person who is not looking with the eye of the American, who can
therefore not understand the true ethical meaning of American culture,
its earnest looking forward into the future. If the incomplete past no
longer met the American’s eye in all its poverty and ugliness and
smallness, he would have lost the mainspring of his life. That which is
complete does not interest him, while that which he can still work on
wholly fascinates and absorbs him. It is true here, as in every
department of American life, that superficial polish would be only an
imitation of success; friction and that which is æsthetically
disorganized, but for this very reason ethically valuable, give to his
life its significance and to his industry its incomparable progress.
CHAPTER TWELVE
_The Economic Rise_
_Introite, nam et hic dii sunt_—here, too, the gods are on their throne.
The exploiting of the country, the opening of the mines, the building of
factories and railroads, trade and barter, are not in question here as
the mere means of livelihood, but as a spontaneous and creative labour,
which is undertaken specifically in the interests of progress. In this
confession of faith we have found the significance of American
industrial life, in the spirit of self-initiative its greatest strength.
Only such men as desire to take part in the economic era of creation, to
meet their neighbours openly and trustingly and to rely on their spoken
word, in short, to believe in the intrinsic worth of industry—only such
men can weave the wonderful fabric of New World industry. A race of men
carrying on commerce merely in order to live, feeling no idealism
impelling them to industry, would never, even in this richly-endowed
America, have produced such tangible results or gained such power.
Nevertheless, the country itself must not be forgotten by reason of its
inhabitants. It was the original inducement to the inhabitants to turn
so industriously to the spade and plough. Where the spade has dug, it
has brought up silver and gold, coal and iron; and where the plough has
turned, it has evoked a mammoth growth of wheat and corn. Seas and
rivers, bays and mountains have produced a happy configuration of the
land and pointed out the routes for traffic; oil-wells have flown
freely, and the waterpower is inexhaustible; the supply of fish and
fowl, the harvests of tropical fruits and of cotton have been sufficient
to supply the world. And all this was commenced by nature, before the
first American set his foot on the continent.
And while it was the lavish hand of nature which first brought
prosperity to the inhabitants, this prosperity became, in its turn, a
new stimulus to the economic exploitation of further natural resources.
It provided the capital for new undertakings; it also helped on the
extraordinary growth of economic demand, it made the farmer and the
artisan the best patrons of thriving industries, and made the economic
circulatory system pulsate with increasing strength through the national
organization.
There are, besides the purely economic conditions, certain political and
administrative ones. American history has developed in a free atmosphere
such as cannot be had in countries with ancient traditions, and which,
even in the New World, at least in the eastern part of it, is
disappearing day by day. Of course, such elbow-room has not been an
unqualified blessing. It has been attended by evils and has made
sacrifices necessary. But these have always touched the individual. The
community has gained by the freedom of economic conditions. For
instance, railroads, such as were built through the whole West during
the pioneer years of America, would not be permitted for a moment by a
German government. Such flimsy bridges, such rough-and-ready road-beds,
such inadequate precautions on crossings were everywhere a serious
menace; but those who were injured were soon forgotten, while the
economic blessings of the new railroads which transported hundreds of
thousands of people into uninhabited regions, and left them to gather
the treasure of the soil, continued. They could never have been built if
people had waited until they were able to construct by approved methods.
After the great pioneer railroads had accomplished their mission, the
time came when they were replaced by better structures. And they have
been built over many times, until to-day the traffic is sufficiently
safe. It still belongs, in a way, to the confession of faith of this
religion of self-initiative that each man shall be free to risk not only
his property, but also his own life, for the sake of enterprise. No
board of commissioners may interfere to tell an American not to skirt a
precipice.
