| | Males in Thousands. | Females in Thousands. | |
| +-------+---------+-------+-------+---------+--------+ Total in |
| | Half- | Under |18 and | Half- | Under | 18 and |Thousands.|
| |timers.| 18. | over. |timers.| 18. | over. | |
+------------+-------+---------+-------+-------+---------+--------+----------+
| | | |Spinning and Preparatory Processes| |
|1896 | 5.58 | 22.24 | 71.44 | 4.40 | 30.12 | 78.96 | 212 |
|1898-1899* | 5.42 | 21.57 | 71.37 | 3.86 | 30.44 | 77.64 | 210 |
|1901 | 4.98 | 21.10 | 68.98 | 3.10 | 30.98 | 81.68 | 211 |
| | | |Weaving and Preparatory Processes | |
|1896 | 7.54 | 18.79 | 75.81 | 11.87 | 49.19 | 151.34 | 315 |
|1898-1899* | 6.21 | 17.29 | 72.74 | 10.38 | 48.38 | 150.99 | 306 |
|1901 | 4.72 | 14.86 | 73.81 | 8.0 | 45.66 | 155.03 | 302 |
+------------+-------+---------+-------+-------+---------+--------+----------+
* Average for 1898 and 1899.
The figures in this table are not quite complete except for 1901; the
relations between the changes shown for each class should nevertheless
be accurately represented.
_Index Numbers of Money, Wages and Prices._
+-------------------+-----+-----+-----+-----+-----+-----+-----+-----+-----+-----+-----+------+
| |1840.|1855.|1860.|1866.|1870.|1874.|1877.|1880.|1883.|1886.|1891.| 1902.|
+-------------------+-----+-----+-----+-----+-----+-----+-----+-----+-----+-----+-----+------+
|Cotton operatives. | 50 | 54 | 64 | 74 | 74 | 90 | 90 | 85 | 90 | 93 | 100 |105 |
|Average wages for | | | | | | | | | | | | |
| eight trades | 61 | 61 | 73 | 81 | 83 | 97 | 94 | 89 | 92 | 90 | 100 |108.7*|
|Sauerbeck's | | | | | | | | | | | | |
| index number | 103 | 73 | 99 | 102 | 96 | 102 | 94 | 88 | 82 | 69 | 72 | 69 |
|Average price of | | | | | | | | | | | | |
| wheat per quarter| 66/4| 40/3| 53/3|49/11|46/11| 55/9| 56/9| 44/4| 41/7| 31/-| 37/-|28/1 |
+-------------------+-----+-----+-----+-----+-----+-----+-----+-----+-----+-----+-----+------+
* Average for a slightly different group.
_Weekly Wages in the Manchester and District Cotton Trade._
+--------------------+-----+-----+-----+-----+-----+-----+-----+-----+-----+-----+-----+-----+-----+
| |1834.|1836.|1839.|1841.|1849.|1850.|1859.|1860.|1870.|1877.|1882.|1883.|1886.|
+--------------------+-----+-----+-----+-----+-----+-----+-----+-----+-----+-----+-----+-----+-----+
| |s. d.|s. d.|s. d.|s. d.|s. d.|s. d.|s. d.|s. d.|s. d.|s. d.|s. d.|s. d.|s. d.|
|Spinners' average |23 4 |23 11|22 1 |22 0 |21 7 |20 5 |24 1 |23 2 |27 8 |34 4 |31 6 |32 4 |35 7 |
|Big piecers' average|11 0 | 9 3 | 8 6 | 8 8 | 8 6 |13 0 |10 0 |10 0 |11 0 |12 4 |16 0 |16 0 |13 7 |
|Weavers' average |11 0 |10 2 | 9 6 | 9 6 |10 6 |10 3 |11 2 |10 8 |12 2 |15 1 |15 6 |15 0 |13 3 |
+--------------------+-----+-----+-----+-----+-----+-----+-----+-----+-----+-----+-----+-----+-----+
The most noticeable features of these tables are the decrease in the
proportion of children employed and the steady increase in the number
of operatives as a whole until recent years. The contraction of the
body of operatives of late years seems to have occurred primarily
among children and young persons (where the first check would
naturally be looked for), and secondarily among adult males. If
allowance be made for the smaller value of children as compared with
adults, and the census results be taken, it is not evident that there
has been any diminution in the amount of labour-power; and if the
factory inspectors' returns be accepted, the falling off in the number
of operatives cannot be proved to have taken place in either of the
chief branches of the industry at so rapid a rate as to have
occasioned the enforced dismissal of any hands. An industry which was
not recruited at all would have dwindled at a greater rate. At least
it may be inferred from these figures, when taken in conjunction with
the large increase in spindles and looms, that the output per head has
considerably advanced in spite of the rise in the average quality of
both yarns and fabrics produced. This rise in the value per unit of
the output accounts to some extent for the fact that wages have not
been adversely affected of late.
Wages and piece-rate lists.
Mr A. L. Bowley has calculated index numbers of wages for the leading
trades, including the manufacture of cotton. Those for the cotton
industry are given below, together with averages for cotton and wool
workers, the building trades, mining, workers in iron, sailors,
compositors and agriculturists (England), the numbers in each class
being allowed for in the average. Side by side with these figures,
Sauerbeck's index numbers of general wholesale prices are given,
together with the average prices of wheat per quarter.
It must be remembered that the figures given above for cotton workers
and average wages for eight trades do not measure the differences
between each, but only the differences between the movements of each.
Actual average money wages in the cotton industry have probably been
approximately those stated in the second table beneath, but as these
figures are culled from various sources they must not be taken to
indicate fluctuations.[42]
The wage of fine spinners exceeds the average wage of spinners by
percentages varying from about 25 to 35. In the above figures the
earnings of three classes of spinners are averaged.
The highest wages are earned by mule-spinners (who are all males);
their assistants, known as piecers, are badly paid. Persons can easily
be found, however, to work as piecers, because they hope ultimately to
become "minders," i.e. mule-spinners in charge of mules. The division
of the total wage paid on a pair of mules between the minder and the
piecers is largely the result of the policy of the spinners' trade
union. Almost without exception in Lancashire one minder takes charge
of a pair of mules with two or three assistants according to the
amount of work to be done. Among the weavers there is no rule as to
the number of assistants to full weavers (who are both male and
female), or as to the number of looms managed by a weaver, but the
proportion of assistants is much less than in the spinning branches,
perhaps because of the inferior strength of the weavers' unions. For
the calculation of wages piece-rate lists are universally employed as
regards the payment of full weavers and spinners; some piecers get a
definite share of the total wage thus assigned to a pair of mules,
while others are paid a fixed weekly amount. Many ring-spinners are
now paid also by piece-rate lists, and all other operatives are almost
universally so paid, except, as a rule, the hands in the blowing-room
and on the carding-machines. Spinning and weaving lists are most
complicated; allowances are made in them for most incidents beyond the
operatives' control, by which the amount of the wage might be
affected. Still, however, they could not cover all circumstances, and
much is left to the manner of their application and private
arrangement. They should be regarded as giving the basis, rather than
as actually settling, the wage in all cases. The history of lists
stretches back to the first quarter of the 19th century as regards
spinners, and to about the middle of the century generally as regards
weavers, though a weaving list agreed to by eleven masters was drawn
up as early as 1834. There are still many different district lists in
use, but the favourite spinning lists are those of Oldham and Bolton,
and the weaving list most generally employed is that known as the
"Uniform List," which is a compromise between the lists of Blackburn,
Preston and Burnley. Under the "Particulars Clause," first included in
a Factory Act in 1891 and given extended application in 1895, the
particulars required for the calculation of wages must be rendered by
the employer. As in spinning there used to be doubts about the
quantity of work done, the "indicator," which measures the length of
yarn spun, is coming into general use under pressure from the
operatives. We ought to observe here that the Oldham Spinning list
differs from all others in that its basis is an agreed normal
time-wage for different kinds of work on which piece-rates are
reckoned. But in effect understandings as to the level of normal
time-wages are the real basis everywhere. If the average wages in a
particular mill are lower than elsewhere for reasons not connected
with the quality of labour (e.g. because of antiquated machinery or
the low quality of the cotton used), the men demand "allowances" to
raise their wages to the normal level. Advances and reductions are
made on the lists, and under the Brooklands Agreement, entered into by
masters and men in the cotton spinning industry in 1893, advances and
reductions in future must not exceed 5% or succeed one another by a
shorter period than twelve months. The changes as a rule now are 5% or
2-1/2%. In all branches of the cotton industry it is usual for a
conference to take place between the interested parties before a
strike breaks out, on the demand of one or other for an advance or
reduction.
