The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-10-26
SOUTHERN COMPETITION HURTS EASTERN
MILLS.

The day will come when the Southern
mills will have enough spindles to con-
same the entire cotton crop of the South.
The Northern manufacturers are be-
ginning to appreciate the fact that the
south can manufacture more cheaply be-
esuse of nearness to the cotton field,
sneaper labor, and other advantages tins
section enjoys The approaching visit of
New England cotton manufacturers TO
the South in view of the increase of cot
npu manufacturing with us is significant.
A recent article on 1.-The Mill Situa-
eion." that appeared in the Boston News
Bureau is full Of interest. We quote:
The decline in print cloth brings to
light a very unsettled condition IN cotton
manufacturing. Factors III the case are
lower priced cotton, Southern mill com
uetition and the falling off of trade
Since July print cloths have declined Ac
per yard. while cotton has declined from
sl5 to 61ac. per pound. The cotton de-
cline is due to the large crop and the fact
that the Manchester and other English
cotton manufacturing centres are export
ing but few goods to India and other
countries, and hence are not large con
sumers of cotton.
"The greatly increased production OF
the Southern mills is disturbing factor
1t may cause difficulties in New England
as, unless there is change in the situa
ton, wages will have to be reduced il
order to meet the Southern competition
1.-The latter part of July and The
month of August showed great trade &C
xivity, and large amounts of goods were
moved, but in September there was {
marked falling off in business, which
continues very dull.
@The opposite, however, has been the
situation among the wooden manufac
turers, who are running their mills full
They have secured large advances in
prices, due to favorable protection under
the Dingley tariff and the big advance
In wool
''Hon. T. Jefferson Coolidge, treasurer
81 the AmOskeag Manufacturing Com
pany says: The boom has not reached
as yet, but do not see how the west can
be as prosperous as it is without a de-
has been no reduction in prices of our
goods for the reason that we did not
x&Yance prices during July and August
The reason for the weakness in the pric-
es of cotton goods is due to the fact that
the consumption Of goods is not equal to
The production.
My own feeling in the matter is that
this situation is due to the enormous
production Of the Southern mills, as
they make their goods much cheaper
Than we can, and consequently can sell
aver. The bad feature Of the situation
is that they will continue to increase
their production under these circum-
stances.
from shis fact. People shut their eyes
and try not to see the true condition OF
Affairs.
Hcrhe labor question as affecting the
mill situation is one which may have to
be taken into consideration if the South
continues to increase production; wages
will either have to be reduced in New
England or be advanced in the South.
"'There is no profit in selling the ex-
port trade, at present prices, but exports
will continue large, as we have to get rid
of our goods on account of the great pro-
duction.
"'However, there will be an improve
snent in business, as / cannot see how
the great prosperity of the west can help
but increase the consumption of our
goods
"Mr. Howard Stockton, treasurer OF
the Merrimack mills, says:
1.-the decline in cotton is Of course
largely responsible for the decline IL
print cloths and cotton goods. Business
is quiet. but this is not a month when W.
expect to make large sales
"'Southern mill competition has sc
rious affect upon New England cottol
mills. as Southern production has in
creased at an alarming rate during tn
past year, they consumed double tn
amount of cotton of the previous year.
"'The wage question has become
factor and reductions may have to b
considered by New England manufactu'
ers. 1t was thought that possibly the II
crease in production by Southern mill
would require an increase in labor an
wages would be higher, but such Ma
not been the case as yet.
1.-The decline in print cloths naturail
affects cotton goods, as print cioths d.
taken as a standard in many cases.
great many odd counts are sold on II
basis Of print cloth prices. especial
goods used for printing and convertin
"'Go0ds now being manufactured al
sold in December and January. Actu
jobbing does not begin until January III
goods ordered now by the jobbers a
bought on speculation. The trade b
Eeves that by January there will be b
demand for goods