Part 12

Among the fancy cloths made in cotton may be mentioned: _matting_, which includes various kinds with some similarity in appearance to a matting texture; _matelasse_, which is in some degree an imitation of French dress goods of that name; _pique_, also of French origin, woven in stripes in relief, which cross the width of the piece, and usually finished stiff; _Bedford cord_, a cheaper variety of pique in which the stripes run the length of the piece; _oatmeal cloth_, which has an irregular surface suggesting the grain of oatmeal, commonly dyed cream colour; _crimp cloth_, in which a puckered effect is obtained by uneven shrinkage; _grenadine_, said to be derived from Granada, a light dress material originally made of silk or silk and wool; _brilliant_, a dress material, usually with a small raised pattern; _leno_, possibly a corrupt form of the French _linon_ or lawn, a kind of fancy gauze used for veils curtains, &c.; _lappet_, a light material with a figure or pattern produced on the surface of the cloth by needles placed in a sliding frame; _lustre_, a light dress material with a lustrous face sometimes made with a cotton warp and woolen weft; _zephyr_, a light, coloured dress material usually in small patterns; _bobbin-net_, a machine-made fabric, originally an imitation of lace made with bobbins on a pillow.

Some fancy cloths have descriptive names such as _herringbone stripe_, and there are many arbitrary trade names, such as _Yosemite stripe_, which may prevail and become the designation of a regular class or die after a few seasons.

Cotton linings include _silesia_, originally a linen cloth made in Silesia and now usually a twilled cotton cloth which is dyed various colours; _Italian cloth_, a kind of jean or sateen produced originally in Italy. Various cotton cloths are imitations of other textures and have modified names which indicate their superficial character, frequently produced by finishing processes. Among these are _sateen_, which, dyed or printed, is largely used for dresses, linings, upholstery, &c.; _linenette_, dyed and finished to imitate coloured linen in the north of Ireland and elsewhere; _hollandette_, usually unbleached or half-bleached and finished to imitate linen holland; and _interlining_, a coarse, plain white calico used as padding for linen collars.

