Table 18 compares the shipments of American yarn into the principal purchasing countries in 1913 and in 1918, and indicates what proportion of the total yarn import requirements of each country was supplied by the United States. It is assumed that the 1913 figures there given represent approximately the normal volume of annual importations.

TABLE 18.-Markets for American cotton yarn.

[Source: Official annual trade returns of the various countries, and export records of United States, supple. mented by estimates where necessary, as indicated.]

1 Weight as shown by Argentine imports: values not shown here because official, not actual. Import records not available; total represents combined exports to Uruguay from principal countries. Minimum estimate; see text.

7 Import requirements estimated; see text.

Weight estimated from value assuming approximate price of 25 cents for average grade of yarn exported.

It will be observed that the only market in which American yarns were of any importance prior to the war, was that of the neighboring country of Canada, and that yarn shipments from the United States made up 25 per cent of the total yarn imports into that country.

Largely because of the high prices asked for British yarns, in 1918 American spinners supplied over 80 per cent of the import requirements of the Canadian mills.

In the Rio Plata territory, where in 1913 American yarns made up only 4 per cent of the total imports, by 1918 they supplied between 50 and 60 per cent of the normal import requirements of the local weaving and knitting mills. A smaller yet substantial hold had been secured in the markets of Chile and Colombia, American yarns supplying about one-quarter of the total normal imports. An appreciable share of the Cuban imports and a smaller percentage of the Brazilian and Australian needs were in 1918 supplied by American mills, though the total quantities were not considerable. Again it appears that American spun yarns secured no measurable hold in any markets outside the Americas, even during the period when European competition was severely curtailed.

REQUIREMENTS OF PRINCIPAL MARKETS AND CHARACTER OF EXPORTS.

To judge more closely of the nature of the newly expanded export trade, an inquiry was instituted among the principal concerns to whom licenses were granted by the War Trade Board for the export of cotton yarn during the six months of July to December, 1918. Information was ascertained as to the character of the yarn shipped to each country, the purposes for which intended, how put up and packed, and the outlook for the retention of the trade when normal competitive conditions are restored. The results of this inquiry, correlated with information from other sources as to the import requirements of the various markets, are here briefly analyzed.

Canada.-Trade with Canada is in many respects not unlike domestic business, inasmuch as the same language, units of value, methods of shipment, and even identical credit terms obtain between merchants across the border as within the United States.

Canada is still essentially an importer of cotton goods, the growing domestic manufacture not yet being equal to the demands of the Canadian market, and the mills confine themselves largely to cloths of coarse and medium grades, low-priced hosiery, and the like. The production of cotton cloth is concentrated in the hands of a few large concerns, that spin not only the bulk of the yarns required for their weaving department, but also a surplus of low-count yarns for sale. The yarn import requirements of Canada are therefore chiefly for the knitting mills, for use in the manufacture of hosiery and underwear; small quantities are imported for use in weaving, in braiding, and in thread making.

Fine yarns over 40s constitute the larger part of the imports. These are admitted free of duty and are spun only in small amounts by the domestic mills. A total of two to three million pounds of

fine yarns has been imported annually into Canada in recent years, of which American spinners supplied from 20 to 25 per cent, and Great Britain most of the balance. Fine yarns-i. e. over 40s-regularly constituted over half in value of the annual yarn shipments from the United States to Canada. During the later years of the war the larger part of this trade was supplied by the United States. During the 10 months dating from March, 1918, imports of fine yarns into Canada amounted to 1,904,026 pounds, of which 1,350,412 pounds (valued at $1,631,795) originated in the United States.

The principal fine counts imported from the United States in the latter half of 1918 were 40s, 50s, and 60s 2-ply mercerized yarns, partly carded, but mainly combed Peeler, for use in the knitting mills. Smaller quantities of fine yarns were imported from American spinners by the Canadian thread-making plants, branches established by the British thread combine to supply a portion of the Dominion demands locally. These were mainly 40s to 60s, 3 and 4 ply gray combed yarns of Egyptian or sea-island cotton. It is notable that the largest part of the fine yarns shipped into Canada from the United States were mercerized.

Coarse and medium yarns-that is, of counts under 40s-pay a general duty of 25 per cent ad valorem when imported from the United States and a preferential rate of 17 per cent when of British manufacture. The requirements of this class of yarns-described in the import statistics as "knitting, hosiery, or other yarns"—have been increasing with the expansion of knitted-wear manufacture in Canada in recent years; the total annual imports increased from half a million pounds during the fiscal year 1912 to over two million pounds in 1917. Despite the handicap of a higher import duty than on British yarns, American spinners regularly supplied about half of the Canadian imports of knitting yarns of counts under 40s. During the war years, the largest part of this growing trade was supplied by the United States, the records for 1917 showing 1,700,000 pounds or fully 80 per cent of the total imports as of American origin. This may be accounted for in part by the factor of proximity and consequently the quick deliveries possible from the New England spinning mills to the Canadian knitting mills, most of which are located in the southeastern Provinces of Ontario, Quebec, and New Brunswick, adjacent to the United States.

An increasing share of the small quantity of polished or glazed yarn imported for use in the manufacture of shoe laces is also being supplied from the United States. These, as well as the fine yarns, are admitted into Canada free of duty. Shipments of American polished yarns range from 16s to 40s, single and 2-ply, mainly the latter, and

1 A small quantity of the coarse yarns imported was used in the weaving of cotton duck."

are usually of carded upland cotton, and more often dyed as well as glazed.

