7(i
a maximum-rate tariff. According to this, tho carriage fromLiverpool to Oldham, up to now just as dear as from Bombay toLiverpool , will bo cheapened at least by one-third (20).
Since tho spinner mostly buys the raw cotton for cash or onshort credit (21) it is to his interest to sell tho yarn in theshortest time. Therefore the time during which the cotton isin the mill is always limited to a short span—oven to only a fewdays. In tho same way, as little cotton as possible is to bo kepton stock. Tho English spinner generally goes every eight daysto Liverpool (22) in order to buy there his weekly wants, just ashe once or twice in the week sells his yarn on the Exchange inManchester. Losses of interest therewith disappear, and theessential working capital is lessened. Only under extraordinarilyfavourable cotton prices does he buy on stock. This develop-ment of the conditions of payment has a further advantage for theEnglish spinner; since the exchange prices for yarn generallyfollow cotton prices, he sull'ers so much loss under the lluctua-tions of the raw-material prices the nearer the buying of tho raw-material and the sale of the yarn approach each other as regardstime.
A necessary condition for this system of production is thoExchange in Manchester, which determines the prices of yarnfor the world (23). The spinner does not need to seek for hiscustomers, but lie can sell his production daily at ’Change prices.The spinners sell partly themselves and partly seek tho aid ofagents. Cash payments on short credit predominate. Theweaver or the exporter are buyers. The agent receives, as themedium for business, a simple commission, in which case ho givesthe spinner the name of tho buyer, and the spinner takes all therisk. The relation is similar if the agent has a fixed salary. Itis, however, more frequent to-day that the agent undertakes “ delcredere,” in wliieli case he bears, for an increased commission, all
20. Compare J. C. Fielden's articles during the Days of the Agitation,in the Manchester Examiner; further. “Co-operative Wholesale Annual”(1889). p. 394.
21. “ Protokolle ” just mentioned, p. 90. The German buyer has, accord-ing to these, to pay cash in ten days at Liverpool; in Holland and Bremen inthree months.
22. This is confirmed as an advantage for the Englishman by the German Examining Commission, p. 30.
23. “ Protokolle der deutschcn Enquete,” pp. 353, 399. (The yarn pricesin Germany follow those in England, plus expenses, freight, and duty.)