CONTINENT OF AMERICA. 



BRITISH NORTH AMERICA. 



GRAY COTTON MANUFACTURES OF CANADA. 

 EEPORTS BY CONSUL TANNER, OF PIOTOU, NOVA SCOTIA. 



The manufacturers in Canada of gray cotton recently held a conven- 

 iton for the benefit of that industry in the Dominion. Delegates from 

 all the mills in Canada were present, including an agent of a New York 

 commission house with factors in China who have hitherto been the 

 chief purchasers of cheap Canadian manufactured cotton goods for the 

 Celestial markets. 



Owing to the present condition of the trade in Canada it was proposed 

 that prices should be augmented and terms modified. 



After some discussion and objections on the part of small mill owners 

 this proposition was postponed until the quarterly meeting in March 

 next when it is confidently expected an advance in prices will take place 

 and terms be reduced to sixty days and a discount of 2 per cent, for 

 cash. 



The trade with China, owing to the presence of Mr. Frazon, formed a 

 principal subject of discussion. 



It appeared that the total capacity of Canadian mills working on 

 gray cotton is 35,000 to 37,000 bales per annum, and that the home 

 consumption absorbs almost 30,000 bales of this. How to get rid of 

 surplus has been a problem to the Canadian manufacturers for some 

 years past. 



Communication with South America was more difficult than with 

 China, hence the latter country offered a better field, and after many 

 efforts successful negotiations with selling agents were effected and 

 special arrangements were also made with carrying companies at ex- 

 ceedingly low rates which enabled the manufacturers hereto send their 

 goods half around the globe at rates that would enable them to com- 

 pete to advantage with manufacturers in the United States. 



An inferior quality of goods as well as goods at a low price are an 

 essential to trade in China, and those requisites seem to be met in the 

 productions in Canada. This will readily appear when the fact is un- 

 derstood that Canadian goods which cost from 26 to 28 cents per pound 

 to manufacture are sold to the trade here at 23 cents, and the cloth 

 consumed by the Chinese can be manufactured for 10 to 17 cents per 



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