=620. Invention and application of the steamboat.=—The steamboat, like

many other instruments of technical progress, was not the invention of

a single man, but was developed by contributions from several different

sources. Before the adoption of the Federal Constitution (1789) Fitch

and Rumsey had constructed steamboats which maintained a speed of

four to seven miles an hour against the current of the Potomac and

Delaware rivers; and these successful experiments were followed by

many others in this country and in Europe. Robert Fulton, therefore,

scarcely deserves the credit commonly accorded him for invention, but

his service was not the less important. He combined the ideas and

inventions of others, and transferred the steamboat from the sphere

of technical experiment to that of practical business operation. The

Clermont, which started from New York August 7, 1807, and arrived in

Albany, 150 miles distant, in 32 hours, was the first steamboat in the

world which maintained a regular and continuous traffic in the public

service.

[Illustration:

RIVER

TRANSPORTATION

IN 1860

]

=621. Development of river transportation.=—Within a few years of

Fulton’s success steamboats were introduced on the western rivers,

and after an interval of trial proved their capacity for meeting the

conditions. In ten years (1817) a steamboat made the trip from New

Orleans to Louisville in 25 days instead of the three months consumed

by barges; after another ten years (1827) a steamboat made the trip

in little over a week. The steamboats did more at first to reduce the

time of voyages than to reduce the rates of transportation, but the

cost of carriage declined gradually as the means of transportation

were improved. The following figures, giving the number of steamboats

employed on the rivers of the West, show how rapidly steam navigation

increased in importance: 1818, 20; 1829, 200; 1842, 450; 1848, 1,200.

Size and carrying capacity were growing also, and it is said that in

1847 the steam tonnage of the Mississippi Valley exceeded that of the

whole British Empire. “Pittsburg city, the Pennsylvania great western

emporium,” as it was styled in a book published in 1830, grew great by

steamer traffic, and other cities, as Cincinnati, Louisville, and St.

Louis, flourished under the same influence. The most obvious effect of

the extension of steam navigation was the growth of internal trade,

especially that between North and South. This trade, however, was

indirectly of great importance to our foreign commerce, for it enabled

the people of the South to apply themselves almost exclusively to the

growth of export products, like cotton, relying on other parts of the

country for food and manufactures.

=622. Demand for canals in this period.=—While the river system

offered great opportunities for developing the resources of the

West, it was necessarily incomplete in the connections it afforded

with other parts of the country. It left gaps, to be filled by other

means of transportation, between three important sections of country,

drained respectively by the Mississippi and its tributaries, by the

Great Lakes, and by the rivers flowing into the Atlantic. The need of

bridging these gaps in the transportation system was felt acutely in

the second quarter of the century, as population spread in the interior

of the country, and was first met, with some degree of adequacy, by the

construction of canals.

There had been many projects for canals in the colonial period, and

some short stretches were constructed before 1800. People contented

themselves in general, however, with the natural waterways, and sought

merely to regulate their channels and to regulate the flow of water by

means of dams. The era of activity in canal construction began after

the close of the second war with England, in 1815.

=623. The Erie Canal (1825), and others.=—The easiest route by which

a canal might be carried through the Appalachian mountain ridge lay

in the State of New York, along the valley of the Mohawk River. The

advantages of this route were recognized in the colonial period, and

the advisability of utilizing them was felt especially during and after

the war of 1812, when the political danger of leaving the country

without means of intercommunication became apparent. The construction

of a canal along this route was begun in 1817, and in 1825 the first

boat passed from Lake Erie to the Hudson River. Other canals were

constructed to connect Lake Champlain and Lake Ontario with the Erie

Canal, and further south, in New Jersey and Pennsylvania especially,

the people entered actively into the work of canal building.

Further west, canals were constructed to unite Lake Erie with the Ohio

River, and Lake Michigan with the Mississippi River (1848), and just

before the close of the period which we are studying the St. Mary’s

Falls Canal (1855) opened the passage from Lake Superior to the other

lakes to boats with a draft of twelve feet.

