COTTON KNIT GOODS.

GENERAL INTRODUCTION.

1

The knit-goods industry in comparison with weaving is of recent development, its origin dating from the invention of the knitting "frame" in the latter part of the sixteenth century. In the three and a quarter centuries which have since elapsed great strides have been made in the application of the knitting process. The knitted fabrics now produced vary from an extremely elastic type having a stretch several times the original width to a firmly knit texture with little more "give" than a woven cloth; and, from a plain fabric made throughout of one kind of yarn in a plain loop stitch to elaborate designs in color combinations or in stitch formation. A decided advantage of knitting over weaving is that garments can be shaped entirely on the knitting machine. This is of special importance where the material used is expensive and the elimination of material waste offsets greater labor cost, or where the garment made is so simple that its completion on the knitting machine requires less labor than would cutting and sewing, as, for example, the seamless stocking. In general, knitted fabrics can be produced at less cost than woven fabrics of similar material, because the rate of production is greater.

The value of knit goods produced in the United States increased from $95,833,692 in 1899 to $713,140,000 in 1919, and the number of establishments from 1,006 to 2,050. The increased use of cotton yarn in the knit-goods industry is shown in the table below:

Table 1.—Cotton yarn used in the knit-goods industry in the United States.

The industry has developed faster than the above figures indicate, because finer and finer counts of yarn are being made up into hosiery, underwear, and other knitted articles. Hence, the pounds of yarn consumed are not an exact index of the quantity of goods produced. The yarns used have improved in finish as well as in fineness. In 1914 only 15,672,427 pounds of mercerized yarn were consumed, compared with 30,519,234 pounds in 1919. A little over one-fourth of

1 Dept. of Com. Misc. Series, No. 31, p. 173. Chamberlain and Quilter: Knitted Fabrics. Metcalf: Knitting.

the total yarn used was made in the knitting mills and less than 1 per cent was imported in 1914. Investigation showed that the bulk of the yarns imported for the use of the knit-goods industry in 1914 ranged from 50s to 99s.2

Cotton knit goods include knit fabric in the piece and all types of knit articles-hosiery, underwear, gloves, sweaters, bathing suits, towels, and fancy specialties; the bulk of the output, however, consists of hosiery and underwear, the value of which in 1919, totaled $297,184,505.

Although there are considerable quantities of knit cotton fabric in the piece, the Census Bureau does not record its production separately from knit fabric of other materials. Knit cotton gloves were recorded separately only in 1919. The production of hosiery and underwear knit of cotton is more important than that of silk or wool, and, in fact, is almost equivalent to the combined output of the two. According to the census, in 1899 cotton hosiery and cotton knit underwear combined represented 52.49 per cent of the value of the total output of the knit-goods industry in this country; in 1904 they amounted to 57.43 per cent; and in 1909, to 57.77 per cent. During the five years 1909 to 1914 the use of silk hosiery became so much more general that the recorded production of cotton knit goods declined in 1914 to 49.57 per cent of the total output of the knitting industry. The proportion was further reduced to 41.67 per cent in 1919. This was the result partly of an actual decrease in the quantity of cotton hosiery, but principally of the phenomenal growth of the outerwear industry, which uses more wool and silk than cotton. The great demand in the domestic market accounts for the large production in this country, as the share of the United States in export trade is normally very small.

The following table of international trade in cotton knit goods in 1913 shows the principal countries of export prior to the war, and the most important markets. Similar statistics are not available for a post-war year:

TABLE 2.-International trade in cotton knit goods.

[Calendar year 1913, except where noted.]

a Year ended Mar. 13, 1912. The figures include knit goods of all kinds.

6 Year ended Mar. 31, 1913.

• Figures include knit goods of various fibers other than cotton.

d Year ended June 30, 1913.

2 Tariff Information Series, No. 12.

The predominance of Germany in pre-war export trade in cotton knit goods is very evident from the above table. This position was entirely lost during the war, and to what extent it has been regained can only be judged from trade reports and the partial trade statistics that are available. It is said that the output of the German hosiery mills is about 60 to 80 per cent of the 1913 production." Exports of cotton hosiery and underwear have apparently not reached the prewar level, as 15,013,400 kilos were exported in the calendar year 1913 and 5,815,300 kilos in the year ended April, 1922. The fact that 2,471,200 kilos, or more than one-third the total of the post-war year, were shipped in the four months January to April, 1922, might indicate that exports are on the increase, although it is pointed out by American consular agents that German manufacturers are not likely to retain any decided advantage over their foreign competitors.

