Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-07-31
COTTON MANUFACTURES.
The worlds Markets Overlooked
with GOOds-Priees and the Cost OF
Production Must Come Down.
NTa-v Tr-lr Ru1Ia4fn Tu1v d

The Worlds Markets OverstOekeC
With GOOds-PFiees and the Cost Of
2 Production Must Gene Down.
S New York Bulletin, July 2s.
We presume no one will dispute thai
the worlds markets are oyerstocked
with cotton goods. This is VIGOROUSLY
the case at home, the only exceptions
! being a few favOrite fabrics, the de-
mand for which always keeps pace
with the production. The same condi-
ton of things exists In the Manchester
trade, the Over-fiOOding of the great
| Asiatic markets having been one Of the
causes of the important failures that
recently occurred IN England; and If
further evidence were needed it is
found in the fact that only this week
thirty mills closed at OLDHAM rather
than continue production at its present
costs.
1t is not difficult to account for this
condition Of the cotton trade. In the
United States, Germany and in Aus
tria, and partially also in France, trade
has for many months been severely de-
pressed and labor only partly en-
ployed; and the purchasing ability of
consumers of cotton goods has been
proportionately diminished. A large
proportion of the production Of cotton
| goods Is always consumed by a class
who have suffered most severely by
this condition Of things, the working
masses; a fact which very directly af-
fects the demand. So long as the de-
mand was artifcially supported by the
! large shipments made to the Asiatic
markets for the purpose of keeping
atioat huge insolyent firms, this
contraction IN the consumption
of the working millions of the
European and American populations
was prevented from having It's full eff
feet on the markets; but now that such
spurious support is withdrawn, nothing
can prevent this reduction of consump-
ton from working out its legitimate eff
fects on production and prices. Wages
and incomes having. been reduced to
such an extent that there is scarcely a
family IN ChristendOm which has not
more or less curtailed its consumption
of cUtton fabrics, and this process of
economy being still IN force, it is inev-
liable that, if the usual quantity of
goods is to be consumed, 1t can be only
through so far reducing their price as
TO bring down the value of the aggre-
gate production to the diminished pur-
chasing power of consumers. This is
as self-evident as the simplest
mathematical proposition. True,
there has been a partial decline
IN cotton goods, which is to be
regarded as so much concession to the
influences to which we have alluded;
but the obvious excess of production
over demand shows that the fall in
prices is not sufficient to satisfy the |
necessities Of the case. It is useless to |
argue that, with the present costs of |
machinery, labor and raw material, |
goods cannot be produced Tor less than |
they are now selling for; and equally |
useless to reason that as, during the |
last fifteen years, the worlds cotton |
crop has not increased in proportion 20 /
the extension Of the markets for cotton /
goods, prices ought to be higher than ]
they were IN 1860; for there is one law
which couclusively determines the price /
Of these as Of all gOOds-what cOusum-
eTs can afford to pay for them; and it is
clear from the present conditions Of the
trade that current prices do not con-
form TO this rule.
The misfortune, however, Is that
while present prices are too high. man
ufacturers are earning no profit, but In
very many cases lose upon making the
goods. Under these circumstances, /
what's to be done? For manufacturers
to reduce their prices and continue
producing at the present costs would
be to invite ruin. They might reduce
their production and, BY making goods
relatively scarce, maintain prices; but
every manufacturer knows the difficulty
of establishing concerted action for such
a purpose. The only safe and business
like method Of treating the case Is to
aim directly for the conditions necessary
to cheaper production. Thenecessities
Of the situation call for cheaper labor
and cheaper raw material. There
can be no prosperous state of the
cotton trade, no general employ
ment Of machinery without these con-
dIUIOus; and 1t Is the true policy for
manufacturers to combine and stop
work until they have secured these ad-
vantages. While We write, the cable
informs Us that cat Oldham only six
out Of one hundred and sixty-two mills
belonging 10 the Employers Associa-
ton are working" This shows that
thelLancashlrem auufacturers are work
Ing IN harmony ana are resolved not to
tampeT with a situation which demands
prompt and thorough treatment. They
have adopted the course which will
most speedily bring affairs to a sound |
basis and although their action may
excite ill-feeling among the operatives
and may cause some depression at
yet It viii prove to be the
and most wholesome way to
reach the indispensable changes in the
Of production.
It would be fortunate If the New
England manufacturers were to COM
bine upon a ike course. To deal with
the question tImIdly is to prolOng the
agony and augment the distTUst that
the present situation creates. If he |
example Of Oldham we're followed, |
speedy end Of the troubles Of the cot
ION LIukt MDillU DE lDAtoCCLy tillu AoL- /
fdence would be restored to at least |
one Of the leading branch, Of our in
dustry. There can be no really healthy
feeling IN this OF any other trade until
not only prices but the costs Of produc-
ton have been so far reduced as to !
produce a general feeling that the low
est point has been touched; but when |
that state Of things has been gained,
there will be a common confidence IN
buying, which Is the one thing now
wanting to a general revival Of trade.
This requires courage on the part Of
manufacturers; but if this heroic treat.
ment Of the case be adopted, they will
soon find that they have conquered all
their difficulties and established the
basis for a new era Of prosperity.
THE MARVELS OF AMERICAN