=624. Commercial benefit of the canals.=—The canals effected a

reduction in transportation charges which placed trade on an entirely

new footing along the lines that they covered. In contrast with the

cost of ten cents per ton-mile, on the turnpikes, we find a cost of

movement of about one cent, and tolls which brought the total charge

to about three cents. The tolls varied on different articles and were

not the same on different canals, but the total charges represented a

great saving in transportation even in the early days of the canals,

and tended to grow less with the passage of time. The crops which grew

in abundance on the fertile lands of western New York had gone begging

before the construction of the Erie Canal, and the inhabitants had

been able to purchase few manufactured or foreign articles. A letter

from the Genesee country (east of Buffalo), written in 1799, said that

grain was so low in price as to be scarcely worth the raising, while

European goods were very dear; it took the produce of one acre to buy

a pair of breeches. Conditions had improved somewhat before 1825, with

the extension of turnpikes and with the increase in the navigation of

the Susquehanna River, but the Erie Canal brought nevertheless a new

era of prosperity to this district, and first made its rich resources

available for consumption in the New York market and for extensive

export.

=625. Canals less important than rivers for distant

shipments.=—Important as were the canals, their influence in this

period was local rather than national. Managers were slow to adopt

the practice of reducing rates on a long haul, to stimulate distant

traffic, and the canals served mainly local needs. We read, it is true,

of cotton being carried from Alabama to Philadelphia by canal, and of

wheat reaching New York over the Erie route from Ohio and Indiana. It

is noteworthy, however, that even in 1840 only one seventh of the

freight carried on New York canals came from outside the State. The

river system of the Mississippi proved still to be the most valuable

outlet for the products of the great interior valley, and about 1850

the value of the wares which it carried to the coast was double that

reaching the seaboard by the Hudson River and its canals. A line

drawn east and west through the center of Ohio marked the commercial

watershed between the competing routes; north of that line practically

all goods were shipped by lake and canal, while south of it only

articles like tobacco, wool, and manufactured wares were sent by that

route, and most products were shipped by way of the Mississippi.

Indiana and Illinois showed a still more decided tendency to the river

route. In the reverse direction, however, the northern route, by canal

and lake, had the advantage, and the movement to the interior by this

route was double that ascending the Mississippi.

[Illustration:

CANALS

OF THE

UNITED STATES

]

=626. Demand for further improvement met by railroads.=—Reviewing

the substance of preceding sections, we find that of the new means

of transportation adopted to develop the resources of the country

and to make them available in internal trade and foreign commerce,

none had yet proved adequate to meet the conditions. Transportation

on the turnpikes was too expensive to permit the carriage of bulky

freight over great distances. River navigation, valuable as it was

in opening the interior to commerce, still was tied fast to channels

cut by nature; the rivers must at least be supplemented by feeders

and by connections across the country. Canals were of great service

as supplements to the rivers, but they too, were restricted in their

course by the conditions set by nature, and, like the rivers, could

be used in northern districts during only part of the year. What the

country needed was a means of transportation available throughout the

year, free to follow the paths toward which the interests of merchants

most inclined, and cheap enough to encourage the exchange of common

articles between points widely separated. The need was met, in the

course of time, by the development of railroads.

=627. Early American railroads little used for freight traffic.=—The

operation of steam railroads began in this country and in England at

almost the same time; the Baltimore and Ohio railroad was in course

of construction in 1830, when the Liverpool and Manchester line was

opened. In this early period, however, the railroad was a much more

valuable instrument in the Old World than in the New. In England

and other European countries the railroad found great manufacturing

and shipping centers already established, with large volumes of

valuable freight to be carried short distances; the task before it

was comparatively easy. Conditions were somewhat similar along our

eastern seaboard, but in the United States in general the railroad was

wanted to develop agricultural districts with a comparatively sparse

population, separated from industrial and shipping centers by hundreds

of miles. The traffic offered by these districts could not bear the

high charges imposed by railroads in their early period; these charges

greatly exceeded those paid for canal transportation and seem in some

cases to have equaled those paid for carriage on turnpikes. Aside from

coal and cotton the early American railroads carried comparatively

little freight; and they played but a slight part in the development of

commerce.

