The importance of the cotton trade, especiauy the local manufacturing industry, to this country has only of late begun to be sutticiently understood. Only a few years ago, cotton mills in China were plodding concerns, and were unable to make any impression on the trade. During the past three years the mill industry has been making up, although recently there has been slight setback. But it is generally understood that there is a great future for this branch of trade; and the corroboration of it is seen in the large addition to the spindleage of mills in this country. The estimate of spindles in operation at the close of last year is about 1,250,000—which is more than half the total of that of Japan. The yarn produc: tion has been increasing at a rapid and last year the yarn from Chinese mills outstripped the total of the Japanese and Indian trade. Nearly two-thirds of the spindleage in China is in operation in and around Shanghai, so much so that Shanghai bids fair to become the cotton manufacturing centre of this country, if progress is maintained at the present rate.
The Essential of Progress, The prosperity and growth of this industry depends upon an adequate supply of the raw material at fairly normal values. Except on rare occasions and for special purposes, it has been proved that manufacture of yarn from imported cotton not a commercial possibility. Moreover, a local industry, it would not serve the purpose fully if it did not also benefit cotton-growers in this country.
Hitherto, the position has been that when exchange was low the cotton was exported, and when ex-
Text read from the printed page and cleaned; old type leaves the occasional error.