Dundee Trade and Industry

Dundee's Jute and Flax Trade 1911

In gathering up and bringing under notice the features that have commanded chief attention in the staple trade during the course of the year, the fact stands out that the crop of these is significantly large.

Even the discriminating pen finds more than it wants, which would repay study. Outstanding and notable in many ways though the year has been, it must be classed among, the least profitable experienced by the jute trade in recent times. That individual cases occurred of money being made upon a par with good years is true, but, taking results as a whole into account, 1911 has to be stigmatised as a period of slackness, unsatisfactory business, and hard-earned returns. The exceptions to this were mainly to be found among the merchant section who speculated in the raw material or manufactured article, and came out time and again clearing hand­some profits from the rise or fall. There were a few who rashly speculated and lost, but the fluctuations were so unvarying as to provide a gain eventually, both as sometimes happened to him who sold for a fall and to him who bought for a rise on the same day, and kept their heads.

The other division of traders who leave speculation alone have been able to show favourable if not enriching balance-sheets. Firms with machinery behind them have too often found it a burden, and had to try various expedients to keep it going. To do this to advantage was, as a rule, a task of an impossible kind, and resolved itself into a cutting down of production to prevent an inevitable congestion in the stock-room.

The number of mills that have been kept fully employed throughout the year has been very limited, indeed, and could be more than counted on the fingers of one hand. To refer to extensions is, therefore, unnecessary unless to state that an order for looms has not been unknown, and slight additions to machinery in spinning mills were also carried Out.

Absence of Business and Idle Machinery.

The firms who own the mills and factories and work them have found the year the reverse of prosperous. It has enclosed within its folds seasons of the most abject depression, as well as times of wonderful recovery.

Every description of manufacture has had its snatches of profit-making and its months of profitless working. Never in its history has the jute industry had such a spell of downright absence of business, with so much idle machinery and consequent idleness or intermittent work­ing for those employed. This affords the best possible proof that the spinning and manufacturing of jute has been a record of loss for the most of the year. There were six or eight firms who in July of last year and immediately succeeding months laid up in store material carrying them through the season and even longer, and they thus scored, and were able to give steady employment to their complement of workers. In compiling a record of the past it would be pleasant to dwell upon this the only put-and-out favourable part of the subject. By the vast majority of consumers the chance of buying jute at a low point was missed, and all through the year regrets have obtruded, and em­ployment has been lost on this account. Occasions, rare though they might be, were not wanting when they were able in some measure to minimise their loss arid restart a proportion of the stopped machinery. On the other hand, it is to be feared that several spinners in­vested in jute at a dear time, and had to suffer accordingly. Trying as the year has been for all concerned, there can be no doubt that the spinner has borne the severest brunt of it, and deserves most of all a turn of better times. Being obliged to buy his jute months ahead, a speculative element is introduced, and this means risk for which he is not always compensated.

Warehouses Blocked with Cloth.

Manufacturers were frequently in straits as to buying yarn and selling cloth and the steady and—as the days and months passed without relief—the appalling enlargement of stocks of woven goods did not lighten their task. To stop their factories meant the dispersal of weavers, and trouble or discomfiture in getting them back. About the middle of August warehouses were becoming blocked, and it often took days to get out a parcel of cloth that had been sold, and delay and confusion were arising from this cause when a whisper was heard that an inquiry had set in from the Plate. As the manner of its coming had an im­portant bearing upon the course of business for the rest of the year, it is necessary to indicate the route by which this splendid opportunity for Dundee proceeded. The carry-over of hessians and hessian bags from the former to the present season because of the failure of the maize crop was much in excess of the usual, and this was the primary reason of the Plate importer of hessians resting on his oars. Then the Calcutta mills began to run short of orders, and the Plate people seeing this, were more confirmed than ever in the holding-off policy. The question began to be asked here, whether the Plate folk hadforgotten to buy the balance of their supplies. Freight had been engaged in the steamers sailing at the wonted dates from Calcutta, and they had either to be withdrawn, or destinations, such as West and East Coasts of Month America, linked together. Meantime the wheat sowings in the Argentine Republic had leapt up enormously, and had suffered scarcely at all from adverse climatic conditions or locusts, and it was soon apparent that the harvest was to be immense, and that the ordinary additions to the existing stocks of bags in the Plate would not nearly meet the case.

The Argentine Gives Relief.