=628. Extension of the railroad system in the West after 1850.=—In 1850

there were still few railroads west of the Allegheny Mountains. In

contrast with nearly seven thousand miles of line in the States along

the eastern coast the States of the upper Mississippi Valley could show

little over one thousand. Not a mile of railroad had been built in

Iowa and Minnesota, and there was no railroad connection with the East

in all the country west of the Mississippi and north of the State of

Missouri.

Conditions were ready at last for the extension of the railroad system

through the interior of the country and the West saw many thousand

miles of line constructed in its territory in the decade ending in

1860. The New York Central, the Erie, the Pennsylvania, the Baltimore

and Ohio, and other lines united the roads of the interior with the

East; many roads were built from Lakes Erie and Michigan to the Ohio

and Mississippi rivers; while another set of roads extended north from

the Gulf of Mexico, aiming to attract the traffic of the great valley

southwards.

=629. Effect of the improvements in transportation, especially

marked in the following period.=—The commerce of the country got the

full benefit of the railroad system only after 1860, when various

improvements led to a great reduction in freight rates, and stimulated

an immense increase of traffic. The period before the Civil War must be

regarded as one of preparation for the great commercial expansion in

the period following; the lines were laid, in large part, but men had

not learned to make the best use of them. Even before 1860, however,

the railroad had become an indispensable instrument to the commerce of

the country. While it did not displace other means of transportation,

it forced them to improvement, and gave service in forms which they

could not supply. There will be little space in the two following

chapters to refer to the development of the means of transportation

described here, but the student must bear in mind this factor, as

contributing always and in very important measure to the growth of the

country’s commerce. We may close this summary of the subject by giving

an illustration of the effect of transportation on the value of the

resources of Ohio; the price of farm produce in that State rose 50 per

cent after the completion of the canals, while the railroads appear

to have doubled the price of flour, trebled the price of pork, and

quadrupled the price of corn.

=630. Prosperity of the American merchant marine.=—The period from

1815 to 1860, in which the country first grappled successfully with

the problem of internal transportation, was also the period in which

the American merchant marine reached the pitch of its prosperity.

Even after the conclusion of peace in Europe in 1815, which subjected

our ships again to the competition of foreign carriers and to the

restrictions of other countries, American ship-builders and sailors

were able to hold their own; and the period is marked by a great

increase in our merchant tonnage. Down to about 1850 the wooden sailing

ship was still supreme in its control of the ocean carrying trade.

American builders developed the ship to its highest type, the clipper,

and led the world in the art of naval construction. Their skill, and

the cheapness of good ship timber, more than offset the higher prices

which the tariff forced them to pay for materials and equipment such

as iron, copper, cordage, and sail-cloth. The officers and crews

of American vessels enjoyed an international reputation for their

efficiency.

[Illustration:

RAILROADS

1850

]

[Illustration:

RAILROADS

1860

]

=631. Position and prospects of the merchant marine in 1860.=—In 1855

the tonnage built in the United States was greater than ever before

or since; the California gold discoveries had caused a great increase

in the demand for transportation to the Pacific Coast, from which

the government excluded foreign vessels, and the Crimean War forced

European governments to charter many American vessels for transport

service. At the close of the period (1861) the tonnage of the United

States, including that engaged in domestic trade, was not far from

one third of the total tonnage of the world; the British Empire had

slightly over one third; and the tonnage of all other countries grouped

together was but little more than our own. Our merchant fleet exceeded

by half the amount necessary for the carriage of all our exports and

imports, and earned a large revenue from the foreign countries which

sought its service.

