Nathan Meyer Rothschild was buying Manchester goods at Frankfort for transmission to more easterly markets. Some quarrel with a Manchester merchant led him to think that he could make better use of his capital by settling in Manchester himself. His father supplied him with £20,000, and he arrived to take part in an almost feverish expansion of the industry. He found there were three separate profits to be made in the manufacture: one upon the supply of the raw material, one upon the manufacturing, and one upon the dyeing and spinning. His capital and organising ability enabled him to combine all three. In half-a-dozen years he had turned his £20,000 to £60,000, and then, obeying the instinct of his race and following the signs of the times, he withdrew his capital to banking and became one of the leading figures in the London money market.[23] [Footnote 23: _Memoirs of Sir T. F. Buxton_, ed. by his son, 288-289.] Enough has been written--perhaps too much--by way of introduction to the new and valuable chapters which the researches of Mr. Daniels have added to the history of the Lancashire cotton industry--enough if I have succeeded in indicating the historical background of the industry and the world-wide character of the development--too much if I have anticipated here and there some of the more important conclusions that Mr. Daniels has drawn from his investigations. G. UNWIN. THE EARLY ENGLISH COTTON INDUSTRY CHAPTER I THE DEVELOPMENT OF A COTTON MANUFACTURE I At the present time the British cotton industry, which is almost entirely localised in Lancashire and in the adjoining parts of Cheshire and Yorkshire, is the largest of the world’s textile industries.[24] The year 1770, immediately after Arkwright obtained his first patent, marks a well-defined division in its history. From this date expansion became conspicuous and the industry became definitely organised on the lines of the factory system. Previously expansion had been comparatively slow, and the domestic system of organisation had prevailed. The expansion of the cotton industry, therefore, is an outstanding example of the transition which is now known as the Industrial Revolution--a movement which, it is not too much to say, found its centre within the area in which the cotton industry is now concentrated, and from thence has spread to all the economically advanced countries of the world. In the following pages we shall be mainly concerned with the earlier period and with some aspects of the transition, and it is hoped that some light will be thrown upon the question as to what the transition involved, particularly as regards the organisation of the cotton industry, and the economic relationships of the classes engaged therein.