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COTTON
279


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 
of Yards.
 Thousands 
of Yards.
 Thousands 
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,