The total takings by spinners North and South during 1911-1912 reached 5,517,830 bales, of which the Northern mills took 2,781,613 bales and the Southern mills 2,736,217 bales.

Total, except Canada by rail....bales, 10,547,181

The foregoing are the takings for consumption. sumption for two years was:

The actual con

210,321

Consumption. Notwithstanding the phenomenal increase in production of the raw material in the United States, a level of prices has been maintained that has insured to the planters generally a good profit on their crops. The financial results to the manufacturers have also been much more satisfactory than in either of the two preceding years, and, finally, with demand for goods better than recently experienced, machinery has been quite fully employed and labor has benefitted.

That manufacturers as a whole this year have absorbed a much greater volume of cotton than ever before is a fact that admits of no question, but to claim that the increased takings reflect a corresponding augmentation in consumption is far from the truth. Profiting by the experience of 1909-1910 and 1910-1911, when prices were high,

*Takings and consumption include 3.732 bales American cotton returned and 234.307 bales foreign cotton (Egyptian. Peruvian, &c.) in 1911-1912 and 240,170 bales foreign and returned American cotton in 1910-1911.

advantage was taken of the lower basis of values of 1911-1912 to lay in a reserve supply. This is more particularly true of foreign spinners, and especially those of Japan. As regards the actual size of the crop of 1911-1912, there is little to be said. As early as December the Agricultural Department issued an estimate making it 14,885,000 bales (not including linters,) or more than one million bales in excess of any earlier crop, and later on (in March) the final ginners' report, issued by the Census Bureau, showed a growth of no less than 16,050,819 bales, including linters.

These results, of course, refer to the actual amount of cotton raised as distinguished from the total (16,043,316 bales) presented in this report, which represents the commercial crop-the total marketed between September 1, 1911 and August 31, 1912. It will be observed that the aggregate, as reported by the Census, is some 7,000 bales greater than the commercial crop as here figured, but 277,914 bales of the 1911 yield came forward before August 31, 1911, and therefore counted in the commercial crop of 1910-1911; on the other hand, the 1912 crop is late and only 220,352 bales have come forward to August 31st, and are counted in the year under review. The commercial crop at 16,043,316 bales is, of course, by over two million bales the largest ever raised in the United States, but in average yield per acre it has been exceeded several times. With a commercial crop of 16,043,310 bales and visible stocks of 852,418 bales of American cotton carried over at the close of August 1911, the available supply (not including mill stocks here and abroad) for the year ending August 31, 1912 is seen to have been 16,895,734 bales. Of this supply consumers have absorbed about 15,530,572 bales, that is to say, that amount has gone out of sight-being the actual takings at home and abroad and the amount burnt or added to mill holdings. Consequently the visible supply of American cotton on August 31, 1912 was approximately 1,365,162 bales, a very much larger total than is usually carried over from one season to another. Of cotton other than American, the combined world's visible stocks at the close of August were a little less than on the corresponding date in 1911, but in excess of either 1910 or 1909. The East Indian yield was moderately less than that of 1910-1911, and a slight decline in the Egyptian production is also to be noted. But with the American crop so large, the falling off elsewhere cut no figure. The visible supply of all varieties of cotton at the close of 1911-1912 was the heaviest of any year since 1907, and the invisible surplus (mill stocks) largely exceeded those at the end of any previous year, and the same is true of the combined visible and invisible stocks.

Value of the Crop.-Although the largest by far in quantity, as already stated, the commercial crop of 1911-1912 does not stand as a record in the financial return therefrom, because of the lower prices that have ruled. As we have heretofore remarked, it is clearly impossible to fix with any great degree of correctness the value of any crop but in the case of cotton, as the greater part of the product is

sent abroad, the official average export price furnishes a fair basis for calculation. These export prices, of course, it must be understood including the cost of getting the cotton to the seaboard do not represent the return the planter received. The average export price for the season of 1911-1912 was approximately 10.3c. per lb., upon which basis the value of the 16,043,316 bales commercial crop is about $828,000,000. This compares with an export price of 14.4c. in 19101911, which gave to the 12,132,332-bale yield of that year a value of nearly $900,000,000. In 1909-1910 a crop of only 10,650,961 bales approximated a value of $726,000,000, due to the high export price14.2c.-but the yield of 1908-1909, the second largest on record (13,828,846 bales) accounted for only about $669,000,000 on account of the low price-9.4c. per lb. We need hardly say, of course, that, even allowing for the increasing cost of production of recent years, Southern planters had a prosperous period in 19111912, notwithstanding the lower prices. There are, to be sure, many items that have to be considered in arriving at any approximate idea of the cost per lb. in raising cotton, but our information indicates that, on the whole, at the late season's prices, cotton raising was profitable.