+------------------------------+---------------+---------------+---------------+ | | 1903. | 1904. | 1905. | | +---------+-----+---------+-----+---------+-----+ | Country. | |Price|Thousands|Price|Thousands|Price| | |Thousands| per |Thousands| per |Thousands| per | | |of Yards.|Yard.|of Yards.|Yard.|of Yards.|Yard.| +------------------------------+---------+-----+---------+-----+---------+-----+ | Germany | 60,650| 3.77| 60,129| 4.02| 65,842| 3.98| | Netherlands | 47,570| 3.57| 46,187| 3.68| 56,639| 3.47| | Belgium | 52,199| 4.34| 56,237| 4.42| 67,509| 4.41| | France | 17,552| 4.61| 17,759| 4.39| 14,875| 4.65| | Portugal, Azores and Madeira | 32,824| 2.70| 29,440| 2.92| 29,867| 3.03| | Italy | 6,363| 5.07| 7,904| 5.19| 8,746| 5.31| | Austria-Hungary | 2,405| 3.44| 2,102| 3.40| 1,905| 3.60| | Greece | 40,973| 2.64| 32,658| 3.11| 28,190| 3.20| | Turkey | 305,611| 2.45| 379,557| 2.53| 376,209| 2.53| | Egypt | 229,704| 2.41| 283,521| 2.57| 272,737| 2.53| | Algeria | 709| 2.74| 438| 2.71| 455| 2.63| | Morocco | 52,368| 2.28| 51,262| 2.44| 44,407| 2.44| | Foreign West Africa | 64,589| 2.92| 55,131| 3.12| 69,163| 3.08| | Persia | 34,859| 2.46| 33,119| 2.67| 38,647| 2.59| | Dutch East Indies | 156,905| 2.45| 185,196| 2.72| 226,586| 2.57| | Philippine Islands | 25,558| 2.59| 25,969| 2.86| 42,876| 2.66| | China, including Hong-Kong | 477,691| 2.83| 548,974| 3.34| 799,732| 3.06| | Japan | 67,315| 3.08| 42,373| 3.34| 128,725| 2.99| | United States of America | 72,360| 6.80| 52,391| 7.18| 65,563| 7.40| | Foreign West Indies | 86,349| 2.08| 98,797| 2.21| 80,679| 2.24| | Mexico | 19,327| 3.10| 21,679| 3.42| 21,028| 3.31| | Central America | 40,879| 1.97| 53,018| 2.21| 49,523| 2.29| | Colombia and Panama | 44,299| 2.25| 44,648| 2.54| 31,798| 2.41| | Venezuela | 52,330| 1.87| 52,934| 2.07| 32,717| 2.11| | Peru | 28,962| 2.66| 32,430| 2.85| 39,035| 2.78| | Chile | 84,118| 2.50| 80,836| 2.57| 96,996| 2.62| | Brazil | 152,402| 2.64| 134,841| 2.89| 131,504| 2.50| | Uruguay | 44,062| 2.79| 35,670| 2.85| 56,770| 2.95| | Argentine Republic | 151,003| 2.91| 186,022| 3.04| 159,115| 3.24| | Gibraltar | 11,961| 2.39| 10,578| 2.47| 3,960| 2.73| | Malta | 4,065| 3.11| 3,659| 3.45| 4,006| 3.31| | British W. Africa | 69,795| 3.27| 69,308| 3.43| 74,392| 3.40| | " S. " | 61,778| 3.61| 29,670| 4.03| 50,592| 3.69| | British India-- | | | | | | | | Bombay | 678,684| 2.07| 818,261| 2.23| 908,619| 2.24| | Madras | 132,825| 2.48| 141,675| 2.63| 131,145| 2.62| | Bengal |1,122,004| 1.97|1,215,607| 2.18|1,280,314| 2.18| | Burma | 64,654| 2.84| 79,765| 3.10| 72,528| 3.13| | Straits Settlements* | 112,006| 2.61| 100,230| 2.84| 121,690| 2.71| | Ceylon | 17,395| 2.75| 19,336| 2.95| 24,991| 2.94| | Australia | 106,000| 3.83| 128,247| 4.01| 136,481| 3.85| | New Zealand | 38,499| 3.58| 33,538| 3.81| 32,315| 3.63| | Canada | 47,439| 4.15| 49,903| 4.25| 45,189| 4.47| | British West India Islands, | | | | | | | | Bahamas and British Guiana | 49,614| 2.49| 43,487| 2.61| 47,173| 2.21| | Other countries | 188,662| 2.84| 197,339| 3.14| 226,971| 3.03| +------------------------------+---------+-----+---------+-----+---------+-----+ | Total |5,157,316| 2.57|5,591,822| 2.75|6,198,200| 2.74| +------------------------------+---------+-----+---------+-----+---------+-----+ * Including Federated Malay States.

Various cotton imitations share the name of the original, such as lawn, batiste, serge, huckaback, galloon, and a large number of names are of obvious derivation and use, such as umbrella cloth, apron cloth, sail cloth, book-binding cloth, shroud cloth, butter cloth, mosquito netting, handkerchief, blanket, towelling, bagging.

Among the miscellaneous cloths made or made partly of cotton may be mentioned: _waste cloths_, made from waste yarns and usually coarse in texture; _khaki cloth_, made largely for military clothing in cotton as well as in woollen; _cottonade_, a name given to various coarse low cloths in the United States and elsewhere; _lasting_, which seems to be an abbreviation of "lasting cloth," a stiff, durable texture used in making shoes, &c.; _bolting cloth_, used in bolting or sifting; _brattice cloth_, a stout, tarred cloth made of cotton or wool and used for bratticing or lining the sides of shafts in mines; _sponge cloths_, used for cleaning machinery; _shoddy_ and _mungo_, which though mainly woollen have frequently a cotton admixture; and _splits_, either plain or fancy, usually of low quality, which include any cloth woven two or three in the breadth of the loom and "split" into the necessary width. Cotton is used too for many miscellaneous purposes, including the manufacture of lamp wicks and even of billiard balls.

_British Cotton Cloth Exports._--The main lines of the Lancashire export trade in cotton goods are indicated in the Board of Trade returns. The table on p. 278 compiled from them is taken from the _Manchester Guardian_. It gives in thousands of yards the quantities of cotton goods exported from Great Britain during 1903, 1904 and 1905 respectively, together with average value per yard for each of the countries.

