Russia, destined—so wrote economists—to remain an agricultural territory, has rapidly developed into a manufacturing country. She orders hardly anything from England, and very little from Germany.
Economists hold the customs responsible for these facts, and yet cottons manufactured in Russia are sold at the same price as in London. Capital taking no cognizance of fatherlands, German and English capitalists, accompanied by engineers and foremen of their own nationalities, have introduced in Russia and in Poland manufactories whose goods compete in excellence with the best from England. If customs were abolished tomorrow, manufacture would only gain by it. Not long ago the British manufacturers delivered another hard blow to the import of cloth and woolens from the West. They set up in southern and middle Russia immense wool factories, stocked with the most perfect machinery from Bradford, and already now Russia imports only the highest sorts of cloth and woolen fabrics from England, France and Austria. The remainder is fabricated at home, both in factories and as domestic industries.
The main industries not only move eastward, they are spreading also to the southern peninsulas. The Turin Exhibition of 1884 already demonstrated the progress made in Italian manufactured produce; and, let us not make any mistake about it, the mutual hatred of the French and Italian middle classes has no other origin than their industrial rivalry. Spain is also becoming an industrial country; while in the East, Bohemia has suddenly sprung into importance as a new centre of manufactures, provided with perfected machinery and applying the best scientific methods.
We might also mention Hungary’s rapid progress in the main industries, but let us rather take Brazil as an example. Economists sentenced Brazil to cultivate cotton forever, to export it in its raw state, and to receive cotton-cloth from Europe in exchange. In fact, forty years ago Brazil had only nine wretched little cotton factories with 385 spindles. Today there are 160 cotton-mills, possessing 1,500,000 spindles and 50,000 looms, which throw 500,000,000 yards of textiles on the market annually.
Even Mexico is now very successful in manufacturing cotton-cloth, instead of importing it from Europe. As to the United States they have quite freed themselves from European tutelage, and have triumphantly developed their manufacturing powers to an enormous extent.
But it was India which gave the most striking proof against the specialization of national industry.
We all know the theory: the great European nations need colonies, for colonies send raw material—cotton fibre, unwashed wool, spices, etc., to the motherland. And the motherland, under pretense of sending them manufactured wares, gets rid of her damaged stuffs, her machine scrap-iron and everything which she no longer has any use for. It costs her little or nothing, and none the less the articles are sold at exorbitant prices.
Such was the theory—such was the practice for a long time. In London and Manchester fortunes were made, while India was being ruined. In the India Museum in London unheard of riches, collected in Calcutta and Bombay by English merchants, are to be seen.
But other English merchants and capitalists conceived the very simple idea that it would be more expedient to exploit the natives of India by making cotton-cloth in India itself, than to import from twenty to 24,000,000 pounds’ worth of goods annually.
At first a series of experiments ended in failure. Indian weavers—artists and experts in their own craft—could not inure themselves to factory life; the machinery sent from Liverpool was bad; the climate had to be taken into account; and merchants had to adapt themselves to new conditions, now fully mastered, before British India could become the menacing rival of the Motherland she is today.
She now possesses more than 200 cotton-mills which employ about 230,000 workmen, and contain more than 6,000,000 spindles and 80,000 looms, and 40 jute-mills, with 400,000 spindles. She exports annually to China, to the Dutch Indies, and to Africa, nearly 8,000,000 pounds’ worth of the same white cotton-cloth, said to be England’s specialty. And while English workmen are often unemployed and in great want, Indian women weave cotton by machinery, for the Far East at wages of sixpence a day. In short, the intelligent manufacturers are fully aware that the day is not far off when they will not know what to do with the “factory hands” who formerly wove cotton-cloth for export from England. Besides which it is becoming more and more evident that India will no import a single ton of iron from England. The initial difficulties in using the coal and the iron-ore obtained in India have been overcome; and foundries, rivalling those in England, have been built on the shores of the Indian Ocean.
Colonies competing with the motherland in its production of manufactured goods, such is the factor which will regulate economy in the twentieth century.
And why should India not manufacture? What should be the hindrance? Capital?—But capital goes wherever there are men, poor enough to be exploited. Knowledge? But knowledge recognizes no national barriers. Technical skill of the worker?—No. Are, then, Hindu workmen inferior to the hundreds of thousands of boys and girls, not eighteen years old, at present working in the English textile factories?
II
After having glanced at national industries it would be very interesting to turn to some special branches.
Let us take silk, for example, an eminently French produce in the first half of the nineteenth century. We all know how Lyons became the emporium of the silk trade. At first raw silk was gathered in southern France, till little by little they ordered it from Italy, from Spain, from Austria, from the Caucasus, and from Japan, for the manufacture of their silk fabrics. In 1875, out of 5,000,000 kilos of raw silk converted into stuffs in the vicinity of Lyons, there were only 400,000 kilos of French silk. But if Lyons manufactured imported silk, why should not Switzerland, Germany, Russia, do as much? Consequently, silk-weaving began to develop in the villages round Zurich. Bâle became a great centre of the silk trade.
