When afterwards released, it lay for many months 'unsold, in consequence of the spinners doubting whether it could be profitably worked up.
The latter association was established at the end of 1894, with a membership of 265, in the interests of those spinners who desired importations direct to Manchester.
The importance of the original spinners' representation on the association is shown by the fact that they worked over 14,000,000 spindles: in December 1905 the spindles represented by members had risen to nearly 20,000,000.
Cotton dealers up to this time had regularly financed the spinners, who were frequently men of little capital, by allowing long credit, and had even employed them to spin on commission.
As men of substance increased among the ranks of the spinners, the Manchester cotton dealers found it impossible to retard a movement set on foot by the prospects of such appreciable advantages.
Some Manchester dealers imported themselves, and some spinners bought direct from Liverpool importers, but the rule was the arrangement first described.
The evolution of the distinct business of cotton broking is readily comprehensible when we remind ourselves that the requirements, as regards raw material, of all spinners are much alike generally, and that no spinner could afford to pay an expert to devote himself entirely to purchasing cotton for his mill.
Spinners could easily run over to Liverpool and buy their cotton from the large stocks displayed at that port.
Before the railway was opened some spinners had been in the habit of making their purchases of raw material in Liverpool, but the great inconveniences of the journey, combined 1 Commercial crop.
The centralization of the cotton market in Liverpool fixed firmly the system of buying through brokers, for the Liverpool importer, or his broker, was in no sense a professional adviser to the spinners, informally pledged to advance the latter's interests, as the old Manchester dealers had been.
When the agents of the spinners, that is, the buying brokers, by becoming principals in some transactions, had acquired interests diametrically opposed to those of their customers, the consequent feeling of distrust among spinners gave birth to the Cotton Buying Company, which, constituted originally of twenty to thrity limited cotton-spinning companies, represents to-day nearly 6,000,000 spindles distributed among nearly one hundred firms. Its object was to squeeze out some middlemen and economize for its members on brokerage.
This company, it is said, helped to attract the brokers back to the spinners, and an informal understanding was arrived at that the buying broker should not figure both as agent and principal in the same transaction.
Again we must distinguish between the " future " contracts for the delivery of a particular kind of cotton, which may be entered into by spinners and their brokers, and are real purchases in the sense that the spinners want delivery of the cotton referred to, and the "futures," which always relate 1 The Cotton Trade of Great Britain, by Thomas Ellison, p. 186.
The first is that spinners would be performing the two functions of industrial management and cotton buying (together with others perhaps), and that in consequence the best industrial men would not necessarily be able to maintain their position in the trade because as buyers of cotton they might be unfortunate.
The third, which is not distinct in principle from the two preceding, is that such limited speculation in cotton buying on the part of spinners worried with other matters would not be likely to steady the cotton market in any high degree.
But spinners do not try always to take the safest course.
But what, it may be inquired, is the value of " futures " relating to " middling " cotton to a broker whose contracts with spinners are not in " middling " cotton?
The methods of dealing in cotton are very intricate, and it is necessary here to interpolate an explanation of the relations between the prices paid by spinners for cotton and the quoted " spot " prices.
While quoted " spot " remained low, the prices paid by most spinners for the special kinds of cotton that they needed might rise.
Some spinners cover their yarn contracts merely by buying " futures," but the cover thus provided is frequently most inadequate owing to variations in the " points on or off" for the particular cotton that they want.
There is a tendency for cautious spinners in England to run no risks and fix the prices of their yarn in accordance with quotations for actual cotton of specified qualities made by their brokers.
But it is futile to seek the effect of much dealing in " futures " in the differences between price movements in the various markets, because (I) demand expresses itself in different ways-in Germany, for example, spinners buy to hold large stocks-and (2) the markets are in telegraphic communication, so that their price movements are kept parallel.
The general movement for the extension of cotton cultivation wa.s welcomed by the International Congress of representatives of master cotton spinners and manufacturers' associations at the meeting at Zurich in May 1904.
It is not necessary to the promotion of this manufacture that the spinners and weavers should be congregated in large towns, or united in crowded and unwholesome factories.
Therefore schappe spinners place their degumming plant in the hills, near or on a stream of pure water.
In this process the silk waste is put into strong, open-meshed cotton bags, made to hold (in accordance with the wish of individual spinners) from i lb to 5 lb in weight.
The resulting sliver is used by silk spinners who make a speciality of spinning short fibres, and the exhaust noils are bought by those who spin them up into " noil yarns " on the same principle as wool.
The continental spinners have largely increased, but are developing into huge syndicates, all working on the schappe principle.
Frequently a single agent has the consignment of the whole of a company's yarn, but many spinners, especially those whose business connexion is not perfectly assured, prefer to have more outlets than can be explored by an individual.
Warden in his Linen Trade says: "For years after its introduction the principal spinners refused to have anything to do with jute, and cloth made of it long retained a tainted reputation.
The tendency to spin finer counts has been to some extent counteracted by the development of the flannelette trade, for which heavy wefts are used, and there has been again a tendency lately to use "condensor" or waste wefts, which has worked to the disadvantage of the spinners of the regular coarse counts spun at Royton and elsewhere.
Thus when prices have advanced the manufacturer may find it difficult to obtain delivery of the yarn that he *had bought at low rates, for some spinners have a curious, indefensible preference for delivering their higherpriced orders; and, on the other hand, when prices have fallen the manufacturer sometimes ceases to take delivery of the highpriced yarn and actually purchases afresh for his needs.
As buyers of finished goods for London and the country do not attend it, certain departments of the home trade are hardly represented, but practically all the spinners and manufacturers and all the export merchants of any importance are subscribers.
Transactions between spinners and manufacturers are largely effected on Tuesdays and Fridays, the old "market days," when the manufacturing towns are well represented, but a large amount of business is transacted every day.
Export buyers, attended by salesmen, are commonly more or less stationary and prominent; Burnley manufacturers abound in one locality and spinners of Egyptian yarns in another.
On first thoughts it would seem desirable that all spinners should buy cotton outright to cover their contracts, but on second thoughts the social disadvantage of their doing so becomes apparent.
The second is that spinners being required to give attention to two distinct classes of problems would be less likely as a body to become complete masters of either.