The Union daily times. [volume] (Union, S.C.) 1918-current, 1922-06-24
Cotton Spinning
Industry Facing Crisis

Toxic, June 22.-Cotton spinning ;,
which is the most important indus
try in Japan, is threatened with n
serious crisis, according to the "Dia-
mond,' Toxic commercial newspa-
per. THE industry enjoyed an un-
precedented prosperity during the war
boom and all the spinning companies
reaped enormous profits and some of
them paid dividends as high as 70 to
100 per cent" says this newspaper.
This not unnaturally drew the at
tention of capitalists with the result
that old concerns enlarged their man
ufacturng capacity and number Cf
new facthories were started. When
the panic occurred in 1920 the market
suffered from an over supply of cot
ton yarn and the spinners were nblig-
ed to curtail the output by mutual
agreement so as to prevent further
slump of the market. Owing to arti-
fetal means applied to relieve the de-
preston of business what is known
as an interim boom occurred last
summer and it lasted for several
months. This had the effect of furth-
er encouraging the establishment of
new spinning concerns. On account of
the interim boom the spinners abol-
Shcd the restriction agreement from
December last with the result that the
output since that month has been
In al, L.
however, reaction set in and the de-
lression began in real earnest. The
stock, rice, cotton yarn and other
merchandise markets began to slump
IL quick succession, while the amount
of specie kept in Japan abroad rapidly
decreased owing to the large volume
of imports ordered during the interim
boom last year. The domestic con-
sumption of cotton yarn has greatly
decreased as may be inferred from the
partial or total stoppage of work i'm
elmosS all the weaving districts. In
the opinion of those who are well in.
formed with the condition the prevail
ing depression will last at least for
year or two and the demand for piece
goods consequently will be less.
During March ana April last the
export Of yarn to China was compara-
lively active-about 10000 bales were
exported each month but since the
outbreak of hostilities the export to
China has declined to negligible
quantity. Even should the export to
China remain on the 10000 bale level
that would not be very influential
factor in the face of the fact that the
monthly output of cotton yarn is re-
turned at something like 200 ,OOG
bales. 1t is true that part of the yarn
produced is consumed by the spinning
companies themselves for the manu-
facture of cotton cloths for export but
as the export of cotton cloths is as
inactive as that of cotton yarn they
will not be prepared to go on with the
manufacture of cotton cloths that can
not be sold. According to statistics
80 per cent of yarn produced is con-
sumed in the country and the remain
40 per cent is exported but owing to
the falling off in the domestic demand
it is feared that the market will in
evitaby suffer from over supply.
Moreover, the rapid development
Of the spinning industry in China in
fecent years, coupled with the keen
"A '''' D-:+;cb Ar,ar;oop opJ
GSf solar variation for weather. the "
is, the great interest whic!, som
.lies of solar variability nave This
] here and abroad seems clear Dono
warrant the continued main fleete
. of it's two stations until sat .JJsu
" basis for test of the solar been
hty as weather-torecastnf destir
t has been laid"
Disa