The following table gives, approximately, in thousands of yards the quantities exported of the four main divisions of cotton cloths:--

+---------------------+-----------+-----------+-----------+ | | 1903. | 1904. | 1905. | | +-----------+-----------+-----------+ | | Thousands | Thousands | Thousands | | | of Yards. | of Yards. | of Yards. | |---------------------+-----------+-----------+-----------+ | Grey or unbleached | 1,880,321 | 2,033,895 | 2,336,018 | | Bleached | 1,326,255 | 1,528,165 | 1,710,742 | | Printed | 1,027,925 | 1,036,901 | 1,053,900 | | Dyed and coloured | 922,735 | 993,009 | 1,097,540 | +---------------------+-----------+-----------+-----------+

In the case of cloth, too, the Board of Trade returns must not be taken as an absolute record of imports to the particular countries, as the ultimate recipient is not always determined. The development of the Eastern trade has been one of the most remarkable features of the cotton trade in the 19th century. Professor Chapman writes in his _Cotton Industry and Trade_: "In 1820 Europe received about half the cotton fabrics which were sent abroad, while the United States received nearly one-tenth and eastern Asia little more than one-twentieth. By 1880 Europe was taking less than one-twelfth, the United States less than one-fiftieth, and eastern Asia more than a half."

Naturally a trade tends to find out the most direct means of distribution, and Manchester merchants are now generally in direct connexion with native dealers in India. Bombay was the pioneer in the custom, followed now by Calcutta and Karachi, by which deliveries of goods from British merchants remained under the control of the banks until the native dealers took them up. Manchester business with India, China, &c., is done under various conditions, however, and a good many firms have branches abroad. The regular "indent" by which most of the Manchester Eastern business is conducted now implies a definite offer for shipment from the dealer abroad, either direct or through the exporter's agents, and commonly includes freight and insurance. The term "commission agent" is now discredited, and buying done by Manchester houses on simple commission terms is unusual though not unknown. This has been so since the famous law case of _Williamson_ v. _Barbour_ in 1877, when it was established that whatever might be the custom of the trade a commission agent was not entitled to make a profit over his commission on the various processes, such as handling and packing, which are a necessary part of the exporter's work. A good deal of business is done, however, for South America and other markets in which the goods are bought for delivery in the Manchester warehouse, all charges for packing, &c., and carriage being extra.

Transactions with distant markets are now done almost entirely by cable, and a remarkable development of the telegraphic code has enabled merchants to pack a good deal into a brief message. A cable sent to India in the evening may bring a reply next morning, and in these days of rapid cotton fluctuations mail advices are confined mainly to general discussion, hypothetical inquiry, advice, admonition and complaint. Some Manchester export business is done through London, Glasgow, and continental towns, of which Hamburg is the principal. Glasgow buys largely of yarns and cloth, some considerable part of which is dyed or printed, for India and elsewhere, and has an indigenous manufacture and trade in fine goods such as book-muslins and lappets, a somewhat delicate department of manufacture which necessitates a slower running of machinery than is usual in Lancashire.

Besides the indent business there is, of course, purely merchant business by Manchester exporters, who buy on their own initiative at what they consider to be opportune times or on recommendations from their houses or correspondents abroad. In the Indian trade, especially in the Calcutta trade, a large proportion of the total amount is done by a few houses who buy in this way, and there is some difference of opinion as to whether the method, which had fallen out of fashion, may not further develop. It is more speculative than the indent business, but the dealing with large quantities which it involves gives the opportunity to buy very cheaply. A good many firms venture occasionally to buy in anticipation of their customers' needs, especially when they expect a rising market. During the great trade "boom" of 1905 there was a good deal of buying by exporters in advance of their indents because manufacturers continued to contract engagements which threatened to exclude dilatory buyers. On the whole, however, what may be called the speculative centre of gravity of Great Britain's export business in cotton goods is not in Manchester but abroad.

The terms on which business is conducted are various even in a single market, and it is sometimes a reproach that British firms are old-fashioned in their reluctance to give credit. The so-called enterprising methods of some German traders are, however, condemned by many experienced English traders, and it is said that in China, for instance, the seeming successes of the newcomers are delusive. The Tientsin developments of German business on credit terms are said to have proved unsatisfactory, and heavy losses were suffered in Hong-Kong some years ago by merchants who endeavoured to initiate a bolder system of trading. The very common complaint of British consuls that British firms neglect to send out travellers may have some foundation, but a commercial house naturally follows the line of least resistance to the development of its trade, and cannot be expected to work remote and barren ground when better opportunities are near at hand. On the whole it appears that the British cotton trade continues to increase to a satisfactory degree in fancy and special goods, which require for their production a comparatively high degree of technical skill, and are more lucrative than some of the simpler products in which competitors have been most formidable. Various finishing processes, and particularly the mercerizing of yarn and cloth, have increased the possibilities in cotton materials, and while staples still form the bulk of our foreign trade, it seems that as the stress of competition in these grows acute, more and more of our energy may be transferred to the production of goods which appeal to a growing taste or fancy.