Such instances of complete freedom, where life and limb are unsafe,
disappear day by day. Guide-posts are put at every railroad crossing,
and civil authorities take more and more interest in safety appliances
for factories and in the security of city buildings; in fact, hygienic
regulations in some Eastern cities to-day go even further than they go
in Germany. Nevertheless, in such matters as involve not dangers, but
merely traditions or preferences, a large amount of democratic freedom
can still be had in the New World. Over the broad prairies there are no
signs lawfully warning persons to turn to the right and not to walk on
the grass. The American himself not only regards this country as the
land of “unlimited possibilities,” but more specially he regards the
European Continent as the country of impossible limitations. Bureaucracy
is to his mind the worst enemy of industrial life, because it everywhere
provides the most trivial obstacles to that spirit of adventure and
daring which seeks to press on into the future; and in the end it is
sure to bring all enterprise to a standstill. It is important for this
freedom that the whole economic legislation is regulated, first of all,
not by the Union, but by the several states, and that thus every variety
of industrial life going on in any state shall be so well represented
that every attempt to bring up artificial restraints shall be nipped in
the bud.
To this negative factor is to be added a positive one. Every one knows
that the mighty growth of the American industry and of its whole
commercial life would not have been possible without the carefully
adapted protective tariff of recent years. The Dingley and the McKinley
tariff laws have not, of course, produced that great advance, but they
have powerfully aided it. And at the same time enormous sums have been
derived therefrom and expended by the government in improving the
water-ways and harbours. The government has spent vast sums in helping
agriculture, and done much to irrigate the arid portions of the country.
Economic problems in general receive great consideration in Washington
and in every state capital. Besides such general political activities,
there are more special ones. The nation’s agriculture, for instance, is
tremendously assisted by scientific researches, which are carried on by
the Department of Agriculture. The army of American consuls is
incomparably alert in seeking out favourable openings for American trade
with other nations, and the consular reports are distributed promptly
and free of charge from Washington to all parts of the country.
The political attitude of the nation works in still another way to
favour general prosperity. The country has a unified organization which
favours all economic enterprises. Although seventeen times as large as
Germany, the country is nevertheless one splendid unit without internal
customs barriers, under one law, and free from sectional distrusts. For,
wherever commercial intercourse goes on between different states, the
common federal law is in force.
Perhaps even more important than the national unity is the democratic
equality throughout the population. However diverse these eighty million
people may be, they form a homogeneous purchasing public. Every new
style or fashion spreads like wild-fire from New York to San Francisco,
and in spite of their differences, the day-labourer and the millionaire
both have a certain similarity of tastes and requirements, so that the
industrial producer and the distributor find it easy to make and keep in
stock all articles which are called for. Instead of the freakish and
fanciful demand which makes the European industrial life so difficult,
everybody in America wants the same pattern as his neighbour, perhaps a
little finer and better, but still the same general thing. And this
brings it about that producers can manufacture in large quantities, and
wholesale production and the ease of placing wares on the market
encourage again the uniformity of taste and requirement, and help on the
popular tendency toward mutual imitation throughout the country.
But now, instead of recounting the conditions which have helped to make
the story, we must narrate the story itself. The German can listen to it
with pleasure, since it is about one of Germany’s best patrons—a nation
which always buys from Germany in proportion to its own prosperity, and
one whose adversity would bring misfortune to Germany. The story can be
most quickly told in figures, as is the favourite American way; for, if
the American has a special mania, it is to heap up all sorts of
statistics.
We shall best study the statistical variations through long intervals of
time, in order not to be led astray by temporary fluctuations. When, a
few years ago, an industrial and financial relapse had set in in
Germany, and England was suffering from the war in the Transvaal, while
America was undertaking a gigantic work of organization which promised
to have marvellous results, the United States suddenly appeared as the
economic mistress of the world, to the astonishment and apprehension of
all other countries. Soon after that German trade and industry began to
revive and England recovered itself, while in America industrial
extravagance and financial inflation were bringing about their necessary
evil consequences. Then the public opinion of other countries swung at
once to the other extreme, as if America’s success had been entirely
spurious. People suddenly turned about and believed that the time of
American prosperity was over, rejoiced with ghoulish glee over the
weakness of the enemy, despised his foolhardiness, and gossiped about
his industrial leaders. But it was only in other countries that men like
Schwab, the president of the Steel Trust, had been looked on as a
Napoleon of industry; and when he was not able to retain his position,
European papers were as pleased as if a Napoleonic army had been wiped
out. Such insignificant events of the day are able to distort the
judgment of great movements; picturesque mishaps strike the attention,
and are taken to indicate great movements.
