proved more or less a failure. In Uganda the association took no steps, but activity in cotton-growing is not unknown, and some good cotton is being produced. Arrangements were concluded with the British South Africa Company for the formation of a small syndicate for working in Rhodesia.

The general movement for the extension of cotton cultivation was welcomed by the International Congress of representatives of master cotton spinners and manufacturers' associations at the meeting at Zurich in May 1904. It placed on record "its cordial appreciation of the efforts of those governments and institutions which have already supported cotton-growing in their respective colonies." England is pre-eminent but not alone in the matter. Germany and France, and in a less degree Belgium, Portugal and Italy, have taken some steps. Russia, too, is developing her internal supplies.

The advantages that might accrue from the wider distribution of cotton-growing are mainly fourfold, (1) Greater elasticity of supply might be caused. It is probably easier to extend the area under cotton rapidly when crops are raised from many places in proximity to other crops than when the mass of the cotton is obtained from a few highly specialized districts. Possibly the advantages of specialism might be retained and yet the elasticity of supply be enhanced. (2) Greater stability of crops in proportion to area cultivated is hoped for. The eggs are now too much in one basket, and local disease, or bad weather, or some other misfortune, may diminish by serious percentages the supplies anticipated. Were there numerous important centres, the bad fortune of one would be more adequately offset by the good fortune of another. (3) Desirable variations in the raw material might conceivably eventuate from the introduction of cotton to spots in the globe where its growth was previously unknown or little regarded. The results of the enterprise of Mehemet Ali and Jumel in Egypt prove such an idea to be not altogether fanciful, and warn us also against hastily arguing that the plan is too artificial to succeed on a large scale. Without the active intervention of a strong body of interested parties it is sometimes unlikely that new industries will be undertaken even in places well suited for them. (4) Lastly, the countries to which cotton-growing is carried should gain in prosperity.

The Cotton Supply Association.

The general difficulties in the way of the British Cotton Growing Association are many and will be sufficiently evident. Lessons of value may be learnt from the fate of similar work undertaken by the Cotton Supply Association, which was instituted in April 1857. According to its fifth report, it originated "in the prospective fears of a portion of the trade that some dire calamity must inevitably, sooner or later, overtake the cotton manufacture of Lancashire, whose vast superstructure had so long rested upon the treacherous foundation of restricted slave labour as the main source of supply for its raw material."[11] Its methods were stated to be: "To afford information to every country capable of producing cotton, both by the diffusion of printed directions for its cultivation, and sending competent teachers of cotton planting and cleaning, and by direct communication with Christian missionaries whose aid and co-operation it solicits; to supply, gratuitously, in the first instance, the best seeds to natives in every part of the world who are willing to receive them; to give prizes for the extended cultivation of cotton; and to lend gins and improved machines for cleaning and preparing cotton." Though the association brought about an extension and improvement of the Indian crop, in which result it was enormously assisted by the high prices consequent upon the American Civil War, it sank after a few years into obscurity, and soon passed out of existence altogether, while the effects of its work dwindled finally into insignificance. Much the same had been the ultimate outcome of the spasmodic attempt of the British government to bring about the introduction of cotton to new districts, after it had been pressed to take some action a few years prior to the formation of the Cotton Supply Association. A Mr Clegg, who afterwards interested himself keenly in the activities of the Cotton Supply Association reported that in the course of a tour in 1855 through the Eastern countries bordering on the Mediterranean he had found none of the gins presented by the British government at work or workable.

BIBLIOGRAPHY.--On the question of cotton supplies, as treated in this article, the reader may be referred to _Brook's Cotton, its Uses, &c._; Dabney's _Cotton Plant_ (Department of Agriculture of the United States); Foaden's _Cotton Culture in Egypt_; Dunstan's _Report on Cotton Cultivation_ for the British government; Oppel's _Die Baumwolle_; Leconte's _Le Coton_; publications of the British Cotton Growing Association; _Report_ of the Lancashire Commission on the possibility of extending cotton cultivation in the Southern States of North America; Watt's _Lancashire and the Cotton Famine_; publications of the old Cotton Supply Association (many will be found in the Manchester public library in the volume marked "677 I. C. ii."), including their weekly paper, _The Cotton Supply Reporter_; Hammond's _Cotton Culture and Trade_. On methods of marketing to certain portions of the above must be added: Ellison's _Cotton Trade of Great Britain_; Chapman's _Lancashire Cotton Industry_ (ch. vii.); articles by Chapman and Knoop in the _Economic Journal_ (December, 1904) and the _Journal of the Royal Statistical Society_ (April, 1906); Emery's _Speculation on Stock and Produce Exchanges of the United States_ (small portions of which relate to cotton). Many statistics will be found in the works mentioned, and these may be supplemented from the trade publications of different countries. Many valuable figures of cotton imports, &c., in early years will be found in Baines' _History of the Cotton Trade_. Recent statistics bearing upon cotton are collected annually in the two publications, Shepperson's _Cotton Facts_ and Jones's _Handbook for Daily Cable Records of Cotton Crop Statistics_. For current information the following may be added: Nield's, Ellison's and Tattersall's circulars; _Cotton_ (the publication of the Manchester Cotton Association); and daily reports and articles in the local press. Price curves are published by Messrs Turner, Routledge & Co. (S. J. C.)

