16 COTTON TEXTILES IN FOREIGN COUNTRIES. 



pound. The prices realized on the latter in Chinese market are from 

 17 to 19 cents per pound, which will net a slight margin of profits. 



It can be seen by the prices quoted above that the profits are so small 

 that the carrrying rates must be next to nothing, and it is this one fac- 

 tor that in all probability enables Canadian manufacturers to enter the 

 field as competitors in any class of manufactured cotton, and pocket a 

 small profit. 



The advantage of long runs in the manufacture of textile goods is 

 well known. The goods required for the Chinese market are low and of 

 coarse quality, and the amounts secured from their sale is equitably 

 divided among the different mills, each agreeing to confine its produc- 

 tions of these goods to 15 per cent, of its capacity, but with the option 

 of keeping the same proportion of machinery at a standstill. 



The total exportation of Canadian gray cottons to China during the 

 past year was 8,000 bales, and from recent demands there is not much 

 probability that this will be decreased. On the other hand, the exporta- 

 tion from England in the same time into China shows a falling off' of 

 105,000,000 yards, and a total falling off of 150,000,000 yards, the United 

 States bemg the next greatest sufferer with England. This deserves 

 attention from our manufacturers. 



Stock on hand in China at the present time is not one-half of what it 

 was at a corresponding period of last year. This stock was estimated 

 very recently to amount to 4,980 bales, while the orders on hand 

 amounted to 4,505 bales, or that the supply is not in proportion to the 

 demand, and this was one of the reasons for the discussion of an ad- 

 vance in prices on the part of Canadian manufacturers, alluded to at 

 the outset of this dispatch. The position of the Canadian consumer is 

 improved from that of ten years ago, when the change in the tariff 

 gave such an impetus to their cotton industry. At that time stuff' that 

 had to pay 30 cents a pound for the same goods can now be purchased 

 at 22 cents. The mill-owners complain, however, of discouragingly 

 small profits, but reap some satisfaction from the fact that the u Yan- 

 kee" suffered as well as themselves. 



This dispatch it is hoped will be of some value to our manufacturers 

 of the class of goods spoken of therein by showing them in ^hat way 

 Canada can enter the competitive field with them. In my opinion the 

 ability to do so hinges on the low rates of carriage effected with steam-ship 

 lines (lines which, in my opinion, are subsidized by the Government) and 

 organization and judicious co-operation among the manufacturers of 

 cotton goods in Canada. 



The Canadian manufacturer learned at once how to cater to Chinese 

 prejudices. The Chinaman must have his gray cotton exactly 40 yards 

 long, it must be exactly 36 inches wide, and the bale must be fastened 

 with 8 ropes, no more no less. 



GEO. C. TANNER, 



UNITED STATES CONSULATE, Consul 



j Dwmber 26, 1889, 



