So much has been said about the depression in the cotton manufacturing industry that it is refreshing to hear that some of the weaving plants are making a nett profit of from 2 to 4 mace per piece, and as a small plant of 250 looms can turn out about 400 pieces per day or say 120,000 pieces per year the average nett profit of some Tls. 36,000 is by no means unsatisfactory, expecially when it is considered that, the capital cost of such a plant is at the present time only some Ts. 150,000, When the spinning boom was at its height some two or three years ago, it was apparent to many that unless the industry was developed equally as regards spinning and weaving, depression would be sure to follow. Warnings were given but were in most cases unheeded. The high prices ruling for yarn completely overshadowed the more modest profits made on weaving. Many mill owners forgot that the ultimate end of yarn is cloth and that the market for yarn though extensive is limited by the requirements of the hand or power looms, while the market for cloth is only limited by the purchasing capacity of China's vast population.
The yarn demand is of course very large, practically every farmstead! boasting the possession. of a hand loom, but as these looms work slowly the consumption of yarn per loom is correspondingly small, and moreover as the power looms produce finer cloth which can compete in price with the home woven cloth, the owners of the hand looms find it increasingly unprofitable ~to work their looms except at such times as weather conditions prevent the more profitable employment of labour.
The mill owners who were farsighted and erected weaving plants are now reaping their reward by being able to utilize their yarn profitably on their own looms.
We have heard of several inquiries recently for the extension of weaving, which indicates that the mill owners realize their mistake of unequal development and are anxious to rectify it. There can be no question that the development of weaving by modern power looms is -necessary and will re-act beneficially on the yarn market and on the industry as a whole.
Text read from the printed page and cleaned; old type leaves the occasional error.