was much less fluctuation in this standard construction than in several of the odd counts, and the low point was reached in the last week in October, continuing for four weeks. The total output did not exceed three-fifths of a full year either north or south, but even with that limited quantity produced, stocks of odd goods accumulated slowly into October, when the movement became active. At the close of the year the stocks were estimated at about 1,000,000 pieces, or a four week's output. During the many weeks in which the production was curtailed there was no change in the wage scales The mills were unable to secure cost for their goods and the losses sustained were greater than for many years. High cost cotton was the underlying cause to which manufacturers ascribed their difficulties but it was also evident that printers and jobbers were not willing to anticipate on deliveries and preferred, wherever possible to liquidate all stocks in hand. Many southern mills were forced to curtail their output of print cloths for the first time since they were established and to ease the financial strain several reorganizations were undertaken. At Fall River dividends were reduced $459,117 as compared with the year previous, or to a basis of 4.96 per cent. average, compared with 6.8 in 1910. In many instances dividends were paid from surplus accounts. The fine goods industry suffered in common with all cotton goods lines and the dividends paid by New Bedford cotton corporations averaged only 5.50 per cent., as compared with an average of 9.59 per cent. in 1910. At Prints and Ginghams.-Prices on the leading lines of staple prints and ginghams were changed but once during the whole of 1911. the beginning of the year American standard prints were at 5c. This price remained unchanged until August 5th when it was reduced to 43c., and the latter figure held throughout the balance of the year. Amoskeag staple ginghams opened the year at 7c. and this price held until September when a reduction to 64c. was made and this price also held till the end of the year. About the 9th of May, after buying half a million pieces of print cloths in the open market, for the American Printing Company, M. C. D. BORDEN & SONS announced that the Fall River Iron Works mills would be closed for ten weeks, and they were operated alternate weeks in consequence of the poor conditions prevailing. The print works did not close for so long a period, and it was found possible for several months in the year to purchase gray cloths at prices below the cost of production at the mills that usually supplied the works. More staple prints were sold for export in 1911 than ever before and the two largest printers sold about one-sixth of their output abroad. Manila was the largest market but other miscellaneous ports also bought liberally. Preparations had been made for a great year in ginghams but soon after 1911 opened it was apparent to the merchants of the country that overproduction was a factor to be contended with. This was particularly true of many of the low priced and low count dress ginghams. Many of the largest mills were forced to curtail. Mer chandising customs in both prints and ginghams were upset greatly by the decision of the Supreme Court affecting restrictions on prices. While there was no monopoly intended or created by the producers of the leading goods, the law was held to apply to a system that had been in vogue for fifteen years or more under which jobbers and selling agents agreed to hold prices at stated figures, and the system had to be abandoned. Fine and Fancy Cottons.-The effects of an over-expansion in producing machinery designed to manufacture fine combed yarn fabrics were noted in 1910 and were continued all through 1911. It proved to be the leanest mill year the industry has known. To some extent the tariff agitation was a factor as it was conceded that any radical change in the cotton schedules would affect the highly protected fine goods end of the industry most. But the changing influences of fashion were effective in lessening the requirements of fine dress cottons, and there was also a change in the course of the year in the character of the fabrics wanted. For three or four years the demand for sheer fine cloths was great and silks and cottons were much in demand. The trend of fashion was toward heavier cloths, such as piques, welts, cords, and similar goods and there was also an extensive demand for voiles, and other fancy sheer cloths. There was lacking a normal demand for lawns, linens, batistes, and other sheer plain fabrics that go to make up the larger volume of the output and many idle looms resulted. Price changes were generally downward and at times the lowest levels in relation to costs of production, were touched. Toward the end of the year the extensive curtailment began to be felt and there was a slow absorption of the surplus stocks held in different quarters. Losses to converters, and manufacturers were larger than they were in the year following the last panic but on the whole the liquidation was not gravely unsettling. The extension of the domestic lace and embroidery trades referred to elsewhere, and also a year ago, has gone forward steadily, and sufficient has been accomplished to warrant the optimism of the New York merchants who are fostering and promoting it. Already some domestic laces, machine made, are of the highest class. Hosiery and Underwear.-A continued expansion of the knit goods industry went on in 1911 but it was in the direction of fancy knit fabrics rather than in hosiery and underwear. Knit ties, fancy hoods, scarfs, fancy sweaters, and similar novelties led to the establishment of many small knitting concerns and brought on the market many classes of attractive merchandise. The year was a very hard one, however, to merchants and manufacturers handling staple goods. The craze for silk hosiery was remarkable and led to many imitations of pure thread spun silk goods. Tussahs, silk plaited fabrics, and artificial silk hose came to the market and for a time these inferior goods sold well. Finally consumers began to distinguish between the better made goods and the low grades and much of the craze for the cheaper articles passed by. High cost yarn and the difficulties of meeting established retail and jobbing prices without loss, led to widespread curtailment. At the close of the year it was estimated that not one half a normal advance spring business had been placed. The best trading of the year was done in duplicate fall goods but this came along so late that surplus stocks were offered at values that showed little or no profit. At one period in the year 25c. balbriggans were selling at the lowest prices in relation to costs that was ever known in the New York market. Jobbers did not care to carry stocks and manufacturers could not afford to accumulate them in the face of high cotton and a light demand. Union suits increased in popularity very fast in the western section of the country, while knitters found it profitable to meet the demand for many of the fancy combination suits affected by fashion in women's wear. The sweater trade was larger in proportion to the whole of the knit goods output than in any recent year, in both staples and fancies. There was a continuation of the trend toward very fine sheer goods in hosiery and underwear, and domestic industries continued to profit from the exclusion of foreign goods. Woolens, Worsteds and Carpets.