COTTON GOODS AND YARN

The two great sections of the cotton industry are _yarn_ and _cloth_, and in Great Britain the production of both of these is mainly in South Lancashire, though the area extends to parts of Cheshire, Yorkshire and Derbyshire, and there is a Scottish branch, besides certain isolated ventures in other parts of the country. Though there are local rivalries there is nothing in competitive division to compare with the northern and southern sections in America, and the British industry is, for its size, more homogeneous than most of the European industries. Both operatives and employers are highly organized and both parties are able to make articulate contribution to the solution of the various problems connected with the trade.

_Cotton Yarn._--The yarn trade is mainly in the hands of limited companies, and a private firm is looked upon as something of a survival from the past. The two great centres of production are Oldham, in which American cotton is chiefly, though not exclusively, spun, and Bolton, which spins the finer counts from Egyptian or Sea Island cotton. Spinning mills are established, however, in most of the large Lancashire towns as well as in some parts of Cheshire and in Yorkshire, where there is a considerable industry in doubling yarns. The centre of trade is the Manchester Royal Exchange, and though some companies or firms prefer to do business by means of their own salaried salesmen, managers or directors, most of the yarn is sold by agents. Frequently a single agent has the consignment of the whole of a company's yarn, but many spinners, especially those whose business connexion is not perfectly assured, prefer to have more outlets than can be explored by an individual. At times of bad trade even those who usually depend on their own resources seek the aid of experienced agents, who sometimes find a grievance if their services are rejected when trade improves and sales are made easily.

Yarn is sold upon various terms, but a regular custom in the home trade is for the spinner to allow 4% discount, for payment in 14 days, of which 2-1/2 goes to the buyer, who is commonly a manufacturer, and 1-1/2 to the agent for sale and guaranteeing the account. In selling yarn for export it is usual to allow the buyer only 1-1/2% for payment in 14 days, or in some cases the discount is at the rate of 5% per annum for 3 months, which is equivalent to 1-1/4%.

The great bulk of the yarn spun in Great Britain ranges between comparatively narrow limits of count, and such staples as 32^s to 36^s twist and 36^s to 46^s weft in American, 50^s to 60^s twist and 42^s to 62^s weft in Egyptian, make up a large part of the total. It is nevertheless the experience of yarn salesmen that Lancashire produces an increasingly large amount of specialities that indicate a continued differentiation in trade. The tendency to spin finer counts has been to some extent counteracted by the development of the flannelette trade, for which heavy wefts are used, and there has been again a tendency lately to use "condensor" or waste wefts, which has worked to the disadvantage of the spinners of the regular coarse counts spun at Royton and elsewhere. The demand for cloths which require careful handling and regularity in weaving has helped to develop the supply of ring yarns which will stand the strain of the loom better than mule twists. A great amount of doubled and trebled yarn is now sold, though it does not appear that recent expansions have added much to doubling spindles, and considerable developments continue in the use of dyed and mercerized yarns.

