The New South: A Chronicle of Social and Industrial EvolutionThompson, Holland
History
The New South: A Chronicle of Social and Industrial Evolution
Thompson, Holland
Southern States -- Economic conditions; Southern States -- History -- 1865-1951; Southern States -- Social conditions
It seemed as though nearly every mill was profitable, and the occasional
failures did not seriously check the movement, which developed about
1900 almost into a craze in some parts of the South. In these sections
every town talked of building one mill or more. The machine shops of the
North, which had been cold or at least indifferent to Southern
development, woke up, as Southern mills began to double or triple their
equipment out of their profits. Agents were sent to the South to
encourage the building of new mills, and to give advice and aid in
planning them. The new mill-owners were good customers. They had learned
wisdom by the mistakes of the pioneers, and they demanded the best
machinery with all the latest devices. Long credit was now freely
offered by Northern manufacturers of machinery, and some of them even
subscribed for stock--to be paid, of course, in machinery.
The Northern textile manufacturers also woke up. They found that in
coarse yarns the Southern mills were successfully competing with their
products. Some pessimistic representatives of the industry in the North
prophesied that the Southern mills would soon control the market. Some
New England mills built branch mills in the South; some turned to the
finer yarns; and some sought to throw obstacles in the way of their
competitors. It has been freely charged by many Southerners that New
England manufacturers bore the expense of labor organizers in an
unsuccessful attempt to unionize the Southern mill operatives. It has
also been charged that the propaganda for legislation restricting the
hours of labor and the age of operatives in Southern mills was financed
to some extent by New England manufacturers, and that the writers of the
many lurid accounts purporting to describe conditions in Southern mills
received pay from the same source.
The system of paying for stock on the instalment plan permitted the
construction of many mills for which capital could not have been raised
otherwise and had also certain distinct social consequences. According
to this plan, the subscriptions to the stock were made payable in weekly
instalments of 50 cents or $1.00 a share, thus requiring approximately
two or four years to complete payment. Those having money in hand might
pay in full, less six per cent discount for the average time. Since
almost or quite a year was usually necessary to build the mill and the
necessary tenements for the hands, the instalments more than paid this
item of expense. The weekly receipts and the payments in full were kept
in a local bank, which also expected future business and was therefore
likely to be liberal when credit was demanded. Often the officers and
directors of the bank were also personally interested in the new
enterprise. The machinery manufacturers gave long credit and often took
stock in the mill. Commission houses which sold yarns and cloth also
took stock with the expectation of controlling the marketing of the
product.
Public-domain text, read in full here on John Shaqi.
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