The inquiry, which began in a small way in the month of August, developed with little short of lightning speed. Then contract followed upon contract, until by the middle of September literally millions of Dundee-made bags had been secured. And the purchasing was not confined to local manufacture, but Calcutta's were brought into requisition. As time went on, and the demand increased, all the available 10 oz. 40 in. hessians, amounting to scores of thou­sands of cuts, were swept out of stock; then 9½ oz. were taken, also 9 oz. and 10½ oz., until in the end not a cut was to be had. Looms were in a short time producing all possible up to the middle of November, then up to the end of that month, then up to the 14th of December, then in part up to the end of the month. After that, what the Plate did not buy other markets made application for, and for the last four months of the year manufacturers have had their looms that were in motion fully em­ployed, and they have been enabled to start additional plant, and give work where it was much needed. It is a curious and interesting fact that in the great majority of cases, after the long cessation of working, the identical workers returned to their own machines. The bulk of the bags bought by the Plate were 22½ by 40 in., from 10 oz. 40 in. cloth costing from 3 l-32d to 3 7-48d per bag. In this connection it may be well to mention that it was expected that the import duty of 10-11 per cent upon bags entering Buenos Aires would be expunged on and after the 1st of January next, but the Government has decided to make no alteration.

Calcutta's Share.

And, after all, Dundee only got a small share of the Plate orders for these bags. Hessians were also sold to that market by Dundee and Calcutta till its sewing capacity was strained to the very utmost, and following Buenos Aires soon Calcutta and Dundee were in a like state of haying their entire production taken up till the last day of shipment for the Argentine season. The public sewing establishments and calenders were unable to undertake all the work, and had to call in the aid of private firms, and so the great bulk of the quantity called for was forthcoming. Before the buying season had begun in Calcutta mills had been stopped, and the weekly working hours reduced, and arrangements made whereby 80 to 85 per cent had leagued together to run four days weekly from the 1st September till the 31st December. Long before the beginning of the year stocks had been swelling there as well as here, until they had got quite unmanageable, and it became evident that a drastic measure was imperative if widespread disaster was to be prevented. To the infinite credit of Calcutta it took the bull by the horns, and there is every sign, after the four months' treatment, that the recovery of the trade that was sick almost, beyond recall is in process. Too long the Plate had left over the purchase of the bags or hessian required for the conveyance of their mighty prospective wheat crop, and had to pay Dundee sweetly to make up their number. But, after all, Calcutta gave them about ten times as many as Dundee, but, through the instrumentality of Calcutta, the hessian trade has been saved, if not from catastrophe, at all events from such a mess as only something like a miracle could avert. For it must be remembered dear jute had been bought and we were bung full of manufactured stuff, and where had been our outlet had Calcutta not come to the rescue? So the trade has been relieved of its every yard of hessian stock, the Plate has been perhaps more than satisfied, and happily it stands thus with Cal­cutta that business has taken a more active turn there, demand is good and increasing every day. Buying of San Francisco cental bags is proceeding with alacrity, and within the next couple of months all will require to be shipped. New York is securing light hessians heavily, and the result of the four days³ working is telling with force. The new Seebpore Mill, with about 500 looms, has been started with a single shift, and is running six days per week. The old Seebpore Mill is being repaired with a view to opening again, and the Lower Hooghly is to be started at once. The mills that are presently working four days weekly, unless intimation is given to the contrary, will revert to five days weekly working immediately after the holidays, and will continue this system till the 1st of July 1912, when the new Factory Act comes into operation.

Financial Soundness of the Trade

Once more the financial soundness of our trade has had to -undergo a severe test. It has had to contend with high-priced raw material and a demand which for two-thirds of the year was of the most lethargic description. In spite of this only two failures occurred-within the immediate circle. One was^: an old-established firm of spinners and manufacturers and the other a spinning firm of shorter duration. Two mills and a factory were thrown upon the market by these suspensions, and already one of the mills and the factory have been sold and are in work. Clepington Mill has not yet found a purchaser, but it is a well-arranged place and may have better luck later on. With these exceptions the trade has passed through the year without a scratch, which speaks volumes for its substantiality and cautiousness. The amount of machinery that stood con­tinuously un-worked alone would have taxed the strength of any trade.

Jute Crop Forecasts.

The manner in which the fore­casts are now issued deprives any given day as outstanding in the concentration of excited interest which it used to command. Formerly, given dates in July and September were great in the jute crop calendar, but for the last few years a change has been inaugurated, and the details are distri­buted throughout jutedom as soon as they are got ready and authenticated, or put through what has to serve for this process. The Director of Agriculture this year paid a visit to Dundee as a result of representations made by the Chamber of Commerce bearing upon the plan which had hitherto been in vogue in issuing the district returns to the local division of the trade, whereby all the information intended for the jute world had not reached its confines. As a result of interviews here and else­where a new method was adopted, by which the district officer's figures are submitted to the trade after painstaking efforts have been employed to have them in correct shape. This plan is now upon its trial, and it would be premature to criticise it in any respect. That the work has been as carefully done as is possible with the machinery at command there is no reason to doubt. The anxiety of the Director to have the trade satisfied is fully acknowledged by all concerned. The date fixed for the official intimation of the acreage estimate was the 12th of July, but some days previously everything that could be known was known. The total area given was 3,015,700 acres, and to this had to be added the outlying districts. The final forecast, due on the 21st of September, but in like manner anticipated, estimated the sowings to include ,3,106,400 acres, which, at a yield of, say 88⅓ per cent, of 3 bales per acre, produces a result of 8,234,700 bales. An addition of 100,000 bales for outlying districts; and Madras makes up a crop of 8,334,700 bales.

