44 



Africa and America, gradually, but evidently permanently, in- 

 creasing to Australasia, but rapidly and largely increasing to 

 Asia. Our yarn exports are principally to Europe, and are 

 increasing, Asia coming nest, and Africa standing third. Our 

 business is now to try to show that we can not only maintain 

 our present trade but even expand and develop it still further. 

 This vrill be no easy task, especially as regards the yarn trade 

 in this connection. I would call especial attention to the com- 

 petition of India. Cotton yarn produced in India in 1876-7 

 amounted to 76,520,0001b., in 1884-5, 204,750,0001b., or an 

 increase of 128,280,0001b., or 167-6 per cent. The exports of 

 yarn and thread from India amounted in 1876-78 to 8,796,0001b., 

 but in 1884-5 to 68,897,0001b., or an increase of 60,101,0001b., 

 equal to 672 per cent ; whilst the increase of the United King- 

 dom only amounted to 21,792,0001b., or 9-4 per cent. So 

 successful is India's competition with us that our export of yarn 

 to India is almost stationary, whilst to China it is declining. It 

 seems to me the main hope for the future of the yarn trade is 

 the home market, and this only as a result of an increased 

 demand for our cloth. While not expressing any great con- 

 fidence as to the future of the yarn trade I am very hopeful in 

 regard to an increased demand for cloth. This hope is based 

 mainly on the development of our trade with India. The popu- 

 lation may be put at 260 millions, and that of China at 330 

 millions. In 1886 our exports of cloth to India amounted to 

 2,119 million yards, but to China to only 456 million yards. In 

 1873 we sent 990 million yards to India, and 350 milhons to 

 China, thus showing that in the 13 years our trade with India 

 increased 1,129 miUion yards, or 114 per cent, while that of 

 China increased 106 million yards, or only 30 per cent. Sup- 

 posing China took cloth from us at the same rate per population 

 as India, our trade with that country would be 2,752 million 

 yards per annum. This would be equal to the production of 

 over 200,000 looms. There is no reason why this sanguine 

 view should not be realised, except that of the indisposition of 

 the Chinese to encourage and develop the trade and commerce 

 of their country. There are signs of a decided change in the 

 poHcy of the Chinese Government. Telegraphs, which they have 

 hitherto opposed, are now being erected all over the country. 

 Railways have also obtained a footing in China, their rivers are 

 being opened up, and an English banking company have started 

 a banking business in Pekin. All these changes are evidence 

 that the Chinese Government are taking a more enlightened view 

 of their relations with the western world, and instead of opposing 

 the introduction of western ideas are now encouraging them in 

 every possible way. May we therefore not hope that keen traders 

 as the Chinese are known to be, and having more means than 



