193 REPORT— 1870. 



whicli in that year produced a crop of 4,075,000 bales ; and of our import that 

 year we derived from America 76 per cent., India 16 per cent., Egypt and Brazil 

 each 3 per cent., West India and Tiu-key under ^ per cent. 



The breaking out of the American war in 1861 stopped the import of American 

 cotton, and caused an advance of 1.50 per cent, in value ; and our import gradually 

 increased from som-ces other than America until, in 1865, it was 1,508,000 bales in 

 excess of 1800, the proportionate supply from various sources being as follows : — 

 America 16-77 per cent., Western India 37-73 per cent., Egypt 12-11 per cent., 

 Brazil 12-35 per cent., West Indies 4-767 per cent., China 5-14 per cent, Bengal 

 and Madras 11-28 per cent. From this it will be seen how quick and how potent 

 was the effect of price in stimulating into acti\-ity the inhabitants of almost every 

 tropical country to gain part of the prize that was to be obtained by growing cot- 

 ton and shipping it to this country. 



The author showed that the uncertainty in which the production of cotton in 

 America after the war was shrouded caused very high values to be maintained, 

 although our import in 1866 was only 181,802 bales of 400 lbs. less than in 1860. And 

 to this high range of prices he attributed the wonderful rapidity with which Ame- 

 rica has been able to overcome the great difficulties arising from the eflects of the 

 war, but above all from the abolition of slavery, so that she is now again our great 

 source of supply. He drew attention to the great success that had attended the 

 efforts of Government to extend and improve the cultivation of cotton in India, 

 and the rapid development of cotton-cultivation in Brazil ; he showed that as ex- 

 tremes beget extremes, so it is quite probable that three or four years of high 

 prices having recouped the fixed capital embarked in cotton-planting, we may 

 m ten years from the date of the cotton famine have a supply of cotton from 10 

 per cent, to 15 per cent, larger than we received in 1860, notwithstanding that in 

 the meantime the whole system of cotton-cultivation, both in America and in 

 India, has been transformed. He pointed out that the high prices of 1866, by ar- 

 resting consumption, enabled a stock to be accumulated in Europe and America, 

 which has pei-mitted the consimiption of cotton for three years since to exceed 

 the production by a yearly average of 270,000 bales without seriously advancing 

 values. In tm-ning to the question of the influence of price upon consumption, in 

 1860 every spindle in the country was fully employed ; in 1863 not more than 

 one-third were in work. After reviewing the phases of our cotton-manufacturing 

 industry during the memorable years 1862-05, and of the growth of our other 

 textile manufactures, such as linen, worsted, and woollen, he went on to show 

 the causes of the bad state of trade in Lancashire, which maj^ be summed up in 

 a consumptive power greatly in excess of the supply, wliile at the same time the 

 high price of cotton fabrics stopped their free consumption ; thus while the spindle- 

 power of this coimtry is equal to a consumption of 54,153 bales of 4001b. weight 

 per week, the actuaf consumption in 1868 was 47,378 bales, and in 1869 45,268 

 bales of 400 lb. ; it was this deficiency in the supply as compared with the con- 

 sumptive power, combined with high prices, tliat produced all the mischief. 



He took a very hopeful view of the future. He showed that whereas the spindle- 

 power of Europe and the Northern States of America in 1860 was equal to a 

 weekly consumption of 102,()76 bales of 400 lbs., the supply in that year was 

 equal to 113,814 bales of 4001b. ; in 1870 the spindle-power is equal to a consump- 

 tion of 109,639 bales, and our probable supply equal to 102,557 bales of 400 lb., 

 so that we have at last brought the supply within 6-86 per cent, of the |spindle- 

 power, or 371,000 bales of 400 lb. ; and the prospects are very fair that this defi- 

 ciency will be made up during the course of the next twelve months, when we 

 may look for a much lower average in price and the return of a fuU tide of pros- 

 perity to this district. 



In conclusion the author drew attention to the value of the Cotton Statistics 

 Act, if the stock were once more adjusted and the quantity of cotton taken by 

 the trade was given weekly as well as the quantity exported and imported. 