Probable Consumption.

The next point in order is how this estimate of supply to the trade stands in relation to the necessities. The Indian mills—based on working five days in July-August, 80-85 per cent, of mills four days September-December and five days January-June—3,800,000 bales; Indian local, 500,000 bales; Continent (taken at 5 per cent, under normal), 9,280,000 bales; United Kingdom (taken at 10 per cent, under normal), 1,125,000 bales and America, 550,000 bales, come to 8,255,000 bales, or a surplus of 79,700 bales. As a margin this would be alarmingly small, but the expectation is that India will be kinder to the trade than the estimate would indicate.

End-of-Season Shortage in Dundee.

Prior to the first arrivals of new crop in the end of September the jute stores were never nearer being exhausted, and the reason is not far to seek, for the receipts at Dundee for the previous season were only 903,466 bales, or about a third less than a comfortable supply, even with something short of the normal consumption under way. The shortage was most pronounced in good first marks and ordinary quality. Rejections were at a ransom. The inconvenience was, of course very much ameliorated by the dullness of trade and the great number of spinning frames out of use. After the fresh season's jute began to arrive the signs of relief were soon apparent, and now the deficiency has to a considerable degree been made up. An idea of this will he formed when it is stated that up to date by direct steamer 700,000 bales have arrived, compared with 408,920 bales within the same period last year. There are in sight over 900,000 bales in all, and after this time last season nearly 250,000 bales were loaded for Dundee, so the likelihood is that last season's quantity will be solidly exceeded. The entries are main­taining their lead, not only over last year, but over the year before, so that the Continent of Europe is having its stores replenished, no doubt, upon a footing similar to Dundee. Several of the Continental countries were better off than Dundee, having bought when local spinners were letting jute alone. Ger­many had 853,184 bales in 1910-1911, against 846,669 bales in 1909-1910; France had 356,588 bales, against. 405,273; Austria, 223,564 bales, against 205,085; Italy, 205.716 bales, against. 207,616; Spain, 74,087 bales, against 118,422; and other countries, 99,735 bales, against 82,527.

Scarcity of Fine Jute.

Both last season and in the one now current there has been a strange lack of fine jute, and the question is being more and more asked whether the quality is permanently deteriorating. The available crop of the finest jute might almost be put in a hand barrow, so little is there of it, and although one or two steps down the ladder are taken the fine jute, such as green D grade, is not by any means what it was. t seems to be improving a trifle as the season grows older. The private first marks undoubtedly aim at keeping up the standard, and, it may be said, invariably succeed. Such native firsts as circle Bullub, circle Chunder, and DS diamond have a reputation to maintain, and are seldom or never found wanting in this respect in fact, Bullub is becoming a name to conjure with. It is a pity the native balers who are not satisfactory in their performances, and try to hit as near the allowance margin as possible or to escape a heavy allowance by mere luck in the state of the bales set down for arbitration, do not learn the lesson from Bullub or other ap­proved house, and stop this serious ex­pense involved in arbitration. Not only that, but some of the marks are on the high road to being tabooed, and a warn­ing should be taken ere it is too late. Some of these native first marks have deteriorated 30s to 40s per ton since the season commenced; and some of the lower qualities are unsatisfactory, Heart SCC, for example. This grade was a good deal in request for a while, because it was thought that the crop was to be specially productive of com­mon jute of decent quality. It is now feared that this will not be the case, and agents are regretting having sold so many, and consumers are experiencing failure on the part of shippers to tender the mark sold, er, as happens some­times, any single suitable mark. This looks like a mess if it does not turn out actually to be one. Rejections have found their way into the Heart SCC grade this year, and much of it is hard and unworkable enough without the trials of the spinners being increased in this fashion. There is no complaint of the want of red circle SCC. An abundance is forthcoming, and the quality and condition are about right. Neither can any objection be taken to the Daisee crop. The excellence of the jute cannot be impugned. It is long and strong and of good spinning quality as a rule, but it has one fault, which ia that it absorbs too well and retains the moisture, with consequences that are disastrous whenever this nefarious wetting process is attempted. Several parcels nave arrived in a shocking condition, and everything up to 28.9 per cent, of an allowance has been granted. Arbitrations have come thick and fast this season, and where there is so much poor quality as the 1911-1912 crop is yielding there appears to be no limit to the number. And it so often happens that, though the spinner gets an allow­ance, say, of 16s 3d per ton, the jute is useless for his purpose, and he has to sell his " allowanced parcel" which has this mark of opprobrium upon it at what it will bring. There have recently been points of interest raised in connection with arbitrations, but there is no space at disposal for entering upon their merits. Suffice it to say that the sooner anything over 5 per cent, of heart-damaged meets the fate of being invoiced back the better.