Yarns are sold according to their "actual" counts, though when they are woven into cloth they frequently attain nominal or brevet rank. There has been a long-continued discussion, which between buyer and seller sometimes degenerates into a dispute, on the subject of moisture in yarns, and the difficulty is not confined to the Lancashire industry. The amount permissible, according to the recommendation of the Manchester Chamber of Commerce, is 8%, but while it may be assumed that yarns at the time of their sale rarely contain less than this, they frequently contain a good deal more. It is a matter of experience that cotton yarns which when spun contain only a small percentage of moisture will absorb up to about 8% when they are exposed to what may be rather vaguely described as natural conditions. The exigencies of competition prompted the discovery that if yarn were sold by weight fresh from the spindle its comparative dryness made such early sale less profitable than if it were allowed to "condition." Between loss and delay the spinner found an obvious alternative in damping the yarn artificially. As it was often clearly to the advantage of the buyer that he should receive immediate delivery he did not object to water in moderation, but art soon began to run a little ahead of nature. The essentially dishonest practice of deluging yarn with water, which has sometimes even degenerated into the use of weighting materials deleterious to weaving, has been recognized as a great nuisance, but while various attempts have been made to protect the buyer the question seems to have pretty well settled itself on the principles which commonly rule the sales of commodities between those who intend to do business continuously. The spinner who persists in over-weighting his yarn finds it difficult to obtain "repeat" orders.

A remarkable point in the Lancashire yarn trade is the looseness of the contracts between spinner and manufacturer. Doubtless some kind of sale note or acknowledgment usually passes between them, but in the home trade at least it is quite usual to leave the question of delivery an open one. It would not be correct to say that this system or want of system is satisfactory, but the trade manages to rub along very well with it, although inconveniences and disagreements sometimes arise when prices have advanced or declined considerably. Thus when prices have advanced the manufacturer may find it difficult to obtain delivery of the yarn that he had bought at low rates, for some spinners have a curious, indefensible preference for delivering their higher-priced orders; and, on the other hand, when prices have fallen the manufacturer sometimes ceases to take delivery of the high-priced yarn and actually purchases afresh for his needs. Yet positive repudiation is very rare though compromises are not uncommon, and a good many illogical arrangements are made that imply forbearance and amity. Litigation in the yarn trade is very unusual, and Lancashire traders generally have only vague notions of the bearing of law upon their transactions, and a wholesome dread of the experience that would lead to better knowledge.

The average yearly values of the exports of cotton, yarn and cloth
from Great Britain for the decades 1881-1890 and 1891-1900
respectively, are given by Professor Chapman in his _Cotton Industry
and Trade_, in million pounds:--

1881-1890. 1891-1900.
Cloth L60.4 L57.3
Yarn 12.3 9.3
----- -----
Total L72.7 L66.6

During the earlier decade the prices of cotton were comparatively
high.

The whole of the cloth exports represent, of course, a corresponding
home trade in yarns. The following table, taken from the _Manchester
Guardian_, gives in thousands of lb. the amounts of cotton yarns
exported from Great Britain during 1903, 1904 and 1905 respectively,
according to the Board of Trade returns, together with the average
value per lb. for each of the countries:--

+-----------------------------+--------------+---------------+--------------+
| | 1903. | 1904. | 1905. |
| +-------+------+-------+-------+-------+------+
| | |Price | | Price | | Price|
| | lb.* | per | lb.* | per | lb.* | per |
| | | lb. | | lb. | | lb. |
+-----------------------------+-------+------+-------+-------+-------+------+
| | | d. | | d. | | d. |
| Russia | 814| 30.22| 713| 30.71| 557| 30.66|
| Sweden | 1,526| 11.00| 1,486| 12.55| 1,512| 11.12|
| Norway | 1,656| 9.54| 1,511| 11.05| 1,606| 9.73|
| Denmark | 2,429| 8.91| 2,368| 10.18| 2,860| 9.51|
| Germany | 27,239| 16.05| 40,295| .27| 39,513| 16.38|
| Netherlands | 29,591| 9.10| 29,384| 10.48| 37,341| 8.93|
| Belgium | 3,970| 15.89| 5,864| 16.50| 7,205| 16.12|
| France | 3,974| 17.59| 3,084| 20.01| 3,518| 22.64|
| Italy | 204| 21.78| 174| 24.70| 204| 22.21|
| Austria-Hungary | 2,662| 11.60| 3,329| 14.36| 3,066| 13.36|
| Rumania | 4,608| 8.55| 5,072| 10.13| 7,856| 9.73|
| Turkey | 12,966| 8.93| 14,253| 10.05| 17,389| 9.37|
| Egypt | 4,590| 8.66| 4,381| 9.83| 4,382| 8.59|
| China (including Hong-Kong) | 4,660| 9.45| 2,457| 10.24| 8,441| 8.70|
| Japan | 1,406| 12.98| 681| 11.46| 4,071| 13.99|
| British India-- | | | | | | |
| Bombay | 6,286| 10.80| 8,145| 11.88| 13,112| 10.86|
| Madras | 6,683| 11.07| 8,288| 12.48| 10,930| 11.91|
| Bengal | 6,777| 11.04| 6,596| 12.82| 11,068| 11.20|
| Burma | 5,611| 12.17| 3,388| 12.39| 4,211| 12.31|
| Straits Settlements | 1,945| 10.81| 1,137| 11.57| 2,149| 10.71|
| Ceylon | 33| 11.92| 44| 16.51| 42| 13.55|
| Other countries | 21,129| 12.39| 21,252| 13.28| 23,970| 12.43|
| +-------+------+-------+-------+-------+------+
| Total and average |150,758| 11.79|163,901| 13.11|205,001| 12.08|
+-----------------------------+-------+------+-------+-------+-------+------+
* 000 omitted.