Manufacturing Results. In the manufacturing branches of the cotton goods trade the situation, while not entirely satisfactory in 1911-1912, at least so far as the Northern section of the industry was concerned, was on the whole better than in the previous year. At the opening of the season curtailment of production was still a feature in New England, but before the close of October an increase in the output was noticeable and before the end of the calendar year full time running had been generally resumed. Some machinery, however, remained idle, largely, if not wholly, the result of a shortage of hands. With the coming in of 1912 the new 54-hour law, which reduced the running time of the mills two hours per week in Massachusetts, went into effect, and it was not long before it precipitated trouble, although at first cotton factories were little affected. The strike at Lawrence was a notable incident of the year. But concurrent with the efforts being made to settle it, mutterings of discontent were heard at Fall River over the matter of wages, and to avoid trouble the manufacturers offered on March 12th an increase in wages of 5 per cent. to go into effect March 25th, New Bedford mill owners following with a similar announcement on the 14th. The Fall River operatives refused the tender of a 5 per cent. increase and made demands ranging all the way from 10 per cent. to 17 per cent. Following the lead of the late MR. M. C. D. BORDEN, however, the 5 per cent. offer was later increased to 10 per cent., and New Bedford and other centers followed suit with increases ranging from 5 per cent. to 10 per cent. This settled the matter so far as Fall River was concerned, but dissatisfaction developed at Lowell and a lockout of considerable proportions resulted and was not settled until nearly a month later. In all some 300,000 operatives in New England benefitted from the higher wages accorded,

and it was figured that labor troubles were at an end for some time. But in July further trouble developed at New Bedford, primarily over the new grading system, involving about 10,000 operatives.

Wages. The following is a compilation showing the course of wages at Fall River the past thirty-five years, omitting years in which no changes were made.

NOTE.-The recognized standard length of a 28-inch 64 x 64 cut of print cloth is 47 yards woven in an ordinary 32-inch loom or less.

Print Cloth Situation. The print cloth conditions at Fall River differed in no essential particular from those in most other descriptions of cotton goods. Curtailment was under way at the opening of the season, but demand becoming more active later, production of goods was virtually upon a full-time basis before the turn of the year. Lack of hands, however (many having turned to other employment during the depression of the previous season), prevented full normal outturn of goods. The tendency of prices for goods, moreover, was upward on the whole. Early sales were on the basis of 34c. for 28-inch, 64x64s; on October 20th there was a fall to 31c. and on November 11th a drop to 34c. This latter quotation, the lowest of the season, ruled to February 7th, when a rise to 34c. occurred, followed by an advance to 3 c. on March 9th, to 34c. on March 12th, 3c. on March 16th, 34c. on March 19th, 3 c. on March 30th and 3 15-16c. on April 15th. A further upward move of 1-16c. on July 27th made the price 4c., and at that level the market remained steady to the close.

Foreign Trade.-There is cause for satisfaction in the expansion to be noted in the foreign trade. At the same time it must be admitted that, through seeming indifference on the part of our manufacturers to meet the desires of the ultimate consumer, our trade with South America, at least, does not show commensurate growth with that of Great Britain and some other European countries. Shipments to China exhibited a considerable increase in the fiscal year ended June 30, 1912, but naturally fell much below the phenomenal totals of 1904-1905 and 1905-1906, aggregates that were in no measure indicative of prospective demand, but rather a preparing for contingencies. South America absorbed 53,037,292 yards during the season under review, against 47,205,029 yards in 1910-1911, and 43,781,394

yards in 1909-1910, and the outflow to the West Indies and Central America reached 132,093,117 yards, against 102,526,177 yards last year and 77,221,030 yards two years ago. To the Philippines the exports show decided augmentation, having risen from 37,729,953 yards in 1909-1910 and 45,813,890 yards in 1910-1911 to 68,981,019 yards in the latest year, and shipments to Arabia from 9,094,520 yards and 18,646,859 yards to 37,139.185 yards. Canadian takings of our cotton manufactures also exhibit substantial expansion the last few years, and the same is true of Asia and Africa. In the total of all countries the exports of goods reported quantitatively in 19111912 reached 476,778,499 yards, and in the previous years 346,590,169 yards, or a gain this year of 37 per cent. In value, the increase over last year is $9,917,593, and the loss from 1905-1906, the record total, is only $2.174,522. The growth this year is in part, if not largely, the result of greater willingness on the part of our manufac turers to meet the taste of foreign buyers, but much yet remains to be done to place this important industry in the position it should occupy in our foreign trade.

Spinning Capacity.-The spinning capacity of the cotton mills of the United States has been augmented to a moderate extent the past year. Development, of course, has been mainly in the South, but a small addition to the spindles is to be noted at the North. At the South a number of new mills have started up, and the capacity of older establishments has been added to. The usual statement of spindles in the United States is as follows:

Southern cotton mills recorded very satisfactory growth in 19111912, both as regards expansion of plant and volume of cotton consumed. Spindles, in fact, have increased in number steadily year by year, until now the mills of the South contain nearly 12,000,000, or about double the aggregate operated ten years ago. Rapid development of cotton manufacturing, however, was to be expected at the South as soon as attention should be concentrated upon the advantages that section offered to the industry. Consumption of the raw material, too, has augmented more rapidly than at the North, but has, at times of slack demand for goods, or difficulty in securing supplies, as in 1903-1904, 1907-1908, 1909-1910 and 1910-1911, exhibited some diminution. But with a return to normal conditions, a new record total has again been set. This was the case in the season just closed, our returns indicating that 2,736,217 bales had been turned into goods during the period, a total 162,693 bales heavier than the former record (that of 1908-1909) and 238,116 bales in