The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-04-21
A CHAPTER ON COTTON.
Edward Atkinson's Suggestion-Letter
From G.. f. Massey of Alabama.
Especial to News and Observer

Especial to News and Observer.)
Baltimore, April 20.-Mr. Edward
Atkinson, of Boston, suggesting in
this weeks issue of the Manufacture
ers' Record that cotton mill interests
of this country appoint a committee
of one to investigate Great Britain's
export trade in cotton ia cotton ia
bricS says:
II assume that there have been no
great changes in the conduct Of COM
merce in cotton goods in Great Britain
for many years. On one of my visits
to England / went from London in a
railway carriage with a German eX
porter of goods to South America, a
man of great intelligence. On the
way to Manchester he told me that he
had just bought 1000 bales of our
drills to send to South America, ad-
ding: They are better goods than
the British. They are preferred by
my customers, and I wish | could
buy more, as 1 am now going to Man
chester to buy 1000 bales of British
drills to send to the same market
expressed my surprise and asked him
"Why?' To which he replied: 81
have Dut all the cash I can control
into your American drills, and have
ordered them to be shipped and that
closes the transaction. In Manches-
ter ! shall go to a Warehouseman who
will buy enough British drills to meet
my order will take them to his ware
house, stamp and pack them accord
ing to my orders and ship them to
South America. He will then draw a
four months bill on his London bank
erS for the amount of my purchase,
requiring no cash from us. That bill
may be renewed once or twice if
necessary All my goods will be
brought together in South America.
many of them packed in small bales
to be carried on mule backs to inter
ior markets. others to be sold in the
principal cities customary PACKAGES
my agents will dispose of them. They
Will then buy on my orders WOOL hide
and other products of South America
ship them to London under arrange
mentS with the same bankers who
hold the drills as security. These
goods will be shipped in parcels on
any vessel of any nationality that
may happen to be available. They
Will be entered in London free of taxes
or duties in the custody of the bank
ers or the warehouseman, and they
will there be. sold for further distribu-
ton in Europe or in the United States
and the proceeds of the sales of this
merchandise will be applied to pay
ment to the bankers of their advances
on the original purchase of the drills
THAT is in a general way state
ment Of the conditions of export and
import in Great Britain Manifest
ly the export of the drills may be as
sumed to have paid the German mer-
chant a profit. Manifestly a larger
sum was therefore invested by him in
the crude products of South America.
Manifestly these crude products of
South America were entered in Great
Britain for a larger sum imported in
pounds sterling than the drills had
been entered in the exports The bal
ance of trade, so often misapprehend-
ed and misapplied, was therefore in
favor of the merchant, and the inn
ports of Great Britain being much
greater in value than the exports,
therefore show a favorable balance of
trade on their merchandise account,
while we in this country adhere to the
absurdity of believing that when we
export more than we import We have
q balance Of trade in our favor. OF
course, there are many other elements
entering into the balance of exchange,
but this example shows the total mis-
apprehension and ignorance Of the
methods of commerce witnessed by the
popular way of thinking that we have
a favorable balance of trade because
We appear to export higher value of
goods than we import
Bearing upon the same subject is d
letter from Mr.. G. f. Massey, a manu-
facturer of Huntersville, Ala, to the
Manufacturers Record in which he
says:
What the country wants is more
cotton, better cotton, more mills and
better mills. In my opinion, We have
none too many mills but we often
make too many mistakes: that is TO
say, when there's a fair profit i'm a
certain line of goods too many mills
are apt to take advantage of any
slight advance, and often find out that
they overstock the market on that
class of goods and have to change
their product at a heavy expense. This
has been the case with print cloths
A few years ago there was a good
profit in this class of goods, and many
new Southern milsl started to make
print. This was kept up to such an
extent that owing to cheaper labor
fuel, living and nearness to raw ma
terial in the South many of the large
Fall River and other New England
mills We're forced into idleness. The
profit is now so small on this class of
goods that only the newest and most
up-to-date mills can compete on these
goods, while other mills which have
made prints are finding more profit in
heavier. weights and colored work. Ii
tiflS reverse Is not carried TO the OppO-
site extreme prices Of goods will soon
become more normal in the future
than in the past. That is what We the
cotton manufacturers of the United
States, need today more than any
thing else, foreign markets for our
goods. With sufficient markets we
can supply the world, and 1 feel sure
that the time is not far distant when
we shall accomplish this end.
1.-THE mill industry and cotton-ras-
ing will continue, and it is my opin-
ion that the mills will increase more
rapidly in the Southern States than
in any part of the globe. All railroads
have practically level run to our Gull
ports, and naturally rates are lower
from the Gulf than from New York |
Philadelphia, or Baltimore as to reach |
these shipping points mountain ranges
must be passed. The Panama Canal, |
which must inevitably be carried to |
completion, will open a short route to !
our new possessions and the Far East. |
Our consular service should in some |
respects be improved inc ~anuch as |
pertains to our foreign markets. Some |
curb should be put on wildcat specu-
lation, and the earliest possible statis- |
tool r.l,1 Il