The actual advance in economic life of the United States was not such a
sudden thing as it seemed to nervous Europe, nor was there any reverse
such as Europe delighted to record. To be sure, America has passed
through several great crises; but her history is nevertheless one of
steady, even and healthy development in economic organization. The
American himself is inclined to believe that severe crises are not to be
feared any more; but however that may be, the long-predicted downfall
has not come to-day, and is not even in sight. The general progress
persists, and the decline in stock-market securities, which has been
here and there abroad the signal for alarm, is itself a part of the
sound development. When one looks at the whole rise one realizes that
the young nation’s development has been great and powerful, and such as
was never before known in the history of civilization. Figures will show
this better than adjectives. What now do the United States produce? The
wheat of the country amounted, in the year 1850, to only 100 million
bushels; in 1870 to 235 millions; 522 millions in 1900; 637 in 1903. The
corn harvest was 592 millions in 1850; 1,094 in 1870; 2,105 in 1900;
2,244 in 1903. There were 52 million pounds of wool in 1850; 162 in
1870; 288 in 1900; 316 in 1902. But cotton is “king.” In 1850 the cotton
harvest amounted to 2.3 million bales; 3.1 millions in 1870; 9.4 in 1900
and 10.7 in 1903; 110,000 tons of sugar were produced in 1850 and last
year 310,000 tons. The dreaded American petroleum was not flowing in
1850. It appears in the statistical tables of 1859 in the modest
quantity of 8,400 gallons; in 1870 there were 220 million gallons; in
1900, 2,661 million, and in 1903 there were 3,707 million gallons. The
coal output of the country began in 1820 with 365 tons and amounted in
1850 to 3 million tons; in 1870 to 33 million; in 1900 to 240 million;
in 1902 to 269 million tons. In the middle of the last century 563,000
tons of iron ore were mined; 1.6 million tons in 1870; 13.7 in 1900, and
18 million in 1903. The manufacture of steel began in 1867 with 19,000
tons and in 1870 amounted to 68,000 tons, to 10.1 million tons in 1900;
14.9 millions in 1902. Of copper, 650 tons were mined in 1850; 12,000
tons in 1870; 270,000 tons in 1900; and 294,000 tons in 1902. The silver
production in the middle of the century was estimated at $50,000; in
1870 at $16,000,000, and in 1900 at $74,000,000; in the last three years
it has gone back to $71,000,000. The highest point was reached in 1892,
with $82,000,000. On the other hand, the production of gold has grown
steadily in the last twenty years, although it had reached its first
high point back in the fifties. In the year 1853, $65,000,000 worth of
gold was produced. The amount decreased slowly but steadily to
$30,000,000 in the year 1883, and has since risen almost steadily until
in 1903 it amounted to $74,000,000. The total output of minerals was
valued at $218,000,000 in 1870, and $1,063,000,000 in 1900.
This steady growth of natural products is repeated in the agricultural
and industrial spheres. The number of farms was given at 1.4 million in
the middle of the last century, with the total value of $3,967,000,000;
in 1870 there were 2.6 million farms valued at $8,944,000,000; and in
1900 there were 5.7 million, valued at $20,514,000,000. In 1870, 5.9
million people engaged in agriculture; 10.4 million in 1900. The total
value of agricultural products amounted, in 1870, to $1,958,000,000, and
in 1900 to $3,764,000,000. All domestic animals—cattle, horses, mules,
sheep and pigs—amounted in 1850 to $544,000,000; in 1870 to
$1,822,000,000; in 1900 to $2,228,000,000, and in 1903 to
$3,102,000,000.
