The Upper Priory Cotton Mill, opened in Birmingham, England in the summer of 1741, was the world's first mechanised cotton-spinning factory or cotton mill. Established by Lewis Paul and John Wyatt in a former warehouse in the Upper Priory, near Paul's house in Old Square, it was the first of the Paul-Wyatt cotton mills that used the roller spinning machinery that they had developed and that had been patented by Paul in 1738, that for the first time enabled the spinning of cotton "without the aid of human fingers". Wyatt had realised that this machinery would enable several machines to be powered from a single source of power: foreseeing the development of the factory system, he envisaged "a kind of mill, with wheels turned either by horses, water or wind."
Finance for the Upper Priory enterprise came from Paul himself; from Thomas Warren, the Birmingham bookseller and newspaper publisher; Edward Cave, London-based publisher of The Gentleman's Magazine; and Robert James, a notable physician and inventor of a well-known "fever powder". The latter three were friends of the author and lexicographer Samuel Johnson, who had lived in Birmingham during the 1730s and whose family had been connected to that of Wyatt in Lichfield, and Johnson may have been responsible for introducing them to Paul.
The mill consisted of fifty spindles, turned by "two asses walking around an axis" and was tended initially by ten women. Contemporary observers make it clear that the machine was fundamentally effective, and hopes for the venture were initially very high. James wrote to Warren in July 1740: "Yesterday we went to see Mr. Paul's machine, which gave us all entire satisfaction both in regard to the carding and spinning. You have nothing to do but to get a purchaser for your grant; the sight of the thing is demonstration enough. I am certain that if Paul could begin with £10,000 he must or at least might get more money in twenty years than the City of London is worth." By 1743, however, the Upper Priory Mill was almost derelict.