Trade Unions.
Organization among the workers in the cotton industry is remarkably
thorough. Almost all spinners are members of trade unions, and though
the weavers are not so strongly united, the bulk of them are
organized. The piecers are admitted as members of piecers'
associations, connected with the spinners' associations and controlled
by them. Attempts to form independent piecers' unions have failed.
Weavers' assistants are included in the weavers' unions, which may be
joined in different classes, the benefits connected with which vary
with the amounts paid. One subscription only, however, is imposed by
each branch spinners' association, but in all branches it is not the
same, though every branch pays the same per member to the
amalgamation. All the trade unions of the chief workers in the cotton
industry are federated in the four societies: (1) the Amalgamated
Association of Operative Cotton Spinners (created in 1853 and reformed
in 1870), (2) the Northern Counties Amalgamated Association of Weavers
(founded 1884), (3) the Amalgamated Association of Card and
Blowing-room Operatives (established 1886), and (4) the Amalgamated
Association of Power-loom Overlookers (founded 1884). These were not,
however, the first attempts at federation, and the term "federation"
must not be taken in any strict sense. The distribution of power
between the central authority and the local Societies varies, but in
some cases, for instance among the spinners, the local societies
approximate as closely to the status of mere branches, as to that of
independent units federated for limited objects. We ought also to
mention the societies of warp-dressers and warpers, tape-sizers and
cloth-workers and warehousemen. There is no one federation of all
cotton-workers, but the United Textile Factory Workers has been
periodically called into being to press the matter of factory
legislation, and international textile congresses are occasionally
held by the operatives of different countries.
As to employers, four extensive associations include almost all the
organization among them, two concerned chiefly with spinning and two
with weaving. The former two are the Federation of Master Cotton
Spinners' Associations with local associations and including
21,000,000 spindles, and the Bolton Master Cotton Spinners'
Association with 7,000,000 spindles; the latter two are the North and
North-East Lancashire Spinners' and Manufacturers' Association,
covering about 3,000,000 spindles in addition to a large section of
the looms of Lancashire, and the United Cotton Manufacturers'
Association.[43]
Factory Acts.
Factory legislation began in the cotton industry, and in no industry
is it now more developed. The first acts were those of 1802 and 1819,
both of which applied only to cotton-mills, and the former of which
related only to parish apprentices. The first really important measure
was that of 1833, which curtailed the abuse of child-labour, enforced
some education and provided for factory inspectors, of whom there were
at first only four. The next act of importance, that of 1844, was
chiefly remarkable for its inclusion of all women among young persons.
The proportion of women, young persons and children engaged in the
cotton industry is so high, that most regulations affecting them, e.g.
those relating to the hours of labour, must practically be extended to
all cotton operatives. This act killed night work for "young persons,"
and children were not allowed to work at night. The year 1847 saw the
introduction of what was known as the Ten Hours Act--after the 1st of
May 1848 the hours of young persons (women included) and children were
not to exceed ten a day and fifty-eight a week. A further limitation
of hours to 56-1/2 a week was secured in 1874, and this was cut down
by another hour (the concession of the 12 o'clock Saturday) in 1901.
"Young persons" now includes all who are not half-timers and have not
attained the age of eighteen, and all women. The rules as regards the
employment of children, which have steadily improved, are at present
as follows. No child under twelve may be employed. On attaining the
age of thirteen the child may become a full-timer if he has obtained
the prescribed educational certificate (i.e. fifth standard attainment
or three hundred attendances each year for five consecutive years).
Failing this he must wait till he is fourteen before he can be
employed full time. Half-timers may be employed either (a) on
alternate days, which must not be the same days in two successive
weeks, or (b) in morning and afternoon sets. In the case of
arrangement (a), the child when at work may be employed during the
same period as a young person or woman, which in Lancashire is almost
universally from 6 to 6 with two hours for meals.[44] In the case of
arrangement (b), which is the system generally adopted in Lancashire,
a half-timer in the morning set works from 6 to 12.30, with half an
hour for breakfast, and in the afternoon from 1.30 to 6 except on
Saturdays, when the hours are from 6 till 11.30 for a manufacturing
operative, or till 12 for other work, for instance, cleaning. The
child must not work two consecutive weeks in the same set (that is, in
mornings or afternoons), nor on two successive Saturdays, nor on
Saturday at all if during any other day of the same week the period of
employment has exceeded 5-1/2 hours (i.e. a child in the morning set
does not work on the Saturday). Other important features of factory
legislation relate to the fencing of dangerous machinery and its
cleaning when in motion (the regulations being strictest in the case
of children and most lax in the case of male adults), and conditions
of health, including the amount of steaming allowed, which was first
regulated by the Cotton Cloth Factories Act of 1889.
The Cotton Industry outside England.
A brief survey will now be made of the cotton industry in parts of the
globe other than the British Isles, and as a prelude the following broad
estimates of the numbers of spindles and looms in the chief national
seats of the cotton industry may be put forward.[45] The table is
further supplemented by other figures[46] for the number of spindles at
different times in the United Kingdom, the United States and the
continent; and finally we may add the figures of cotton consumed.
The different average fineness of counts spun in different places must
be borne in mind when the consumption of each district at the same time
is being considered, but the relations between the amounts consumed in
the contrasted districts in the two periods would not be affected much
by this difference.
+-----------------+--------------+----------+-------------+
| | Estimated | Million | Thousand |
| | Population | Spinning | Power-Looms |
| | in 1902. | Spindles | about 1906. |
| | In Millions. | in 1909. | |
+-----------------+--------------+----------+-------------+
| United Kingdom. | 42 | 53.5 | 700 |
| United States | 79 | 27.8 | 550 |
| Germany | 58 | 9.8 | 215 |
| France | 39 | 6.8 | 110 |
| Russia | 139 | 7.8 | 150 |
| India | 294(1901) | 5.8 | 45 |
| Austria | 26.7 | 4.2 | 80 |
| Spain | 18.6(1900) | 1.9 | 69 |
| Italy | 33 | 4.0 | 100 |
| Switzerland | 3.4 | 1.5 | 30 |
| Japan | 46 | 1.7 | .. |
| Belgium | .. | 1.2 | .. |
+-----------------+--------------+----------+-------------+
_Cotton Spindles (including Doubling Spindles) in Millions._
+--------+---------+---------+--------+----------+--------+
| | United | | United | Other | |
| | Kingdom.| Europe. | States.|Countries.| Total. |
+--------+---------+---------+--------+----------+--------+
| 1870 | 37.7 | 13 | 7.1 | .. | 57.8 |
| 1880 | 44.5 | 21 | 10.6 | 2 | 78.1 |
| 1890 | 44.5 | 26 | 14.2 | 4 | 88.7 |
| 1900 | 46.2 | 32 | 19 | 7 | 104.2 |
| 1903 | 47.9 | 33 | 22.2 | 7.5 | 110.6 |
+--------+---------+---------+--------+----------+--------+
_Average Annual Consumption of Cotton in the Period 1831-1835._
Millions of lb.
United Kingdom 295
Continent of Europe 143
United States 79
_Average Annual Consumption of Cotton in the Period 1900-1905._
Millions of lb.
United Kingdom 1634
Continent of Europe 2486
United States 1995
Roughly the consumption of cotton per spindle in the three areas to-day
is, in lb., 35 for the United Kingdom, 70 for the continent, and 95 for
the United States.
