New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-09-21

Mr.. David A. Wells. in the course of a recent
communication TO THE TRIBUNE, suggested a
decisive test for determining the questions at
issue between prOteciOniss and Tree traders.
This was to compare the results OF cotton
manufacture in Great Britain and the United
States between 1860 and 1880. Mr.. Porter,
in a lucid and able letter published in
this issue, accepts this challenge so far as
the exhibits of the increase in tho exporta-
ton from Great Britain of pounds of cotton
yarn and yards of cotton cloth and in the total
value of the exports of all cotton products
during the period designated are concerned.
In doing this he restores vital factor OF the
problem which free traders are accustomed
to eliminate as of slight Importance namely
the enormous dminution in the English manu-
facturer's rate of profit. He proves that while
there has been large increase in the number
of yards and pounds actually manufactured
and exported, the prices obtained are relatively
lower, having fallen far more rapidly than the
raw material itself, and the rate of profit has
steadily decreased. With the tariffs Of the
world leagued against 1t and foreign man
ufactureIs taking rank as competitors, Eng
land has been forced TO cut down
its rate of profits on exported goods,
until Manchester factors confess that they are
living on their capital, and smaller manufac-
turers are going to the wall, especially in Scot
land. England has become the dumping
ground for the surplus goods Of foreign
manufacturers whenever il becomes necessary
to sacrifice them, and the disturbance created
by these importations and by the development
of the worlds industries involves the necessity
of cheapening products cutting down wages
and reducing profits. The result is that while
double the number of yards or pounds of pro-
duct may be exported the English industries
themselves are not nourishng "a the money
value of what they make has hardly increased
per cent and that the reduction ia the price
OF raw cotton accounts for only small pro.
portion of the scaling down of profits.
These conclusions are grounded upon trade
statistics of English manufactures, and also
upon the direct admissions of The Economist
the chief economic authority in Great Britain.
That journal describes, In terms which cannot
be miscoustrued, the process Of extinction in
the manufacturing interests Of Scotland. where
the number of cotton mills in operation has
steadily diminished and many signs OF deca-
dence are apparent. That country was once
the scat OF hourshing cotton
industry, but now il Is fast los
ing its trade. The table winch Mr. Porter
has compiled is comparative exhibit of the
number of mills, spindles and hands employed
in Scotland in 1880 1861 and 1888 and con-
tains startling evidence of the decadence of
the cotton industry in that quarter. What has
occurred IN those five counties in the North Is
also taking place in the great centres of the
English trade. The weakest manufacturers
are being pushed to the wall, and the strongest
establishments are conducted on the narrowest
margin of profit aud the lowest schedules OF
wages. When. therefore, Mr.. David A. Wells is
content to rest his case on the increase III