Evening star., 1936-02-23
COMPETITION MET
BY SILK INDUSTRY
Rise OF Rayon Seen Driving
Product From Luxury
Class.
BY GEORGE T. HUGHES.

NEW YORK, February % (N.A.N.A).
One important lesson American
business men have learned in the last
decade of scientific marvels is that
almost everything is possible in the
way of new inventions and new prod
ucts. They have arrived at the wise
conclusion that no industry is i'm
pregnable. Thus the railroads made
terms with aviation and bus lines,
the phonograph manufacturers made
friends with radio and, undoubtedly,
the motion picture industry will be
quick enough to get into televlsion.
One good example of this modern
business pliancy is given by American
silk manufacturers, who have about
decided that the beautiful product
spun by the silk worm will never
again get into the luxury class, be-
cause of the competition from rayon,
artificial silk.
Entered Market in 1922.
Rayon first came on the market
around 1922. Since then the product
has been steadily improved and, to-
day, it is really competing with the
product from cocoons. America, by
far the worlds most important raw
silk consuming country and. by the
way. the most important producer of
rayon, is ready to jump either way.
Modern American looms can be
changed overnight to use either the
genuine or artificial variety. Japan,
the largest producer of raw silk, also
has a weather eye open for changes
in public taste and is rapidly develop
ing her rayon industry.
The silk market had many ups and
downs during the past "a seasons, raw
silk prices having fluctuated between
high levels of SIT a pound, reached
during January, 1920 and low levels
of about $1.10 pound, attained in
June, 1882. Before the advent of rayon
silk futures were fairly steady be-
tween $5 and Sc pound. About the
end of 1929 a decline in price started
and futures got down to $40. In
1880 silk futures were $2.40 pound
and by the end of 1881 they were
down to S16O. BY the end of 1882
they we're at $1l5 pound.
In the early part of 1888 there
was an advance in silk futures tc
$3.50 a pound, but by the end of the
year they were back to SIPS. Those
levels were maintained until the Sec
ond half of 1885, when prices again
advanced to $2.27 a pound.
Silk futures are now declining or
the Commodity Exchange, Inc, in New
York City, one of the most important
raw silk futures markets in the world
With raw silk futures at $l.60 pound
and rayon at prices of around 60 cents
the two products are brought into
sharp competition.
Prices Kept Down.
There was some talk few months
ago about silk going back into the
luxury class. but the industry Is now
ready to believe that it can never
again be supreme Any increase in
the price of silk Immediately brings a
greater demand for rayon and thus
prices of raw silk are automatically
kept down. Rayon, of course, has also
made a considerable dent in the cot
ton textile industry. Most of the
cheaper women's wear today is made
Of rayon.
This does not mean that rayon
will eventually drive silk out of the
market. It means that silk Is likely
to be kept at popular prices, instead
of being a material that only the
wealthy can afford. Japan, which
produces about 81 per cent of the