Before the cotton industry in other countries is described it will be
necessary to explain how it could have developed there on a large scale
at all. Of course this growth is to be accounted for very largely by the
natural protection of cost of transport aided by tariffs. But it would
be a mistake for Englishmen to imagine that all foreign cotton mills are
the product of a forcing culture, and that if the favourable conditions
created by import duties were removed they would totally disappear. No
doubt some of the growth is artificial, but much is natural and would
have taken place under universal free trade conditions. Much of it,
indeed, would have appeared in these circumstances even were cost of
production a negligible quantity, difficult though it may be at first to
reconcile this statement with certain ordinary conceptions of the
operations of the law of increasing returns. Lancashire secured an
immense lead at the beginning of the 19th century, and if the cost of
production may be represented as varying inversely as the magnitude of
the industry, every addition to her success increased her advantages.
How could the small industry, with a high cost of production because it
was small, compete with Lancashire? The answer is to be found in the
peculiar conditions governing international trade and a closer analysis
of "increasing returns." "Increasing returns" in any place are a
function of two variables, (1) the magnitude of the world market under
conditions of world commerce, and (2) the magnitude of the industry in
the spot in question. The economies connected with the first variable,
which in such an industry as the cotton industry are enormous, and
govern ultimately the limits of business specialism, are shared by every
national section of the industry whether it be great or small. If Haiti
started a cotton factory she might import all her specialized
machinery--the specialism involved in producing which is dependent upon
the exportation of some of it--and restrict narrowly the work undertaken
by her one factory. The cotton goods outside this range she would still
import, and if her specialized product were in excess of local demand
she could export some of it, if she were favourably placed in respect of
cost of carriage, for cost of production in Haiti would not be
impossibly high, since machinery and the general system of production
would be quite up to date though labour might be highly inefficient. Of
course, the country with a large industry enjoys high local economies,
and it might be thought that these alone would be a menace to the
stability of the small industry, because if the industry in the favoured
locality increased these would increase also and the small industry
would be undersold. The answer to this difficulty is that foreign trade
depends upon ratios between ratios, that is, upon the ratios between the
costs of production of all the products of each country in relation to
similar ratios for other countries. Relatively, therefore, diminishing
returns operate in every country. In every country there must come a
time, the utility of commodities being taken into account, when a unit
of labour and capital provides less utility when applied to the creation
of cotton goods, say, than when applied to producing something else for
home consumption or for export in exchange for commodities wanted at
home. It becomes apparent, therefore, that cotton industries of widely
varying sizes dispersed throughout the world can settle into relations
of perfectly stable equilibrium, as that term is understood by the
economist. Slow changes, of course, in their relative volumes might be
looked for with changes in a mutable world, but very sudden collapses
would be impossible unless the general course of human affairs were
revolutionized.
_The United States._--The machine-cotton industry was carried to North
America almost as soon as it evolved in England. Models of Arkwright's
machines were smuggled across the Atlantic in 1786--Arkwright's first
mill had not been started in England until 1769--and these with a jenny
and stock-card were publicly exhibited. From these models a great mass
of machinery was soon constructed. The first mill was erected in 1788
(that of the Beverly Association), the second appeared in 1790, the
third five years later, and in 1798 Samuel Slater started with some of
his wife's relatives the first mill in which the principle of the
water-frame was carried throughout. It is said that it was not until
1814 that power-loom manufacturing was commenced, but in England success
with the power-loom was long delayed. As early as 1831, however, there
were in the United States--mainly in the New England states--800
factories, a million and a quarter spindles, 33,500 looms and 62,200
operatives. At this time the annual consumption of cotton was about
77,000,000 lb. as compared with some 300,000,000 lb. in England at the
same date, and 2,000,000,000 approximately in the United States at the
present time.[47] Writing in 1840, James Montgomery said that, in
respect of cost of production, the American industry was 19% behind that
of England apart from the cost of raw material, which was then a good
deal less to the Americans. In 1878, when there was much interest in the
question of British efficiency in the cotton industry because the
passage of the Factory Act of 1874 had cut down the working hours, the
_Economist_ contrasted the result of twenty-five years' growth in
England and America:--
"In 1853 the average English production per weaver of 8-1/4 lb. shirting
was 825 yds. per week of sixty hours. In 1878 the working hours had
fallen to fifty-seven, and the production had risen to 975 yds. An
increased production of 23% is thus due to improvement in the
processes of manufacture. In 1865 there were 24,151 persons employed
in Massachusetts in the production of cotton goods, and they produced
175,000,000 yds. In 1875 the operatives numbered 60,176, and their
product was 874,000,000 yds. The operatives had increased 150% and
their products had increased 500%. The increase of production due to
improved methods was thus in England 23%, and in Massachusetts 100%. I
do not, of course, suppose that the American manufacturer is in
advance of his English rival to the extent of this difference, for I
presume that he started upon the career of improvement from a lower
platform. But a progress so greatly more rapid than ours will be
admitted to cast much light on the change which has occurred in our
relative positions."
The contrast no doubt was not perfect, as indeed it could not be in
view of the varieties of product and their changes, but it proves at any
rate that Americans were making vast strides in industrial efficiency
even before the period when American methods and American enterprise
were monopolizing in a wonderful degree the attention of the business
world.[48] About a dozen years later the low real cost of production of
simple fabrics in the United States was universally admitted, and also
that American manufacturers were making more use of machinery than their
European rivals. In a typical weaving shed in Massachusetts, for
instance, of which particulars were published, twenty women "tended" as
many as eight looms apiece, forty-three managed seven, two hundred and
thirty-two managed six, and only eleven had five only.[49] Since then,
moreover, advance has been rapid, and the sudden development of the
South has astonished the business community of other centres of the
cotton industry.
Before the lines of development in America are specifically dealt with,
and particularly the industrial phenomena in the South, a few words must
be said of the general extension of the industry. The consumption of
cotton in the United States in million lb. was about 75 in 1830, 390 in
1860, 1100 in 1890 and nearly 2000 on an average of the five crop years
from 1900-1901 to 1904-1905: active spindles advanced from 1,250,000 in
1830 to 10,653,000 in 1880 and about 21,250,000 in 1905. Looms which
numbered 33,500 in 1830 had reached 226,000 in 1880 and nearly 550,000
in 1905. At the same time population, it must be remembered, was growing
at a phenomenal rate: from 31.4 millions in 1860 it had passed to 38.6,
50.2, 62.6 and 76.3 at the succeeding decennial censuses, the decennial
rates of increase being in order 22.5, 30, 25 and 20.5 as compared with
8.5, 10.5, 8 and 9 as shown by the corresponding censuses in the United
Kingdom. Protection was of course contributory to the growth of the
American cotton industry. It may be remarked incidentally that the New
World, including the West Indies and the Chinese empire, take the bulk
of American exports, which for so large an industry are inconsiderable.
The imports have always been well in excess of the exports. The
encouragement of home industries by tariffs was definitely aimed at
after the war with England during the Napoleonic struggles, and although
a sensible reduction of duties was experienced after 1845 the reaction
to protection that followed the Civil War was never significantly
departed from except by the single act of 1883. In 1790 the duties on
cotton goods were 7-1/2% _ad valorem_, and they rose gradually until they
reached 25% in 1816. Slight reductions some seventeen years later were
followed in the early 'forties by a tariff of 30%. Diminutions were
succeeded by oscillations, though at no point was a low level touched.
