A. An increase of 41/2d. per lb. would be equivalent to rather more than 50% on the present price of raw cotton, and I am informed that the corresponding increase in the price of cotton goods would be approximately 12% even assuming that inflation of margins is avoided at all stages. Increases of this order, applied suddenly to a wide and important range of goods, would be comparatively severe; and the length of the period during which the gap between issue price and actual cost has been allowed to remain and to grow wider must accentuate the effect of such changes.