It should be understood, however, that in some cases the Board of
Trade figures represent only an approximation to the ultimate
distribution, as the exports are sometimes assigned to the
intermediate country, and in particular it is understood that a
considerable part of the yarn sent to the Netherlands is destined for
Germany or Austria. The large business done in yarns with the
continent of Europe is in some respects an extension of the British
home trade, though certain countries have their own specialities. A
considerable business is done with European countries in doubled yarns
and in fine counts of Egyptian, including "gassed" yarns, which are
also sent intermittently to Japan. "Extra hard" yarns are sent to
Rumania and other Near Eastern markets, and Russia, as the average
price indicates, buys sparingly of very fine yarns. The trade with the
Far East, which, though not very large for any one market, is
important in the aggregate, is a good deal specialized, and since the
development of Indian and Japanese cotton mills some of the trade in
the coarser counts has been lost. The various Indian markets take
largely of 40^s mule twist and in various proportions of 30^s mule,
water twists, two-folds grey and bleached, fine Egyptian counts and
dyed yarns. China also takes 40^s mule, water twists and two-folds.
The general export of yarn varies according to influences such as
tariff charges, spinning and manufacturing development in the
importing countries and the price of cotton. A particular effect of
high-priced piece-goods is seen in various Eastern countries that are
still partly dependent on an indigenous hand-loom industry. The big
price of imported cloths throws the native consumer to some extent
upon the local goods, and so stimulates the imports of yarn. It
appears that as the native industries decline the weaving section
persists longer than the spinning section.

_Cotton Goods._--Cotton goods are of an infinite variety, and the titles that experience or fancy have evoked are even more numerous than the kinds. Descriptions of the following fabrics, which are not of course invariably made of cotton, will be found in separate articles: BAIZE, BANDANA, BOMBAZINE, BROCADE, CALICO, CAMBRIC, CANVAS, CHINTZ, CORDUROY, CRAPE, CRETONNE, DENIM, DIMITY, DRILL, DUCK, FLANNELETTE, FUSTIAN, GAUZE, GINGHAM, LONGCLOTH, MOLESKIN, MULL, MUSLIN, NANKEEN, PRINT, REP, TICKING, TWILL, VELVETEEN. The following are notes on other varieties.

_Grey cloth_ is a comprehensive term that includes unbleached cotton cloth generally. It may be a nice question whether "yellow" would not have been the more nearly correct description. A very large proportion of the Lancashire export trade is in grey goods and a smaller yet considerable proportion of the home trade.

_Shirting_, which has long since ceased to refer exclusively to shirt cloths, includes a large proportion of Lancashire manufacture. Grey and white shirtings are exported to all the principal Eastern markets and also to Near Eastern, European, South American, &c. markets. Certain staple kinds, such as 39 in. 37-1/2 yd. 8-1/4 lb. 16 x 15 (threads to the 1/4 in.), largely exported to China and India, are made in various localities and by many manufacturers. The length quoted is to some extent a conventional term, as the pieces in many cases actually measure considerably more. The export shirting trade is done mainly on "repeat" orders for well-known "chops" or marks. These trade marks are sometimes the property of the manufacturer, but more commonly of the exporter. Generally the China markets use rather better qualities than the Indian markets. The principal China market for shirtings and other staple goods is Shanghai, which holds a large stock and distributes to minor markets. A considerable trade is also done through Hong-Kong and other Far Eastern ports. The principal Indian markets are Calcutta, Bombay, Karachi and Madras.

_Shirt-cloth_ is the term more commonly applied to what is actually used in the manufacture of shirts, and it may be used for either plain or fancy goods.

