THE DEPRESSION IN COTTON TEXTILES, 1923-1940

270 Pages·012.089 MB·English

by  DONALD, GORDON, JR

THE UNIVERSITY OF CHICAGO
D ate June 4_____________ 1 9 ^
Donald, Gordon, Jr.________________________ September 4r 1917
Author Birth Date
The Depression in Cotton Textiles, 1924 to 1940
Title of Dissertation
_______ Economics________________Ph.D._________________June, 1951______
Department or School Degree Convocation
Permission is herewith granted to the University of Chicago to make copies of the above title, at its
discretion, upon the request of individuals or institutions and at their expense.
T(d7
Lf I'Ll ( b I ____ Z (p gf _____
Date filmed Number of pages Signature of author
Extensive Quotation or Further Reproduction of This Material by Persons or
Agencies Other than the University of Chicago May Not Be Made without the Express
Permission of the Author.
Short T itle:
There page mm-
Irre g u la r num bering [~1 is no Oversized sheets U ]
bercd 145.
\ By cash gj
/ By thesis deposit Q
Date billed_________________________________ —
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
THE UNIVERSITY OF CHICAGO
THE DEPRESSION IN COTTON TEXTILES
1924 TO 1940
A DISSERTATION SUBMITTED TO
THE FACULTY OF THE DIVISION OF THE SOCIAL SCIENCES
IN CANDIDACY FOR THE DEGREE OF
DOCTOR OF PHILOSOPHY
DEPARTMENT OF ECONOMICS
BY
GORDON DONALD
CHICAGO, ILLINOIS
JUNE, 1951
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
TABLE OP CONTENTS
Page
LIST OP TABLES........................................ iv
LIST OF CHARTS........................................ vi
PART I. INTRODUCTION
Chapter
I. SUMMARY...................................... 2
II. HISTORICAL SURVEY OP THE COTTON INDUSTRY IN
THE UNITED STATES........................... 12
General Characteristics
Expansion: 1790 to 1920
Movement to the South
III. MARKET STRUCTURE ............................ 42
Nature of the Product
Raw Cotton and Yarn Markets
Grey Goods Market
Markets for Finished Textiles
PART II. THE TEXTILE DEPRESSION
IV. BUSINESS CONDITIONS .......................... 73
V. SHIFTS IN DEMAND AND OUTPUT................. 87
VI. METHODS OP PRODUCTION....................... 102
VII. W A G E S ........................................ 124
VIII. SYNTHESIS.................................... 169
IX. DIAGNOSIS AND PROGNOSIS..................... 189
PART III. SOME PROBLEMS IN INTERPRETATION
INTRODUCTION ................................. 202
X. UNIONISM AND REGIONAL WAGE DIFFERENCES . . . 204
ii
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
TABLE OP COMTENTS— Continued
Chapter Page
XI. MARGINAL PRODUCTIVITY........................ 224
XII. COMPETITION..................................... 247
BIBLIOGRAPHY ........................................... 258
APPENDIX ......................................... 263
ill
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
LIST OF TABLES
Table Page
1. Growth of the American Cotton Industry I83I-I92O . . 17
2. Increase in Size of Average Establishment........ 18
3. Changes in the Utilization of Resources.......... 18
4. National Origin of New England Cotton Mill
Operatives, Percentage Distribution in 1900 . . . . 24
5. Turnover Rates in the Cotton Industry, New England
and the Southern States........................... 35
6. Percentage of Men, Woman, and Children Working in
Cotton Mills in New England and the S o u t h........ 36
7. Legal Maxima for Weekly Hours in the Cotton
Manufacturing States ............................... 3?
8. Percentage of Cotton Mill Workers in New England
and the South Who Were Native Born, Native Parentage,
and Negro. Percentage of Negroes in Laborers* Jobs. 39
9. Estimated Consumption of Cotton in Clothing,
Household, and Industrial Uses..................... 46
10. Percentage of Total Output of Broad Woven Goods in
Square Yards Falling within Certain Grey Goods
Categories.......................................... 4-7
11. Consumption of Raw Cotton in the Production of
Apparel, Household Goods, and Industrial Uses in
19*39 (giving detailed subcategories)............... 47
12. Distribution of Sales of Cotton Manufactures by
Type of Market, 1939 ............................... 58
13. Distribution of Looms by Product, 1937 ............ 60
14. Distribution of Consumer* s Dollar Spent on Cotton
and Household Goods, 1939 • ..................... 71
15. Cash and Stock Dividends for 60 Cotton Mills,
North and S o u t h .................................... 76
iv
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Table Page
16. Percentage Distribution of All Reporting Cotton
Textile Companies by Percentage of Profit or
Loss Realized on S a l e s ............................. 78
17. Total Cost of Cotton Print Cloth in 21 Mills at
7 Six-Month Intervals, March 1931 to March 1935 . . . 80
18. Investment in the Cotton Industry 1919 to 194o . . . 82
19. Fiber Consumption in the United States ............ 98
20. Cotton Goods Available for Domestic Consumption,
Pounds Per Capita, Averages for Five-Year Periods . . 100
21. Estimated Annual Expenditures for Cotton Goods by
Non-Relief Families for the Year 1935-36 101
22. Average Hours of Operation Per Year Per Active
Spindle.......... 102
23. Number of Cotton Mills Having Multlple-Shift
Operations in April 193? > Sample of 244 Mills . . . . 103
24. Changes in Average Output per Man-Hour in the
Cotton Industry in New England and the South . . . . 121
25. Percentage of Total Workers Employed in Two
