The Washington times., 1924-01-28
BRITISH COTTON
SP|NNERS DUE
FOR TROUBLE.
World Bare Of Goods, but OPP
Grafton Of Mills Profit
less, Expert Says.

The accompanying article by
one of ByitGin's foremost experts
on cotton thro1Os much light on the
e1tremeLy MmfGVOrGbLe conditions
preVGiIing in the British spinniMg
industry. American prices, OGM0ed
to some degree at least by spec1l-
LGtiOn, are potent factor, 1t
appears.
BY SIR CHARLES NIAGARA.
Elk. Chairman Of international Fed.
Grafton Of Cotton Spinners and
Manufacturers Associations.
Written for International News Service.
MANCHESTER, Jan. 2J.-The
British cotton trade is faced with
an extraordinary situation. While
the whole world IL bare Of cotton
goods we find it impossible to get
trade on a paying basis. We have
Reorganization and confusion every
where, and such business as 10
going through Is at figures which
not only do not pay dividends,
but are a long way short OF pay
ing expenses in the majority Of
cases.
Generally speaking. losses are
being made all around. And yet.
in spite Of this fact, people go on
making goods to stock. only to
find later on they cannot hold
them and must liquidate at sac
rifice.
The spinners' and manufacturers
misfortune Is the buyers opportu'
nifty, and month after month passes
at this cat-and.mouse game, and
the long-looked-for revival Is be.
ing delayed.
Need Joint Action.
The rivival will continue to be
delayed until we act together; un-
til, in fact. we all agree not to
make these stocks, and 80 'oblige
the merchants abroad to pay us
price which will at least put US on
the right side.
The trade is now coming to see
+ that this will have to be done, and
the Federation of Master Cotton
Spinners is at last moving in the
matter.
Two things will have to be done
to put matters on q footing to pre-
We shall have to revise the Cotton
Control Board, and we shall have
to sectionize the trade in order to
facilitate organization.
But the real causes of the pres
ent depression are, first of all, that
the cotton industry has been built
up largely on overseas trade. Eng
land has not only to import the
whole of. her raw cotton, but, after
spinning and manufacturing 1t she
has to depend on overseas outlets
for over three-QuarterS of her trade.
Thus it Is that, while other cotton
manufacturing countries make
chiefly for their own requirements,
England is dependent on settled and
prosperous conditions abroad for
taking off four.fifths of her pro-
duction and therefore has been sing
ularly unfortunate since the war.
India, our best customer, not only
found herself with high.priced goods
bought at the top of the boom which
she at great difficulty is disposing
of, but she has been unable to sell
her own goods in Europe owing to
the war conditions which still pre-
vail.
MARKET POOR.
China, our next best customer,
has been afraid to give our orders
owing to civil war conditions in
the interior of the country; Tur-
key was for nine years in a state
of war with the Allies and unable
to trade freely; while Germany.
Russia and other countries have
have had no chance Of doing bust
ness on the old lines.
Add to this the fact that cotton
has been scarce and at a fabulous
price and even now costs twice as
much as in pre.war days, and one
can understand the difficulties with
which the staple trade Of Lam
cashire is faced.
Also, at the present moment we
are suffering at the hands Of un-
scrupulous spectators on the other
side of the Atlantic. We have
had to stand by and watch the
gambling and speculative element
run up the price Of cotton from
tenpence a pound in May, 1922, to
eighteen pence at the time of writ
ing, or more than double the price
that "Middling American" stood In
pre-war days.
At the moment we do not know
whether the planters have listened
to the voice Of the charmer and
decided to grow less cotton, or
whether the high prices now being
paid will make them turn dear
ear to these Establishments; but
one thing is plain, and that Is that
England cannot go on being the
sport either of the grower or the
merchant in cotton and that she
must find as soon as possible