Ships' Damage.

Ships' damage, contracted through the absence of ventilation or of air spaces in the hold, is the most irritating form of deteriorating of cargo, and just because there is no redress. Why should a Shipping Company be allowed to damage the goods they carry through the non-observance of reasonable precautions? To have half and more of one's jute damaged by three out of a score of ships bears hardship upon the face of it. London contracts are still more in request than Dundee ones, although the expense of having arbitration in London is greater. Including transport expenses, it is 12s 6d per bale apart from the fees, whereas the Dundee charges are about one-fourth out­side of fees. In the case of an umpire being demanded, the Association ap­points now.

High Level of Jute Prices.

It may be broadly said that for six months of the year jute (first marks) were below £21, and for six months above it, so that the level was dis­tinctly high all through. Why this should have been with such miserably adverse trade both in Calcutta and here needs explanation, and it can only be; explained by the simple word—specu­lation. The Marwarris may be the manipulators chiefly pointed at during the year, and it may be all very well to define the style of manipulation in which they indulge as iniquitous, but the other set who speculate in a ring in which the same jute is turned round many times, and is only bought after it has done duty times without number, and has influenced the market probably about as often, contribute their quota in giving a fictitious value to jute. Un­doubtedly speculation made the price of raw material dearer, and kept the whole of jute values upon a platform that was never warranted by the de­mand for yarns and cloth, and the re­sponsibility lay with the speculator by whatever name called. The variations have moved from £18 to £27 6s for first marks, but the buying done at the lowest point was not of much import­ance. The Dundee spinner shirks oper­ating in a falling market. In the clos­ing days of last year first marks wakened up from £18 11s 5d, and by the 12th January were at £20 7s 8d, and from there turned back to £19 17s 6d on the 20th. Then up they went step by step, till £20 10s was passed on the 14th February, and £21 arrived at on the 28th. Then a firm period set in, culminating in £21 15s being paid on the 11th April. Meantime, in the end of March new season's crop had changed hands for the first time at £20. With the middle of April £22 5s came, and remained till a stronger market sent up the price on the 21st to £23 15s. Then £24, £24 5s, and £24 15s were severally made, and still jute went bounding up, the result of a sort of corner. It was thus further carried up till £25 5s was got on the 5th May, £26 5s on the 9th, £26 15s on the 12th, and £27 5s on the 16th. This was the climax for the year. By that time most favourable reports of the growing crop were in circulation, and an early harvest seemed to be likely, so it was borne in upon speculators that it would not do to hold on to jute too long, so realisations were effected, and £26 17s 6d and £26 10s were taken before May ended. And then new first marks were regularly quoted and dealt in, and the influence was conspicuous upon the old season's fibre. On the 6th June August guaranteed was priced at £24 5s, and old for June shipment at £26 5s. In the end of the month they were at £23 and £24 5s respectively, and in the last days of July £20 10s and £20 5s. The middle ofAugust saw them at £18 and £17 12s 6d, the point of greatest depression, if such it could be called, for the twelve months. A recovery succeeds a fall in the cheapest fibre in the world as well as in the dearest that is marketable, and from this deepest depth jute rose steadily, climbing to £19 15s on the 19th September, then to £20 7s 6d and upwards, till it got to £22 10s on the 3d October. Once more downwards it went to £20, up to £20 12s 6d, and back to £20 again, and up to £20 7s 6d on 21st November. Again it fell to £20, and further to £19 5s, and we have it once again costing more at £20, where it may be left to turn the year. There were times and occasions of extensive buying at first marks throughout the year, and especially when the impression grew that standard marks were getting scarce.

Daisee Popularity.

The Daisee quality of jute has increased in popularity immensely. From the accounts emanating from the districts in which it is grown it could not been surmised early in the season that all was well with it, and later the trade was credibly informed of a want of steeping water. There is not much of a symptom of anything de­tracting about the bulk. The most of it is handsome, well-grown jute, and a little of it 12 to 13 feet long. Some say, speaking of part of it, that it is the best Daisee they have yet seen. And the singular truth about it is that it has seldom been upon a par in price with first marks, and so frequently 20s to 30s per ton under them. There are sensible people who keep their eye upon Daisee jute, and when a moment of remarkable dullness comes pounce upon the market and buy middle numbers up, and this has occurred pretty often during the year. At this stage it is made out to be scarce, but such statements have gone forth before about the end of the year, only to be followed in a month or so by the best of the crop, both as regards quantity and quality, coming to hand. One might find Daisee jute amongst the record stock of jute (11¼ lakhs) in the bazaar or in the districts which are not empty yet, but, on the contrary, are credited with systematically keeping back a proportion of their jute. The ryots are wealthy people nowadays, and quite able to mete out small sections of the balance in the effort to have the market sustained. In January Daisee middles were sold at £19 12s 6d, and down to £18 10s; February had them at £19 5s and £20; March, at £20 5s and £20 15s; April. £20 10s to £24; May, £24 5s to £27; June, £24 to £26; July, £22 15s to £24 5s; August, £17 to £19; September, £18 12s 6d to £19 17s 6d; October, £19 5s to £21 12s 6d; November, £18 7s 6d to £19; December, £17 5s to £18 10s, for shipment positions. In proportion to the size of the crop, the purchasing was upon big lines at the various stages. It was deliberately stated over and over again that the crop of under 20 lakhs of bales had been oversold. In the last months there was nothing that reached the ear to signify that any con­tract had been cancelled.

