The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-24
FRENCH TEXTILE
INDUSTRY FACES
A HEAVY CRASH
As in America, Public
Stopped Buying Because
Of High Prices.
BIG STOCKS ARE ON HAND
British Add to Hardships of
Wool Viewers by Cornering
Raw Materials.
ny LAURENCE HILLS.

Special Cable to THE NEW YORK HERALD.
Copyright, 1870, By THE New YORK HERALD.
New York Herald Bureau,
Paris, Oct. 20.
Just as In the United States, where
vast accumulation Of raw material
at the mills resulted in a substantial
cutting OF cloth prices, those In the
weaving industries in the north of
France are expressing concern and
are prophesying that the next three
months will witness crash In their
line that may easily provoke the COL
lapse of scores of the biggest manu-
facturers. representing thousands Of
laborers.
The crisis seems to have been brought
about by the failure Of the factory
owners properly to gauge the spending
capacity of the French nation for
when cotton, flax and wool prices first
began to soar they paid sensational
figures for raw materials rather than
face the possibility OF not being we'll
stocked when the market demand
strengthened. The first rise in prices
was followed by substantial reduc-
ton, which induced the public to hold
on on purchases until normal prices
were restored. and now the big mills
In the Pas de Calais district are not
able to dispose of their stocks. even
at so per cent. Of their cost.
THE New YORK HERALD correspondent
talked to leading manufacturer. who
admits his factory, employing 1000 men.
IL being operated at a tremendous per
scnal loss, while the workers. realizing
the danger OF a general shutdown, are
Offering to work ten and even twelve
hours day and accept lower wages in
the hope that stimulated production
VIII warrant reduction in prices tina;
will attract the public buying and insure
the operation OF the mills throughout thu
winter.
Region Ia ParaIyxed.
The whole region is paraiyzed and
something must be done IL the workers
are not to suffer-" added the manufac-
turer. 1.-THE cotton weaving plants are
the only ones that seem to have any
prospects of continuing. These were
robbed of their machines by the Ger
rams and have just been reconstructed
with the aid OF machinery from Ger
many and England. They are able now
to satisfy the public need by the pro-
duction Of cheap garments. but even In
this direction the situation is not re-
assuring.
Wool weaving industries are more
sravely affected. Despite the ardent de-
sire of Inhabitants OF such towns as
Lille. Roubaix and Tourcoing to build
up the industry, which was at stand
still during the war, exchange rates and
the prices of raw stuffs have Increased
The deterrent features have been accent
uated by the fact that the British were
foresighted enough TO drain tho Aus
tralian wool reserves, thereby assuming
domination OK the industry
Then came the 10 per cent wholesal
reduction, which. unfortunately, failed
to affect the public and meant loss OF
millions to the lubricants. Roubaix
alone contends II has unsold cloth worth
500. 900. 900 francs.
Linen manufacturers have been sub
jected to difficulties not felt by either
cotton or wool firms. Pre-war raw
stuff was obtained from Russia. Thi,
now Is impossible and the French farm.
ers are not inclined to devote their
fields to a crop the net Yield of which
does not compare favorably with grain
and other foodstuffs.
40 Per Cent Cuts Needed.
"The public is not able 70 relieve the
congestion unless tie finished materials
are reduced at least 40 per cent. with
the result that the threadmakers COM
plain they are encountered with ac-
cumulated stocks for which the weav-
ers refuse TO pay more than half the
cost of the raw material alone. The
only solution seems to be assistance
from the Government
Protective import duties Is a policy
the French are not likely to pursue far
In view OF the certainty OF. reprisals
from Great Britain and possibly the