COMMERCE AND FINANCE, AMERICAN, IN 1881. 



125 



bales. The takings of the Northern and South- 

 ern mills, and the estimated total consumption 

 in the United States for a period of years, were 

 as follows : 



The crop of 1880-'81 was matured and picked 

 amid heavy rains, and packed in a damp and 

 dirty condition. The waste was consequently 

 exceptionally great, while the preceding crop 

 had been remarkably clean and superior in 

 spinning qualities. The crop of Sea-Island cot- 

 ton in 1880-'81 was 36,442 bales, against 26,704 

 bales in 1879-'80, 22,963 in 1878-'79, and 24,- 

 825 in 1877-'78. The largest previous crop 

 was 32,228 bales in 1866-'67. American con- 

 sumption of Sea-Island cotton for the year was 

 11,270 bales, or 1,881 more than in 1879-'80. 



The extension of cotton cultivation falls in 

 with and responds to an expansion of the 

 world's demand, which has been progressive 

 since the commencement of a new era of ac- 

 tivity in the summer of 1879. The revival 

 commenced with the return of prosperity in 

 the United States. European consumption 

 has increased over one million bales in two 

 years, as seen from the following statement : 



The increase in the consumption of Great 

 Britain over that of 1879-'80 was 7f per cent, 

 in that of the Continent 8- per cent ; but 2f 

 per cent must be deducted as representing 

 increased waste in the crop, leaving the actual 

 increase in European consumption 5J per cent. 

 Ellison estimates the requirements of Europe 

 for the year commencing October 1, 1881, at 6,- 

 708,000 bales of 400 pounds, of which 1,960,000 

 bales may be expected to come from India, 

 Egypt, and countries of smaller production, 

 and 4,748,000 bales, or 4,165,000 bales of 456 

 pounds, from the United States. To supply this 

 and furnish 2,050,000 bales for American con- 

 sumption, a crop of 6,215,000 bales in 1881-'82 

 would be sufficient. 



The exports of American cotton to foreign 

 ports, during the year ending September 1st, 

 were 4,589,075 bales; the overland shipments 

 to Canada, 22,898 bales. The total exports of 

 raw cotton to foreign ports for the last six 

 years were, 4.596,279 bales in the crop year 

 1881; 3,865,621 bales in 1880; 3,467,565 in 

 1879 ; 3,346,640 in 1878 ; 3,049,497 in 1877 ; 

 and 3,259,994 in 1876. 



The takings of American mills from the crop 

 of 1880-'81 were 1,891,804, and the total con- 

 sumption is estimated as high as 1,915,000 



The state of the markets was favorable to 

 American manufacturers. The domestic de- 

 mand was active enough to keep every spindle 

 going. Prices kept up well, and afforded a 

 good margin of profit. A long drought dimin- 

 ished the water-power in the North, reducing 

 the productive capacity 12 or 15 per cent for 

 about four months, but there was enough to 

 work up the stock of material into the heavy 

 drills and sheetings which were in demand. The 

 addition of new spindles is estimated at 375,- 

 000, making the total number in the country 

 at the close of the year 11,875,000. A con- 

 siderable substitution of new spindles for old 

 ones further increased the capacity for the pro- 

 duction of yarn. The price of printed cloths 

 was 3| cents at the commencement of the crop 

 year, ranged up to 4f cents in the winter, 

 standing above 4 cents until March, and be- 

 tween that and 3f cents most of the time after- 

 ward, and closed at 3| cents a yard at the end 

 of the year. Standard sheetings were quoted 

 at 7f cents in the opening months, 8J cents in 

 the winter and spring, 8 cents in the early 

 summer, and 8J- cents at the close of the year. 

 Prices thus ruled lower than the figures to 

 which they were pushed by speculation in the 

 preceding season. Trade was active the year 

 round, without any dull interval. The prices 

 of material were lower than in the previous 

 season, but the difference was partly offset by 

 the additional wastage. Low middling uplands 

 commenced at 11J cents per pound in Septem- 

 ber, went down to 10^ cents in November, 

 recovered to 11-& cents in December, stood 

 above 11 cents till March, fell off to 9 cents 

 in May, and advanced again to 11-j^ at the 

 year's close. The higher price of wages was 

 an element of cost which must be taken ac- 

 count of in estimating the results of the year's 

 business. An estimate of the average profit 

 has been made by the editor of the " Com- 

 mercial and Financial Chronicle." Those man- 

 agers who have bought their cotton at favor- 

 able times, and conduct their mills most eco- 

 nomically, may have realized two or three times 

 the estimated rate of profit. Assuming the 

 cost of cotton for standard sheetings to have 

 been 12 cents a pound, the waste 2'26 cents, and 

 the cost of manufacture and sale 6'50 cents, 

 the cost of the product per pound would be 

 20-76 cents, or 7*27 cents per yard, which at 

 an average selling price of 8 - 50 cents per yard 