Jute Cuttings.

Offers of cuttings are more liberal in extent in these later times. When the jute arrives here it is found in general to be dean cat, and the difference between the jute in this respect and three or four years ago and more is immense. In most parcels there is not a root to be seen. The Calcutta, mills purchase the jute with the root on, and the amount this season is described as perfectly awful. They, of course, use cuttings, but they are gathering upon their hands at such a rate that they are powerless to absorb the half of them, raw materials has never before been such a potent factor in dominating the market, and it is safe to say that never before has its influence been so unwholesome and execrable. It has by its high price let in the second-hand bag, and made consumers adopt, tactics for staving off buying, and causing all kinds of jute cloth and bags do double duty to an extent, not dreamt of in former days. Comparison of prices at this date and at the same time last year may be made from the following figures, viz. :—

The variation in price of first marks for 1911 was from £17 12s 6d to £27 5s or £9 12s 6d. Last year it was £17 12s 6d; 1909, £3 10s; 1908. £6 12s 6d.

Jute Spinning.

The absence of business in hessian and sacking yarns has been clamant during the most of the year, and yet one of the mills was scarcely stooped when negotiations to arrange a purchase were on foot. A bid was given, it was put up to auction, knocked, down to the bidder, and started at midsummer holiday-time without much ado. That suc­cess has attended the venture no one has cause to doubt, and that the qualities spun are acceptable to the trade and required by it is self-evident. A portion of another mill that has been closed owing to the backwardness of trade begun operating on 30th October, and is also finding work to do. A mill more recently closed, from a different cause, has eyes directed to it, and it, too, may be turned on any day. Such events prove that capitalists consider the jute spinning in Dundee healthy enough to put their money into, and this Is surely gratifying to many whose interests arc bound up in the industry and who were, beginning to be just a trifle uncertain about the future. Every kind of yarn has had a favourable, or comparatively favourable, space of time when the particular description was in request, but perhaps rove yarn has had fewer openings than other kinds. At the present moment it is relatively cheap when placed alongside other kinds, Rio hessian yarns have had the experience of heavy buying at intervals. but those who make them have found it an almost: impossible job to fake their money out of the finest qualify, and therefore they have found it necessary to discourage the lra.de. Hardly has an opportunity been presented of securing jute for this class of yarn, it has in­ variably been so high. Ponderous orders have at intervals been placed for the secondary qualities, but the business has been spasmodic in the main and not wholly satisfactory. Common hessian yarns have had their times and seasons for being sought, but there has n too much of the dragging along and living from day to day, and at intervals running into stocks. At times when large quantities were at stake and the delivery stretched ahead, a price cut deeply under the market was listened to and the order booked. These transactions did not appear to hurt the market very much. They had a smack of absurdity about them, and therefore were disbelieved by those who did not know any better, and it was well that it was so, otherwise the effect might have been worse. The benefit that descended upon the hessian market from August onwards stimulated the sale of cups and spools, and imparted much life to this section of the trade, and now that the end of the year approaches both weft and warp are entirely taken up for a little time forward. After the stoppage of Clepington Mill Dutch weft sprung into notice, because supply and demand were exactly balanced, and it. was not. very obvious how sufficient quantities, especially of the lighter weights of Dutch weft, were to be obtained. As a matter of fact there is a shortage which is becoming more disconcerting to the manufacturers every day, and many would welcome the starting of Clepington to have the production raised and set upon an equality with the demand. That looms should have to be thrown off on this account is exasperating, when there is plenty for them to do.

Course of Yarn Prices.

