The semi-annual report of the Silk Association of America, r2pro-duoed in the New York Journal of Commerce, reviews the effects of the outbreak of war upon the silk industry. Those effects are immediate, and likely to be far reaching. One-fifth of the silk merch dise consumed in the United States is imported, mainly from France, Germany, and Japan; and in the home production the largest part is played by men of French, Italian, Japanese, and German birth, most of whom have gone home. Of the raw material, two-thirds corns from Japan. The disturbance of the raw silk. market caused by the war is the more serious since the demand for silks last year was so exceptionally strong that, although in all silk producing countries (except Italy) the season 1913-14 produced large crops, these crops were entirely absorbed by the manufacturers, who, in addition made heavy inroads into and nearly consumed the entire reserve which is normally carried over from one season to the next. During July, 1914, there was actually a dearth of raw silk in the consuming markets of the world. The closing of the international exchanges in the first days of August produced a violent drop on the Yokohama market, and a virtual suspension of ilk business in Europe, Shanghai, and Canton. During August the the New York market witnessed the sale of spot silk from 50 to 75 cents pound over the prices it war possible to contract for shipments "due to arrive" from about four to five weeks later. This condition, however, was quite abnormal. The carrying trade between Japan and the Pacific coast has been - resumed, though much restricted, and mills have not had to shut down from want of raw silk. On the other hand, the cutting off of the dye-stuffs and chemicals produe2d almost exclusively in Germany is likely to have a serious effect. In Italy the year's crop is normal; the Japan2se crop promises the 10 per cent, increase normal in recent years; in Canton ths filatures have been partially stopped by floods, but in Shanghai they are producing the average amount. The United States manufacturers hop, in spite of their higher labour cost, to succeed in capturing some share of the Canadian and fouth American markets, thanks to the closing of the Euro pean silk mills, though it is admitted that, as regards the Latin-American markets, compared with England, France and Germany, the United States have hitherto done little, and that at the moment it will bs difficult to grant credit there on account of general retrenchment. That the production and consum tion of silk in Europe will be drastic cally reduced is certain. We are glad to hear rather better reports from Macclesfield.
Text read from the printed page and cleaned; old type leaves the occasional error.