In one important point, however, the prospects of the American merchant

marine were not bright. We were not keeping pace with the peoples of

Europe in the construction of steamers for ocean service, and of iron

vessels in general. American steamers were not able to win a place

of any importance in the foreign carrying trade; and before 1860 a

slackening of activity in the building of wooden sailing ships was

noticeable.

=632. Navigation policy: reforms and restrictions.=—The period

was marked by the removal of many of the restrictions on foreign

shipping which had been a regular feature of government policy in

previous centuries. Our ships were burdened at first by heavy dues

or by prohibitions in foreign ports, and it was but natural that our

government retaliated by taxing foreign ships entering our ports.

The disadvantages of this system became apparent as commerce grew in

the nineteenth century, and a series of reciprocity treaties removed

the former discrimination, and put the ships of all nations on

substantially the same footing. The United States held fast, however,

to certain features of the old navigation policy. The coastwise trade,

which was interpreted to include the trade to the Pacific coast by way

of the Isthmus of Panama or around Cape Horn, was reserved absolutely

to American vessels; and no vessel could secure American registry

unless it had been built in this country. Ships built abroad could not

sail under the American flag even though they had been purchased and

were owned by citizens of the United States.

QUESTIONS AND TOPICS

1. Prepare a chart, sect. 612. [Figures of commerce for the

intervening years, showing fluctuations, will be found in the U. S.

Statistical Abstract.]

2. Review, in previous chapters, the accounts of the commercial policy

of European states during this period.

3. The westward movement of population. [Manuals of U. S. history;

maps in Atlas of the Census.]

4. The population of the country was as follows, in round millions

(counting half a million or over as one): 1790, 4; 1800, 5; 1810,

7; 1820, 10; 1830, 13; 1840, 17; 1850, 23; 1860, 31. Determine the

average commerce per capita, and indicate it on the chart.

5. The commercial history of a western town. [Select a town in one of

the States of the Mississippi Valley, admitted during this period, and

determine, from local histories and biographies, the extent of its

trade with other parts of the country and with foreign countries.]

6. What towns of the colonial period were situated at a distance from

the sea? What towns grew to considerable size in the interior of the

country in this period, and what were their means of land or water

transportation? [Consult historical maps, as those in Hart’s Epochs of

American History.]

7. (_a_) Write a report on the history of turnpikes in the State in

which you live. [Consult State and local histories, making full use

of table of contents and index.]

(_b_) Development of roads in the U. S. [Hulbert, vol. 11, chap. 1.]

(_c_) The Pennsylvania State Road in 1796. [Hulbert, vol. 11, chap. 2.]

(_d_) The Catskill turnpike. [Hulbert, vol. 12, chap. 6.]

8. The Cumberland Road. [Hulbert, vol. 10; see especially chap. 4,

stages and freight traffic.]

9. What are the chief river systems of the country; what gaps exist

between them? How do the facilities for river transportation in

different countries of Europe compare with those of the United States?

10. Development of the boats used for river traffic. [Hulbert, vol. 9,

chap. 4.]

11. Character and life of the western river men. [Same, chap. 5.]

12. The invention of the steamboat. [Encyclopedias; U. S. histories;

Thurston’s Fulton, N. Y., 1891; S. Bullock in Conn. Magazine, 1905, 9:

440-455, an excellent article with illustrations.]

13. Write a report on the influence of the steamboat in building up

one of the cities named. [Local histories.]

14. Early canal projects. [Hulbert, vol. 13, chaps. 2, 3.]

15. The Mohawk River route. [Hulbert, vol. 14, chap. 1.]

16. Early projects for a canal in the Mohawk Valley. [Same, chap. 2.]

17. The Erie Canal. [Same, chap. 4.]

18. Economic effects of the Erie Canal. [Hulbert, vol. 14, chap. 5.]

19. Origin of American railroads. [Johnson, chap. 2.]

20. Did any European country present conditions like those of the U.

S., in respect to railroad development? What has been the history of

railroads in Russia? [See chap. 44.]