-Many factors entered in to make 1911 one of the most difficult years merchants and manufacturers of wool and its products have known. The tariff agitation was of a bitter character in the press and in legislative halls. A tariff bill was enacted but it was vetoed by the President, and late in the year the Tariff Board presented an exhaustive report on which future legisla tion and agitation may be based. It was impossible to induce clothiers, retailers, manufacturers or wool dealers to operate in a normal way. The year had hardly opened before very low prices were named by the leading producers of men's wear, and while three or four large corporations secured a fair share of business, it was not many weeks before 50 per cent. of the producing machinery was idle. A strike among western operatives in clothing factories added to the difficulties. The spring business was generally very unsatisfactory. The tariff bill was vetoed in August, and thereafter, it became evident that the need for merchandise would assert itself. The last half of the year was therefore better and at times from 60 to 80 per cent. of the men's wear looms were engaged. Profits throughout the year were very close but the largest corporation managed to pay a 7 per cent. dividend on its preferred stock and set aside something for the surplus. Developments in fabrics during the year in men's wear were the popularity of the chinchilla in overcoatings, and a further demand for woolens as against worsteds. The finer grades of worsteds did better than the cheaper lines. Serges were produced and sold more generally than any single fabric. Late in the year the demand turned more to the finer grades of fine worsteds but all through the year carded wool suitings held a prominent place in the trade. Dress goods merchants, in addition to the hampering influence of tariff discussion, had to face again the limited requirements for fabrics due to the small skirts and meagre yardage needed in women's suits. This effect of fashion would in itself have contracted the output as it did in 1910, but in addition, merchants did not care to buy in advance of immediate requirements, which at best were below those of the preceding year. There was a large demand during the year for cloakings, chiefly rough carded wool goods, and the cloaks served to restrict the demands for suits and new dresses. Colored storm serges, cream serges, and many lines of staple serges were the most popular cloths of the year, in so far as volume was concerned. There was a fair demand for whip-cords, cheviots, and many lines of wool fancies, but there was an absence of anything like a fair demand for panamas, batistes, broadcloths, or many other staples of other years. The large use of velvets, silks, and fancy cottons, also cut into the yardage required from the woolen and worsted dress goods merchants and this factor was seen in the year previous. The contraction in production extended to some of the largest and best equipped mills in the country, and save in the case of a very few mills making special ties in wool suitings there was hardly a dress goods factory that did not curtail extensively. Reference has already been made to the limited imports of dress fabrics and as they were not affected in any way by tariff changes of 1909, they fairly well illustrate the contraction in business suffered by merchants. Toward the end of the year it became evident that stocks in retailers' and jobbers' hands bad been allowed to drop to sub-normal levels and when the month of December closed there was every evidence of quick and positive recovery from one of the most trying years in mercantile experience. Carpet prices were lower in 1911 than at any period in the recent history of merchandising. It was brought about by lack of business in volume and by the keen competition for a limited trade, on the part of the largest producers. But one large carpet auction was held in New York, but at that one, nearly $5,000,000 worth of goods was sold. Further progress was made by two or three leading New York houses in extending foreign trade in American rugs and carpets. One house now maintains a permanent English distributing agency, while another has established an organization to cultivate the South American trade. Silks.-Silk merchants and silk merchandising attracted more than the ordinary popular attention during the year in consequence of the remarkable flight up town in New York of many of the large mercantile institutions that had centred around Greene, Broome and Mercer Streets. The opening of unsurpassed wholesale houses in the Fourth Avenue section naturally attracted new attention to the magnitude of silk in dry goods calculations. Trade during the year was hampered by the same general causes that affected other lines. Competition was very sharp and most manu facturers and merchants feel that the power of overproduction in the machinery now established here must always be reckoned with in any period of quiet business. During 1911 the large mills competed sharply for business and the profits taken on the meagre turnover were very limited, and in many cases, not to be calculated. Raw silk was low in price and importation of it was steady. Silk coats and silk suits were widely popular, but for all this, merchants found little com fort in counting the results at the end of the year. Very light weight satins under various names, were the largely used fabrics. The staple taffeta, heavy satins, and fine figured goods were sold only in a very limited way. Crepes, messalines, and special. ties of various kinds, shared with the ever popular foulard, the great bulk of the counter business. Silk The ribbon trade was lighter than usual, and as this branch of the industry is a very large user of raw silk when it is active, raw silk dealers were never able to count upon a satisfactory margin. was used about as much as in the year previous in the cotton mills, but much of it in low grades did not sell profitably. Silk velvets held a very large place in trading and showed liberally in the inn porta tions. |