The greatest growth, however, is shown in industry. In 1850 there were
123,000 industrial plants with 957,000 employees, paying wages of
$236,000,000, and with an output worth $1,019,000,000. In 1870 there
were 252,000 factories, with 2 million workmen, paying $775,000,000 in
wages, and with an output worth $4,232,000,000; in 1890 there were
3,550,000 factories, 4.7 million workmen, a salary list of
$2,283,000,000, and a product worth $9,372,000,000. In 1900 there were
512,000 factories, with 5.7 million workmen, a pay-roll of $273,500,000,
and an output worth $13,039,000,000. Statistics here cannot be brought
up to the present time, since a careful industrial census is made only
every ten years; but this glance over the half century shows at once
that there has been a very steady increase, and that it is no mushroom
growth due to the recently enacted protective tariffs.
The economic rise of the nation is well reflected in its foreign
commerce. If we disregard the imports and exports of precious metals,
the international commerce of the United States shows a total import in
the year 1903 of $1,025,719,237, and a total export of $1,420,141,679.
We must analyze these two figures in several ways, and compare them with
similar figures in the past. In one way they show a decrease, since in
the year 1903 the exports exceeded the imports by over 394 millions, but
in the preceding year by 477 millions. This unfavourable change is not
from any decrease in exports, but from a remarkable increase in imports;
in fact, the exports were 38 millions more than during the previous
year, while the imports were 122 millions more.
Thus, in the year 1903, the total foreign trade of the United States
exceeded that of all previous years, and reached the astonishing figure
of $2,445,000,000. Although before the year 1900 the total trade was
less than two billions, it reached the sum of one billion as early as
the year 1872; exports and imports together amounted in 1830 to 134
millions; in 1850 to 317 millions; in 1860 to 687 millions; in 1870 to
828 millions; in 1880 to 1,503 millions; in 1890 to 1,647 millions, and
in 1900 to 2,244 millions. During this period the balance of trade
shifted frequently. In 1800, for instance, there was an import balance
of 21 millions, and similarly in the decades ending in 1810, 1820, and
1830. In the decade which ended in 1840 there was an average export
balance of 29 millions. The tables turned in the next decade ending in
the year 1850, when there was an average import balance of 29 millions;
in the decade ending 1860, of 20 millions, and in the following decade,
of 43 millions. But then the exports suddenly increased, and have
exceeded the imports for the last twenty-five years. In 1880 the imports
were 667 millions, and the exports 835 millions; in 1890 the imports
were 789 millions, and the exports 857 millions; in 1900 the imports
were 849 millions, and the exports 1,394 millions; in 1901 the imports
were 823, and the exports 1,487; in 1902 the imports were 903, and the
exports 1,381; and in 1903, as given above, the imports were 1,025, and
the exports 1,420 millions.
Let us now look at the American imports more closely. Letting all our
figures represent million dollars, we learn that during the last year
imports of breadstuffs and live animals were 212; of raw materials 383;
of half-finished products 97; of manufactured products 169, and of
articles of luxury in general 145. The food products imported, which
comprise to-day 21 per cent. of all imports, comprised 31 per cent. in
1880; and at that time the necessary manufactured articles were also a
larger proportion of the whole, being then 20 per cent. against 16 per
cent. to-day. On the other hand, raw materials, which were then 25 per
cent., are to-day 38 per cent., and articles of luxury have increased
from 10 to 14 per cent. of the total imports. Of the half-manufactured
products imported, the most important were the chemicals, valued at 38
millions; then come wooden wares worth 11, oil worth 10, iron worth 8,
skins and leather worth 5 millions. Of raw materials the most valuable
were skins and furs, which amounted last year to 58 millions; raw silk
was next, with 50; vegetable fibres, such as hemp, 34; rubber 32, iron
and steel 30. This last figure is an exceptional one, and is due to the
fact that during the year the American steel industries were taxed to
their utmost by consumers’ demands. In the year 1902 the iron and steel
imports were only 9, and in 1901 only 3 millions. The imports of raw
chemicals amounted to 23 millions, and tin the same; wool 21, copper 20;
wood 11, and cotton 11.
