The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1895-08-15
COTTON MILLING IN CHINA.

One of the terms of the treaty of peace
between China and Japan was that
China should allow the introduction into
her territory of improved machinery and
the establishment of manufacturing en-
terprises under foreign direction. This
stipulation, it was predicted, would turn
out to be of world wide interest and con-
sequence, resulting alike to the benefit
of China and the world at large. Accord
ingly, it is already announced that an
English firm is about to establish cot
ton factory at Shanghai and it is said
that this is but the beginning of the ex-
tensive manufacture of cotton in that
country. Commenting on this announce
ment, the New York World says;
It is too early to predict the future of
cotton manufacture in China. AT first
sight it seems certain that "a country that
has an inexhaustible supply of labor to
draw on, and in which clever and will
ing workmen consider 10 cents day
good wages, could undersel the world
in the manufacture of cotton. There
seems to be no reason why China should
not only make her own cotton but make
cotton for England and for the United
States theoretically the logic of cot
ton factory in China is that the Ameri-
can or English competition with it would
be hopeless. Against this theory may
be set off the fact that while the wages
of labor in England are higher than any
where on the European Continent, the
Continental nations have not taken the
cotton trade away from England. Labor
is dearer in this country than in Eng
laud, but our cotton trade is growing.
Chinese manufacturing will certainly
cut off part of the existing market,
but it may not cut off much. The new
movement in China may cause a change
in the rates of compensation. 1t may
create demand for cotton goods faster
than Chinese factories can supply them.
1t will take time to disclose the full con-
sequences of the change IN this great
Empire, but its development will deserve
to be studied with interest.
What this means to the cotton indus
try in this country and Europe it is too
soon to predict, but the indications are
that the manufacture of cotton in China
will assume large proportions in the next
decade or two, and it is safe to say that
we shall not long supply the countries of
the far East with cotton goods.
Japan and Russia are also paying
much attention to the development of
cotton manufacturing in their territory
and with the exceeding cheapness of
labor in those countries, will be able to
capture and control much of the worlds
trade in cotton goods. The natural re-
suit of this sharp foreign competition
will be that either the number of mills
in the United States and Great Britain
will be greatly reduced or that the more
civilized nations will put up the "Chinese
wall" of protection and make their own
cotton goods in their own mills and at
their own price.
In either case the Southern mills will
control the business of supplying the
needs of this country in the matter of
cotton goods. With the increased COM
petition the closest economy will, of
course, be necessary to decide what mills
will survive and those nearest the cotton
fields will be able to obtain raw material
cheapest and practice the closest econ
omy. The establishment of cotton mills
in the East will, therefore, hardly be
able to materially affect cotton milling
in the South.