-15 



sumer in direct connection with each other by which the costs of 

 transaction have been not a little reduced. 



These big companies are satisfied, with a net profit of 6% on the 

 huge capitals with which they work. 



The following figures will shew how the expenses have decreased 

 in the last years. In Xew Orleans they fell from 3 1 J% of the har- 

 vest value to I2h%: in Memphis from g'i% to 4^% ; in Charleston 

 from 7% to 2|%. 



In conclusion a few words on the costs of transportation. 



This varies according to the kind of thing; the place, the route 

 and the freight charges. 



Yet. although freight has generally become cheaper, it presses on 

 the cost of production and this is especially felt when the price of 

 cotton is low. 



The cotton manufacturers in the land where the cotton is grown, 

 have here the advantage as they can procure the raw material 

 cheaper than the foreign cotton spinneries. 



Yet one feels inclined to think that the freights are of little im- 

 portance to the manufacturer, as the woven articles must be ex- 

 ported back again but then one overlooks the fact of the difference 

 between the freights of the raw material and of the things made 

 out of it. Where the freight for the raw material if 75 cents, per 

 50 k.g., this is in the case of the woven goods f\. 1 75. 



From the following figures can be seen what a difference the 

 freights on the total cost at different cotton prices can come up to. 



I he cost of shipping raw cotton to Liverpool from cotton grow- 

 ing countries on the Atlantic Coast amounts to f 12.86 per bale of 

 500 lbs. 



Assuming for instance that one pound of cotton costs 12.5, 20, 

 or 27.5 cents, then the costs with the tare as 6% included will be 

 respectively /i6.6r, y 18.86 and f 21.10 or expressed in percent- 

 ages of the prices 24, 18, 15% respectively. 



Let us once more consider all the expenses which have to be 

 paid on the cotton from the time it leaves the farm till it comes to 

 Liverpool into the hands of the cotton spinner. 



The expenses of cultivation up to the flock-mills amount to 14 45 

 cents per lb on the average. Presuming that the costs of the 

 cleaning are covered by the value of the cotton seed, then there 

 remain the expenses from the flock-mills to Liverpool. 



These amount to, at a cotton price averaging 20 cents= per lb., 

 3-77 Ct. 



We then come to the conclusion that America can deliver the 

 product at 1 8.22 cents per lb. 



THE COTTON-CULTURE IN EGYPT. 



From times immemorial, the cotton plant has been grown in the 

 Upper Nile territories, especially so in Abyssinia. Seeds of this 

 cotton variety were imported into Lower Egypt about the year 1 820, 

 and the export of Egyptian Cotton to Europe dates from that time. 

 The export of cotton from Egypt docs not annually increase in the 



