THE NATURE OF AMERICAN INDUSTRY
52. MAGNITUDE OF AMERICAN INDUSTRY.--In colonial times the major part
of American industry was concentrated along the Atlantic seaboard; to-
day it extends over a large part of the continent. A century and a
half ago our industrial system was still a relatively simple one,
giving rise to few pressing problems of national importance; at the
present time it is a vast and complicated affair, closely bound up
with many of the most vital problems which confront American
democracy. The activities which are commonly grouped under the head of
"American industry" are so numerous and so varied that a description
of all of them would carry us beyond the limits of this chapter.
Nevertheless, it is important that we secure some understanding of
these activities. A few pages may profitably be spent, therefore, in
discussing certain basic facts of American industry.
53. FAVORABLE LOCATION OF THE UNITED STATES.--Let us commence by
noting that the location of the United States is favorable to the
development of industry. Of the two American continents, the northern
has the greater natural advantages. Each continent is roughly in the
form of a triangle with the apex or smaller end pointing southward,
but whereas the larger end of the South American triangle is within
the tropic zone and only the tapering end is within the more favorable
temperate zone, the greater part of the North American triangle is
within the temperate zone. With regard to location for world trade the
northern continent again has the advantage: the ports of South America
face a relatively empty ocean on the west and the little-developed
continent of Africa on the east; the ports of North America, in
addition to being more numerous and more suitable for commerce than
those of the southern continent, face the teeming Orient on the west,
and the great markets of Europe on the east. Moreover, the United
States occupies the choicest portions of the North American continent.
Our neighbor Canada has a cold and snow-bound frontier on her north,
while on our south Mexico and the Central American countries lie near
the tropics. The heart of temperate America, on the other hand, is
included within the territory of the United States.
54. POPULATION.--Scarcely less important than the favorable location
of the United States is the character of the people occupying the
country. From less than four million in 1790, our population has
increased so rapidly that in 1920 there were 105,710,620 people within
the bounds of continental United States. As the population has
increased, it has spread over the Appalachians, into the great
Mississippi basin, and westward to the Pacific Ocean. Accompanying the
increase and westward spread of the population has come a greater
variety of racial types. Although our population was varied in
colonial times, the great majority of the settlers were from the
British Isles and northwestern Europe. In the latter part of the
nineteenth century immigration from northern Europe declined and more
and more immigrants began to come from southern and southeastern
Europe. So universal has been the attraction of America, that our
present population includes elements from every important country in
the world. From the industrial standpoint, the dominant
Characteristics of this composite American people are energy and
versatility.
55. NATIONAL WEALTH.--Generations of industrious people have helped to
make the United States the wealthiest nation in the world. It has been
estimated that in 1850 our national wealth amounted to $8,000,000,000.
By 1900 the remarkable progress of American industry had increased
this figure to more than $88,000,000,000. In 1912 our wealth was
probably in excess of $180,000,000,000. Industrial and financial
disturbances during the period of the World War make later estimates
hazardous, nevertheless it is interesting to note that in 1921 the
wealth of the United States was estimated as being between
$350,000,000,000 and $400,000,000,000. According to this estimate, the
wealth of this country exceeded, in 1921, the combined wealth of Great
Britain, France, Germany, Italy, and Belgium. In weighing the value of
this comparison, however, we must take into consideration the heavy
destruction of wealth in western Europe because of the World War.
56. WHAT THE AMERICAN PEOPLE ARE DOING.--A large percentage of the
inhabitants of the United States are engaged in some form of
productive work. According to the most recent estimates there are
approximately fifty million persons, male and female, over ten years
of age, engaged in gainful occupations in this country. Of these about
fourteen million are engaged in agriculture and allied industries,
while more than eleven million are busy in manufacturing pursuits.
Almost four million are found in some form of trade, and another four
million are employed in domestic and personal service. Transportation,
clerical work, and professional callings utilize the services of
several additional million. The great majority of those employed in
American industry are men, although the number of women in industry is
steadily increasing. Children have been found in industrial pursuits
since colonial times, but of recent years there is a growing movement
to restrict or prohibit the employment of children in gainful
occupations.
57. FORESTS AND MINERALS.--The natural resources of the United States
play a large part in our industrial life. One fourth of the territory
of the United States is still covered with timber. We are abundantly
supplied with coal and iron, the two most important industrial
minerals. Our coal deposits outrank, both in quantity and in quality,
those of any other country. Iron is found in most of the states in the
Union, the high-grade deposits of the Lake Superior area being of
special importance. We produce more than half of the world's supply of
copper, which, after coal and iron, is the most important industrial
mineral. Our supply of petroleum and natural gas is large, and in
spite of the waste which has characterized our use of these important
commodities, our production of both is still great. Gold, silver,
zinc, lead and phosphates are produced in the United States in large
quantities. Indeed, we have ample supplies of practically all of the
minerals of importance to industry, except platinum, tin, and nickel.
