valued at $25,697,000, compared with $26,138,344 in 1911, and $32,153,657 in 1910. The importations of raw silk were $79,796,062 in value compared with $69,304,548 in 1911, and $70.026,994 in 1910. The total quantity of raw silk imported aggregated 29,000,000 pounds, from four to five millions in excess of the two preceding years. The figures have particular interest as showing that the demand for silks was supplied most largely from domestic machinery, and this country is now the largest user of raw silk in the world.

Importations of the manufactures of wool again showed a substantial decline. The values of importations fell off to $15,841,713 compared with $16,217,833 in 1911, and $21,587,496 in 1910. The falling off in the yardage of dress goods imported will be seen from these figures: 1912, 14,788,028 square yards; 1911, 21,516,524; 1910, 41,610,306. This was attributable wholly to the ability of mills in this country to supply the kinds of cloths wanted at prices foreign mills would not meet as they were also profitably employed in other markets. A similar falling off was witnessed in cloths for men's wear. In carpets and carpetings importations for 1912 were valued at $4,688,061 compared with $3,874,250 in 1911, and $4,148,636 in 1910. Importations of oil cloths and linoleum for floors were substantially the same as those of the preceding year in yardage.

In cotton imports, Germany was most affected by the falling off in knit goods, while the United Kingdom was affected most by the falling off in the importations of cloths. The latter country made up the loss through a more active demand for the sorts of laces and embroideries wanted, but Germany can hope for little improvement while the current rates prevail in the tariff schedules affecting hosiery and knit underwear.

Expansion in producing capacity was about of normal proportions. Two hundred and sixty-five new textile mills were built in the United States, the ten year average of mill building being about 270 mills. The new concerns were distributed in about the same ratio as in the

preceding year. In the cotton industry 21 out of 37 mills were built in the South, the addition to spindleage being 437,000 out of a total of 533,000. There were 9,774 new looms installed. The Carolinas represented about 55 per cent. of the spindleage gain in the year or a total of 293,000 spindles. New England added but 94,000 spindles. The decline of demand for fine cotton goods and the limited profits secured by the mills in existence accounted for the restriction of building in the older centre. The wider distribution of the industry is now generally conceded to be a healthy development with many advantages.

Of the 23 new woolen mills six small plants were devoted to worsted and woolen spinning, the others being weaving plants or equipped for felts, wadding, and other wool products. In the knit goods additions Pennsylvania led again in the number of new concerns, one half of the total of 112 being credited to a single state, the next being New York state with 20 new mills. There were 47 new silk mills added last year this being above the average of 40 for the past ten

years. There is a distinct tendency noted to concentrate the silk industry in Pennsylvania and New Jersey, 37 out of the 47 built during the year being located in those states which are by far the leading

centres.

In addition to the number of mills added, it is needless to state that a great many stores completed additions that have been underway for some time. The department stores and the union of department stores continue as features, but there is also a constant tendency to specialize, particularly in the larger cities. There is still a strong trend toward amalgamation of great stores some of them being capitalized and incorporated and others merely being unions of stores for the purpose of amplifying buying facilities.

Cotton Goods.-An abundance of cotton from the largest crop ever grown led to volume sales of cotton goods during 1912. These sales were not generally of great profit to producers or distributors. The shelves were bare after two years of short crops and indifferent trade and it did not begin to be appreciated by buyers at the early part of the year that cloths were relatively cheap. The first half of the year was troublesome in mill circles because of labor difficulties growing out of shorter hours in manufacturing states and because of the hand to mouth policy of purchasing pursued by several large distributors.

The course of a single staple fabric, 4-4. Fruit of the loom, bleached, will show the trend. It opened the year at 7c. a yard, having been advanced from the low point of 74c. on December 21, 1911. On February 19th it was advanced to 7c.; on March 11th, to 8c.; on April 5th, to 84c.; and on August 1st, to 89c. On December 5th, there was a decline of c. a yard which lasted but two days, and a formal advance was announced December 23d, and that price continued till the close of the year. The sales of these goods for the year were the largest in the history of the concern making them. It was the first full year of demand for cotton goods in six years and it came at a time when stocks were low and cotton was plentiful. Manufacturers had passed through two lean years and they were eager to get mills in running order. The selling agents accepted business at low prices while competition for business was sharp, so that in the first two months of trading more attention was paid to getting orders than to making profits. Toward the latter end of February it came to be recognized that bottom had been touched and that purchases were safe.

year was

The irregularity of the movement in cotton goods for the peculiar. Cotton went from around 9c. to 13c., roughly speaking, a rise of about 40 per cent. Print cloths went up 32 per cent. or a full cent a yard based on regulars; yet staple tickings went up but že. a yard based upon 8 oz., goods at 124c. the low figure. Wide sheetings went up but 12 per cent. and staple ginghams did not move up at all. Duck and duck products went up to the most profitable points touched in some years, discounts being shortened on one staple number, from 45 off the list to 25 per cent off.

G

There was a full and steady demand for denims for overalls and for general working suit purposes. Tickings had not been stocked by the mattress trades for some years owing to poor trade and unsatisfactory prices but from the first of the year to the last the mills were kept busy filling orders. The coarser end of the domestic cotton goods lines was stronger than either the medium or fine goods end. It was explained by the dearth of cotton in the two preceding years and the effort made by all users to economize on purchases while cotton was high. Jobbers as a whole found the last half of the year profitable compared with several of the preceding seasons and they were helped in a degree by the steadily rising prices following the full demand. At the same time there was less speculative buying in a time of rising prices than merchants had seen for years. Distributors bought many goods from hand to mouth and all kept well within their requirements. At the end of the year it was exceptional to find any of the large houses carrying anything more than normal stocks for spring merchandising.

