The Carpet Trade is in several respects a peculiar one. Its principal raw materials, wool, cotton, and jute, are of such outstanding importance to more essential industries, that their supply and their price are conditioned by the latter; so that the Carpet Trade has to accommodate itself to a market which is not controlled to any extent by its own needs. It is not a large industry; but it employs a number of operatives in whom a high degree of technical skill is required in a great variety of branches; and it utilises a considerable quantity of ingenious machinery of many kinds. It is, strictly speaking, a luxury trade. That is to say, it is obvious that it is theoretically more possible to exist in a house with no carpets, than in a house, say, with no tables and chairs, while a floor covering is perhaps less of a necessity than wall-paper or curtains. Of course, as a matter of fact, the line is not drawn sharply between carpets and other articles of furnishing. A person who is furnishing a house, if he can afford curtains can probably afford carpets, though he may, indeed, find his mind divided between his desire to provide his home with a comfort that is almost a necessity, and his hesitation to indulge himself in a comfort that may be regarded as a luxury. Where the practical test of the trade being a luxury trade comes, is in the matter of renewals. It is here that the Carpet Industry is sensitive to the periodical changes in commercial prosperity, which seem to be inherent in modern civilisation. Generally speaking, when trade is bad the Carpet Industry is the first to suffer; and when there is a recovery it is some time before it feels the benefit. It seems that, with the first pinch of adversity, the carpet consumer decides upon a policy of economy that excludes the purchase of carpets, whatever else may or may not be bought. Hence arises a period of depression in the carpet trade, with a decrease of profitable production, and consequent unemployment; and this in the future, in the face of higher wages and more keenly realised responsibilities towards employees, will certainly be an even more serious matter than it has been in the past. The matter of the import of foreign goods has been mentioned in the chapter on Hand-made Carpets; and all that was said therein as regards the unrestricted entrance into the British market of Eastern and Continental productions applies to some extent to their competition with all makes and grades of carpet. The home market for carpets is a large one normally, but it is not capable of indefinite expansion; the consumption has its limits; and if the market is invaded by foreign goods, the consumption and the price of the domestic product will quickly fall with unpleasant if not disastrous results upon the industry.