21. Growth of the American railroad system. [Johnson, chap. 3; Hadley,

chap. 2; Coman, 234-242.]

22. Because the Ohio farmer received more for his products, does it

follow that railroads have raised the price of articles and forced

consumers to pay more for them?

23. Development of the merchant marine, 1815-1860. [Marvin, chaps. 9,

11, 12; Abbot, chaps. 1, 2.]

24. American whalers. [Marvin, chap. 8.]

25. Navigation laws of the U. S.: history and criticism. [Wells,

Merch. marine; Carnegie History, chap. 39.]

BIBLIOGRAPHY

See chapter xlv for general works.

Special Accounts.—Worthy P. Sterns, **Foreign trade of U. S. from 1820

to 1840, Jour. Pol. Econ., Chicago, Dec., 1899, 8: 34-57, 452-490;

J. McGregor, *Commercial statistics; J. S. Homans, *Cyclopedia; J. D.

B. DeBow, *Industrial resources.

SPECIAL TOPICS.—Hulbert, Historic highways, and more briefly in The

paths of inland commerce, New Haven, 1920; E. R. Johnson, Amer.

railway, (with references); A. T. Hadley, Railroad trans.; C. F.

Adams, Jr., Railroads; U. B. Phillips, History of transportation in

the eastern cotton belt to 1860, N. Y., 1908. Shipping: Samuel E.

Morison, **Maritime history of Massachusetts, 1783-1860, Boston, 1921;

R. D. Paine, *The old merchant marine, New Haven, 1920; A. H. Clark,

The clipper ship era, 1843-1869, N. Y., 1910; A. T. Verrill, The real

story of the whaler, N. Y., 1916; John H. Morison, History of American

steam navigation, N. Y., 1903. River navigation: H. W. Dickinson,

Robert Fulton, London, 1913; D. L. Buckman, Old steamboat days, N. Y.,

1907; W. E. Verplanck and M. W. Collyer, The sloops of the Hudson, N.

Y., 1908; H. M. Chittenden, History of early steamboat navigation on

the Missouri River, N. Y., 1903. Canals: H. W. Hill, Historical review

of waterways and canal construction in New York State, Buffalo, 1908,

(Buffalo Hist. Soc., vol. 12); N. E. Whitford, History of the canal

system of the State of New York, Albany, 1906, 2 vol., (Supplement to

Rep. of State Engineer for 1904-05); E. J. Benton, The Wabash trade

route in the development of the Old Northwest, Baltimore, 1903. The

West: K. Coman, ** Economic beginnings of the Far West, 2 vol., N. Y.,

1912; R. G. Thwaites, The fur trade in Wisconsin, 1812-1825, Madison,

Wisc., 1912; I. Lippincott, History of manufactures in the Ohio valley

to 1860, N. Y., 1914.

CHAPTER XLIX

EXPORTS, 1815-1860

=633. Chief exports in 1860.=—The following table gives the chief items

among the exports of the country in 1860, and corresponding items made

up from the annual average of the years 1802-1804, as a basis from

which to appreciate the changes.