When the year was entered upon cops cost, 1s 9½ per spindle, and kept steady for a week or two at Is 9d, and fell to 1s 8¾d and 1s 8½d; then they continued at or about 1s 9d till towards the middle of April, when they rose to Is 10d, and afterwards, spurred by jute, to 2s 1 before the month ended. A further rapid climb in May brought them to their acme for 1911, and synchronised with raw material values. Truth to tell, the month of May marked the culmination of all jute prices for the year. To appreciate how seldom this is the case the beautifully accurate and skilfully executed jute diagram compiled and issued by Messrs Joseph J. Barrie & Co. has only to be looked at, when it will be seen at a glance. When-June came cops were at 2s 3¾d, and before the month out 2s 1d was possible. July did not improve matters, and on the openi­ng of Garden Works there was more than a doubt how things would go, and the outlook was anything but propi­tious. Later on the resumption in Logie Works was of less consequence, the operations there being limited to one flat. During August the price became depressed, and dropped to 1s 9d, but in September the influence of a Plate demand for hessians sent the rate up 2d per spindle. Throughout October this figure was beaten by ½d to ¾d, though at the close 1s 11d could be done. Since then from Is 9¾d to Is 10½d has been the range at which business took place, and the week of the carters and dockers strike has helped the spinners to adhere to their quotations. Something better than this was expected, and probably the effect of so many spindles being taken out of the market will deepen. seeing that Forfar and other places had to broach upon any stocks which were acting as a margin.

The market for good medium spools has never ceased to drag, and the penny of a dividing line between cops and them has often "been encroached upon and once or twice well nigh obliterated. At 1s l0d or thereby January was spent, and, if averages be taken, February, March, and the first half of April may be linked with the first month. Thereafter an improved demand was experienced, and the price flew up till, upon the 9th May, 2s 3½d was reached. On the fol­lowing day spools and cops met at 2s 3d, and then the former drew away to their rightful position, arid came to 2s 5d on the 19th of May. No higher alti­tude was attained, and little wonder, as Rio quality could be bought at the iden­tical prices. Spinners were, of course, ready enough to sell, but progress was slower than ever until on 20th June they banged back to 2s 3½d. This as a selling rate was not to be despised, but buyers held aloof, so down they sped till the midsummer holiday, when their cost was 2s 1d. In another three weeks they were down to 1s 10d, where they waited till the third week of September, when they got a-new start, and 1s 10½d, 1s 11¾, and 2s 0½d were paid in rapid succession. The next week they just hit 2s 1d, and fell back ½d, 1d, and 1½d per spindle. Another 1d was knocked off, which brought them very close to the perch they now occupy. Several times in the course of the year mighty stocks could be discovered and negoti­ated at a discount upon the market quotation, and once or twice the knife was used with small regard to mercy. The production is still on the ample side, although the trading conditions are a degree more favourable and some are well sold.

For the first three and a half months of the year sacking yarns kept upon the same level of dullness, never falling be­low 1 15-16d per lb. for 24 lb. weft, nor rising above 2 l-16d. Something in the nature of a spurt drove it up in the middle of April to 2⅛d, and then it had a very good run and soared to 2¾d by the third week of May, which was a marvellous performance, and shows the vivacity in this part of the trade on occasions. The manner in which it has been smitten by Calcutta can be gauged at any time by comparing the 2½ lb., & twilled sacks of that maker with the 3 bushel sack of same weight made here. Of course it was not in the nature of things that sacking weft could remain long at the highest for the year, but it held on at 2½d or 2⅝d till July began. It then took a downward flight, till, on the 2nd August, it was offered at 1 15-16d. After that 2d was made, and in the end of September it rose to 2 3-16d. Since then it has been at 2¼d and 2⅜d, and finishes the year at the latter figure. Dutch weft has usually commanded l-16d to ⅛d per Ib. more, and has since the stoppage of so much machinery adapted for its spinning been in urgent request, and spinners are meantime blocked with orders for months to come. The trade in carpetings has been busy during a great portion of the year, and this has given impetus to every kind of yarns arid twists used in their manu­facture. The latter have had their slack times, and occasional additions to the spinning and twisting power told upon the price. Often, as the result of an exceptional demand, the value bounded up, but on the whole the busi­ness has been fitful and not over lucra­tive.

The course of trade in heavy cloth, such as twilled sacking, bagging, brat­tice, tarpauling twist bagging, pocket­ing, American cotton bagging, and mending bagging, has rarely been satis­factory, and makers have had rather a poor year, with a proportion of their looms at intervals kept standing at a smaller loss than working. Now and again good orders were caught and woven to advantage, but it was not often that this happened. One of these sudden demands which come and wipe out certain fabrics created a flutter re­cently, when every available yard of 6-por. 27 in. 14 oz. twilled sacking and 8-por. 22 in. 14 oz. of Dundee and Cal­cutta make was bought up for potato bags in which to ship the tuber to the United States or elsewhere, but in a few weeks it was over. Ever and anon big orders for twilled sacks, d.w. bags, sacking and bagging, wool packs, grain sacks, salt and nut bags, and the like were booked, but they were insufficient to stretch over the length and breadth of this branch, and it never seemed to be more than two-thirds going. A busier year with lots of substantial contracts is due.

HESSIANS.

