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Rh radius of about 100 m. Of the remainder a large proportion is scattered over a wide area.

Much interest has been excited by this newly created Lancashire of a new type, and much speculation as to the causes that account for it has been elicited. An informal commission of Lancashire spinners and manufacturers crossed the Atlantic to make inquiries in 1902 and investigations have been undertaken by other persons, and much has been written on the subject. A general explanation can now be framed without much difficulty, as in all probability most of the relevant facts have been brought to light. First and foremost the general development of the cotton industry in the United States must be emphasized. The industry was unquestionably foredoomed to expansion at this time, and the only question was where the expansion should take place. It was plain that the growth might be so great as to present the appearance of a new industry created with new labour rather than an extension of an old industry. It was not altogether surprising, therefore, that the exploitation of a new field of labour was thought of. The labour market of the North was comparatively exhausted; in less developed parts of the country larger supplies of intrinsically good labour might be looked for at lower wages. Skill was not a matter of much moment, because in the North it would have been necessary to incorporate much labour without previous experience in the industry, the work was intended to be of the rough kind upon which manual skill is least important, and it was intended to repose reliance for economy upon machinery in the main. The choice of new fields meant at the outset the sacrifice of some of the economies of localization, but so large an expansion was looked for that projectors did not despair of creating fresh industrial localization of sufficient magnitude to produce such economies as are derived from it, which, it must be observed, are inconsiderable in America, and have declined relatively with falling cost of transport and the adoption, as regards machinery, of the principle of interchangeable parts. And at any rate a new local industry would have a slight advantage in supplying markets in proximity to it.

These were the main general considerations, and the scale was turned in favour of the new locality (a) by the advantage of nearer supplies of cotton, and (b) by the known presence of much half-occupied white labour in the vicinity of otherwise suitable sites close to the cotton-fields. It must be borne in mind that the whole calculation had not to be reared merely upon an intangible theoretical basis. Cotton mills already existed in the South, and comparisons of costs of production, as things were then, afforded some groundwork for judgment.

As regards the first of the two special advantages mentioned above, the saving in the cost of carriage of the raw material is not commonly held to be high. Transport to the cotton ports is so well organized and sea-carriage is so cheap that Lancashire’s distance from the source of her raw material is not a very appreciable handicap. A good deal of the cotton that must be used in some of the Southern mills cannot be supplied locally because it is not grown in the neighbourhood, and the requirements of these mills are met by transport arrangements which at present cost a sum not altogether out of relation to similar costs in the New England States and Lancashire. The percentages of freight charges on raw material in 1900 were $2.18 in Georgia, $1.59 in North Carolina, $1.17 in South Carolina, and the amazingly low figure of $1.20 in Massachusetts, but of course some part of the explanation is the somewhat higher quality of cotton on an average that is worked up in Massachusetts. For some years, however, the saving in labour has been a most important economy. Large supplies of half-occupied white labour existed in the Southern States among the families of small farmers who flocked South after the Civil War, and in the districts of the decayed hand industry in the mountains of Kentucky and North Carolina. For small money wages much of this labour could be attracted to the mills. Negroes do not work in the mills; the reason is said to be partly their own disinclination and partly that they are not very efficient at factory work. As outside labourers, however, they have afforded important aid at a very trifling cost, but the expense of outside labour to a mill is never an item of much weight. The halcyon days to employers, when keen workers could be had for low wages, are now said to be past. The demand for labour was considerable, and as time went on additional supplies could be enticed only with the offer of better pay. In 1904 it was reported that some mills were unable to get fully to work for want of hands even at the improved rates. Again the Southern operatives have been visited by emissaries from the operatives of the New England States, which explains partly the present aspect of the wages question. Mr Pidgin, in his official report to the Massachusetts Bureau of Labour Statistics, questions whether a saving in wages can be expected to continue, and points out that though wages have been low the average efficiency of the operatives has not been high. Some, indeed, were sent to gain experience in Northern mills in the hopes that on their return they would spread the tradition of working at high pressure. Mr Pidgin is at some pains to measure labour efficiency in the South and North as far as it is possible to do so, but no simple sets of figures will prove very much. The value of the product per operative in 1900 was $1200 in Massachusetts, $1010 in Georgia, $937 in North Carolina and $984 in South Carolina, but the value of the product per operative depends as much upon the fixed capital charge per operative as upon the latter’s efficiency. And the amount of machinery used per head is higher in the South than in the North. The percentage of operatives to machinery in Massachusetts being expressed as 100, that of Georgia was 53, that of North Carolina 43 and that of South Carolina 55 in 1900. These figures must be borne in mind when the average numbers employed in a mill in different States are being considered: in 1900 the averages were 565 for Massachusetts, 273 for Georgia, 171 for North Carolina and 378 for South Carolina. Measured by quantity of machinery the sizes of mills would stand in quite different relations. Hours of work in the South are bound to fall and the abuse of child labour, which had unquestionably crept in, may be expected to discontinue entirely. The factory conditions of children are better now than they were, but in some places they are still very bad. In Georgia no children under twelve are employed, but infants without fathers may begin work at ten years of age, and according to Mr Pidgin’s report, “it certainly seemed as though the intention was honoured more in the breach than in the observance, or that there must be many widows in the neighbourhood of the cotton mills.” In North and South Carolina the employment of children under twelve is illegal, but in these States also conditions are recognized under which it is possible to employ them earlier. According to figures relating to 1900 the dependence on child labour in the Southern States is very striking. The proportions engaged at different ages in the three chief cotton-manufacturing Southern States and Massachusetts are as follows:

It might be said that children are more useful when the work is rough, but this argument can hardly be regarded as accounting altogether for the great discrepancy as between Massachusetts and the South. The work is much rougher in the South: in 1900 the counts spun respectively in Massachusetts, Georgia, North Carolina and South Carolina were 25.10, 14.37, 18.83, and 19.04, and on the showing of the American census of 1900 spinning was getting finer over the last decade of the 19th century.

As contributory to the influences already recorded as accounting for Southern success it has been hinted that in the North employers have been less ready to welcome the new machinery, though in comparison with European rivals they would seem at