Severe charges were imposed in 1890, and after some relaxation in 1894
the policy of restrictiveness was restored in 1897. According to the
calculations made by the English Board of Trade in 1903[50] no fabrics
were admitted at a charge equivalent to less than 68% _ad valorem_, and
no yarns were admitted at a charge lower than 45% _ad valorem_. Cotton
thread is subjected to a rate equivalent to 375%[51]
The character of the growth of the cotton industry in the United States,
as revealed by recent census returns, is peculiarly interesting:--
+------------------------+--------------------------------------+-----------------------------+
| | Thousands | Percentage Increase |
| +--------+---------+---------+---------+---------+---------+---------+
| | 1880. | 1890. | 1900. | 1905. |1880-1890|1890-1900|1900-1905|
+------------------------+--------+---------+---------+---------+---------+---------+---------+
| Active Spindles | 10,653| 14,188| 19,008| 23,156| 33.8 | 34 | 21.8 |
| Looms | 226| 325| 451| 541| 43.90 | 38.7 | 20 |
| lb. cotton consumed | 750,344|1,117,946|1,814,003|1,875,075| 48.99 | 62.3 | 3.3 |
| Wages | $42,041| $66,025| $85,126| $94,378| 57 | 28.9 | 10.9 |
| Capital |$208,280| $354,021| $460,843| $605,100| 70 | 30.2 | 31.3 |
| Employees not officers | | | | | | | |
| and clerks | 174.7| 218.9| 297.9| 310.5| 25.3 | 36.1 | 4.2 |
+------------------------+--------+---------+---------+---------+---------+---------+---------+
Cotton small wares are included in the totals for 1880 and 1890, but
excluded from those for 1900 and 1905. We must observe further that
"capital" is a vague term. Recent events in the United States afford a
valuable empirical indication of the effect that improved machinery
actually has upon wages. The new automatic looms caused a saving of
labour per unit of product which recalled the complete subversion at the
industrial revolution of the proportions in which the several factors in
production were organized. Displacement of labour and falling wages
might not unreasonably have been looked for temporarily, but wages stuck
at their old level or rose. The rise was caused by numerous converging
forces which brought their united weight to bear. First, prices so fell
as the result of the new machinery that the increased volume of
commodities which the market could absorb more than counterbalanced, it
would seem, the labour-saving of the new machinery, the cotton industry
being taken as a whole. It must be remembered that to increase the
output from the subsidiary processes where labour had not been saved
more hands had to be drafted in. Thus, a contraction of the body of
weavers was accompanied by an expansion of the body of cotton
operatives. Again weavers' wages were naturally raised in a special
degree because automatic machinery called for quick, trustworthy and
intelligent hands, endowed with versatility, especially in the days when
the machinery was still in the semi-experimental stage. The American
employer tries to save in labour but not to save in wages, if a
generalization may be ventured. The good workman gets high pay, but he
is kept at tasks requiring his powers and is not suffered to waste his
time doing the work of unskilled and boy labour. There is, certainly, in
the American labour problem no serious grievance on the question of
wages. If there is any abuse it consists in excessively fierce work. Mr.
T. M. Young, who visited the American cotton districts in 1904 with an
informal commission of Lancashire spinners and manufacturers, did not
think that the cause of the high wages--allowance being made for the
purchasing power of money, they are above those of England, though
cotton operatives in England are well paid relatively--was the
superiority of the American cotton worker; neither did the
representatives of the English cotton operatives who accompanied the
Moseley Commission. As often as not "the cotton operative in the United
States is a French Canadian, a German, an Italian, a Hungarian, an
Albanian, a Portuguese, a Russian, a Greek, or an Armenian." It is the
extensive "exploitation" of machinery seemingly, together with the speed
of work, which keep wages high, combined with the horizontal and
vertical mobility of American labour, which prevents it from
accumulating in pools, and causes streams of the best hands to be
flowing continuously to other callings and places, and no insignificant
proportion to climb the social ladder. The remainder naturally profit,
for a local or trade congestion of labour is avoided, and the voluminous
recruiting of enterprise by the intensified competition among employers
keeps the demand for labour high.
One noticeable point in the table quoted above is that until recently
cotton consumed increased much faster than the number of spindles. This
might be explained in a variety of ways. Average counts remaining
constant, the average speed of the spindle might have risen; or the
latter remaining constant, counts might have been getting finer. Speeds
have certainly gone up a good deal of late on some counts. And it is
quite likely, too, that concentration on the manufacture of coarse goods
for export, with stout warps to keep down the breakages and raise the
output per loom, may be reckoned as one cause.
Despite the recent sensational growth in the South, the New England
States still remain the most prominent seat of the American cotton
industry. They contained in 1905 about 14 million spindles as compared
with 7.7 millions in the South and West, and their relative possession
of looms approaches, though it does not quite reach, the same
proportion. The leading States in the South in order of importance are
South Carolina, North Carolina, Georgia and Alabama, and in the North,
first Massachusetts with an enormous lead, then, in order, Rhode Island,
New Hampshire, Connecticut, Maine, New York, Pennsylvania, New Jersey.
The bulk of the cotton industry in the North is contained within a small
area. A circle around Providence, Rhode Island, of 30 m. radius
includes, according to the twelfth census, nearly 7-1/4 million
spindles,--there were only 58,500 spindles in this area in 1809. Of the
chief towns Fall River stood first in 1900 in value output, and was
followed in order by Philadelphia, New Bedford, Lowell, Manchester and
Pawtucket. The climate of Fall River is very similar to that of English
spinning districts. Its population in 1900 was 105,000, and of these
only 14,600 were of American parentage. Of the remainder, 16,700 were
English, 17,800 Irish, 29,600 French Canadians and about 5000
Portuguese. Among the rest of foreign parentage, Armenians, Russians and
Italians are numerous. But Massachusetts is famous for the number of
immigrants it attracts. It is almost incredible, but nevertheless a fact
according to a recent statistical report, that in 1903 as many as 91% of
the cotton operatives of the State were of foreign descent--chiefly
French Canadian and Irish. In 1902 there were nearly 90 mills at Fall
River with 3,000,000 spindles and 16,000 looms. The spindles amount to
about one-third of all in Massachusetts, but Fall River's share of the
looms of the State is not large. The spindles exceed in number those
possessed by any State except of course the one in which it is placed.
In comparison with a great spinning town in England, nevertheless, Fall
River does not appeal strongly to the English imagination. It has little
over a quarter of the spindles of Oldham, or three-fifths of those of
Bolton,--among English towns it would stand third, i.e. between Bolton
and Manchester and Salford, which, in spite of the movement of spinning
to the hills, still holds in England a leading place. The whole of
Massachusetts, it is of interest to observe, has fewer spindles than
Oldham, and only about half those of Oldham and Bolton together.
Originally it was the river which attracted the mills to Fall River, and
as the water-power available was almost inexhaustible, it was possible
for the mills to congregate together and for a town to grow up. In
England, when much of the industry was dependent for power upon water,
decentralization was entailed, for the thin streams of Lancashire could
not support more than two or three mills at most in proximity. Hence in
England, after Watt's steam-engine had succeeded, the economies of
centralization led eventually to the desertion of the mills on the
water-courses. But at Fall River the perfecting of the application of
steam-power merely involved its use to supplement the water-power on the
old site. The presence of water-power explains half the success of New
England. In the six States 35% of all the power used is derived from
water, and in the cotton-manufacturing of these States water provides
32.6% of the power. For industrial purposes generally the river most
exploited is the Merrimac, upon which stand the leading cotton towns of
Lowell, Lawrence and Manchester. Hitherto little has been done in the
way of using water to generate electric power.[52]
The two most striking features of the American industry to-day are the
introduction of the automatic looms, already briefly referred to, and
the development of the South. The Northrop Loom Company has spent a
fortune in pushing its loom on to the market. It has not hesitated to
share risks, and it has run one "advertisement" mill at least, namely
that at Burlington, Vermont, with 55,000 spindles and nearly 1300 looms.
In this mill the labour-saving is shown by the following figures, the
looms being of two sizes, 32 in. and 44 in. Of the former, 3 weavers run
18 each, 39 tend 16 each, only a few odd weavers tend less than 16, and
learners even are at work on 8 to 11 each; on the latter, of 29 weavers
17 mind 16 looms each and 12 mind 12 (on stripped fabrics).[53] Of
course a high level of efficiency would be expected in this show mill.
