INDUSTRY, Feb, 23.
A large class of merchants in China have naturally been much Jconcerned by recent developments in the cotton industry of Lancashire, with its prospects of deadlock between employers jand workers. Fortunately, at ithe moment these are definitely Jmore hopeful, for the two part-fies have come together in conference, and there is every likelihood that the employers. will not attempt to enforce their origina} proposal for a reduction fin wages and a longer working week. For this we have largely to thank the almost unanimous attitude of the Press at Home which condemned any such Jaction as being not even a pallia~ {tive for the situation and which Jannounced in no uncertain terms that, if England's great cotton manufacturing industry is to be saved, there must be re-organization on a very comprehensive scale. Following all that has happened since the war, it is futile to imagine that any betterment can be brought about either by a reduction in wages lor a lengthening of working hours. The latter proposal impressed the onlooker as being particularly foolish in view of the fact that already there is lover-production in the industry. Obviously what is needed is to get rid of the results of the orgy of over-capitalization which took place during the boom period subsequent to the armistice, and also to do away with the' eutthroat practice of firms within the industry under-selling other to a point where manu turing and spinning become unprofitable, comparison with India, China is a small market for the products of Lancashire, but nevertheless the figures availlable for China are extraordinarily instructive. For instance, in 1925 British imports of cotton goods to China amounted in value to £7,492,000; in 1926 they, were 6,839,000; whereas ast lyeer they had fallen to £3,845, 000, If this is any indication as to what has happened elsewhere there need be little wonder that the cotton industry is in a poverty-stricken condition, and that there are even fears that it is dying. Obviously such as these have to be faced it is no time to think of partial remedies, but those leon cerned must go to the root of the evil. In passing, it may. be suggested that the only rea son why such a suggestion was made for reducing wages and lengthening working hours was that many people, who know nothing about the industry but who were caught in the maelstrom of over-capitalization, have somehow or other got control in certain directions and are doing it no good.
Now what is the special position of Lancashire as a cotton manufacturing centre? In the first place it has inherited skill because of many gen-lorations that have been engaged in this work; and in the second it has the finest climate in the world for the spinning and weave ing of cotton, Against this, however, we are forced to the conclusion that conservatism and the inability to adapt their ideas ito changed conditions have been [the downfall of the employers. For instance, Manchester long Jago lost her old market for low-class cloths in India and the Far East, as not only India but China and Japan commenced producing, these grades for themselves, and the result has been that Lancashire's trade with a country such as China has necessarily become confined to middle and high grade materials and yarns. But to-day there is much machin lery in Lancashire which is only suitable for turning out the flower grades. The only thing that can be done is to scrap this machinery, for obviously labour [conditions make it impossible for the Lancashire mills and factories to compete against establishments in India and Ching where labour is so very much cheaper. The suggested reduc-ion in wages of twenty-five per cent. would not bring the Enge lish article into competition with that manufactured in China and elsewhere. Tf the industry is to survive, it is obvious that more Jand more attention must be feiven to the spinning of (Contnied om Page 204
Text read from the printed page and cleaned; old type leaves the occasional error.