Argentina and Uruguay.-Argentina and the adjacent republic of Uruguay, together forming what is known as the Rio Plata, or River Plate, territory, constitute the largest South American market for cotton yarn. Imports in 1913, the last normal year prior to the war, amounted to approximately 15,000,000 pounds, valued at $6,000,000. About two-thirds of the total was imported in the gray, Great Britain supplying the largest share. Italy, Germany, Belgium, and the United States normally shipped smaller quantities.

Cotton spinning has not thus far been successfully carried on in Argentina, except in a small way, and in Uruguay not at all. The yarn imported goes to supply the local weaving and knitting mills. The knitting mills have been particularly successful, are now considerable in number, and have come to supply a large part of the domestic market, particularly on knit underwear. The duties on cotton yarn imported into Argentina, which takes 14,000,000 of the 15,000,000 pounds normally imported into the Rio Plata region—are quite low. Although ad valorem in form (5 per cent), since the valuations are fixed by official decree they have the effect of a specific duty of about a cent a pound irrespective of fineness. The import duties into Uruguay, the lesser market, are considerably higher.

Prior to the war American yarn formed an inconsiderable part of the total amount imported into the Rio Plata territory-less than 5 per cent the value of yarn shipments to Argentina averaging $102,000 during the years 1904-1908 and $129,000 during the fiveyear period 1909-1913. Practically nothing was sent to Uruguay.

With the curtailment of European shipments during the war, orders for needed supplies were necessarily directed to American houses, with the result that the average annual shipments during the five years 1914-1918 rose to $1,749,000 (Argentina $1,632,000, Uruguay $117,000). The largest shipments were made during the fiscal year 1918, when 7,786,000 pounds of cotton yarn, valued at $3, 469,000, were exported from the United States to Argentina, and 609,000 pounds, valued at $269,000, to Uruguay. As seen from Table 18, imports of American-spun yarns into the Rio Plata countries supplied from 50 to 60 per cent of the total import requirements as judged by the last normal year, 1913.

The yarns shipped to Argentina and Uruguay by American houses during 1918 were chiefly for two purposes:

(a) Knitting yarns.-The yarns for this purpose were 7s to 30s carded yarns, mostly singles, of soft twist, for hosiery and underwear; more often gray, though some was bleached or dyed; chiefly of middling to good middling American cotton. While shipments were reported

of fine knitting yarns-40s, 50s, 60s, and up to 80s, single and 2ply, of Peeler cotton, including "mock Egyptian"-most of the yarn was of numbers 8, 10, 12, 15, 20, 24, and 30 gray carded singles of upland cotton. Very little combed or mercerized yarn is reported. (b) Weaving yarns.—The yarns for weaving were of coarser count, mainly 7s to 20s, 2 and 3 ply warp twist. The largest part of the yarn was carded and imported in the gray, no combed yarns being reported and only small quantities dyed, with logwood or sulphur black. The yarns were mostly of middling to good middling American uplands, only a small quantity being described as of Peeler cotton. The principal numbers for weaving were 7/3, 8/2, 8/3, 8/4, 8/5, 10/2, 10/3, 12/2, 12/3, 14/2, 15/3, 16/2, and 20/2. Only a slight amount was finer than 20s, and those were 30/2 and 40/2.

These yarns are used partly in the weaving of coarse cloths-ducks and drills-but chiefly in the making of alpargatas, a canvas-top shoe with a jute sole used largely by Argentine laborers in country districts. One firm, which shipped over a million pounds of yarn to the River Plata region in 1918, reported that in buying this American yarn it was acting as agent for British firms that own large factories in Buenos Aires and Montevideo for the manufacture of alpargatas.1

Chile. Chile has in the last three years become the second largest South American buyer of cotton yarn from the United States. Local conditions are not reported favorable to an extensive domestic industry and prior to the war the cotton goods required by Chileans were largely imported from Great Britain, Germany, and Italy. Imports of cotton yarn are confined to the requirements of the few weaving and knitting mills making undershirts, gray goods, and coarse flannels.

The volume of annual yarn imports into Chile fluctuates, and in the last normal year prior to the war totaled 5,450,000 pounds, valued at $1,355,000. Germany, Italy, Belgium, and Great Britain were the chief sources of yarn imports. The largest weaving mill in Chile is owned by Belgians and the largest knitting mill by Italians, who naturally prefer to import from their home countries. American yarn shipments to Chile prior to the war were slight, averaging only $20,000 a year during 1909-1913, or less than 1 per cent of the total Chilean imports. The six months credit demanded by buyers was said to be one of the chief obstacles to a larger American trade.

1 Advice is received during writing of a modern cotton-spinning factory being started in Buenos Aires under the name of Compañia Hilanderia Argentina, to manufacture 2 and 3 ply yarns, average size 10s, using ring spinning machinery. The commercial attaché at Buenos Aires reports, under date of Jan. 29, 1919, that the full equipment for this factory has been shipped from the United States and that this is the first time that American cotton-spinning machinery will have been brought into Argentina. The capacity of the plant is planned for only 1,000 kilos a day, however, and the total annual output of some 600,000 pounds would supply only a small part of the total yarn requirements of the local mills.