It was estimated in 1905 that the world's output of cotton was 19,000,000 bales, of which 13¾ millions were produced in the United States, 3 millions in India, and nearly 1¼ millions in Egypt, Japan and China being India's best customers for the raw article. At the same time the total number of spindles employed in working up the world's raw cotton was 116 millions, of which 48 millions were in the United Kingdom, 24 millions in the United States, and a little over 5 millions in India. There were 203 cotton mills in India, employing a daily average of 196,369 persons. The Bombay Presidency possessed 70% of the mills and much the same percentage of spindles and looms. The industry dates from 1851, when the first mill was started. But though India has special advantages in home-grown cotton and cheap labour, the labour is so inefficient as to make competition with Europe difficult. It is calculated that an Indian power-loom weaver working 72 hours a week can turn out 70 lb. of cloth, while a European working 54 hours can turn out 468 lb., and that one Lancashire weaver can do the work of six Indian power-loom weavers and nine hand-loom weavers. While these figures hold good, India cannot be a serious competitor with Europe in the cotton industry. _Jute._--Next to cotton, jute is the most important and prosperous of Indian manufactures. With the advance of commerce it is more and more required for its best-known use, as sacking for produce. Australia and Argentina need it for wool and wheat, Chili and Brazil for nitrates and coffee, Asiatic countries for rice, and the world as a whole for its increased output of produce. The supply has not kept pace with the demand, and the consequence was a steady appreciation in price from 1901 onwards. The cultivation of jute is confined, to a comparatively restricted area, more than three-fourths of the total acreage being in eastern Bengal and Assam, while nearly the whole of the remaining fourth is in Bengal. In 1907, however, experiments were made towards growing it in other parts of India. In Behar it has begun to replace indigo, and some success was achieved in Orissa, Assam and Madras; but jute is a very exhausting crop, and requires to be planted in lands fertilized with silt or else with manure. About half the total crop is exported, and the remainder used in the jute mills centred round Calcutta, which supply cloth and bags for the grain export trade. The number of jute mills in 1904 was 38, employing 124,000 hands, and since then the number has tended constantly upwards. The export of jute in 1905-1906 was 14,480,000 cwt. with a value of £12,350,000.