_British Home Trade._--The home trade in cotton cloths is a great and important section, but it is not comparable in volume to the export trade. It involves more numerous and more elaborate processes, and the qualities for home use are generally finer and more costly than those for export. Of course by far the larger part of the yarn spun in Lancashire is woven in Lancashire, but of the cotton cloth woven in Lancashire it is roughly estimated that about 20% is used in Great Britain. Not only is the average of quality better, but the variety of kinds and designs is greater in the home trade than in the export trade. A good home trade connexion is considered an extremely valuable asset, and as the trade is highly differentiated the profits are usually good. Some manufacturers devote themselves exclusively to the home trade, and some exclusively to foreign trade, but there is a large class with what may be called a margin of alternation, which serves to redress the balance as business in one or other of the sections is good or bad.

Certain kinds of light goods made for India and other Eastern markets are not used in the home trade, and the typical Eastern staples are not generally used in their particular "sizings," but with these exceptions and various specialities almost every kind of cotton cloth is used to some extent in Great Britain. Grey calicoes for home use, except the lowest kinds, are comparatively pure, and of late years the heavy fillings which used to be common in bleached goods have become discredited. The housewife long persisted in deceiving herself by purchasing filled calicoes, and the movement in favour of purer goods owes a good deal, strangely enough, to the increase in the making-up trade and the consequent inconveniences to workers of sewing machines, whose needles were constantly broken by hard filled calicoes.

This development of the making-up trade has become an important element in the home trade, and it has greatly reduced the retail sale of piece-goods. The purchase of ready-made shirts, underclothing, &c., corresponds to a change in the habits of the people. The factories which have been erected in the north of Ireland, on the outskirts of London and elsewhere turn out millions of garments that would, under the old conditions, have been made at home. It is not necessary here to balance the advantages and disadvantages of the two systems, and it must not be supposed that made-up cotton garments are necessarily cheap and inefficient.

The chief distributing centre of cotton made-up goods is London, though a considerable trade is done through wholesale houses in Manchester and elsewhere. Large warehouses in the city of London carry on the trade and frequently supply Lancashire with her own goods. Of course the partial loss of the piece-goods trade by the shops is not a loss in aggregate trade, as they are the ultimate distributors of the made-up garments, which are probably at least as profitable to retail as calico or flannelette sold in lengths.

The normal course of home trade piece-goods is from manufacturer to bleacher, dyer, printer or finisher, either on account of a merchant to whom the goods are sold or on the manufacturer's own account. By far the majority of Lancashire manufacturers sell their goods as they come from the loom, or, as it is called, in the "grey state," but an increasing number now cultivate the trade in finished goods. Usually the manufacturer sells either directly or through an agent to a merchant who sells again to the shopkeeper, but the last twenty or thirty years have seen a considerable development of more direct dealing. Some manufacturers now go to the shopkeeper, and this has made it difficult for the merchant with a limited capital and therefore a limited assortment to survive. The great general houses such as Rylands's, Philips's and Watt's in Manchester, and Cook's and Pawson's in London, some of which are manufacturers to a minor degree, continue to flourish because under one roof they can supply all that the draper requires, and so enable him to economize in the time spent in buying and to save himself the trouble of attending to many accounts. Some general merchants, indeed, supply what are practically "tied houses," which give all their trade in return for pecuniary assistance or special terms.

The tendency to eliminate the middleman has not only brought a good many manufacturers into direct relation with the shopkeeper, but in some exceptional cases the manufacturer, adopting some system of broadcast advertisement and postal delivery, has dealt with the consumer. Naturally, the merchant resents any developments which exclude him, and some mild forms of boycott have occasionally been instituted. In the United States there has been an arduous struggle over this question, and combinations of merchants have sometimes compelled favourable terms. In England, though the merchant has maintained a great part of the trade with shopkeepers, the developing trade with makers of shirts, underclothing, &c., is mainly done by the manufacturers directly, and perhaps the simplification of relations by direct dealing in the cotton trade has now reached a point of fairly stable compromise. The tendency to direct trading is naturally controlled by the exigencies of capital. Those manufacturers who act as merchants aim to retain the merchant profit and must employ a merchant capital in stocks. There has been a tendency, indeed, to make the manufacturer the stock-keeper, and some merchants do little more than pass on the goods a stage after taking toll. The great improvement in trade during 1905 and 1906 checked this tendency, and probably the manufacturing extensions owed something to the capital set free by the reductions of stocks.