Jobs, by Region...................................... 142
26. Variability in the Rates Paid for Selected Jobs
in Cotton Mills within Given Geographical Areas . . . 147
27. War-Time and Post-War Output, Prices, Employment,
and Earnings in Cotton Textiles.................... 194
28. Wholesale Prices of All Commodities, and Average
Hourly Earnings in All Manufacturing .............. 195
29. War-Time and Post-War Changes in Productive Capacity
and in Productivity in Cotton Textiles . . . . . . . 196
v
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
LIST OF CHARTS
Chart Page
1. Cotton Spindles, Active and Inactive, by Regions,
1840 to 1947 . ................................... ... . 25
2. Diagram of Processes and Products of the Cotton
Industry........................................ 43
3. Products of the Cotton Industry................. 44
4. Distribution of Income In the Cotton Industry
1919-38.......................................... 74
3. Price Movements in Cotton, Cotton Goods, All
Textiles, and All Wholesale Markets, 1913 to 1947 . . 88
6. Product of the Cotton Industry and Total Consumers'
Outlay, Real and Money Values, 1919-40 . ........ 92
7. Percentages of Total Cotton Consumption Going to
Classified Uses....................... 93
8. Composition of Output of the Cotton Industry in
Percentages of Total Square Yards ................... 97
9. Production Indexes, Cotton Goods ................... 108
10. Input-Output Ratios .................................. 110
11. Cotton Consumption per Spindle-Hour and per Man-Hour. 113
12. Frequency of Job Assignments for Loomflxers, Battery
Hands, and Weavers in a Group of New England Mills. . 120
13. Earnings and Productivity of Labor in Cotton
Textiles and in All Manufacturing............... 126
14. Earnings and Average Value Product of Labor
in the Cotton Industry......................... 129
15. Average Hourly Earnings in Cotton Textiles and in
All Manufacturing; Unit Labor Cost in All Manufacturing
and Wholesale Prices of All Commodities ............. 130
16. Differentials in Average Hourly Earnings in 6
Representative Jobs Resulting from 5 Factors . . . . 134
vi
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Chart Page
17. North-South Comparison of Average Hourly
Earnings in Classified Jobs, 1946 ................... 135
18. Average Hourly Earnings, North-South Comparison
Broken Down by Method of Payment and Unionization . . 137
19. Average Hourly Earnings for Selected Jobs in
16 Labor Market Areas ............................... 139
20. Assignments of Duties to Categories of Workers in
the Weave Room, 4l New England M i l l s ............... 144
21. Weighted Mill Averages of Hourly Earnings;
Differences between Actual Averages and Averages
if Fall River Contract Rates Were Paid, February
1 9 4 2 ................................................ 152
22. Rates Paid in 4 New England Mills for Selected Jobs . 154
23* Wage Ratios. South-North, in 5 Industries
1890 to 1944 156
24. Average Hourly Earnings in Massachusetts and South
Carolina, Selected Jobs, 1890 to 1946 ............... 159
25. Average Daily Earnings in Massachusetts,
19th Century........................................ 161
26. Differentials in the North 1840 to 1946 ............ I63
27. Differentials in the South, I89O to 1946 164
28. Distribution of Average Hourly Earnings in the
North and South (Before and After N.R.A.) .......... 166
29. Effects of Government Regulation on Earnings in
the Cotton Industry, 1938 to 194?.................. 167
30. Print Cloth Prices, Cotton Prices, Mill Margins,
Cotton Production, and Unit Labor Costs 1923-38 . . . 171
31. Mill Margins, and Employment 1923-38.............. 174
32. Relatives of Mill Margins and Employment for
Selected Periods .................................... 180
33. Indexes Relating to the Cotton Industry, 1919-40 . . 182
34. Total Value Data, Cotton Goods Industry . .......... 187
vii
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
PART I
INTRODUCTION
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
CHAPTER I
SUMMARY
The subject of this study Is the American cotton manufac­
turing industry between 1924 and 1940, s. period dominated by
depressed conditions. The causes for these conditions are, of
course, complex, but one cause may be described as having more
than ordinary importance and interest. This cause is the competi­
tive nature of the industry, a condition which became accentuated
during the years in question. Reasons for the competitiveness of
this industry include both its general characteristics and others
which are peculiar to the time and place under consideration.
In Chapter II a historical survey is presented from which
certain conclusions may be taken. Textile manufacturing, of which
cotton manufacturing is the most important subdivision, has shown
itself to be the first major industry to appear in most of the
agricultural areas that were destined to become industrialized,
which indicates that cotton mills in established centers may be
vulnerable to the competition from mills in relatively undeveloped
areas (unless the former are selling in a protected market) to a
greater extent than would be true of most industries. The unde­
veloped area will probably be handicapped by a shortage of capital
and will certainly be dependent on inexperienced labor, but these
hindrances can often be overcome by low wage levels when conditions
are favorable.
2
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.