The herald and mail. [volume] (Columbia, Tenn.) 1873-188?, 1875-08-13
COTTON MANUFACTURE.

| The Worlds MARKETS. OperstocEed With Goods =
Rrices and the cost of Production Must Com,
3. New York Bulletin, July %.
We presume no one will dispute that
the worlds markets are overstocked
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 condition Of
things exists in the Manchester trade,
the overlooking 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 it's present costs.
It 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 employed;
and the purchasing ability Of consumers
of cotton goods has been proportion.
ately 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 affects the demands?
So long as the demand was artifcially
supported by the large shipments made
to the Asiatic markets for the purpose
of keeping afoat huge inselvent firms,
this contraction in the consumption 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support is Withdrawn, nothing can pre-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-a- family in
Christendom which has not more or less
curtailed it's 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 be 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-eyident as the simplest mathe-
maticaiF proposition. True, there has
~been. a. partial decline m cotton goods,
which is to be regarded as so much con-
cession to the inf 4ences 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 worlds 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 1850; for there is one law
which eonclusively 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
trade that current prices do not conform
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 is to be done? For manufacturers
to reduce their prices and continue pro-
ducing at the present cost would be to
invite ruin. They might reduce their
production and, by making goods rela-
lively scarce, maintain prices but
every manufacturer knows the difficulty
of establishing concerted action for such
purpose. The only safe ard business
like method of treating the case is to
aim directly for the conditions neces-
sary to cheaper production. The neces-
sites of the situation call for cheaper
labor and cheaper raw material. There
can be no prosperous state of the cotton
trade, no general employment of ma
chinery without these conditions and
it is the true policy for manufacturers
to combine and stop work until they
have secured these advantages. While
we write, the cable informs us that Z" at
Oldham only six out of one hundred
and sixty-two mills belonging to the
Employers association are working"
This shows that the Lancashire manu-
facturers are working in harmony and
are resolved not to tamper with a situa-
ton which demands prompt and thor
ough treatment. They have adopted the
GO 7rse which will most speedily bring
affairs to sound basis and although
their action may excite ill-feeling
among the operatives and may cause
some depression at Liverpool, vet it
will prove to be the readiest and most
wholesome way to reach the indispen-
sable changes in the conditions of
production.
It would be fortunate if the New
England manufacturers were to combine
upon like course. To deal with the
question timidly is to prolong the agony
and augment the distrust that the pres
ent situation creates. If the example
of Oldham were followed, speedy end
of the troubles of the cotton trade
would be foreseen. and confidence
would be restored to at least one of the
leading branches of our industry.
There can be no really healthy feeling
IN this or any other trade until not ONLY
prices but the costs of production have
been so far reduced as to produce
general feeling that the lowest point has
been touched ; but when that state of
things has been gained, there will be
common confidence in buying, which is
the one thing now wanting to a general
revival of trade. This requires eour-
age on the part of manufacturers but
if this heroic treatment 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.
At Vincennes, France, recently, during
the marriage ceremony the brides teeth
fell out, which so frightened the bride