That American employers have readily been converted to a belief in the
economy of the new machinery we are not astonished to learn in view of
the American temperament, the intensity of competition among business
leaders, and the prevailing spirit of adventure. Thousands of workable
old looms have been scrapped, and probably at the present time there are
100,000 automatic looms running in the United States. No other country
can point to a rate of substitution which approaches that in the United
States. The causes, apart from the temperamental and social to which
reference has already been made, are probably (1) that there is
disagreement as to the present economy of automatic looms on many
fabrics,[54] (2) that Americans aim at frequency of renewal of plant,
and avoid making their machinery so durable as to prove ultimately,
perhaps, a handicapping inheritance, and (3) that a greater bulk of
American work is appropriate for the new looms than of English or
continental work. But automatic machinery is being used increasingly in
Lancashire.[55] And the operatives ultimately benefit. It is the
half-developed machine, to which labour must actually be linked as an
essential part, which is responsible for monotonous work and creates the
dislike of mechanical aids.
Now we turn to the recent development of the Southern States. Never has
an industry grown faster than that of the two Carolinas, Georgia and
Alabama. Some of the earliest experiments with the machine industry were
conducted in South Carolina, but from that time till the end of the 19th
century nobody imagined the possibility of a great Southern expansion.
In 1880 the South contained less than half a million spindles--i.e.
about as many as Hyde, Middleton or Chorley, and one-twenty-third of the
numbers in Oldham. Twenty years later they had increased twelvefold and
the Southern States, in respect of the number of spindles, had taken
precedence of Bolton. To-day probably about eight and a half millions
might be counted. In addition there are some two hundred thousand looms,
or nearly as many as in the three leading cotton-weaving towns of
England--Burnley, Blackburn and Preston. The rapid oncoming of the South
may also be traced by its consumption of cotton--which as an index,
however, is not perfect. This on an annual average was, in thousand
bales, 164, 269, 453, 717 and 1233 in each of the periods 1876-1880,
1881-1885, 1886-1889, 1891-1895 and 1895-1900 successively. The
consumption since then, as compared with that of the Northern States,
Great Britain and the European continent, has been as follows. It must
be remembered that the consumption per spindle varies greatly from place
to place.
_Consumption of Cotton in Thousand Bales of about 500 lb. each._
+-----------+----------+----------+---------+----------+---------+
| | Southern | Northern | Total | Great | |
| | States. | States. | United | Britain. | Europe. |
| | | | States. | | |
+-----------+----------+----------+---------+----------+---------+
| 1900-1901 | 1583 | 1963 | 3546 | 3269 | 4576 |
| 1901-1902 | 2017 | 2066 | 4083 | 3253 | 4836 |
| 1902-1903 | 1958 | 1866 | 3824 | 3185 | 5148 |
| 1903-1904 | 1889 | 2046 | 3935 | 3017 | 5148 |
| 1904-1905 | 2270 | 2292 | 4562 | 3620 | 5148 |
+-----------+----------+----------+---------+----------+---------+
The densest distribution of mills in the South is along the line of the
Southern railroad, in the district known as the Piedmont. Of this group
Charlotte in North Carolina is the natural centre: roughly, half the
spindles and half the looms in the Southern States would be included
within a circle around Charlotte of a radius of about 100 m. Of the
remainder a large proportion is scattered over a wide area.
Much interest has been excited by this newly created Lancashire of a new
type, and much speculation as to the causes that account for it has been
elicited. An informal commission of Lancashire spinners and
manufacturers crossed the Atlantic to make inquiries in 1902 and
investigations have been undertaken by other persons[56], and much has
been written on the subject. A general explanation can now be framed
without much difficulty, as in all probability most of the relevant
facts have been brought to light. First and foremost the general
development of the cotton industry in the United States must be
emphasized. The industry was unquestionably foredoomed to expansion at
this time, and the only question was where the expansion should take
place. It was plain that the growth might be so great as to present the
appearance of a new industry created with new labour rather than an
extension of an old industry. It was not altogether surprising,
therefore, that the exploitation of a new field of labour was thought
of. The labour market of the North was comparatively exhausted; in less
developed parts of the country larger supplies of intrinsically good
labour might be looked for at lower wages. Skill was not a matter of
much moment, because in the North it would have been necessary to
incorporate much labour without previous experience in the industry, the
work was intended to be of the rough kind upon which manual skill is
least important, and it was intended to repose reliance for economy upon
machinery in the main. The choice of new fields meant at the outset the
sacrifice of some of the economies of localization, but so large an
expansion was looked for that projectors did not despair of creating
fresh industrial localization of sufficient magnitude to produce such
economies as are derived from it, which, it must be observed, are
inconsiderable in America, and have declined relatively with falling
cost of transport and the adoption, as regards machinery, of the
principle of interchangeable parts. And at any rate a new local industry
would have a slight advantage in supplying markets in proximity to it.
These were the main general considerations, and the scale was turned in
favour of the new locality (a) by the advantage of nearer supplies of
cotton, and (b) by the known presence of much half-occupied white labour
in the vicinity of otherwise suitable sites close to the cotton-fields.
It must be borne in mind that the whole calculation had not to be reared
merely upon an intangible theoretical basis. Cotton mills already
existed in the South, and comparisons of costs of production, as things
were then, afforded some groundwork for judgment.
As regards the first of the two special advantages mentioned above, the
saving in the cost of carriage of the raw material is not commonly held
to be high. Transport to the cotton ports is so well organized and
sea-carriage is so cheap that Lancashire's distance from the source of
her raw material is not a very appreciable handicap. A good deal of the
cotton that must be used in some of the Southern mills cannot be
supplied locally because it is not grown in the neighbourhood, and the
requirements of these mills are met by transport arrangements which at
present cost a sum not altogether out of relation to similar costs in
the New England States and Lancashire. The percentages of freight
charges on raw material in 1900 were $2.18 in Georgia, $1.59 in North
Carolina, $1.17 in South Carolina, and the amazingly low figure of $1.20
in Massachusetts, but of course some part of the explanation is the
somewhat higher quality of cotton on an average that is worked up in
Massachusetts. For some years, however, the saving in labour has been a
most important economy. Large supplies of half-occupied white labour
existed in the Southern States among the families of small farmers who
flocked South after the Civil War, and in the districts of the decayed
hand industry in the mountains of Kentucky and North Carolina. For small
money wages much of this labour could be attracted to the mills. Negroes
do not work in the mills; the reason is said to be partly their own
disinclination and partly that they are not very efficient at factory
work. As outside labourers, however, they have afforded important aid at
a very trifling cost, but the expense of outside labour to a mill is
never an item of much weight. The halcyon days to employers, when keen
workers could be had for low wages, are now said to be past. The demand
for labour was considerable, and as time went on additional supplies
could be enticed only with the offer of better pay. In 1904 it was
reported that some mills were unable to get fully to work for want of
hands even at the improved rates. Again the Southern operatives have
been visited by emissaries from the operatives of the New England
States, which explains partly the present aspect of the wages question.