EXPORTS OF U. S., MILLIONS OF DOLLARS

=================================================+=======+========

|1802-4 | 1860

-------------------------------------------------+-------+--------

Vegetable foods | 13 | 27

Cotton | 6 | 191

Tobacco | 6 | 15

Animal products | 3 | 20

Fish products | 2 | 4

Forest products | 4 | 13

Manufactures | 2 | 37

| -- | ---

Total of these items, omitting decimals | 36 | 307

Total domestic exports including items omitted 39 316

Total foreign exports 28 26

Exports of precious metals 56

==================================================================

=634. Changes since 1800.=—It will be noted, as said above, that the

foreign exports of the country did not increase during the period,

and were actually less in 1860 than they were about 1800. Comparing

the figures for the total exports of domestic merchandise we find

that this, the most important branch of our commerce, increased about

eightfold in value between the years chosen for comparison. All of the

separate classes of wares contributed to the growth of our export

trade, but in very different measure, as is apparent when the figures

are compared. The export industries which were most prominent in the

colonial and early national periods had not kept their place in the

movement of progress, and their output for export had merely doubled,

roughly, in this period. There is apparent, on the other hand, a great

growth in the export of manufactured wares; and the export of cotton,

which in 1789 was practically nothing, and about 1800 was less than

seven million, had risen to the enormous sum of one hundred and ninety

million, considerably more than half in value of the total exports of

the country. The history of commerce presents no parallel to the rapid

rise of cotton in the commerce of the United States at this period, and

the subject demands careful consideration.

=635. Cotton before 1800.=—The word cotton, now applied exclusively

to the fibers attached to the seed of a shrub of the mallow family,

was formerly a general term used for vegetable fibers coming from

several different sources. The fibers acquired from the present cotton

shrub, or from a vine or tree, had been used for textile fabrics from

ancient times. The manufacture of cotton goods, however, was neglected

in Europe until the eighteenth century, and at the beginning of our

national existence much of the supply of raw cotton still came from the

ancient seat of the cotton industry in Asia. From almost the beginning

of the colonial period in American history experiments had been made

with cotton culture, but the colonists found no incentive to devote

themselves to cotton cultivation on a large scale. The separation of

the fiber from the seeds was a tedious process, there was no market

for raw cotton in the colonies, and other crops were found to return

larger profits to the cultivator. Cotton was grown successfully on some

of the islands of semi-tropical America, but the territory now forming

the United States counted for nothing as a source of cotton when the

national government was established in 1789. So weak, in fact, was the

cotton industry at this time, that it was protected by a duty of three

cents a pound on imported cotton, included in the first national tariff.

=636. Growth in importance of cotton.=—Various influences, however,

combined about 1789 to bring into prominence the possibilities of

cotton as a regular crop. The great improvements in textile machinery

caused at this time an increased demand for the raw material. The

other crops which were then raised in the territory now occupied by

cotton were not flourishing. The indigo culture, for reasons which have

been noted above, was unpopular; rice culture had declined during the

Revolution, as the war had broken up the organization of slave labor in

the rice districts; tobacco was giving smaller returns, as the land was

exhausted by continuous cropping. A new variety of cotton, moreover,

had recently been introduced from the Bahamas, known as sea-island or

long-staple; the fibers were long and silky, suited to the manufacture

of fine threads and fabrics, and they were more readily separated from

the seeds than were the fibers of the ordinary short-staple or upland

variety. The cultivation of this variety was an assured success in

the narrow strip along the coast where it could be grown; and further

inland, where sea-island cotton could not be raised, people began to

strive persistently to overcome the difficulties of the cultivation of

the upland variety.

=637. Demand for efficient means of cleaning cotton.=—The chief

obstacle to the cultivation of upland cotton was now the difficulty

of separating the fibers from the seeds. To perform the process by

hand-picking was out of the question, as a man in this way could clean

only one pound of cotton in a day. Various simple machines had been

devised to effect the separation of the seeds, and these were fairly

successful when applied to sea-island cotton, enabling a man to clean

fifty or sixty pounds. None of them, however, was a success when

applied to upland cotton, whose short fibers adhered very tenaciously

to the seeds.

The problem was solved by a native of New England, Eli Whitney,

who had gone south as a teacher, and who invented the cotton gin

(engine) which proved capable of cleaning upland cotton, and so made

the cultivation of that crop a commercial possibility. The conditions

may be described in Whitney’s own words, used in a memorial to the

government, asking for an extension of his patent. He showed “That,

being in the state of Georgia in the year 1793, he was informed by

the planters that the agriculture of that State was unproductive,

especially in the interior, where it produced little or nothing for

exportation. That attempts had been made to cultivate cotton, but that

the prospect of success was not flattering. That of the various kinds

which had been tried in the interior none of them were productive,

except the _green seed cotton_, which was so extremely difficult to

clean as to discourage all further attempts to raise it. That it was

generally believed this species of cotton might be cultivated with

great advantage, if any cheap and expeditious method of separating it

from its seeds could be discovered, and that such a discovery would be

highly beneficial both to the public and the inventor.”