It must be noted, however, that while most of the spinning concerns are worked by limited companies or individuals with a considerable capital, a good many small manufacturers exist who have little capital and are practically financed by their agents or customers. This is so in both the export and home trades.

The home trade merchant or merchant-manufacturer works largely through agents and travellers, and though railway facilities continue to improve, some shopkeepers rarely visit their markets. The difficulty that is naturally experienced by a traveller in finding sufficient support on a sparsely populated "ground" has brought into vogue the traveller on commission who represents several firms. The traveller with salary and allowances for expenses survives, but the quickening induced by an interest in the amount of sales has caused many firms to adopt the principle of commission, which may, however, be an addition to a minimum salary. Of course, such travellers are not peculiar to the cotton trade, but cotton goods in various forms are an important factor in the home trade.

The profits of manufacturers, merchants and shopkeepers are commonly very much less on the lower classes of cotton goods than on the higher ones. Thus while there may be a difference of 1d. per yd. between the qualities on a manufacturer's list, the difference in cost may not be more than a farthing; and, again, while the shopkeeper sometimes pays 2-1/2d. or even 2-5/8d. per yd. for a calico to retail at 2-3/4d., his next selling price may be 3-3/4d. for one which costs him only 2-3/4d. or 3d. per yd. It appears, therefore, that if the poorer classes of the community have the discretion to avoid the lowest qualities they may obtain very good value in serviceable goods. In the matter of profits, however, there is a good deal of irregularity.

_The Manchester Royal Exchange._--There are not many cotton mills or weaving sheds in Manchester, which is, however, the great distributive centre, and its Exchange is the meeting-place of most classes of buyers and sellers in the cotton trade and various trades allied to it. As buyers of finished goods for London and the country do not attend it, certain departments of the home trade are hardly represented, but practically all the spinners and manufacturers and all the export merchants of any importance are subscribers. Transactions between spinners and manufacturers are largely effected on Tuesdays and Fridays, the old "market days," when the manufacturing towns are well represented, but a large amount of business is transacted every day. Besides the persons immediately concerned in the cotton trade and connected with allied trades, a large number of members find it convenient to use this great meeting-place as a means of approach to a body of responsible persons. Thus not only bleachers, carriers, chemical manufacturers, mill furnishers and accountants find their way there, but also tanners, timber merchants, stockbrokers and even wine merchants. Since the Ship Canal made Manchester into a cotton port there has been a steady development of the raw cotton trade in Manchester, and many cotton brokers and merchants have Manchester offices or pay regular visits from Liverpool.

The various expansions and developments have made it difficult to maintain the ratio between accommodation and requirements, and although overcrowding is troublesome only during some three or four hours a week, at "high 'Change" on market days, various complaints and suggestions provoked in 1906 an appeal from the chairman of directors to the Manchester corporation. This took the form of a suggestion that the Exchange should be worked as a municipal institution on a new site, and though such a development met with opposition it was apparent that Manchester must presently have a new or an enlarged Exchange. The present building is, however, the largest of the kind in the world, and the history of the various exchanges coincides with the expansion of the Lancashire industry.

According to semi-official records "the first building in the nature of an Exchange" was erected in 1729 by Sir Oswald Mosley, and though designed for "chapmen to meet and transact their business" it appears that, as to-day, encroachments were made by other traders until cotton manufacturers and merchants preferred to do their business in the street. In 1792 the building was demolished, and for a period of some eighteen years there was nothing of the kind. In 1809 the new Exchange was opened, and terms of membership were fixed at two guineas for those within 5 m. of the building and one guinea for those outside this radius. In the following year plans for enlargement were submitted to the shareholders, and various extensions followed, particularly in 1830 and 1847. The present building was opened partly in 1871 and partly in 1874. The area of the great room is 4405 sq. yds. The subscription was raised on the 1st of January 1906 from three guineas to four guineas for new members, but the number of members continues to increase and early in 1906 amounted to 8786.