Mr Pidgin, in his official report to the Massachusetts Bureau of Labour
Statistics, questions whether a saving in wages can be expected to
continue, and points out that though wages have been low the average
efficiency of the operatives has not been high. Some, indeed, were sent
to gain experience in Northern mills in the hopes that on their return
they would spread the tradition of working at high pressure. Mr Pidgin
is at some pains to measure labour efficiency in the South and North as
far as it is possible to do so, but no simple sets of figures will prove
very much. The value of the product per operative in 1900 was $1200 in
Massachusetts, $1010 in Georgia, $937 in North Carolina and $984 in
South Carolina, but the value of the product per operative depends as
much upon the fixed capital charge per operative as upon the latter's
efficiency. And the amount of machinery used per head is higher in the
South than in the North. The percentage of operatives to machinery in
Massachusetts being expressed as 100, that of Georgia was 53, that of
North Carolina 43 and that of South Carolina 55 in 1900. These figures
must be borne in mind when the average numbers employed in a mill in
different States are being considered: in 1900 the averages were 565 for
Massachusetts, 273 for Georgia, 171 for North Carolina and 378 for South
Carolina. Measured by quantity of machinery the sizes of mills would
stand in quite different relations. Hours of work in the South are bound
to fall and the abuse of child labour, which had unquestionably crept
in, may be expected to discontinue entirely. The factory conditions of
children are better now than they were, but in some places they are
still very bad. In Georgia no children under twelve are employed, but
infants without fathers may begin work at ten years of age, and
according to Mr Pidgin's report, "it certainly seemed as though the
intention was honoured more in the breach than in the observance, or
that there must be many widows in the neighbourhood of the cotton
mills." In North and South Carolina the employment of children under
twelve is illegal, but in these States also conditions are recognized
under which it is possible to employ them earlier. According to figures
relating to 1900 the dependence on child labour in the Southern States
is very striking. The proportions engaged at different ages in the three
chief cotton-manufacturing Southern States and Massachusetts are as
follows:
+------------------+-----------+-----------+-----------+
| | Men, | Women, | Children |
| | 16 Years | 16 Years | under 16. |
| | and over. | and over. | |
+------------------+-----------+-----------+-----------+
| Massachusetts | 48.98 | 44.59 | 6.43 |
| Georgia | 39.98 | 35.52 | 24.50 |
| North Carolina | 42.22 | 34.23 | 23.55 |
| South Carolina | 44.43 | 28.72 | 26.85 |
+------------------+-----------+-----------+-----------+
It might be said that children are more useful when the work is rough,
but this argument can hardly be regarded as accounting altogether for
the great discrepancy as between Massachusetts and the South. The work
is much rougher in the South: in 1900 the counts spun respectively in
Massachusetts, Georgia, North Carolina and South Carolina were 25.10,
14.37, 18.83, and 19.04, and on the showing of the American census of
1900 spinning was getting finer over the last decade of the 19th
century.
As contributory to the influences already recorded as accounting for
Southern success it has been hinted that in the North employers have
been less ready to welcome the new machinery, though in comparison with
European rivals they would seem at first to have acted rashly. However
this may be, the South enjoyed the important advantage that its industry
began just after a great technical advance had been made. When Northern
mill-owners were anxiously deliberating about the destruction of good
machinery merely because it was antiquated in design, the fortunate
Southern mill-proprietor was getting to work with appliances up to date
in every particular. It will be easier to balance comparative advantages
as between North and South when undertakers in the newer district are
confronted by problems concerning replacements and alterations. The
rapidity of Southern growth need not astonish those who have watched the
operations by which new mills are frequently set up in Lancashire and
remember that the American business man is more daring than his British
cousin. Company promotion in the great financial centres, payment for
machinery and other plant in shares, or partially in shares, a general
diffusion of risks and pledging of credit, would explain even more rapid
growth of industries of even greater magnitude.
Character of the American Industry.
Broad generalizations are difficult to frame, hard to establish and
liable to be misleading; some generalizations relating to the features
of the American cotton industry taken as a whole the author is tempted
to venture nevertheless. The characteristics of labour have already been
incidentally commented upon. We have also noticed that the bulk of the
work done is of a rough and simple character. In spite of American
nationalism and the prevalence of protective sentiments it is said that
there is still a prejudice in the United States against home-made fine
cotton goods.[57] "The product of the American system is a cloth which
is, on the whole, distinctly inferior in appearance, 'feel' and finish
to that produced by the Lancashire system. To equal a Lancashire cloth
in these respects an American cloth must not only be made of better
cotton, but must contain more of it--perhaps 5% more. To this rule of
inferiority there are, it is needless to say, exceptions, notably some
of the American drills made for the China market. But the American home
market, which absorbs nearly the whole of the product of American looms,
is less exacting in these matters than the markets in which Lancashire
cloths are sold."[58] It follows that the average counts spun in the
United States are lower than in England, though they have been rising
somewhat. Another feature of American spinning as compared with English
is the high proportion of ring-frames to mules. In New England between
1890 and 1900 mule-spindles advanced by 100,000 and ring-spindles by
nearly 2,000,000: in the South mule-spindles increased only from 108,500
to 180,500, while to the ring-frames 2,700,000 were added. To the
general rule Rhode Island is the sole exception; here mule-spindles have
increased and ring-spindles decreased; but in Rhode Island much of the
fine spinning--for instance that for hosiery--is congregated.[59] One
explanation of the preponderance of ring-spinning is to be found in the
character of American fabrics. Again most of the operatives are not of a
kind likely to acquire great excellence at mule-spinning. To the
Americans we largely owe the ring-frame, because their encouragement
helped it through the difficult period when its defects were serious,
though it appears to have been discovered independently in both
countries.
American organization display intense specialism, but of a type
different from that in England, where businesses are specialized by
processes; in America they are specialized by products but hardly at all
by processes. Independent spinning, independent manufacturing,
independent bleaching, dyeing and finishing are the significant features
of English industry to the bird's-eye view; in the United States the
typical firm will spin, make up its own yarn, and perhaps complete its
fabrics for the market; but the mills, it must be remembered, are
intensely specialized as to the range of their product, so that the
statement that American mills are less specialized than English mills
must be received with caution. For some reasons we should expect to
find the American method applied even in England for fabrics of the
highest qualities, because in their case the adaptation of the yarn to
the fabric, and finishing to the fabric, are of great importance, and
actually where the American plan is followed in England the explanation
is frequently the speciality of the product which is associated with the
particular firm producing it. When a firm manufactures a speciality of
this kind it cannot always trust bought yarn, or the finishing applied
to fabrics in the ton. But for other reasons specialized processes might
be looked for where qualities were highest, as by specialism alone can
the greatest excellence be attained. The final selection of method
depends upon the relative importance for high qualities in the finished
product of the connectedness of processes and the perfection of parts;
and to these considerations must be added cost of transport between the
works devoted to distinct processes, and the development of the
commercial functions by which specialized process businesses are kept
functioning as a whole. Probably it is the high development of British
industry on the commercial side which chiefly explains the arrangements
found in England. Attention should also be directed to the huge
magnitude of American businesses. This is partly a consequence of
American ambition in business, and partly a consequence of the
undeveloped commercial ligaments by which producing businesses are
brought into union. American producers in both North and South are too
widely scattered for one town, like Manchester in the English cotton
district, to be visited frequently by them for the purpose of making
purchases and effecting sales. Even if the Americans did possess a
convenient commercial centre, the high cost of transport between works
distributed over a very wide area would prevent much specialism of
businesses by processes from appearing. Writing capital letters for
industrial processes and small letters and Greek letters for commercial
functions, the possible arrangements in the cotton industry may be
represented broadly as follows, brackets indicating the scope of
businesses:[60]
I. (a, A, B, C, d).
II. (a)(A, B, C)(d).
III. (aA[alpha])(bB[beta])(cC[gamma]).
IV. (a)(A)([alpha], b)(B)([beta], c)(C)([gamma]).
The American industry approximates to the first type, while the English
approximates rather to the last. Differences in respect of specialism by
range of product are not shown in the formulae.
_Other Parts of America._--Little need be said of the cotton industry
in other parts of the New World. In Canada in 1909 there were,
approximately, 855,000 Spindles, and in Mexico in 1906, where the
first factory was established in 1834, 450,000 Spindles. In Brazil
also there is an appreciable number of spindles, distributed (in 1895)
among 134 factories, which are located chiefly in Rio de Janeiro and
Minas Geraes, and are run for the most part by turbines and
water-wheels.
_Germany._--In Germany the cotton industry is by no means so intensely
localized as in England, but three large districts may be
distinguished:--
1. The north-west district, which consists of the Rhine Province and
Westphalia and contained 1-3/4 million spindles in 1901.
2. The country north of the mountain ranges of northern Bohemia
comprises the middle district, which contained 2-1/2 million spindles
in 1901. In Saxony the industry has been carried on for four
centuries.