_Sheeting_ has two meanings in the cotton trade: (1) the ordinary bed sheeting, usually a stout cloth of anything from 45 in. to 120 in. wide (the extremes being used on the one hand for children's cots or ship bunks and on the other for old-fashioned four-posters), which may be either plain or twilled, bleached, unbleached or half-bleached; (2) a grey calico, heavier than a shirting, sent largely to China and other markets, usually 36 in. by 40 yd. and weighing about 12 lb. American sheetings compete with Lancashire goods in the China market. The _Cabot_ is a kind of heavy sheeting, and for the Levant markets the name as a trade mark is said to be the exclusive property of an American firm, although the general class is known by the name and supplied by other firms.

_Mexican_ is a plain, heavy grey calico, sometimes heavily sized. The origin of the word is doubtful, and it seems to be an arbitrary term. Mexicans are exported to various markets and also used in the home trade. For export the dimensions are commonly 32 or 36 in. by 24 yd., and a usual count is 18 x 18. In the Mexican the yarns were originally of nearly the same weight and number of threads to the 1/4 in., an arrangement which gave the cloth an even appearance, thus differing from the "pin-head" or medium makes. Now, however, Mexicans are often made with lighter wefts, though the name is usually applied to the better class of cloths of the particular character. _Punjum_ is a Mexican, generally 36 yd. in length, sent mainly to the South African market.

_T Cloth_ is a plain grey calico, similar in kind to the Mexican and exported to the same markets. There is no absolute distinction between the two cloths, but the T cloth is generally lower in quality than the Mexican. The name seems to have been originally an arbitrary identification or trade mark.

_Domestic_, a name originally used in the sense of "home-made," is applied especially to home-made cotton goods in the United States. In Great Britain it is employed rather loosely, but commonly to describe the kind of cloth which if exported would be called a Mexican. It may be either bleached or unbleached.

_Medium_ is a plain calico, grey or bleached, of medium weight, used principally in the home and colonial trade. The word is sometimes particularly applied to cloths with a comparatively heavy weft, the distinction being made between the even "Mexican make" and the "pin-head" or "medium-make."

_Raising-cloths_ are of various kinds and may be merely mediums with a heavy weft, or "condensor" weft made from waste yarns. The essence of the raising-cloth is a weft that will provide plenty of nap and yet have sufficient fibre to maintain the strength of the web.

_Wigan_ is a name derived from the town Wigan and seems to have been originally applied to a stiff canvas-like cloth used for lining skirts. Now it is commonly applied to medium or heavy makes of calico.

_Double-warp_, as its name implies, is a cloth with a twofold warp. It is usually a strong serviceable material and may be either twilled or plain. Sheetings for home trade are often double-warp, and double-warp twills and Wigans were and are used for the old-fashioned type of men's night-shirts.

_Croydon_, which seems to be an arbitrary trade name, is a heavy, bleached, plain calico, usually stiff and glossy in finish. It used to be sold largely in the Irish trade as well as in the English home trade, but it has been supplanted a good deal by softer finishes.

_Printing-cloth_ is a term with a general significance, but it is also particularly applied to a class of plain cloths in which a very large trade is done both for home trade and export. The chief place in Lancashire for the manufacture of printing-cloths is Burnley, and in the United States, Fall River. The Burnley cloths range in width from 29 in. to 40 in., and are usually about 120 yd. in length. The warp is commonly from 36^s to 44^s, the weft from 36^s to 54^s, and the threads from 13 X 13 to 20 X 20 to the 1/4 in. Cheshire printers, which are made at Hyde, Stockport, Glossop and elsewhere, are commonly 34 in. to 36 in. wide, the warp is from 32^s to 36^s, the weft 32^s to 40^s, and the counts 16 X 16 to 19 X 22.

_Jacconet_ is understood to be the corruption of an Indian name, and the first jacconets were probably of Indian origin. They now make one of the principal staple trades of Lancashire with India. The jacconet is a plain cloth, lighter than a shirting and heavier than a mull. When bleached it is usually put into a firm and glossy finish. A _nainsook_ is a jacconet bleached and finished soft. It also goes largely to India.

_Dhootie_ is a name taken from a Hindu word of similar sound and referred originally to the loin-cloth worn by Hindus. It is a light, narrow cloth made with a coloured border which is often so elaborate as to require a dobby loom for its manufacture. The finer kinds, made from Egyptian yarns, are called mull-dhooties. The dhootie is one of the principal staples for India and is exported both white and grey.