At the outset the year did not promise well in the hessian department. A minority entered upon it with contract books fully equipped, but there were far too many needy sellers, and as months advanced the demand had almost frozen up. It was a standing puzzle to the buyers as well as the manufacturers where the trade had vanished to. An intermittent sort of business was to be done, but items of substance were scarce and the competition for them very keen. Looms by the hundred were thrown out of gear! but the evil increased despite every scheme that was tried. The only one that was not tried, and it would have proved the only effective one, was systematic short time. There were mutterings of this, and something a little more definite, too, but they never to anything, so individual methods were resorted to without a particle of result being achieved. The  over-production was, as far as one could see, simply! killing the business. In many cases! the production in factories had been cut down by a fourth, or a third, or half, and no sooner was a sale of a bulky lot of hessians made than part or all were brought into service again. After the lapse of months the stocks had become so enormously unwieldy that many began to take a serious view of the position. What was making it much worse was the running out of orders of the Calcutta mills and the dumping of their surplus hessians here. Besides that, many of the merchant and manufacturing firms in the city bought heavily of Calcutta hessians for shipment to this port, and soon congestion; was heaped upon congestion, and the situation became in the highest degree critical for the holders of the Dundee goods. A series of events that did, nothing to aid the sale of hessians in the home trade, but greatly the contrary, were the fires in so many of the hessian-laden steamers, and the savaged portions of cargoes that found their way to Great Britain—the Kabingu, with 10,000 bales; the Swazi with 10,000 bales; the Politician, with 7000 cuts, &c.

A Turn for the Better,

everything seemed to be occurring to drive the vexed question of excess of output to a sharp issue, and one that should not be set aside, when the Plate, with its vast spoon, put in an appearance, and scooped in the space of three to four months  every  piece made or that could be woven. This was a stroke of luck that would be hard to beat. It is true that it may be asserted that the manufacturers and other holders of the stock of Dundee 9, 9½, 10 and 10½ oz hessians came well out of them, for many were woven in the early part of the year, when the standard basis hovered between 2⅛d and 2 2-12d. Yes, the first quarter, strange to say, never got away from this dead level. April showed better at 2 2-12d to 2 4-12d. May sprang hugely and went from 2 5-12d to 2 8-12d but the transactions over 9½ were not to boast of. A towering figure was reached in June and July, but then new jute dealt here a gentle blow and mid August saw 2 10-48d feasible, September wended her way lower still to 9 3-16d but overseas markets then swept into the mountains of hessians, and carried them away, and the price remained at 2 4-12d or near thereto. So the trade has come out at the end of the day with the cash in hand, but the policy of repeating the experiment has to be carefully weighed. The fine hessian business to a certain extent inaugurated last year has developed mightily and the largest lot ever placed was amongst the big things of 1911.

Effect of Labour Troubles.

A year of unrest and labour troubles the present one has been. Strikes were not general throughput the trade, but here and there in important sections. At Camperdown Jute Works there was a prolonged and therefore, for those immediately concerned, a serious strike. Strikes were weighty at the time and the trade did not feel the inconvenience arising from the diminished supply of jute goods so very much. Perhaps the lop-sided condition of the trade latterly found some advantage in the withdrawal of so great a quantity of yarns and cloth at the special juncture, and was brought into better shape. The strikers in the transport services of the country are now more highly paid for their work, and are on more favourable terms. As a consequence, freights and carriage rates have been, and are being, raised in every direction, so that business is car­ried* on at an increased expense, and further increases are imminent. No one will grudge the outlay should pro fits be made to compensate, but this in the rub. A strike of magnitude in the Lancashire cotton trade is bound to affect Dundee adversely. It takes a heavy lift of hessians alone.

The Decimal System.

A proposal to adopt the decimal system in the jute, yarn, and cloth sections had its first public expression in the issue on the 1st February of a circular setting forth the benefits that would accrue, and calling upon the members to give it their support. The proposal had the imprimatur of the Chamber of Commerce, and the response was hearty and gratifying. Delay has arisen in taking the next step owing to a handsome offer by the Liverpool and London and Globe Insurance Co. of a set of tables, which will attach even more of simplicity to the new departure than it presently possesses. It is now definitely stated that the tables are to be ready in March.

THE FLAX TRADE.

In briefly treating of the flax trade for the year one is at the threshold faced with a couple of prominent fac­tors which acted with qualifying results all through, and rendered it difficult, if not impossible, for two or three sec­tions of the trade to prosecute their businesses with any beyond the most scanty measure of success. The one was the handling of a very indifferent flax crop, and the other was having to battle with an indifferent demand for the low and the fine qualities of linens. There were spinners who could fall back upon an old stock of raw material, and mix the new with the old., but not very many had substantial relief in this way. There were manufacturers, and they were few, who secured a sufficiency of common and fine work to keep their looms in operation all the time. They had the trying experience of want of outlet for their fabrics and protracted delays in getting specifications, and this principally was caused by the lifelessness of the American trade pend­ing a Presidential election and a reduc­tion in the tariff. The bright spot in the trade was the extraordinary demand from our own Government. It hardly ever ceased during the whole course of the year. Probably the extent of support the makers who cater for this class of work had from that source broke the record even in war time. The whole well-known range of require­ments was contracted for in profusion, and this part of the trade shines out as the best and most profitable of all.

