which is responsible for that premium is of a temporary nature. 

 The spinner at least knows what he can do with that cotton, and his 

 loss is, at most, limited to the amount of the premium he has to pay. 

 The loss with a new cotton is less definite, depending, as it does, on 

 the speed with which he attains familiarity with its peculiarities in 

 working. There is thus a definite time factor in such arguments, 

 the effect and importance of which must not be overlooked. 



Before willingly making any change in his raw material, and this 

 is merely another way of saying before he will overcome his natural 

 conservatism, the spinner requires to be assured that the produce 

 to which he turns will be available in sufficient and regular supply. 

 Without such assurance he will only accept the alternative under 

 compulsion. For like reasons new plant, such as is required to meet 

 the expanding needs of the industry, whether as extensions to existing 

 factories or as new ones, will be adapted to handle the most assured 

 supply capable of producing that class of goods for which the factory 

 is designed. There is consequently a lag in the process of adjustment, 

 an interval between the placing of any new class of cotton on the market 

 and the realization of its full intrinsic value, partly, no doubt, due to 

 the fact that it takes time for the particular merits to be appreciated 

 but also very largely due to ignorance of the potential supply. It 

 is true that cases are on record of an immediate and rapid extension 

 of the supply of a new class of cotton ; this is true of Sakel, but such 

 extension here takes place in spite of that lag, which is none the less 

 operative though its operation is masked. There is little doubt 

 in my mind that it is possible that, nay more, that many instances 

 have occurred in which a potentially valuable crop has been lost 

 through too rapid development. The supply has been increased more 

 rapidly than the demand, time has not been afforded to permit a 

 general recognition of the special characteristics to develop, and the 

 full price has never been realized before the crop is condemned and 

 passes out of cultivation. Neglect of the time factor is here responsible 

 for the loss of a valuable improvement. 



II. 



I may now attempt to extract from the above brief review of 

 the economic conditions which are of influence in determining the value 

 of the raw material of the cotton trade the fundamental considerations 

 for the development of a sound policy on the part of the producer. 

 And here I may note that it does not necessarily follow that the 

 interests of the individual producer will coincide with those of the 

 producing community. We are, in reality in the latter case, concerned 

 with the solution of an algebraic problem, namely, to find the values 