3. Alsace, Baden, Wurttemberg and Bavarian Swabia make up the
south-west district, to which some 3-1/2 million spindles were
assigned. It is in close proximity to the cotton districts of east
France, Switzerland and Vorarlberg.
According to Oppel (1902) the German spinning industry is chiefly
localized in--
Prussia with 2020 thousand spindles
Saxony " 1870 " "
Alsace " 1600 " "
Bavaria " 1390 " "
The spindles of Wurttemberg, which stands next, do not much exceed
half a million. Only sixteen places in Germany (shown in tabular form
on p. 169) contained as many as 100,000 spindles in 1901.
+------------------+-------------+---------------+-------------+
| | Spindles in | | Spindles in |
| | Thousands. | | Thousands. |
+------------------+-------------+---------------+-------------+
| Mulhausen | 471 | Chemnitz | 195 |
| Augsburg | 373 | Gebweiler | 187 |
| Gronau | 274 | Leipzig | 182 |
| Werdau | 249 | Crimmitzschau | 168 |
| Rheydt | 248 | Logelbach | 141 |
| Munchen-Gladbach | 216 | Bocholt | 128 |
| Rheine | 198 | Bamberg | 125 |
| Hof | 196 | Bayreuth | 100 |
+------------------+-------------+---------------+-------------+
The history of the hand industry in Germany runs back some centuries.
At the time when it flourished in the Netherlands we may be sure that
it was prosecuted to some extent farther north and east. The start
with the machine industry was not long delayed after its economies
had been learnt in England. It was fostered by protection against the
cheap products of Lancashire, and in the course of time stimulated by
every step taken towards the economic unity of the German States which
broke down local barriers and therefore enlarged the German market.
Duties upon cotton goods, however, were not immoderately high until
the measure of 1879, the policy of which was carried to a further
stage in 1885. Slight reactions were brought about in 1888 and 1891,
largely by the complaints, not only of the consumers of finished
goods, but also of manufacturers whose costs of production were kept
up by the high prices of home-spun yarns and the tax on imported
substitutes. According to the investigations made by the Board of
Trade, the general ad valorem impact of German duties on British goods
stood somewhat as follows in 1902:--
_Statement showing the Average Incidence_ (ad valorem) _of the Import
Duties levied by Germany on British Cotton Goods._
+-------------------------+-----------------+--------------+--------------+
| |Average Value of | | Approximate |
| |Exports from the | Rate of Duty | Equivalent |
| |United Kingdom to| estimated | Rate of Duty |
| | all Countries | Equivalent. | _ad valorem_.|
| | in 1902. | | |
+-------------------------+-----------------+--------------+--------------+
|Cotton manufactures-- | | | Per Cent. |
| Piece goods, unbleached| 2.01d. per yd. |0.87d. per yd.| 43 |
| " " bleached | 2.46d. " |1.09d. " | 44 |
| " " printed | 2.68d. " |1.31d. " | 49 |
| " " dyed, &c. | 3.46d. " |1.31d. " | 38 |
|Cotton thread for sewing | 26.89d. per lb. |3.81d. per lb.| 15 |
|Cotton yarn-- | | | |
| Grey | 10.49d. " |0.98d. " | 9 |
| Bleached or dyed | 11.23d. " |1.63d. " | 15 |
+-------------------------+-----------------+--------------+--------------+
The duties are not prohibitive--they are much less than those of the
United States at the same time--but they are heavy on the classes of
goods which come into competition with home-made goods. The general
principle of the tariff is to treat easiest commodities which are made
with least success at home, or are in the highest degree raw material
for a home manufacture. Therefore yarns are not taxed very heavily,
and of these the finest counts escape with slight discouragement.
In the cotton industry, as well as in numerous other industries of
Germany, almost feverish activity was shown after the Franco-German
War. Previously great advance had been made, but it was not until the
last quarter of the 19th century that Germany forced herself into the
first rank. As measured by the annual consumption of cotton the German
industry increased as follows:--
_Metric Tons of Cotton per Annum._
(In Thousands.)
1836-1840 9
1856-1860 46
1876-1880 124
1886-1890 201
1899-1903 324
It must be remembered that the spindles and looms of Alsace and
Lorraine were reckoned as German after the war: they amounted in 1895
to one and a half million spindles and nearly forty thousand looms.
In the 'seventies there was no dispute as to England's substantial
lead in respect of efficiency. Alexander Redgrave, the chief factory
inspector, made inquiries on the continent both in 1873, when
Lancashire was anxious as to the comparative cost of production abroad
because of the short-time bill then before parliament, and previously,
and reported most unfavourably upon the state of the industry in
Germany. Hours were long, the skill of the hands was inferior, speeds
were low and time was wasted. In several important respects his views
were corroborated by M. Taine in his _Notes on England_, and by the
evidence adduced before the German commission upon the cotton and
linen industries in 1878. A marked contrast is noticeable between the
sketches drawn of this period and the careful picture presented by
Professor Schulze-Gaevernitz of the early "'nineties," but even in the
latter the advantage of England is represented as substantial in every
essential respect. The gap which existed has narrowed, but it is
still unmistakable. To give one example, according to Dr Huber's
figures there were in Saxony at the end of the 19th century 106
spindles to an operative and about as many weavers as looms, whereas
in England there were about twice as many spindles to an operative and
twice as many looms as persons engaged in weaving sheds.[61] As
regards manufacturing, the character of the product may partly explain
the difference, but it will not entirely. The reader need hardly be
warned that the comparison drawn is exceedingly rough. German cotton
operatives taken all round are certainly less efficient than English
labour of the same kind. The reason is partly that the proportion of
the German workpeople who have been for long specialized to the
industry, and look forward to continuing in it all their lives, is not
high. Complaint is constantly made of the number of vacancies created
in the mills each year by operatives leaving, and of the impossibility
of filling them with experienced hands. Many of the vacancies are
caused by the return of workpeople to the country parts. Sometimes the
mills are in the country, or within easy reach of it, and labour is
obtained from the unoccupied members of peasants' families. In these
cases the factories do not always succeed in attracting the most
capable people, and work in the factory is not infrequently looked
upon as a makeshift to supplement a family's earnings. Among
Lancashire operatives far more pride of occupation may be met with. In
many of the industrial parts of Germany English conditions are
evolving, but they are not generally the rule. An American consul may
be taken to report to his own country without prejudice as to the
rival merits of German and English conditions: one such wrote in
1901:--"The task of educating labour up to a high degree of efficiency
is difficult, and many generations are necessary to achieve that
result. The English cotton spinners have attained such a degree of
skill and intelligence that, for the most part, no supervision is
necessary. In Germany the presence of a technical overseer is
indispensable. Another advantage which England enjoys is the cheap
price of machinery. Germany imports the major part of her machinery
from England, and German wholesale dealers in these machines have not
been able, by placing large orders, to overcome the difference caused
by freight and tariff." Wages reflect the efficiencies of countries,
not of course perfectly, but in some degree. They are much higher in
Lancashire than in Germany, as is made evident by an article from the
pen of Professor Hasbach in _Schmollers Jahrbuch_ (vol. ii., 1903).
The author tries to show that Germany is not so far behind England
industrially as is generally believed, and the contrast drawn by him,
greatly to the advantage of Lancashire, is not likely to exaggerate
the superiority of English conditions. It is calculated by Professor
Hasbach that the daily wages of spinners are about 5/10 to 6/10 at
Oldham, 6/6 at Bolton and 5/6 in Stalybridge and neighbouring places.
