INTRODUCTION.

The production of manufactures for the requirements of the world’s

population is conducted in a comparatively small section of its land

surface. Just as the manager of a great estate devotes one section of

his estate to the production of certain articles, and other sections

to certain other articles, so the great business instinct which rules

the business of the world carries on in its various sections the

varied industries best suited to the physical, ethnological and

financial conditions of its various sections.

The people of western Europe and eastern United States are, for

various reasons better able to produce the manufactures required by

the world than are those of South America, Africa or the Orient;

while, on the other hand, the people of South America, the Orient,

Australia, Canada, the western part of the United States or the

eastern part of Europe are better able, for various reasons, to

produce the raw materials of manufacturing and the food supplies

required by those engaged in the manufacturing industry than are the

people of western Europe or eastern United States. South America and

Australia produce wool in large quantities; Africa and the Amazon

Valley produce the chief supply of india rubber; the Malayan peninsula

and adjacent islands produce the bulk of the world’s tin; India

produces jute; the Philippines, Manila hemp; Mexico, sisal; China and 180

Japan, the bulk of the world’s silk; Egypt, India and the United

States, the world’s cotton; Russia, Austria-Hungary, India,

Australasia, South America, Canada, the central and western parts of

the United States produce the bulk of the world’s wheat, corn and

meats, at least the bulk of that in excess of the requirements for

local consumption; Europe, the West Indies, the East Indies and the

tropical sections of India, China and Central and South America

produce the bulk of the world’s sugar.

The manufacturing industries of the world--confining this term for the

moment to those industries in which the great proportion of the work

is performed by machinery--are conducted chiefly in, it might almost

be said confined to, western Europe and eastern United States. True,

the exclusive application of the word “manufactures” to that portion

of the world’s product of this character made by the use of machinery

in conjunction with large sums of capital--the factory method--carries

one beyond the original meaning of the word “manufactures,” which

primarily meant, of course, made by the hand (from manus, the hand;

and facere, to make); but the industrial habits of the world have also

passed beyond that stage in which manufacturing for the masses is

carried on by hand methods.

It must not be understood from this that all of the world’s

manufactures are produced in western Europe and eastern United States,

or produced by modern machine methods in conjunction with the

investment of great sums of money--the factory system. On the

contrary, large quantities of manufactures are still produced by hand

in various parts of the world other than those in which manufactures

by modern machine methods are a leading characteristic of the

occupations of the people. Nor must it be assumed that the areas

designated as the non-manufacturing sections are entirely dependent

upon the manufacturing sections for their manufactures. On the

contrary, large quantities of manufactures are still produced in the 181

Orient, in Africa, South America, Australia and the islands of the sea

by those simple processes which prevailed in Europe and the United

States prior to the development of the modern methods less than two

centuries ago. The industrious population of China, of India, of

Japan, the millions of people in Africa, in South America and in the

islands of the sea produce by simple methods large quantities, and in

many cases a large proportion, of the simple manufactures which they

require for their daily life. The cloth with which they cover their

bodies, the simple requirements of household life and of agriculture

are, in many cases, largely of their own production and made in

keeping with the original meaning of the word “manufacture”--made by

hand.

But the statement is still true, that the great manufacturing areas of

the world--the areas which give their chief attention, or the

continuous attention of a large part of their population, to the

production of those requirements of man other than the natural

products and do this through the application of power, machinery and

capital, and the operations thereof under the factory system, are

western Europe and the eastern part of the United States, though the

systems which prevail there are gradually extending to other parts of

the world--eastern Europe, central, southern and western United

States, Japan, India, Australia, Canada and South America.

As to the relative share of the world’s manufactures now produced by

the use of machinery, power and capital--the factory method--and by

the hand process, respectively, no exact statement can be made; nor

are there facilities for even offering an intelligent estimate of the

relative production by these two methods. There is reason to believe

that two-thirds of the cotton cloth consumed in China is still made by

the hand process, and if this be true it may be estimated that perhaps

two-thirds of the other manufactures consumed in that country are 182

still made by hand; while in those other sections of the world in

which railroads and the other methods which the people of the Occident

are pleased to term “modern” do not yet prevail, a large proportion of

the simple manufactures of the people, are still those produced by

hand methods. The fact, however, that the sections which produce

manufactures by modern methods are also supplied with modern

facilities of transportation--the railroad and the steamship; and of

communication--the telegraph, and also supplied with ample sums of

capital and that other important quality born of long experience and

the energy supplied by a temperate zone climate and the judicious

admixture of the most energetic populations of the world--Europe and

the United States--has enabled them to distribute their factory

products in great quantities to those sections not producing by the

factory method, and whose peoples are willing to exchange their

natural products, food and raw materials, for the finished products of

the factory.

