The consumption of cotton was nevertheless much greater in the South and amounted to 3,414,000 bales, compared with 2,770,000 bales in the other States.

This difference is explained by the fact that Southern mills generally spin coarser yarn and may therefore easily consume twice or even three times as much cotton as mills of the same number of spindles engaged in spinning finer yarn.

Some Southern mills, however, spin very fine yarn from either Egyptian or sea-island cotton, but time is required to educate a considerable body of operatives competent to do the more delicate tasks, while less skillful workers are able to produce the coarser numbers.
Southern mills have paid high dividends in the past and have also greatly enlarged their plants from their earnings.

They had, years ago, several advantages, some of which persist to the present day.

The cost of the raw material was less where a local supply of cotton could be obtained, since freight charges were saved by purchase in the neighborhood; land and buildings for plant and tenements cost less than in the North; fuel was cheaper; water power was often utilized, though sometimes this saving was offset by the cost of transportation; taxes were lower; the rate of wages was lower; there was little or no restriction of the conditions of employment; and there were comparatively few labor troubles.
With the great growth of the industry, however, some of these early advantages have disappeared.