Cotton Mills
Cotton manufacturing in China， according to modern methods，did not begin until comparatively recently.
China is a great cotton producing country， and this can be easilyunderstood when we consider that the clothes worn by the people arefor the most part made of cotton cloth. As a rule， only the rich wearsilk， and China has rightly been called “the land of the blue （cotton）
gown.“ It has been estimated that the annual consumption of cottoncloth is worth about ＄1，000，000，000， and that four-fifths of theamount used is produced by the Chinese themselves and manufacturedby the hand loom.
It was in 188 9 that Li Hung-chang undertook the erection ofa modern cotton mill， under the name of “Foreign Cloth Factory.”
Unfortunately after three years of careful planning and construction，the mill was destroyed by fire.
The Modern Spinning and Weaving Factory， started at the sametime， was completed in 1890.
Sheng Hsuan-hwai （Sheng Kung Pao） realized the importance ofintroducing machinery for the manufacture of cotton， and undertookto organize a joint stock company with a capital of Tls. 800，000.
Only one-third of the amount was ever paid up， but the balance wasarranged for by other means， and a mill was erected in 1894 with65，000 spindles and 600 looms， and was called the Hwa Shen CottonMill.
After the Sino-Japanese War， by the Treaty of Shimonoseki， asalready stated， foreigners obtained the this led to increased activityin the erection of mills. Firms like Jardine， Matheson and company，Ilbert and company， and Arnhold， Karberg and company， which wereoriginally dealers in piece goods and cotton yarn， immediately took upcotton manufacturing enterprises， and cotton mills under the namesof Ewo， Laou Kung Mow， and Shui Kee were built along the northernbank of the Whangpoo.
In a short time the Japanese followed suit and before longsurpassed the British in the number of mills erected.
Shanghai at the present time has 58 cotton spinning and weavingmills， with 1，865，344 spindles.
Some of the factors that have led to the establishment anddevelopment of the cotton manufacturing industry in Shanghai are asfollows： （1） It is surrounded by a prosperous cotton growing sectionof the country， and the cotton can be easily transported to Shanghai.
（2） There is a great demand for cotton goods throughout China， andShanghai is the principal distributing cent for Central and NorthChina. （3） Shanghai has an abundant supply of both Chinese andJapanese coal. （4 ） Shanghai has better financial facilities than any othercity in China. （5） Shanghai has a good supply of labour and has trainedup a number of hands who have become experts. （6） It has a cheapsupply of electricity.
Importation of MachineryOf course the erection of mills resulted in increased demandfor machinery， and the Customs statistics show a gradual ascent forthis import. Inasmuch as the modern cotton spinning and weavingindustry started in the British Empire， where cotton machinery wasfirst invented， it was natural that British machinery should be used inthe beginning.
Recently， however， with the return of American-trained students，there is a growing demand for American machinery.
Flour Mills