This brings us to a consideration of the exchanges of the world--the

exchanges of natural products for the products of the factory. This

exchange, as already intimated, occurs chiefly in the requirements of

the manufacturing section--raw materials and food--for manufactures.

Western Europe, the great manufacturing section of that grand

division, does not produce cotton, jute, or a sufficient supply of

wool, silk, or hemp. For its india rubber, its tin, its copper and the

numerous articles of tropical production required for manufacturing,

it is dependent wholly or chiefly upon other parts of the world. The

United States, while producing a large share of the world’s cotton and

copper and iron, and a considerable supply of wool, must rely upon

other parts of the world for its hemp and jute and sisal and india

rubber and silk and many other of its tropical requirements. As a

result the Orient exchanges its raw silk, its jute, its Manila hemp,

its tin, and numerous less important articles, for the factory 183

products of Europe and the United States. Australia exchanges its

wool, its meats and its gold for the products of the manufacturing

sections. Africa sends its india rubber, its ostrich feathers, its

gold and diamonds in exchange for factory products of those sections

in which the manufacturing system has developed. South America offers

as its exchangeable products wool, wheat, corn, meats, coffee and

india rubber. Canada gives in exchange for her factory requirements

timber, ores, wheat and other agricultural products.

Thus the business intelligence that rules the world, adapting one to

another those various conditions which prevail in its varying

sections, has built up in certain sections of its great area--Europe

and the United States--a great factory system, operated by the great

supplies of power (coal) which there exist in conjunction with the

wealth, the intelligence, the climatic conditions and the quality of

population, which system, besides supplying its own six hundred

millions of people with their own requirements, sends to the other ten

hundred millions of people in other parts of the world its surplus

products and takes in exchange the natural products, the manufacturing

material and food required by its own people and its own industries.

George J. Chisholm, in the Introduction to Bartholomew’s Atlas of the

World’s Commerce, outlines the history of the development of

manufactures and the relation thereof to commerce as follows:

“In the latter part of the eighteenth century there took place in

England a number of inventions which have brought about a change

in the conditions of manufacturing industry and of commerce, and

an acceleration of the rate of the economic development of the

world, to which all previous history presents no parallel or

approach to a parallel. It is a change that has affected the

entire world, bringing about an entirely new trade with the New

World and the antipodes, and completely altering the character 184

of the trade with the East, depriving spices of the peculiar

value which they held in commerce for so many centuries, and

developing a trade of incomparably greater magnitude with the

East than was at one time ever dreamt of, and largely in

commodities of a bulky character yielding comparatively little

profit on small quantities. The revolution was inaugurated by the

inventions in connection with the cotton industry between 1769

and 1785 and the concurrent improvements in the steam engine by

James Watt, who thereby first made this a generally serviceable

machine. These were followed by the introduction of steam

locomotion by land and water in the first quarter, and the rapid

extension of these modes of transport in the remainder of the

nineteenth century. The result of these inventions was to give a

new value to the stores of coal and iron in the United Kingdom,

and ultimately a new value to undeveloped land in new countries.

It was railways that first made it possible to fill great ships

with bulky produce like grain drawn from the far interior. The

remarkable expansion of commerce thus brought about greatly

increased the commercial advantages of Great Britain due to its

situation and local facilities for shipping. In so far, however,

as the unexampled development of British manufacturing industry

and commerce in the period immediately following the Industrial

Revolution was due not to geographical conditions but merely to

the fact that the great inventions originated there and

consequently the resources of Great Britain for carrying on

manufactures by the new methods were developed first, the

expansion of British manufactures and commerce was bound to be

affected by the development of similar resources elsewhere; and

the more rapid growth of manufactures in some rival countries

resulting from this cause, and partly, it may be, from other

causes, has been one of the marked features of recent economic

history.”

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