_Scarf_ is a kind of dhootie made usually with a taped or corded border.

_Madapolam_ or _Madapollam_ is a name derived from a suburb of Narsapur in the Madras presidency where the cloth was first made. It is now exported grey or white to India and other countries. In weight it is lighter than a shirting, and it is usually ornamented with a distinctive coloured heading.

_Baft_, probably of Persian derivation, and originally a fine cloth, is now a coarse and cheap cloth exported especially to Africa.

_Sarong_, the Malay word for a garment wrapped round the lower part of the body and used by both men and women, is now applied to plain or printed cloths exported to the Indian or Eastern Archipelago for this purpose.

_Jean_, said to be derived from Genoa where a kind of fustian with this title was made, is a kind of twilled cloth. The cloth is woven "one end up and two ends down," and as there are more picks of weft per inch than ends of warp the diagonal lines pass from selvage to selvage at an angle of less than 45 degrees. The weft surface is the face or wearing surface of the cloth. Jeans are exported to China and other markets, and are also used in the home trade. _Jeanette_ is the converse of jean, being a twill of "two ends up to one down"; the diagonal passes from selvage to selvage at a greater angle than 45 degrees and the warp makes the wearing surface.

_Oxford_ is a plain-woven cloth usually with a coloured pattern, and is used for shirts and dresses. The name is comparatively modern, and is, no doubt, arbitrarily selected.

_Harvard_ is a twilled cloth similar to the Oxford.

_Regatta_ is a stout, coloured shirt cloth similar in make to a jeanette. It was originally made in blue and white stripes and was used largely and is still used for men's shirts.

Fancy cotton goods are of great variety, and many of them have trade names that are used temporarily or occasionally. Apart from the large class of brocaded cloths made in Jacquard looms there are innumerable simpler kinds, including stripes and checks of various descriptions, such as Swiss, Cord, Satin, Doriah stripes, &c. _Mercerized cloths_ are of many kinds, as the mercerizing process can be applied to almost anything. _Lace_ and _lace curtains_ are made largely at Nottingham. Various light goods are made in Scotland, such as _book muslin_, a fine light muslin with an elastic finish, so called from being folded in book-form.

Among the fancy cloths made in cotton may be mentioned: _matting_, which includes various kinds with some similarity in appearance to a matting texture; _matelasse_, which is in some degree an imitation of French dress goods of that name; _pique_, also of French origin, woven in stripes in relief, which cross the width of the piece, and usually finished stiff; _Bedford cord_, a cheaper variety of pique in which the stripes run the length of the piece; _oatmeal cloth_, which has an irregular surface suggesting the grain of oatmeal, commonly dyed cream colour; _crimp cloth_, in which a puckered effect is obtained by uneven shrinkage; _grenadine_, said to be derived from Granada, a light dress material originally made of silk or silk and wool; _brilliant_, a dress material, usually with a small raised pattern; _leno_, possibly a corrupt form of the French _linon_ or lawn, a kind of fancy gauze used for veils curtains, &c.; _lappet_, a light material with a figure or pattern produced on the surface of the cloth by needles placed in a sliding frame; _lustre_, a light dress material with a lustrous face sometimes made with a cotton warp and woolen weft; _zephyr_, a light, coloured dress material usually in small patterns; _bobbin-net_, a machine-made fabric, originally an imitation of lace made with bobbins on a pillow.

Some fancy cloths have descriptive names such as _herringbone stripe_, and there are many arbitrary trade names, such as _Yosemite stripe_, which may prevail and become the designation of a regular class or die after a few seasons.

Cotton linings include _silesia_, originally a linen cloth made in Silesia and now usually a twilled cotton cloth which is dyed various colours; _Italian cloth_, a kind of jean or sateen produced originally in Italy. Various cotton cloths are imitations of other textures and have modified names which indicate their superficial character, frequently produced by finishing processes. Among these are _sateen_, which, dyed or printed, is largely used for dresses, linings, upholstery, &c.; _linenette_, dyed and finished to imitate coloured linen in the north of Ireland and elsewhere; _hollandette_, usually unbleached or half-bleached and finished to imitate linen holland; and _interlining_, a coarse, plain white calico used as padding for linen collars.

