Manawatu Evening Standard. MONDAY, DECEMBER 8, 1930. LANCASHIRE COTTON INDUSTRY.

Manawatu Standard, Volume LI, Issue 7, 8 December 1930, Page 6

Manawatu Evening Standard. MONDAY, DECEMBER 8, 1930. LANCASHIRE COTTON INDUSTRY.

The causes of the decline of Britain’s cotton industry are analysed by Sir James Reynolds, a former President of the Liverpool Cotton Association. The depressed conditions in the great Lancashire centres, it will be recalled, have been investigated in the past two years by two commissions which have reported strongly in favour of reorganisation and amalgamation as a means to cut down initial costs and secure greater efficiency both in production and distribution. For more than a century England’s trade prosperity was due, in large measure, to the progress of the cotton industry in Lancashire. It was so successful and grew to such an extent in a comparatively short period, says the writer quoted, that those outside its ranks looked bn it as the gold mine of the north. But, as all know, times have changed. Lancashire no longer can claim to be the premier spinning centre of the w r orld. Other countries between them are assuming that position and Lancashire is said to be unequal to the. struggle for supremacy. But Sir James Reynolds does not agree with the pessimists who are inclined to predict the doom of the cotton industry in Lancashire, nor does he share their opinion that the only way to prevent its complete annihilation is through the establishment of a European cartel by which the manufacturers of Europe would combine in order to eliminate uneconomic competition and unify the manufacturing side. Stating that this proposition is quite unfeasible, he . points out that the cotton industry of Europe outside England is quite secure. Each country is well protected with tariff barriers and has an ample population to take a large proportion of its output. The balance is available either to the only free market (virtually speaking) in Britain, or to other countries in competition with Britain. Another point he stresses is that the manufacturing side of the industry is essentially individualistic and Continental spinners would be loath to share with their competitors their specialities, which have taken generations to perfect and possess regular outlets. An analysis of the sources of supply shows that vast quantities are available from Egypt, Sudan, Peru, and East and West Africa and India. These, the waiter says, are not readily available for America and give spinners in the Eastern Hemisphere the pull. The question of supply creates no fears and Europe, he adds, can produce much cheaper yarn and cloth than America.

It is Sir James Reynolds’ opinion that the only important question affecting the cotton industry at the moment is the posi-

tion of Lancashire. “Years ago,” he says, “we set ourselves out to spin for the world, and gradually we acquired one-third of the spindles and one-quarter of the looms of the world. But by degrees, the rest of the world, protected. by high tariff walls, set up spindles and looms to manufacture its own goods for home consumption, and as time went on our exports dwindled proportionately. Depreciated currencies in Europe militated against sterling puruchases, and sqon countries like Japan, having cheaper labour and longer hours, were able—after accommodating their own markets—to ship, in competition with us, to Asia and Australia.” Italy with its cheap hydro-electric power, cheaper labour and longer hours, is an example cited by the writer, this country having captured in recent years the Near Eastern markets in coarse goods. Another handicap Lancashire is said to face is heavy charges for bleaching, dyeing and finishing, while rates and taxes also contribute to the general burden on the industry. “Lancashire’s only hope,” concludes the writer, “is not by the establishment of a European cartel but by Empire development —where we receive preferences—and by spinning finer —where we are virtually ahead of other coutitries. Our fine goods find their way to the American markets over a 75 per cent, tariff wall. America is rich enough to be able to buy the best and will have it; our job is to produce the best and plenty of it!”