Quality of New Crop.

Hardly a good word reached the ear bearing upon the 1910-1911 flax crop, and much of it was past speaking about. A yield of 40 lbs. of line per cwt. was too frequently reported instead of 43 lbs. or more. It will not soon be forgotten by those who could not allude to it without calling it vile or worse, or by those who had to pay sweetly for delivering below standard or in bad con­dition. It sometimes happens when there has been a succession of poor flax harvests that a climax is arrived at, and then a grand crop follows. As far as appearances go, the new crop answers this description. Slanetz qualities in bulk have been inspected and tested, and they are pronounced splendid. Bajetsky takes first place, and its Gospoasky and Otbornoi are simply superb. Ouglitsch comes next, and is a veritable eye-opener for this district, which has so often had the brand of unsatisfactoriness upon it. Kashin follows, which, excellent at first, was afterwards in the balance, but has regained its place behind OuRlitsch. The last of the four in order of merit is Krasnaholm, but all are in a high de­gree meritorious, and the yield of line is very different from last season. The lower kinds are barely as good as the higher on their respective merits. Stepurin, Iwaschkoff, Jaropol, and Syteheffka are impoverished through the picking of the Gospodsky and Ot­bornoi out of them. Samples of Pskow, Narva, Opotzka, and Petchura are hand, and, as far as can be judged, are a great improvement upon last year, Livonian is a first-rate, lovely flax, with grand body, and Pernau shows massiveness of plant and capital fibre. The tows are all very good, so that the trade has in its hands the emblems, not only of an extensive crop, but of what is much more importance, a maximum yield, and, therefore, this part of the foundation necessary for a satisfactory trade for 1912 may be said to be securely laid.

Remedying Abuses.

The bracking of the flax has had the attention of merchants and spinners and, after many preliminaries, a conference was held at Ghent. The Russian Government, recognising the importance of the subject, was represented at the conference. The Arbroath Chamber of Commerce have to be congratulated upon the fact that their recommendations were unanimously adopted. The Russian Government's representative expressed himself strongly that, as urged in Clause 15, it was entirely in the interests of the whole trade that the abuses should cease. The clause runs:- "That, whereas it is in the best and permanent interest of every one engaged in the flax industry, whether grower, merchant, spinner, or manufacturer, that these abuses and dishonesties should cease, it is hoped that ever, one will participate earnestly and actively in the effort to reform and abolish them," &c. The other point dealt with were the establishing of standard brack in each prominent district, the allowing of the actual tare, the proper cleaning of the flax, the stopping of the putting of stuffing in the heads, the stopping of watering the flax, arbitrating (or) on flax £2 per ton below standard, and the sending of copies of the resolutions to the Russian Ministers of Agriculture and Commerce and to the British Consuls in Riga, St Petersburg, Pernau, and Dorpat.

The Spinning Year.

Nothing of surpassing interest occurred in the flax spinning branch of the trade. Happy the spinner who held stocks of old and cheap flax and tow for he made money, and was freed the worry of working up inferior material. There were many who had no such good fortune, as was proved by the quality of flax and tow exported from Russia during the past season, which must have been distributed over the trade. The number of tons was ???, 704, against 213,761 the year before, equal to 16,033 tons more for the season closing 1st October last. Spinners of January-September flax at the high prices ruling during the currency of these months must have had a sorry time of it, for at the dearest interval the price of the yarn was under renumerating point. A spinning and manufacturing firm in Arbroath succumbed, and the works were purchased by a Limited Company. Beyond this no change of moment took place.

Course of Prices.

The raw material department stepped into the year in tame fashion, the market going against the consumer, and the consumer, as long as he could, giving it a wide berth. Rates continued on their exalted pinnacle until towards the date when the new crop was attaining maturity. Then the collapse broke upon the consciousness of the market with a suddenness which was staggering, and some of those most closely in touch with the situation refused to credit the acceptance of some of the earlier prices published. However, their accuracy was soon recognised, and has rattled down, and the discredited left far  behind. Bajetsky, which was the prime mover, dropped £16 from its highest for the season. It would not be edifying to de­tail the series of falls in value that took place, suffice it to say that a lower plane has been arrived at, but whether or not it is the final one it would be rash to prognosticate. Nothing better can come to the linen trade than an opportunity of laying in a store of good and cheap flax and tow. A chance of recouping for bad times would be ac­corded a hearty welcome by a few who have had the worst of the trade in the course of the year. Canvas manufac­turers are not eligible, for they have done well.

The following particulars are noted for purposes of comparison:—

FLAX AND TOW SPOT PRICES

YARNS

CLOTH

From the 1911 Year Book

Transcribed by Iain D. McIntosh

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Iain D. McIntosh, 2022