=638. Invention of the saw gin by Whitney, 1793.=—Encouraged by the

terms of the national patent law, on which he relied for a monopoly of

his invention, Whitney set to work, and in a short time had devised a

form of cotton-gin which, with minor alterations, has remained in use

ever since. The raw cotton was fed through a wire grating to a cylinder

on the surface of which were wires or saw teeth, that caught the fibers

and pulled them through, the seeds being retained by the grating. The

gin was a complete success, enabling a man to clean several hundred

pounds of cotton in a day. Whitney himself reaped comparatively little

benefit from his invention, as he found it impossible to prevent

infringements; he said in 1812, with slight exaggeration, that the

total amount which he had realized was less than the saving in cost

effected in one hour by his machines then in operation. The country,

however, was an immense gainer, for the last obstacle to the successful

cultivation of cotton was removed.

=639. Extension of cotton cultivation, and increase of exports.=—The

exports of cotton, which in 1793, the year of Whitney’s invention,

had been only two thousand bales, rose by leaps and bounds. In 1802

they passed one hundred thousand bales, in 1822 five hundred thousand,

in 1834 one million, in 1843 two million, in 1858 three million. The

States along the Atlantic coast, in which cotton culture first sprang

up, continued for many years to be the main seat of the industry.

After the war of 1812, however, the cultivation of cotton spread in

the Southwest, where rich river bottoms and prairie lands offered soil

of exceptional fertility, and where the numerous rivers facilitated

transportation. The exports of cotton from New Orleans increased

tenfold in the years 1816 to 1830, and at this later date the western

States produced the larger part of the cotton supply. At the close of

the period which we are studying (1860) over half of the total crop was

raised in the three States Alabama, Mississippi, and Louisiana.

=640. King cotton.=—The success of the cotton culture in this country

was attended by far-reaching results in economic and political history.

We must restrict ourselves here to the commercial aspects of the cotton

industry, without discussing such topics as its relations to slavery

and its influence in bringing on the Civil War.

Never in the world’s history have producers enjoyed such an exalted

position in commerce as that which was held by the planters of the

cotton States. The larger part of the world’s supply of an article

regarded as of the first necessity came from a comparatively restricted

area in the South. The people of Europe and other continents had become

used to cotton textiles, great factories had grown up to manufacture

them, but it seemed as though people must go unclad and factories must

stop work, if the United States should refuse to deliver raw cotton.

For years before the Civil War fear of a cotton famine had haunted the

minds of European manufacturers.

Cotton took a position in national commerce equal in importance

to that which it occupied in international trade. Not only did it

furnish directly more than half of the total exports of the United

States; it shared its prosperity with other industries, and influenced

the development of every part of the country. Northern merchants

made fortunes in handling and transporting southern cotton; the

manufacturers of every district found in the South a market where

people had plenty of money to buy goods which they were too busy to

make; the farmers of the Northwest supplied in considerable part the

needs of the South for food. The people of the South were not blind to

these facts, and tended, indeed, to exaggerate their importance. As a

sample of their attitude this extract from a speech by Senator Hammond

in 1858 may be taken: “Without firing a gun, without drawing a sword,

should they make war on us, we could bring the whole world to our feet.

What would happen if no cotton was furnished for three years? I will

not stop to depict what every one can imagine, but this is certain,

England would topple headlong, and carry the whole civilized world with

her. No, you dare not make war on cotton. No Power on the earth dares

to make war on it—cotton is king.”

