95 



competition of Manchester, but that of the Indian mills. The 

 extension of the cotton mill industry in India during the last 15 

 years has been truly remarkable. In 1 870 the number of cotton 

 mills in Bombay was only 12 with 819, o94 spindles and 4,199 

 looms. The number of persons employed was 8,199 and the 

 quantity of cotton worked up 220,000 cwts. The industry then 

 was by no means in a thriving condition, and of the paid up 

 capital, I ~ million ilx, the then value at the market quotations 

 of the shares was only j- million Ex, showing a loss of more 

 than half a million. The return for capital invested was 4 per 

 cent., while the Government stock at 4 per cent, was selling at 

 8 discount. In the other Provinces there were a few mills 

 which, however, did not do any real business. Now there are 

 124 mills in the whole of India with 3,274,196 spindles and 

 23,142 looms. The number of persons employed is 112,000, 

 and the quantity of cotton worked up 3^ million cwts. The 

 capital invested in these mills is estimated at about 12 millions 

 Ex, a very considerable portion of which is native capital. 

 The exports of cotton goods from India chiefly to China, Japan, 

 and the East Coast of Africa, which amounted to 1-3 million 

 Ex in 1870, have increased to 8-5 million Ex. The require- 

 ments of India as regards cotton cloth have been estimated at 

 3,200 million yards, of which about 2,000 millions are imported 

 and the remainder made in the country. About 600 million 

 yards were in 1890-91 exported from India to foreign countries. 

 There is every prospect of the products of Indian mills not 

 only taking entire possession, at no distant date, of the markets 

 in China, Japan and East Africa, but also of driving out the 

 Manchester cloths of all but the finest kinds from India. A 

 majority of the Committee appointed by the Manchester 

 Chamber of Commerce to enquire into the causes of the rapid 

 development of the mill industry in India, has recently re- 

 ported after full investigation that the main cause, which has 

 favored the increase of mills and enabled them to a great 

 extent to supply China and Japan with yarns formerly shipped 

 from Lancashire, is their geographical position which places 

 them in close proximity to the cotton fields on the one hand 

 and the consuming countries on the other. The net advantage 

 to the Indian spinner from these circumstances over his com- 

 petitor in England, after allowing for the extra outlay on 

 machinery, and consequent enhanced interest and deprecia- 

 tion, as well as greater expenditure on such items as imported 

 coal, stores, &o., was estimated by the committee as equal to 

 at least |</. per lb. on the portion that is shipped to China and 

 Japan, and \^d. to |r/. per lb. on what is consumed in India 



