To the Eaitor of the Dear Str,—Although your article of the 26th inst. met with public concurrence from a sympathetic point of view, yet gauging the critical position of this great industry from a practical standpoint, one cannot bin Bank—foreiga or local—for fixing al obligato beyond which it will not go. Lenient ws the local Banks are credited to be, when they are cognisant of the inner trac any venture they are financing, they only reluctantly carry forward big advances any industry that fails to make sufi profit to cover interest on borrowings excess of cubital already spent Shanghai is going throu; in some respects to that which Bombay underwent a decade since, and it will not, aid the Mill Companies here now to ignore the fact that the Bunks have deen most helpful in financing matters antu quite lately, but when, year after year, the same tale is told ahd the industry weber in the mire, with no prospect ding any interest whatever on the lions inv ted, it is undoubtedly the Bank's duty w their own stockholders to Joss ith all reasonable' expedition.
such securities as they have and cut
The five mills have all their capitals! invested—over four and a-half millions—besides other moneys raised, footing up ay Tls. 6,000,000 approximately.
this shows great. enterprise on the part of our merchants, likewise confidence in the ventures by shareholders, and there has been little cause for complaint as to management; and although it is stated that one or two of the mils were
this would have but little bearing on the too expensively equipped at the outset general outcome, as the industry generally proved—after a gallant effort—to be unremunerative under the present system. The Yah-loong and two other" mills have the advantage of owning the land on which their mills stand, and this at the present high rte for land would count for much in event of liquidation, hut it seems a pity to let the industry "go under" for want of a combination between those chiefly interested in cotton spinning here to stand by" for a while and watch the murker. If the two mills/ now in trouble were to fall into the hands! ofa Chinese syndicate, at auction value, which they possibly may do if brought to the "hammer " the remaini ing three would have a formidable competitor to fight. A! note of warning was sounded in your! columns four or five months ago as to the) advantages of a coalition to guard the' industry, but it has not been acted on, although it is not yet too late to form one. Tam, ete., 2%h November.
Text read from the printed page and cleaned; old type leaves the occasional error.