58. AGRICULTURE.--Until very recently, at least, agriculture has been
by far our most important industry. Of the two billion acres
comprising continental United States, approximately half are under
cultivation. In most sections of the country the quality of the soil
is good, and rainfall is ample. We have long led the world in the
value of farm crops grown. Our production of wheat, corn, oats,
barley, rye, and dairy products totals an enormous figure. The steady
enclosure of lands formerly used for grazing stock is restricting our
production of food animals, but we are still important as a producer
of meats. Most of the world's tobacco is grown in this country. The
world's supply of cotton is derived mainly from southern United
States. Finally, our soil is of such variety, and our climate so
diversified, that the danger of a general crop failure is slight. A
loss in one part of the country is almost certain to be offset by good
crops in another.
59. MANUFACTURING.--In colonial times American manufactures were
subjected to more or less restraint by Great Britain, but after the
Revolution these industries entered upon a period of free and rapid
development. Modern machinery was introduced rapidly after 1800, large
scale production was developed, transportation was fostered, and
larger and larger markets were supplied with the products of American
manufacturers. Particularly since the Civil War has the importance of
our manufactures increased. This increase has been due chiefly to the
large scale production of foodstuffs, including meats and flour;
textiles; iron and steel products; shoes; chemicals; and agricultural
machinery. According to recent census figures it would appear that we
are passing from a predominantly agricultural life to a stage in which
manufacturing is of relatively greater importance.
60. TRANSPORTATION AND COMMUNICATION.--The physical geography of the
United States encourages the development of adequate means of
transportation and communication. The St. Lawrence-Great Lakes system
gives easy access to the most fertile section of the continent. The
Mississippi and its tributaries drain a million square miles of farm
land. We have, in addition to 18,000 miles of navigable rivers, a
greater coast line available for commerce than has the whole of
Europe. New York is the world's greatest seaport.
Few mountain ranges hamper the development of transcontinental
railroads in this country, and of these only one, the Rockies, is a
serious obstacle to effective transportation. Our railroad mileage is
enormous, a half dozen transcontinental lines being supplemented by
numerous smaller roads and feeding lines. We have more than 2000 miles
of canals in operation. Cheap and rapid transportation between the
different parts of the country, supplemented by adequate means of
communication by telephone, telegraph, and the postal service,
undoubtedly has been one of the greatest factors in our national
prosperity.
61. DOMESTIC AND FOREIGN TRADE.--The great majority of our products
are not shipped to foreign markets, but are utilized within the
country. We are still so young and so undeveloped a country that our
manufacturers have been kept busy supplying the domestic market. This
fact, together with the American manufacturer's lack of knowledge
concerning the possibilities of foreign trade, explains our neglect of
foreign markets. In proportion as our manufacturers catch up with the
domestic market, and in proportion as their knowledge of foreign
markets increases, it is likely that they will give more and more
attention to customers in other countries.
But though a very small proportion of our products are sent abroad,
the foreign trade of the United States exceeds in value the foreign
trade of any other country. This predominance is due, not so much to
our search for foreign markets, as to the steady demand in other
countries for three classes of goods in the production of which we
have a distinct advantage. These three classes of goods are, first,
raw materials of which we have a great abundance, such as cotton and
copper; second, specialties invented and patented by Americans, such
as inexpensive automobiles, typewriters, and phonographs; and, third,
commodities which may be advantageously produced by large-scale
methods, such as agricultural machinery and the cheaper grades of
textiles.
62. SUMMARY AND FORECAST.--We have very briefly surveyed some of the
basic facts of American industry. On the one hand, the favorable
location and the rich natural resources of the United States have
furnished a substantial basis for industrial progress. On the other
hand, we must note that the American people are energetic and
versatile,--combining, to a happy degree, the qualities of initiative
and originality, perseverance and adaptability. The great wealth and
prosperity of the country as a whole have been the result of the
combination of a favorable land and an able people.
