While the Russian goods referred to are generally more expensive than American, they are making their way largely because they are fast in colors. Contracts are made for these goods delivered at Dalny or Port Arthur, where they are entered without duty. They are brought by the subsidized Russian Volunteer Fleet. I am advised that this fleet, bringing goods from Russia to Vladivostock, Port Arthur, and Dalny, consists of 14 steamers, with a tonnage of 38,481 tons, and is annually subsidized to the amount of 600,000 rubles ($309,000). FRENCH COTTON CRISIS. The high price of cotton is seriously felt in this region of France, where more of the raw product is made up than in any other part of the country. During like periods heretofore the price of the finished product corresponded with that of raw, but at present the manufacturers complain that the former remains stationary. In 1875, for example, the raw product sold, as to-day, for 90 francs ($17.37) per 100 kilograms (220.46 pounds). Comparing the two periods, we find : The principal cause of the present state of affairs is given as being due to a smaller crop than expected. Last year the mills, seeing This was true not only of a big crop ahead, held up to buy later. France, but also of Germany and England and, in general, all of the European countries. The General Syndicate of the French cotton industry, the headquarters of which are at Paris, Rue Saint-Fiacre, and which has for its president M. Esnault-Pelterie, has addressed to the Journal de Rouen of this city the following: It does not seem that sufficient seriousness is given in France to the crisis through which our principal textile industry—that of cotton—is passing, and which is occasioned by the progressive advance in the price of cotton. The raw material has almost become a product of the first necessity, and the matter therefore merits special attention. America-which is, as everyone knows, the principal cotton-producing country-has given these last years an insufficient harvest, in spite of the increased surface planted. Does this come from a wasted soil occasioned by the continued planting of cotton, or from a combination of unfortunate circumstances? It is not easy to say. What is certain is that during the same period the consumption of cotton, far from following a like course, has increased each day, and at present, on account of insufficient supply, the cotton industry anxiously asks how it can tide itself over until the next harvest, which in all likelihood will be late and, according to those who should know, very short. How this crisis will end, it is difficult to see. It appears certain that in France, as well as elsewhere, numerous cotton mills will be compelled to shut down. In many regions of France-notably in Normandy-weavers have already begun to reduce their production. This example can only become general, especially if the price of manufactured goods does not soon follow that of the raw product. Finally, a period of high prices for all cotton products must be awaited. If the approaching harvest is better than it at present promises, its effect on the price of the raw material can be felt only after some months, during which time violent fluctuations can happen. Speculation must live; it can not renounce its habits. The rapid increase in the number of spindles in America is not overlooked as one of the causes of present conditions. M. Pierre Baudin, ex-Minister of Public Works, says: The market is dominated by one fact which directly menaces the consumers and manufacturers of the Old World. It is the development of American manufactured goods. Heretofore American cotton needed us as much as we needed it, but now American spindles are using what we need. If after some years looms. are multiplied sufficiently there to absorb all the twelve or fifteen million bales harvested in the United States, Europe would for the most part be compelled to close her mills. In speaking of Europe freeing herself from this "yoke" of America, he says: France and Germany are pushing their colonial attempts with chances of success. The German Colonial Society equipped, in 1900, an important expedition to study the conditions of cotton culture in the territories of West Africa. Conducted by one of the most competent American specialists, the mission of Togo reported favorably. French manufacturers merit praise for founding the Colonial Cotton Association. They have raised enough money to send, as did the Germans, an expedition into our African possessions. Trials will be made in the Sudan and in the valley of the Niger. One of our well-known writers has already given the name "French Nile" to the Niger. A forceful article on this subject appeared recently in the Reform Economique, Paris, and ended by asserting: We are dependent upon America for our cottor. We are dependent upon America for our woolen industry. We are dependent upon Russia for our linen industry. The list could be added to; but is it not sufficient to convince us that it is full time to take care of our economic independence? ROUEN, July 6, 1903. THORNWELL HAYNES, Consul. COTTON STATISTICS. [Compiled in the Bureau of Statistics, Department of Commerce and Labor.] Number of spindles in the world-Latest returns from various sources. Country. Great Britain..... North South.... The Continent.......... 