252 



COTTON. 



The above records a very rapid progress 

 since 1870, being about 33 per cent, in the 

 number of spinning-spindles. 



The kinds and quantities of goods produced 

 during the year ending July 1, 1874, were as 

 follows : 



Besides the above, there is a large production of 

 hosiery and knit goods, made of cotton by itself, or 

 mixed with wool, of which we are able to give no 

 satisfactory statement. 



A review of prices and actual cost of production 

 shows that the year under consideration was not a 

 profitable one to American spinners. This is the 

 result not mainly of the panic, but of some of the 

 causes that produced the panic. Our figures are pe- 

 culiarly instructive, as shedding special light on one 

 part ot this subject. It has been shown that the pro- 

 ductive power of our mills has increased one-third 

 since 1870. Then they were reported at 7,114,000 

 spindles ; now they have reached 9,415,383 spindles. 



Nor have these spindles been idle. Each year they 

 have been producing at a pretty full rate, augment- 

 ing the cotton consumption of the mills at about the 

 same ratio. This would seem to be an excessive 

 or unnatural increase, unless there has been some 

 change going on during the same time in our foreign 

 trade. That is to say, our own consumption of goods 

 could not increase to that extent in the four years ; 

 and therefore an over-production was a necessity, 

 unless a demand Coutside our own country) would ab- 

 sorb a portion. No such foreign outlet has existed. 

 The following statement shows the imports and ex- 

 ports of manufactured goods at all the ports of the 

 United States each year of the period referred to : 



EXPORTS OF COTTON MANUFACTURES. 



IMPORTS OF COTTON MANUFACTURES. 



It appears that no material change has taken place 

 in the foreign movement. 'Our exports have re- 

 mained almost nominal, while at the same time our 

 imports, instead of decreasing, have increased large- 

 ly. The last year's figures (1874) are exceptional, 

 because the evil we have referred to had then begun to 

 assert itself we produced somewhat less and im- 

 ported less, while we increased our exports slightly. 

 It was an effort under natural laws to correct an over- 

 supply ; and even had the panic been averted, the 

 goods-trade must have been unsatisfactory. 



"What, then, is the remedy for this unfavorable 

 condition of prices, as compared with the cost of 

 production ? Most certainly it can be found alone in 

 the removal of the cause that is, production must 

 either be decreased or our own circle of consumers 

 enlarged. We cannot accept of the former alterna- 

 tive we have not too many spindles ; 'we should 

 have twice as many, considering our favorable situ- 

 ation for manufacturing. But it is evident we have 

 too many for our home market, and our goods cost 



too much for competition with other manufacturing 

 peoples in markets common to both. This ought 

 not to be with our cheaper and better cotton, and 

 would not be, but for our own high cost of living, 

 rent, fuel, provisions, and supplies to mills. We 

 have not the space now to point out the causes of 

 these unfavorable conditions ; they are easily deter- 

 mined, and it becomes our manufacturers to see that 

 the proper remedies are applied, so that our field for 

 seeking customers may be enlarged by permitting 

 us to compete with England and Holland in the 

 markets of the world. There is no reason why, in 

 all but the finest goods, this much-desired end should 

 not be reached. Turning to the period before the 

 war, the comparison is not at all favorable. Not- 

 withstanding our experience, and knowledge and 

 capabilities for manufacturing cheaply are now so 

 much greater than then, we exported in 1874: of our 

 cotton manufactures only a value of $3,000,000 cur- 

 rency, against about $11.000,000 gold in 1860, the 

 movement for 1860 and 1859 being as follows : 