+------------------------------+---------------+---------------+---------------+
| | 1903. | 1904. | 1905. |
| +---------+-----+---------+-----+---------+-----+
| Country. | |Price|Thousands|Price|Thousands|Price|
| |Thousands| per |Thousands| per |Thousands| per |
| |of Yards.|Yard.|of Yards.|Yard.|of Yards.|Yard.|
+------------------------------+---------+-----+---------+-----+---------+-----+
| Germany | 60,650| 3.77| 60,129| 4.02| 65,842| 3.98|
| Netherlands | 47,570| 3.57| 46,187| 3.68| 56,639| 3.47|
| Belgium | 52,199| 4.34| 56,237| 4.42| 67,509| 4.41|
| France | 17,552| 4.61| 17,759| 4.39| 14,875| 4.65|
| Portugal, Azores and Madeira | 32,824| 2.70| 29,440| 2.92| 29,867| 3.03|
| Italy | 6,363| 5.07| 7,904| 5.19| 8,746| 5.31|
| Austria-Hungary | 2,405| 3.44| 2,102| 3.40| 1,905| 3.60|
| Greece | 40,973| 2.64| 32,658| 3.11| 28,190| 3.20|
| Turkey | 305,611| 2.45| 379,557| 2.53| 376,209| 2.53|
| Egypt | 229,704| 2.41| 283,521| 2.57| 272,737| 2.53|
| Algeria | 709| 2.74| 438| 2.71| 455| 2.63|
| Morocco | 52,368| 2.28| 51,262| 2.44| 44,407| 2.44|
| Foreign West Africa | 64,589| 2.92| 55,131| 3.12| 69,163| 3.08|
| Persia | 34,859| 2.46| 33,119| 2.67| 38,647| 2.59|
| Dutch East Indies | 156,905| 2.45| 185,196| 2.72| 226,586| 2.57|
| Philippine Islands | 25,558| 2.59| 25,969| 2.86| 42,876| 2.66|
| China, including Hong-Kong | 477,691| 2.83| 548,974| 3.34| 799,732| 3.06|
| Japan | 67,315| 3.08| 42,373| 3.34| 128,725| 2.99|
| United States of America | 72,360| 6.80| 52,391| 7.18| 65,563| 7.40|
| Foreign West Indies | 86,349| 2.08| 98,797| 2.21| 80,679| 2.24|
| Mexico | 19,327| 3.10| 21,679| 3.42| 21,028| 3.31|
| Central America | 40,879| 1.97| 53,018| 2.21| 49,523| 2.29|
| Colombia and Panama | 44,299| 2.25| 44,648| 2.54| 31,798| 2.41|
| Venezuela | 52,330| 1.87| 52,934| 2.07| 32,717| 2.11|
| Peru | 28,962| 2.66| 32,430| 2.85| 39,035| 2.78|
| Chile | 84,118| 2.50| 80,836| 2.57| 96,996| 2.62|
| Brazil | 152,402| 2.64| 134,841| 2.89| 131,504| 2.50|
| Uruguay | 44,062| 2.79| 35,670| 2.85| 56,770| 2.95|
| Argentine Republic | 151,003| 2.91| 186,022| 3.04| 159,115| 3.24|
| Gibraltar | 11,961| 2.39| 10,578| 2.47| 3,960| 2.73|
| Malta | 4,065| 3.11| 3,659| 3.45| 4,006| 3.31|
| British W. Africa | 69,795| 3.27| 69,308| 3.43| 74,392| 3.40|
| " S. " | 61,778| 3.61| 29,670| 4.03| 50,592| 3.69|
| British India-- | | | | | | |
| Bombay | 678,684| 2.07| 818,261| 2.23| 908,619| 2.24|
| Madras | 132,825| 2.48| 141,675| 2.63| 131,145| 2.62|
| Bengal |1,122,004| 1.97|1,215,607| 2.18|1,280,314| 2.18|
| Burma | 64,654| 2.84| 79,765| 3.10| 72,528| 3.13|
| Straits Settlements* | 112,006| 2.61| 100,230| 2.84| 121,690| 2.71|
| Ceylon | 17,395| 2.75| 19,336| 2.95| 24,991| 2.94|
| Australia | 106,000| 3.83| 128,247| 4.01| 136,481| 3.85|
| New Zealand | 38,499| 3.58| 33,538| 3.81| 32,315| 3.63|
| Canada | 47,439| 4.15| 49,903| 4.25| 45,189| 4.47|
| British West India Islands, | | | | | | |
| Bahamas and British Guiana | 49,614| 2.49| 43,487| 2.61| 47,173| 2.21|
| Other countries | 188,662| 2.84| 197,339| 3.14| 226,971| 3.03|
+------------------------------+---------+-----+---------+-----+---------+-----+
| Total |5,157,316| 2.57|5,591,822| 2.75|6,198,200| 2.74|
+------------------------------+---------+-----+---------+-----+---------+-----+
* Including Federated Malay States.