With these he compares the 3.70 to 3.80 marks paid in the Rhine
Province and Leipzig, and the 3 to 3.15 marks paid in the Vogtland,
Bavaria and Alsace, and mentions an exceptionally high wage of 4-2/3
marks, which was earned by an operative who worked a new and long
doubling mule. The wage paid to the big piecer in England, Dr Hasbach
goes on to show, is not much greater than that received by a good
assistant in Germany. This comparison as it stands will probably give
some readers an idea that English advantages are greater than they
actually are, because it may be overlooked that the great difference
between wages in the case of English and German spinners is not
repeated among the piecers. Taking a spinner and his first assistant
as the unit, we should have a joint average daily wage of about 8/6 in
England and 6/6 in Germany. In the case of weavers, comparison of wages
is more difficult to draw, but the advantage of England would seem to
be but little less. However, in instituting a comparison between two
countries, as regards the relative efficiency of labour in some
industries, we should do well to remind ourselves that efficiency is a
somewhat transitory thing, dependent upon education and experience as
much as upon aptitude. In respect of the capacity of labour for the
task required in the cotton industry, we could not (writing in 1907)
make the statement that England leads significantly with the assurance
with which we can assert her superiority in respect of present
attainments. The cotton industry has not been prosecuted on a large
scale in Germany so long as in England, and the Germans have not,
therefore, had the same opportunity for developing their latent
powers. But the thoughtfulness and carefulness of the German workman
are beyond dispute, and these qualities will procure for him a leading
place where work is not mechanical. Already in the cotton industry it
is said that the operatives are displaying quite striking powers of
undertaking a wide range of work and changing easily from one pattern
to another. Hence German firms feel little hesitation in taking small
orders on special designs; they do not experience any great difficulty
in getting their factors accommodated to produce the required
articles.
Apart from the efficiency of labour, reasons exist for the lower real
cost of production in England in the organization of the industry. The
German industry is not only less localized, but, as we might perhaps
infer from that circumstance, less specialized. A German factory will
turn out scores of patterns where an English firm will confine itself
to a few specialities. Time is wasted in accommodating machinery to
changes and in accustoming the hands to new work. The German producer
suffers from the undeveloped state of the market. In England
specialized markets with specialized dealers have greatly assisted
producers both in their buying and selling. A German manufacturer may
have to find his customers as the English manufacturer need not; at
least, so Professor Schulze-Gaevernitz has assured us, and conditions
have not been wholly transformed since he made his careful analysis.
He wrote:--"But especially disadvantageous is the decentralization in
respect to the sale. Here also the German manufacturer stands under
the same disadvantages with which the English had to struggle in the
'thirties. The German manufacturer still seeks his customers through
travellers and agents, and in many instances through retail sellers,
whose financial standing is often questionable, whose necessity for
credit is always certain. Hence the complaints about the bad
conditions of payment in Germany which crop up continually in the
_enquete_. The manufacturers had to wait three, four or six months,
and even twelve months and longer for payment. In reality there
existed 'termless terms,' a 'complete anarchy in the method of
payment.' ... The manufacturer cannot be at the same time commission
agent, banker, merchant and retail dealer; he needs sound customers
capable of paying. He fares best if the sale is concentrated in one
market, and 'change' prices simplify the struggle between buyer and
seller. The search for customers, foreign as well as home, and the
bearing of all possible risks of disposal, are in any case difficult
enough to necessitate the whole strength of a man. The wholesale
merchant alone is in a position to pay the manufacturer in cash or on
sure, short terms. But especially where export is in question is the
dispersal of sales an extreme impediment. The manufacturer cannot
follow the fashions in Australia and South America; the foreign buyer
cannot travel from mill to mill."
It is the want of commercial development in Germany which accounts for
the more frequent combination of weaving and spinning there than in
England. But in Germany to-day economic enterprise is flourishing, and
commercial development may confidently be looked for together with
advance in other directions. It is not many years since the typical
German cotton factory was comparatively primitive; now mills can be
exhibited which might have been erected recently in Oldham. Between
the early 'eighties and the 'nineties the expansion of the German
industry was enormous--the imports of cotton-wool rose by nearly
70%--yet the number of spinning-mills was actually reduced from 6750
to 2450, while the number of weaving-sheds fell from 56,200 to 32,750.
At the same time the factories devoted to mixed goods declined from
25,200 to less than 16,350. From these figures we may gather how
rapidly the average size of mills and weaving-sheds enlarged in the
period. One cause, no doubt, was that improved economies in the new
businesses forced antiquated factories to shut down and make way for
still newer erections. There were recently about twice as many persons
engaged in weaving as in spinning, but the largest numbers of
all--slightly in excess of those in weaving-sheds--were the persons
occupied in the manufacture of cotton-lace, trimmings, &c. As we might
imagine, Germany's exports of cotton goods are not high. Including
yarns they amounted to L13.7 million per annum in 1899-1903. In order
of value their largest exports are (1) coloured goods, (2) hosiery,
(3) lace and embroidery, (4) yarns, and (5) trimmings, &c.
_France._--Into the industrial conditions of the two leading rivals of
England we have entered in some detail; the state of affairs in the
rest of the world must be dealt with more briefly. Of France more
ought to be said than we can find place for, though in respect of the
magnitude of her cotton industry, as measured by the quantity of
spindles, she stands now not fourth, but fifth, Russia taking
precedence. But the work of the French is incomparably superior to
anything that is turned out from Russia. France suffered a severe blow
when the industry of Alsace and Lorraine was lost to Germany, but the
inexhaustible originality of French _design_ will always secure for
her goods a place in the first rank. As regards _artistic_ results
France leads, but the real cost of her spinning and weaving cannot
approach in lowness that of Lancashire. After costly strikes the
French workmen have succeeded in shortening their hours to ten and a
half a day; and here it may be remarked that the International
Association of Textile Operatives tends to equate continental
industrial conditions to those of England. The French industry has
been fostered by tariffs. When the Board of Trade calculation was
made, French tariffs were found to bear upon British cotton goods with
about the same severity as those of Germany, except that the former
treated more hardly yarns and cotton thread for sewing. French
protectionism has kept down her exports; such as they are the majority
proceed now to her colonies. Normandy, the north and east, in order,
are the chief seats of the industry. In Normandy the leading city is
Rouen, and Darnetal, Maromme, Sotteville, Havre, Yvetot, Dieppe,
Evreux, Gisors, Falaise and Flers are important places. The north
contains the important towns of Lille, Tourcoing, Roubaix, St
Quentin, Amiens and Hellemmes. The Vosges is the chief district of the
east, and the leading towns are Epinal, St Die, Remiremont, Senones,
Val d'Ajol, Cornimont and La Bresse. The following towns which are not
included in any of the districts mentioned above are also
noteworthy:--Troyes, Nantes, Cholet, Laval, Tarare, Roanne, Thizy and
Villefranche upon the Saone. Cotton arrives at Havre and Marseilles;
at the latter chiefly the product of Egypt and the East. Havre used to
be the most important cotton port in continental Europe, but to-day
more spindles are fed from Bremen than from Havre. France's
consumption of cotton annually in the period 1899-1903 was 215,000
metric tons.
_Russia._--Power-spinning was carried into Russia by Ludwig Knoop, who
had learnt the trade in Manchester, and to his efforts its early
success was due. The growth, largely the result of very heavy
protectionism--according to the Board of Trade report, from 50 to more
than 100% more severe than that of Germany,--has been rapid, as the
following table bears witness:--
_Average yearly Importation of Cotton wool and Yarn into Russia._
+-----------+----------------+----------------+
| | Raw Cotton in | Cotton Yarn in |
| | thousand tons. | thousand tons. |
+-----------+----------------+----------------+
| 1824-1826 | .9 | 5.4 |
| 1836-1838 | 4.6 | 10.1 |
| 1842-1844 | 8.4 | 9.5 |
| 1848-1850 | 21.4 | 4.5 |
| 1889-1891 | 117.4 | 3.4 |
| 1899-1903 | 180.0 | 2.9 |
+-----------+----------------+----------------+
_Table showing approximately the Growth of Spindles and Looms in
Russia._
+---------+---------------+----------------+
| | Spindles. | Looms. |
+---------+---------------+----------------+
| 1857 | 1,000,000 | |
| 1877 | | 55,000 |
| 1887 | 4,000,000 | 85,000 |
| 1900 | 6,000,000 | 146,000 |
| 1909 | 7,800,000 | |
+---------+---------------+----------------+