GREAT COTTON BOOM.

Taihape Daily Times, Volume XI, Issue 3375, 2 January 1920, Page 7

GREAT COTTON BOOM.

LANCASH'IRE’S O'UTPU'II. ISPECULATORS BUYING; MILLS BY THE SCORE. I V Never, I_ suppose, in the we-rld’s industrial history has there been a parallel to the cotton ‘boom in Lancashire to-day (writes the special correspandent if ‘Elie London Daily News. in an issue of recent date). It daz. zles the "im-agi-nation like a new gold field, only Willi this diflerence, that the wealth is clelnons‘tl'a'bl-y tller-e., waiting to be shovelled into the codfers of a. eominunity of millions. To be blunt, Lancashirc is in la position to squeeze hunianity. And to be brutal, Lancashire fully intends to squeeze; indeed, so inexorable are economic laws that she could hardly avoid squeezing, and: squeezing hard, even if she were as full of scruples as she actually is of keen business capacity. ’

Hufnaity is crying out for cotton as it has never cried out before. Not. only its chest of -drawers, but its back, is bare. Africa, India, China, South America——all those populous regions where cotton goods are the chief clothing material—~necd cotton, after five years of short supply, witth an unexampled urgency, and the demand of the’colder countries iswonly 0 little less eager. They are willing to pay from three to four times as much as five years ago, and the quantity they are prepared to take. at this price has no limit that can yet be fixed. So much for the demtand. On the side of supply the official statistics shows that Lancashire owns and works considerably more than onethird of the cott-on-yarn producing machinery in the World. Shortly before the war she actually 'had too many spindles, having in 'a fit of optimism, added 12,000,000 to her equipment in the previous ten years, but today every spindfe of her 57,000,000 is working at high pressure. Such a piece of luck on such a scale must be unique. ' In other directions the industry is equally fortunate. Although the cost of raw material is exceedingly high, and there is '3. prospect of the best gnades running short, no anxiety as to general supplies is felt. Nor is there much prospect of serious foreign competition, ‘for while America and Japan ‘have iliexhaustil)l.‘e markets close athand, continental countries lrave, without exception, suffered during the last five years deterio.ration or destruetfion of machinery which must put them «out. of the running for some time to come. We find, then, at least four conditions favourable to the trade: (1) A prodigious demand; (2) an effective control of supply; (3) no undue for~ eign competition; (air) a sufliciency of raw material, What of the fifth eondition—an adequate command of fully prC—ductive labour? , THE LABOUR FACTOR.

’l‘he labour problem in cotton is, as in other industries, the most interesting, because the most uncertain, af all the ilactors that have to be. taken into account, It differs materially from the labour problem in most other industries. There is little question lhere,’ «of securing ,;gr=ea>tly-inc,re.'aisecl production by an appeal to the loyalty yer patriotism, or even interest, of the individual worker. The output of a loom or a mule is, within certain i minor limits, fixed by meelianical con’siderations. Much of -the payment is on a piecework basis, but all workers eng-aged on the same task earn pretty much the same total wage. Production is, in fact, determined almost entirely by the number of hours that are “being worked in the trade. So true is this that when, last July, the hours were reduced by one seventth (to 48 per week) the output fell at the same time by almost exactly one-, seventh. When it is remembered that ; the value of Lanc.ashire’s cotton. output before the. War was £120,000,000 a year, and "that this 1135 “OW quad‘ rupled, the importance -of the ‘drop will be understood. QUESTION OF WAGESUnder such circumstances. there is no way of increasing pl'odllC‘Cioll OXccpt that of increasing the number Of mills, and at the present time either to build or equip a mill -is ext:-a'ordin~ arily difficult and costly-—say £5 per spindle as against the 255 Dol‘ SDil’ls&i(‘ in 191—L_ Lancashire is therei‘ore hf-2l\’liy handicapped in any effort she may nl'.lke to meet the we-rld.’s need bv and increased output of goods, be: On the other hand, the very immen.-lty Of’ the unsatisfied "need must, by inflating the money value of e.\:pm-ts, do much to restore the balance of the foreign exchange, while at the same time piling up mountain‘ous fortunes for the millowner. 'l‘hi.~; l‘)l'in~gs me to tho question of wages. When the 48-hour agreeinent was reaelied in July awages agreement, terminating next April, was also marl‘. for-"the purpose of bringing up \\'age.s to the same level as for the longer week. A. spinner’s net €'a.nlings now run to about £7 10/

a week, and sometimes reach as much as £9. That. is good pay. VVllen, however, this nine months’ agreement was signed. the present amazing‘ ‘boom in cotton ‘was hardly foreseen. The trade revival was only about three months ‘old. The operatives .“-tnow see the masters making whatil have called mountainous fortunes, while they themselves are precluded from any additional share in the spoil till next spring. a 100 PER CENT. INCR-EASE. Three things may happen if the boom continues, as almost certainly it will, One is that at the close of the -agreed term, i.e., in April, the operatives will put fol'w«a.rd demands for a thumping wage increase. I have heard 3 the possibility of a hundred per cent. ‘hise on standard lists mentioned. A second. possibility is that the operatives wilt, -subconsciously ,perhaps, but still effectively -seek '-to secure -a rupture of the agreement some time bfore it terminates. The third alternative is that the masters ivill, say, at the New Year, voluntarily offer an increase in wages This proposal——a revo'lutional'y one in the cotton industry—l have heard seriously discussed by respounsible men. It shows by itfielf how abnormal the present situation really is. Some maintain that a voluntary increase would do nothing either to forestall the crushing demand feared, or toi ave-rt any trouble that m-ay be pend‘ ing; others that is would do much to create :1 new and ‘desirable »at.mosphere. i