Generally speaking the cotton goods markets opened at the low of the year and closed at the high. Price fluctuations were less radical than in the preceding year. The course of the market as a whole may be judged from the appended prices of several staples that have been carried along in these reports for the past few years:

Export Trade in Cotton Goods.-It was the largest year in exports of cotton goods since 1907 and curiously enough the largest market was not China but the Philippines. There were 85,019,000 yards of goods sent to Manila and only 69,766,000 yards to China. Exports were considered large in 1911 but in 1912 they ran to 464,253,000 yards or 54,000,000 yards in excess of the year preceding. Red Sea ports proved the best market in many years. Total shipments to Aden reached 34,328,000 yards compared with 24,545,000 yards in 1911, and 10,811,000 yards in 1910. British East Indies, where the Pepperell drills have been sold for half a century, absorbed 17,597,000 yards compared with 11,306,000 yards in 1911 and 7,621,000 yards in 1910.

Canada was a very good market last year. There were sold and shipped 23,756,000 compared with 12,261,000 yards in the year previous, and 10,764,000 yards in 1910. The Central American states including British Honduras took 42,374,000 yards compared with 40,667,000 in 1911, and 27,389,000 yards in 1910. Cuban trade was 25 per cent. better than in the preceding year and twice and a half as great as in 1910, the total shipments being 30,344,000 yards for 1912. Trade with Colombia was steady and good, reaching 26,103,000 yards compared with 18,117,000 in the preceding year. South American trade showed only a fair increase as a whole.

The two largest printing companies represented in New York shipped 20 per cent. of their output abroad last year and the trade in printed goods and ginghams for export is becoming larger every year. Some of the large bleached goods houses are now maintaining permanent export departments and in the past two years there has been a perceptible and gratifying increase in the attention given among cotton goods merchants in New York to the possiblities of commerce outside of the pale of domestic waters.

Print Cloths.-The very limited use of regular print cloths, or what is technically known as 28 inch 64x648, resulted in their final passing as a matter of trade. Their place has been taken by the 27 inch 64x60 cloth which is generally quoted at lc., a yard below regulars. The average price of 27 inch 64x60s for the year 1912 was 3.544c. They opened at 213c., closed at 3c., and touched the low point at the first named price. The inauguration of a 54-hour working week at Fall River, as a consequence of legislation, resulted in cutting down the output, but in addition, there was a further reduction at Fall River alone, amounting to a fifth of the possible product, due to inability to secure help to run the machinery installed. The year opened with a very light stock of print cloths on hand and closed with a stock not to exceed two week's production. Following the labor troubles at Lawrence it became necessary to advance wages 10 per cent. This feature lessened the margin for profit and the returns to stockholders of print cloth mills at Fall River were the smallest for several years, averaging but 4.25 per cent., against 4.9 per cent. in the preceding year. The labor problem in print cloth mills was a difficult

one, arising from an insufficiency of help as well as a marked ineffici ency of those who worked. The passing of the narrow print cloth has been accompanied with a greater demand for the wide cloth known technically as 384 inch 64x64s. The price range of that fabric for the year was 54c. high and 41c. low. It is destined to be used more freely in the future as the large printers are now changing over the machinery for it and they are also installing looms for its more general manufacture. The narrow print continues in vogue in foreign markets and to a limited extent in the domestic trade. But the cloth used for it is not so heavy nor so closely woven.

Prints and Ginghams.-Standard staple prints were selling at 4 c. when the year opened and they held at that figure until March 12th, when they were advanced c. a yard to 5c. On March 26th a further advance was made to 5 c. On August 1st the price was advanced to 5c. and there it remained for the balance of the year. Amoskeag staple ginghams were opened at 61c. at the beginning of the cotton. year in 1911 and that price held on January 1, 1912. There was no change made during the whole year. From time to time the goods were placed at value but the base figure remained unmoved.

There are more staple prints exported now than ever before in the history of trade in this country. The two largest staple printers sent out in 1912 about one-fifth of their total output, to various foreign countries. The largest purchasers were the Philippines, but other large users of the goods are in Colombia, Cuba, Porto Rico, and many of the Central American and South American countries. Some small business has been done with the Mediterranean ports.

Dress ginghams sold less actively in 1912 than in some previous years. There was some overproduction in them and again some style changes lessened the call for them. The domestic output has now reached a very large volume and includes beside the ordinary staples, many varieties of shirting chambrays, dress plaids, and crinkled effects. The popularity of these cloths among the masses has been increased materially by the ability to dye cotton yarns in fast colors, and in shades that are more varied and attractive in cheap goods than was the case a few years ago. Large quantities of the goods are now used by the cutting up trades in New York for ready to wear children's dresses, etc.

Fine and Fancy Cottons.-The dividend returns from fine and fancy cotton goods mills last year were lighter than in any recent period and the fashion which restricted the yardage of dress goods required was blamed as the factor of consequence in lessening the earnings. The rapid mill building of previous years had brought on over production and it was also true that fears of tariff revision that would adversely affect the fine yarn goods were ever present.

As in the preceding year the demand was not large for lawns, india linons, batistes, and other sheer plain cloths that have made up the volume of the output in profitable years. The trend of fashion was