Various cotton imitations share the name of the original, such as lawn, batiste, serge, huckaback, galloon, and a large number of names are of obvious derivation and use, such as umbrella cloth, apron cloth, sail cloth, book-binding cloth, shroud cloth, butter cloth, mosquito netting, handkerchief, blanket, towelling, bagging.

Among the miscellaneous cloths made or made partly of cotton may be mentioned: _waste cloths_, made from waste yarns and usually coarse in texture; _khaki cloth_, made largely for military clothing in cotton as well as in woollen; _cottonade_, a name given to various coarse low cloths in the United States and elsewhere; _lasting_, which seems to be an abbreviation of "lasting cloth," a stiff, durable texture used in making shoes, &c.; _bolting cloth_, used in bolting or sifting; _brattice cloth_, a stout, tarred cloth made of cotton or wool and used for bratticing or lining the sides of shafts in mines; _sponge cloths_, used for cleaning machinery; _shoddy_ and _mungo_, which though mainly woollen have frequently a cotton admixture; and _splits_, either plain or fancy, usually of low quality, which include any cloth woven two or three in the breadth of the loom and "split" into the necessary width. Cotton is used too for many miscellaneous purposes, including the manufacture of lamp wicks and even of billiard balls.

_British Cotton Cloth Exports._--The main lines of the Lancashire export trade in cotton goods are indicated in the Board of Trade returns. The table on p. 278 compiled from them is taken from the _Manchester Guardian_. It gives in thousands of yards the quantities of cotton goods exported from Great Britain during 1903, 1904 and 1905 respectively, together with average value per yard for each of the countries.

The following table gives, approximately, in thousands of yards the quantities exported of the four main divisions of cotton cloths:--

+---------------------+-----------+-----------+-----------+
| | 1903. | 1904. | 1905. |
| +-----------+-----------+-----------+
| | Thousands | Thousands | Thousands |
| | of Yards. | of Yards. | of Yards. |
|---------------------+-----------+-----------+-----------+
| Grey or unbleached | 1,880,321 | 2,033,895 | 2,336,018 |
| Bleached | 1,326,255 | 1,528,165 | 1,710,742 |
| Printed | 1,027,925 | 1,036,901 | 1,053,900 |
| Dyed and coloured | 922,735 | 993,009 | 1,097,540 |
+---------------------+-----------+-----------+-----------+

In the case of cloth, too, the Board of Trade returns must not be taken as an absolute record of imports to the particular countries, as the ultimate recipient is not always determined. The development of the Eastern trade has been one of the most remarkable features of the cotton trade in the 19th century. Professor Chapman writes in his _Cotton Industry and Trade_: "In 1820 Europe received about half the cotton fabrics which were sent abroad, while the United States received nearly one-tenth and eastern Asia little more than one-twentieth. By 1880 Europe was taking less than one-twelfth, the United States less than one-fiftieth, and eastern Asia more than a half."

Naturally a trade tends to find out the most direct means of distribution, and Manchester merchants are now generally in direct connexion with native dealers in India. Bombay was the pioneer in the custom, followed now by Calcutta and Karachi, by which deliveries of goods from British merchants remained under the control of the banks until the native dealers took them up. Manchester business with India, China, &c., is done under various conditions, however, and a good many firms have branches abroad. The regular "indent" by which most of the Manchester Eastern business is conducted now implies a definite offer for shipment from the dealer abroad, either direct or through the exporter's agents, and commonly includes freight and insurance. The term "commission agent" is now discredited, and buying done by Manchester houses on simple commission terms is unusual though not unknown. This has been so since the famous law case of _Williamson_ v. _Barbour_ in 1877, when it was established that whatever might be the custom of the trade a commission agent was not entitled to make a profit over his commission on the various processes, such as handling and packing, which are a necessary part of the exporter's work. A good deal of business is done, however, for South America and other markets in which the goods are bought for delivery in the Manchester warehouse, all charges for packing, &c., and carriage being extra.