33,900,000 49.725,000 46,400,000 45,400,000 45,400,000 44,900,000 44,900,000 33,000,000 33,200,000 32,500,000 31,350,000 30,350,000 Total for Europe...... 83,625,000 79,400,000 78,600,000 77,900,000 76,250,000 75,250,000 United States: 15,150,000 15,050,000 14,590,000 14,290,000 13,900,000 13,900,000 3.456,537 Consumption of cotton in the United States. Number bales taken by Southern spinners in 1902....... Total bales taken by United States......... I, 937, 971 2,050, 774 3,988, 745 Of the world's crop of cotton for the six years ended June 30, 1902, the United States produced 74.6 per cent. It will be noticed that for the entire six years the total production was only 192,866 bales more than the consumption. Average prices per pound and acreage in United States, 1897–1902. STATE OF THE COTTON INDUSTRY IN CONTINENTAL EUROPE FROM REPORTS FOR APRIL, 1903. Russia.-Reports from Moscow and Lodz state that business is not so good as last year, especially for spinners. Neither fabrics. nor yarn have advanced in proportion to the advance in raw material, while the production of cotton fabrics has overtaken the demand. Producers of print goods have done better than other manufacturers. The stocks of cotton at the mills of Moscow are small, while stocks at the mills of Lodz are larger than last year. More East Indian and less American is being used. Germany. From the reports of the condition of the industry for the whole of Germany, it is shown that after a poor opening business has grown better, owing to the improvement in the leading branches of trade. The consumption of cotton is estimated at from 5 to 10 per cent over that of last season. Stocks of cotton at mills are somewhat larger. Austria.-Business reported much better than last season for those spinning East Indian and the few who spin Egyptian. The only complaints come from those who spin high-class American, whose margin of profit was lost after the big advance and who are now working at an actual loss. The consumption of cotton has been up to the fullest capacity of the mills, and production has met with a ready sale. Stocks of cotton at the mills are smaller than a year ago. Switzerland.-On the whole, the business of the current season has been unsatisfactory. This is attributed mostly to the fluctuation of American cotton. On account of this the weavers have adopted a hand-to-mouth policy, producing only as orders are filed, which places the spinner in a more unfavorable position, as he must be ready with yarn to fill quick orders. As to stocks on hand, a few are supplied to the end of the season, but others for only two or three months. On the whole, however, there is more cotton at the mills than at this time last year. France.-Business has not been more satisfactory than was the case last season. Spinners have done better than manufacturers, having a ready sale for their yarns at small profits or without loss; but manufacturers have been less fortunate. After reducing prices to a loss, they still have accumulated stocks, owing to the slow demand from distributing buyers. The stocks of cotton at the mills are larger than at this time last year. BRITISH AND GERMAN COTTON SUPPLY. I select for publication, without comment, three articles—one from the London Times, one from the Daily Mail, and the third from the London correspondence of the Birmingham Daily Post. They indicate that earnest effort is being made, governmental and otherwise, both in Great Britain and Germany, to render these two countries less dependent on the United States for raw cotton. MARSHAL HALSTEAD, BIRMINGHAM, July 10, 1903. Consul. THE COTTON INDUSTRY OF LANCASHIRE, GERMANY, AND THE UNITED STATES, [From the London Times, July 9, 1903.] SIR: Mr. Macara's letter is the sort of contribution that is needed in the present discussion; he deals with specific facts and thoroughly understands his subject. I should be glad if you would allow me to make a few observations on it from the point of veiw of an outside observer who has particularly studied the conditions prevailing in the cotton industry in Lancashire, Germany, and the United States. It has a very instructive bearing on our industrial position, because it is the most important of our world-competing manufactures, and, except wool combing and spinning, it is the one in which we still retain the most decided superiority over our rivals. Further, it is one of which none of the most frequently mentioned causes of relative decline holds good. The charge of neglect brought against manufacturers does not apply to the Lancashire cotton mills; the mills themselves are as modern as any others, and the machinery is kept more up to date than anywhere else. 2. Technical education is not at fault; the Lancashire technical schools are better equipped for their work and far more largely attended than similar establishments in Germany and America. 3. The machinery for settling labor disputes is the most complete and the most successful in existence. I can not give here the evidence for these statements, but I have it. They clear the ground of a number of obstacles and permit an unusually good view of the essential position. Now, I believe that Mr. Macara is absolutely right in everything he says and that the conditions he enumerates-particularly the superior skill of the operatives-will enable Lancashire to "continue to secure a |