The exports, arranged according to the sources of production, amounted,
last year, to 873 million dollars’ worth of agricultural products, 407
of factory products, 57 of products of the forest, 39 of mines, and 7
from fisheries. Of the remainder, 6 millions were from other domestic
sources, and 27 had come from other countries. The agricultural exports
reached their highest point in 1901, when they amounted to 943, and also
the export of manufactured articles is now 3.4 less than in 1901 and 26
less than in 1900. But the statistics of manufactures show sufficiently
that there has been no decrease in output, but merely that the home
consumption has increased. Apart from these accidental fluctuations of
the past three years, the exports have steadily increased. In 1800 the
agricultural exports were 25 millions; the industrial 2; in 1850 the
former were 108, the latter 17; in 1880 they were 685 and 102
respectively, and in 1900 they were 835 and 433.
If we look at the foreign trade with regard to the countries traded
with, we shall find Europe first in both exports and imports. In the
year 1903 the imports from Europe to the United States were 547, the
exports to Europe 1,029; the imports from Canada and Mexico were 189,
and the exports thereto 215. From South America the imports were 107,
the exports 41; from Asia the imports were 147, the exports 58; from
Australia they were 21 and 37, and from Africa 12 and 38.
The trade balances with individual countries in Europe were as follows:
England bought from the United States 523 million dollars’ worth, and
sold the value of 180; then comes Germany, which bought 174 and sold
111; France bought only 70 and sold 87; Austria bought 6 and sold 10;
Russia bought 7 and sold the same amount. After England and Germany the
best purchaser was Canada, which imported from the United States 123 and
exported thereto 54. Germany imports more from the United States than
from any other country. Germany imports very much less from Russia, and
still less from Austria and Great Britain. Among the countries to which
Germany exports her wares the United States has third place, England and
Austria having the first and second. America imports from Germany
firstly drugs and dye-stuffs, then manufactured cotton, silk, and iron
goods, books, pictures, and works of art, clay ware, china, lithographs,
toys, etc. No other class amounts to more than 10 million marks. There
is a steady increase in almost every class, and the total imports from
Germany were 17 per cent. larger last year than during the year
previous; 71 per cent. more than in 1898; 138 per cent. more than in
1880; 198 per cent. more than in 1875, and 343 per cent. more than in
1870.
The principal export of the United States to Germany is cotton. Ten
years ago the amount exported was 34 million dollars’ worth; in 1901, it
was 76; in the following year only 70, but in the year 1903, 84, the
amount exported in that year being 957,000,000 pounds. The exports of
wheat to Germany amounted in 1896 to only 0.608 million dollars; in the
following year to 1.9; in the next year to 3.1; in 1899 to 7.6; and in
1902 to 14.9; but in 1903 to only 11.1. The exports of corn fluctuate
still more widely. In the year 1901 Germany bought 17 millions, in 1903
only 6.6. The exportation of petroleum reached its largest figure in
1900, with 8 millions, and in 1893 was 6.3.
Enough of these dry figures. They would look still more striking if
compared with the statistics of other countries. More wheat grows in the
United States than in any other country, and more corn than in all the
other countries put together; more cattle and hogs are slaughtered than
in any other country, and three-fourths of the world’s cotton harvest is
grown in the United States. No other country mines so much coal,
petroleum, iron, copper, and lead, or produces so much leather or
charcoal. In short, the most important articles entering into
manufactures are more plentiful than in any other country of the world.
But even on looking over these figures of international trade, one does
not get so adequate an impression of the immense economic activity as by
actually seeing the wheels of this great machine in motion. One must see
the power stations at Niagara, the steel works of Pittsburg, the
slaughter-houses of Chicago, the textile factories of New England, the
printing-presses of New York, the watch factories of Massachusetts and
Illinois, the grain-elevators of Buffalo, the mills of Minneapolis, the
locomotive and ship works near Philadelphia, and the water front of New
York City, in order to understand the tremendous forces which are
constantly at work.