Part 2

It has taken the continental cotton industry a long time to grow from small beginnings to its present importance. The never lacking competition has brought about a great improvement in the quality and variety of the articles produced. It is astounding to compare the raw material in the fields, with the finished articles in the windows of some lady's outfitting shop. It requires many diligent hands and high class technical guidance, to transfer Nature's present of raw cotton into the manifold articles, which the people, nowadays, require and desire.

The variety of these articles is countless: cloth, as fine as a spider's web, and coarse fustian, here finest batiste, and there, strong drill for overalls. Each finished article requires its own particular raw material, low qualities cannot produce fine goods, and it is also impossible to utilise high qualities for low grade goods. The very arbitrary law for economic production, makes it a duty for every spinner to select just that quality of cotton, which is most suitable for his purpose, and it is the task of commerce to adapt the offers and deliveries to the requirements of the consumer.

THE OLD TIME.

In the year 186.., in the old narrow office, father and son met, the latter, a newly made partner. He had been, according to ancient custom, a volunteer for several years in London, where he had been well received amongst English families. But it was with strange feelings that he entered his father's office for the first time after many years of absence.

His horizon had widened, while here, little or nothing was changed. The old office furniture, which had done good service for generations, was the same, as no merchant ever thought of altering anything for merely a greater personal comfort, but the old fashioned standup desks and the well worn leather seats of the high office stools, did not look as inviting as of old. His memory had mellowed and idealized their appearance. Of course, the influence of the mother was not permitted in the sacred precincts of the office, even most of the cleaning was done by the youngest apprentice. But from the grey walls looked down proudly, the models of the sailing vessels which carried their houseflag to distant shores. During the long hours of a voyage, they had been fashioned by captains or clever sailors, and were a constant reminder of deeds nobly done.

Here is the "Anne Marie", a tea clipper of graceful lines, like a swallow, which made the journey from China to London in 80 days, and had earned, besides a good freight, a high premium for bringing the first tea of the new crop to the epicures in London. There is the "Katharina", much heavier in build, she took 180 days to fetch wet sugar and hemp from Manilla. One may wonder, whether captain and crew ever thought of the enjoyments of life, while they ploughed the sea for 6 months. Yonder, in the full light from the window is the "Nordstern", a whaler, and underneath a picture of the crew. These wild and rough fellows took their lives in their hands, on the perilous journey from Honolulu to the Polar Seas. They had no regular wages, but shared in the profits from the sale of the oil and whalebone. Their hard earned money, however, was mostly dissipated in San Francisco, during a few days of riotous jubilation.

After some desultory talking, the son carefully broached the following subject: "There is the "Augusta" ready in port to sail for Baltimore, to bring a cargo of tobacco. Pity, that the heavy Kentucky barrels fill only half the freight room and leave so much space empty. I think, father, we ought to fill it up with light goods, principally with cotton."

"Cotton, my dear boy! I fancy, you must be dreaming of the old firm of B. & F. You remember, F. told his agent, in the West Indies, to add to the cargo of Asphalt and cocoanuts, 200 bales of cotton. His bad handwriting led to the mistake that 2000 bales were shipped, the moment they were afloat, the Southern Ports were blockaded, which caused an unprecedented rise in the price of cotton, so that the last of the 2000 bales were sold at "one Thaler" per pound (equal then to three marks)."

"I do not think, father, that such luck is likely to repeat itself, but the fact remains, that we have room empty, which easily might carry freight, besides, I hear, that there is an increasing demand for cotton, as several new cotton mills are being started in Germany."

"Yes, that is all very well, but think of the enormous risk of the cotton trade. The fluctuations in prices are fabulous, recently, they have been going down and down. My friend W. has been holding cotton for 3 years and has never seen his price back yet. A loss he will not take, he declares 'that he will hold that cotton till he is black in the face.'"

"That is a wrong policy, W. ought to have sold the cotton long ago, replaced the same by a lower priced purchase, this would have saved him charges and loss of interest, and would have cheapened his original purchase."

"This is a new method of doing business, we--old Bremen people--stick firmly to an enterprise, until the success is secured. That is the old Hanseatic spirit."

"One might almost call it stubbornness, the present time requires quick thinking and turning."

"All right, but from whom will you take the money which is required by this modern way of doing business? The local money-broker has no spare cash for it."

"No, father, but I can assure you, that in London people are not adverse to assist the legitimate trade, and besides, several of the great London Bankers come from this neighbourhood and are very well disposed towards Bremen."

* * * * *

The "Augusta" brought, besides her cargo of tobacco, 1038 bales of cotton, quite a big quantity for that time.

QUESTIONS OF LAW IN THE PAST.

According to the Universal German Commercial Law, and later, according to the Civil Code of Law, the buyer has the right to cancel the contract, or to demand a reduction in price, if the goods delivered do not equal the quality guaranteed.

Experts had to decide, whether the quality tendered was up to the guarantee.--These experts were appointed by the law, in accordance with the proposals of the parties concerned. The cotton trade followed, in olden days, this same procedure, but the weak point, was the verdict of the experts, because there were no experts in Germany outside Bremen, and no party could forecast the likely result of the verdict. A far worse consequence of the Law Conditions was for the cotton trade, the fact, that the law made no difference, whether the goods differed much or little from the stipulated quality. In both cases, the buyer had the right to place the goods at the disposal of the seller. The result of this, was most damaging to the Trade, sometimes, the sellers had the worst of it, sometimes the buyers. A few examples taken from actual experience will best explain this:

Extracts from business letters of past years.

We have received to-day your 100 bales of cotton, but find the quality not up to our expectations. You have to deliver us middlingfair, but the cotton is hardly goodmiddling. We cannot use the cotton, as it is unsuitable for our hosiery yarns. We place the 100 bales at your disposal.

* * * * *

We insist upon your taking delivery of the 100 bales. The quality is perfectly correct, you can ask any expert in Bremen about it.

* * * * *

We have nothing to do with your Bremen Experts, if need be, our local experts will decide. We have no doubt that you know the law on this point. The fact remains, that we place the 100 bales at your disposal.

* * * * *

Your intention to place the 100 bales at our disposal is caused, no doubt, by the fall in prices. We know very well that if it comes to law, experts will decide, who know nothing about it, moreover, the verdict will only be given after many months. This is unbearable; what allowances do you want?