The home journal. (Winchester, Tenn.) 1858-188?, 1875-08-05

We presume no one will dispute th
+. the worlds markets are overstockt
with cotton goods. This is notorious
the case at home, the only exception
being n few favorite fabrics, the d
mand for which always keeps pace viii
I the production. The same condition
, things exists in the Manchester trad
, the overlooking of the great Asiat
markets having been one of the cause
OF the important failures that recent!
occurred in England and if furtht
evidence were needed it is found in I'll
fact that only this week thirty mil
closed at Oldham rather than continu
production at its present costs.
1t is not difficult to account for thi
condition of the cotton trade. In th
United States, Germany and in Au.
trla, and partially also in France, trad
has for many month"; been severely de
pressed and labor only partly employed
and the purchasing ability CT consumer
OF cotton goods has been proportion
ately diminished. A large proportion
OF the production of cotton goods il
always consume by class who have
suffered most severely by this condition
OF thlpgs, the working masses; n fac
which very directly affects the demnndsi
so long as the demand was artifcially
supported by the large shipments made
to the Asiatic markets for the purpose
OF keeping ahoat huge inselvent firms,
this contraction in the cor sumption OF
the working millions of the European
and American populations was pre-.
vented from having its full effect on the
markets; but now that such spurious
support is withdrawn, nothing can pre-
vent this reduction of consumption from
working out its legitimate effects on
production and prices. Wages and in.
comes having been reduced to such an
extent that there is scarcely family in
Chrlstendom which nos not more or less
curtailed its consumption of cotton
fabrics. and this process of economy be.
ing still in force, it is inevitable that, if
the usual quantity of goods is
to bo consumed it can be only
through SO far reducing their price
as to bring down this value of the ag-
gregate production to the diminished
purchasing power of consumers. This
is as self-evident as the simplest mathe.
matical proposition. True, there has
been a partial decline in cotton goods,
which is to be regarded as so much CON
cesslon 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. 1t is useless
to argue that, with the present costs of
machinery, labor and raw material,
goods cannot be produced for less than
they are now selling for; and equally
useless to reason that as, during the last
fifteen years, the world'g cotton crop
has not increased in proportion to the
extension of the markets for cotton
goods, prices ought to be higher than
they were in 1860; for there is one law
which conclusively determines the price
of these as of all goods--what consum-
ers can afford to pay for them and it is
clear from the present conditions of the |
5rade that curent prices do not conform
20 this rule.
The misfortune, however, is that
while present prices are too high, MAJ
are earning no profit, but in
'ery many cases lose upon making the
FOODS. Under these circumstances,
What is to be done? For manufacturers
o reduce their prices and continue pro.
lucing at the present cost would be to
invite ruin. They might reduce their
production and, by making goods rela-
lively scarce, maintain prices but
'very manufacturer knows the difficulty |
'f establishing concerted action for such |
l purpose. The only safe ard business.
ike method Of treating the case is to
aim directly for the conditions neces-
'ary to cheaper production. The neces-
sites of the situation call for cheaper
abor and cheaper raw material. There
,an be no prosperous state of the cotton
rade, no general employment of ma.
,hinery without these conditions; and
t is the true policy for manufacturers
o combine and stop work until they
ave secured these advantages. While
We write, the cable informs us that cat
oldham only six out of one hundred
nd sixty.two mills belonging to the
Employers association are working"
his shows that the Lancashire manu-
lcturers are working in harmony and
re resolved not to tamper with situa-
ion whicn demands prompt and thor
ugh treatment. They have adopted the
o. 7rse which will most speedily bring
fairs to sound basis; and although
leir action may excite ill.focling
mong the operatives and may cause
Dme depression at Liverpool, yet it
ill prove to be the readiest and most
holesome way to reach the indispen.
able changes in the conditions OF
reduction.
It would be fortunate if the New
.ngland manufacturers were to combine
pom like course. To deal with the
uostion timidly is to prolong the agony
nd augment the distrust that the pres
Mt situation creates. If the example
I Oldham were followed, n speedy end
( the troubles OF the cotton trade
ould be foreseen, and confidence
ould be restored to at least one of the
,ading branches OF our industry.
here can be no really healthy feeling ,,
/ this or any other trade until not only ,,
rices but the costs of production have
cen so far reduced as to produce a !
eneral feeling that tho lowest point has =
cen touched but when that state of !
lings has been gained, there will be a
)mmon confidence in buying, which is I
le one thing low wanting to general i
,vival of trade. This requires cour- 7
go on the part of manufacturers ; but +,
this heroic treatment of tho CAGE be Z
lopted, they will soon find that they q
ave conquered all their difficulties and u
,tablished the basis for new era OF y
g
r o,. =. 80 aIy;ntaI 10 tha ~; oa - 4.