This is not the whole of the story, of course. It must be admitted
that, with all of our wealth, we continue to face serious charges of
poverty and industrial maladjustment. These charges are of great
importance, but it should be remembered that no problem can be solved,
or even intelligently attacked, until the essential facts are well in
hand. We have briefly described the nature of American industry. What
we have now to do, as a preliminary to considering the problem of
poverty and industrial reform, is to analyze the economic laws in
accordance with which American industry has developed. The essential
facts of the next four chapters cannot be weighed too carefully.
QUESTIONS ON THE TEXT
1. To what extent has the character of American industry changed in
the last century and a half?
2. Compare North America with South America with respect to natural
advantages.
3. Outline the changes which have occurred in the population of the
United States since 1790.
4. Trace briefly the increase in our national wealth since 1850.
5. What are the chief occupations of the American people?
6. Name three important industrial minerals, and comment on our supply
of each.
7. What are the chief characteristics of American agriculture?
8. Outline the growth of our manufacturing industries.
9. How are transportation and communication encouraged by the physical
geography of the United States?
10. Why is our domestic trade of relatively greater importance than
our foreign trade?
11. To what three types of goods is our predominance in foreign
markets due?
12. What qualities of the American people have contributed to their
industrial success?
REQUIRED READINGS
1. Williamson, _Readings in American Democracy,_ chapter vi.
Or all of the following:
2. Bishop and Keller, _Industry and Trade,_ chapters i and ii.
3. Bogart, _Economic History of the United States,_ chapter i.
4. Fetter, _Modern Economic Problems,_ chapter i.
5. King, _Wealth and Income of the People of the United States,_
chapter iii.
QUESTIONS ON THE REQUIRED READINGS
1. Describe briefly each of the six regions into which continental
United States may be divided. (Bogart, pages 11-12.)
2. Why has the animal life of the North American continent declined in
significance since colonial times? (Bogart, page 8.)
3. Into what five divisions may the forests of the United States be
classified? (Bishop and Keller, pages 27-28.)
4. What may be said as to the temperature of the United States?
(Bogart, pages 12-13.)
5. What may be said as to the extent of rainfall in the United States?
(Bogart, page 13.)
6. Explain the importance of water power in the United States.
(Bogart, pages 3-4.)
7. What changes in farm land values have been brought about in the
last century? (King, pages 22-27.)
8. Discuss the value of urban land in the United States. (King, pages
15-21.)
9. Why is it extremely difficult to measure the wealth of the United
States? (Fetter, pages 6-10.)
TOPICS FOR INVESTIGATION AND REPORT
I
1. Trace the growth in the population of your state since 1880. What
have been the chief sources of this increase?
2. To what extent has the population of your state been affected by
immigration from Europe? What attracts immigrants to your state? Have
there been any changes in the character of this immigration since
1880?
3. Classify the population of your state on the basis of occupation.
(Secure data from the State Board of Labor, or State Bureau of
Statistics.)
4. Estimate the material wealth of your community. What light does the
result throw upon the difficulties of summarizing the wealth of the
nation?
5. Discuss the importance in the economic life of your section of
(a) Agriculture,
(b) Mining,
(c) Forestry,
(d) Manufacturing.
II
6. The economic geography of your section. (Consult Dryer, _Elementary
Economic Geography_.)
7. A comparison of America three hundred years ago with the America of
to-day. (Price, _The Land We Live In_, chapters i and ii.)
8. Character of the American population. (Burch and Patterson,
_American Social Problems_, chapter ix.)
9. An analysis of the American character. (Bryce, _The American
Commonwealth_, vol. ii, chapters cxiv and cxv.)
10. Ways of getting a living. (Carver, _Elementary Economics_, chapter
xv.)
11. Geographical distribution of cities and industries in the United
States. (Semple, _American History and Its Geographic Conditions,_
chapter xvi.)
12. Agricultural industries in the United States. (Bishop and Keller,
_Industry and Trade,_ part ii. Smith, _Commerce and Industry,_
chapters i, in, iv, v, and vi.)
13. Animal industries in the United States. (Bishop and Keller,
_Industry and Trade,_ part iii. Smith, _Commerce and Industry_,
chapter ii.)
14. Power. (Smith, _Commerce and Industry_, chapter ix.)
15. Mineral industries in the United States. (Bishop and Keller,
Industry and Trade, part iv. Smith, _Commerce and Industry_, chapters
viii, xiii, xiv, and xv.)
16. Manufacturing industries in the United States. (Bishop and Keller,
_Industry and Trade_, part v.)
17. Trade routes of North America. (Smith, _Commerce and Industry_,
chapter xvi.)
18. The foreign trade of the United States. (Dryer, _Elementary
Economic Geography_, chapter xxxii. See also any other recently
published text on this general field.)