THE LOOM OF WEALTH.

Wanganui Herald, Volume LIII, Issue 16035, 28 January 1920, Page 7

THE LOOM OF WEALTH.

HOW THE GREAT COTTON BOOM BEGAN.

LONDON, Dec. 4

The managing director of a great Manchester shipping house said:— “Looking over the records of our business I can say that our house has known no such boom in trade since the close of the American Civil War, when the world was bare of cotton goods. And the boom now, though our business has increased enormously in size, is proportionately greater." Another huge firm announces that its increase in turnover this year is equal to its entire turnover in 1903, though even then it was a firm of world-wide repute. For six or eight months after the armistice the foreign markets were quiet. Trade was only of a hand-to-mouth order. Then India woke up and began to buy largely. And more recently began insistent, insatiable, almost frantic buying from China, China has grown wealthy during the war, and all the production of Chinese and Japanese factories does little to fill the huge demand for goods. Price scarcely matters—patterns scarcely matter—at any cost China must have Lancashire cotton goods.

The Near Eastern markets are buying to the utmost of their limited capacity. Egypt, anothre war-rich country, does not let its political troubles interfere with its heavy purchases. Even the state of the exchanges has not prevented the Continental nations from doing a splendid trade., RUSH TO BUT. United States buyers have been over trying to secure the entire product of certain Lancashire mills, and to crown matters, South America —late, as usual —is now making a wild rush for goods. Practically the product of all Lancashire mills is sold out till next August. Many mills’ production is booked for a year ahead. Some have sold for even longer periods. In fact, it is only caution on the part of maufacturers, who do not like to commit themselves too far ahead, which prevents Lancashire putting up the sign, “Sold out for 1920.”

On ’Change, eager, anxious buyers are vainly hunting for some manufacturer who can promise delivery during the next six months. Cotton before the war was sold as low as 3%d per lb. A rise of a tenth of a penny per lb caused agitation on ’Change. Now it jumps 2d a lb in a day, and it is scarcely commented on. The shares of cotton mill companies are selling at fabulous prices. Many operatives, who had put their savings in the mills they worked in, have been rendered wealthy for life. Can yon wonder at it, when £l4, £l6, and £2O have been paid for £l. shares. But what matter prices! What matter costs!

A naked world is clamoring for clothing. Boom—boom—boom!