5

France, although far exceeded by Germany in the magnitude of her foreign trade in cotton knit goods, was second in 1913. Unlike other countries, France was too much involved in the war to be able to profit to any extent by Germany's enforced withdrawal from outside markets. French mills were, no doubt, kept busy supplying hosiery and underwear for the French armies. The total quantity of cotton knit goods exported from France amounted to 1,884,500 kilos in 1913, and to 1,900,800 kilos in 1921.

During the war when Germany was blockaded, the countries that were able to increase their production made every effort to supply the markets that had been users of German goods. The Japanese were quick to seize this opportunity, and enlarged their knit-goods industry as rapidly as possible, importing all the equipment they could obtain. Their goods were sold at so low a price that they were at first able to place enormous orders, but because of their limited knowledge of foreign requirements, their goods did not meet with great favor, and after the war Japanese exports fell off in volume.

British knit-goods manufacturers, who had hitherto been interested primarily in woolen goods, turned their attention to cotton. Their pre-war exports, in comparison with the exports of Germany, were insignificant, and in fact were much smaller than imports into Great Britain, which accounted for over one-third of the German foreign trade in knit goods in 1913. The value of cotton knit goods exported from Great Britain in 1920 was about four times that exported in 1913, the greatest increase being in hosiery.

6

The growth of the American export trade in cotton knit goods was more extraordinary than that of any other country, increasing from a

3 Consul T. B. Hogg, Berlin, Daily News Record, June 24, 1922..

• 1 kilo-2.2046 pounds.

6 Commerce Reports, July 17, 1922, p. 161.

6 Official German trade statistics.

26546-23—1—6———2

value of $2,613,806 in 1913 to $54,458,062 in the calendar year 1920. The following table shows the markets in some detail:

TABLE 3.-Knit cotton wearing apparel-Domestic exports.

Exports have always been scattered over a wide field. More than 100 markets therefor are listed in the Commerce and Navigation Reports. The great expansion in the export trade during the war represented not so much the acquisition of new markets as increased trade where some trade already existed. A considerable proportion of it was with Great Britain and in some years probably included large "war orders." The greatest total exports, however, were in 1920. In 1921 the value was less than one-fifth that in 1920. This was still much above the pre-war average value and, even allowing for increased prices, was probably larger in volume.

American exports of cotton knit goods increased relatively more than did production during the same period, notwithstanding diminished imports. The domestic market shows an increasing tendency toward the use of silk, which explains the surplus of cotton knit goods for export during a period of general prosperity and high wages.

Imports, which consist principally of hosiery, have never been a large part of the domestic consumption. The largest total value

of cotton knit goods imported in any one year since 1891 was $9,032,574, in 1908. This was less than 8 per cent of the 1909 production of cotton hosiery and underwear. Imports of cotton knit goods average about 10 per cent of total imports of cotton manufactures, and the average equivalent ad valorem rates on cotton knit goods have always been considerably higher than on total dutiable cotton manufactures; under the acts of 1897 and 1909 the rates were frequently even higher than the rates for laces and embroideries. Judging from the small proportion of imports, previous tariff rates have been a more or less effective barrier to foreign trade in cotton knit goods as a whole. Table 4 gives the total imports of cotton knit goods and the percentage received from each country. This shows clearly the predominance of German goods in the imports, and the rise and decline of Japanese trade in the 5-year period, 1917-1921. The total value of imports for 1921 was not far below that of 1914, the only pre-war year which included all cotton gloves," but as the unit value of gloves, an important item, was over twice that of 1914, the volume of goods received was not as great.

TABLE 4.-Total imports of cotton knit goods and the percentage received from the prin· cipal countries 1891 to 1922.

☛ 1914 and after, women's cotton gloves included.

45.7 per cent from Canada, probably transshipments of Japanese goods.

7 See Table 4 below.