=641. Slight contributions of the South to exports, aside from

cotton.=—In the period before the Civil War, when southern plantations

were worked by slaves, it was considered to be the best policy to

plant cotton continuously, without alternation or diversification of

crops, though this policy led necessarily to exhaustion of the soil

and required frequent removals to fresh land. Cotton was, therefore,

the single product which the South contributed in great quantities

to the internal and foreign trade of the country. The rice culture

was maintained on the eastern coast and was extended along the Gulf,

but there was little increase in the export of rice, as the crop was

consumed largely at home. Indigo disappeared from the list of American

products. Tobacco production spread in the States of the Ohio valley,

and the exports of this ware rose after the middle of the century to

double the value which they had about 1800, but a comparison of the

figures given at the opening of the chapter shows that tobacco declined

still further from the position it had held in colonial times.

=642. Trade between the North, the South, and Europe.=—In 1860 only one

third, approximately, of the total exports of the country came from the

North. Conditions in this period resembled closely those of colonial

times, with the substitution of the southern States for the West Indies

in the triangle of trade. The North imported from Europe far more than

it could export in return; it shipped South, however, large quantities

of foodstuffs and manufactures; and the South gave in exchange bills

on Europe which were drawn against the great quantities of cotton sent

thither. Cotton from the South to Europe, manufactures from Europe to

the North, manufactures and foodstuffs from the North to the South:

such were the three sides of the triangle.

=643. Chief exports from the North.=—The North could no longer look

to colonial industries, like fisheries and forestry, to provide the

means of purchasing the foreign wares which it required. The exports

from those industries had increased, it is true, but were still so

small that they had become items of slight importance in the total. The

exports of manufactures, on the other hand, had grown very rapidly, and

formed now a considerable item in our trade. The South contributed to

this class some wares (manufactured tobacco, turpentine, cottonseed oil

cake), but the products of developed manufacture came almost entirely

from the North; manufactures of cotton and of iron were the leading

items. The rise of these manufactures will be treated in the next

chapter. At the North, however, as at the South, agricultural products

held the first place among the exports. Foodstuffs and animal products

were exported to the value of about fifty million dollars, and these

wares came chiefly from the North. The total is small in comparison

with that of the cotton export (one hundred and ninety million), and

gave little promise of the remarkable expansion which was to follow

after the Civil War; still, foodstuffs and animal products were the

mainstay of the Northern export trade.

=644. Gradual increase in the exports of foodstuffs.=—The increase

in the exports of northern agriculture was rather less than would be

expected from a people rapidly increasing in numbers and provided with

an abundance of fertile land. For many years after the close of the war

of 1812 commerce in wheat and flour languished, and even toward 1840

the export of those articles was less than it had been at the opening

of the century. There was talk, even, of imposing a duty on wheat, to

protect the farmers of the Atlantic seaboard from imports. As late as

1835 Ohio was the only grain-exporting district of the West, and the

first grain shipment on the Great Lakes, of which there is record, was

made about that time. Chicago became of importance as a center of grain

shipments only about 1850. In the decade from 1850 to 1860, however,

the Chicago shipments increased (roughly) from two to twenty million

bushels, and the total exports rose rapidly; canals and railways were

at last bringing the cheap grain from the West to the people of Europe,

who at last were ready to welcome it. The export of animal products was

growing also. Lard and pickled pork were the chief items under this

head, for the lack of modern appliances prevented the export of fresh

meat; but the price of hogs at Cincinnati doubled in the fifteen years

preceding 1860, and western farmers were encouraged to give increased

attention to the supply of animal products.

=645. Exports of precious metals; result of the California gold

discoveries.=—The last item in the list of exports given at the

beginning of the chapter is that of precious metals, which we shipped

abroad to the value of more than fifty million dollars. Ordinarily the

exports and imports of precious metals are not included in the figures

of a country’s trade. Coin and bullion are used to make up the balance

of accounts between different countries; they may leave a country

one year and may return to it the next year; and they represent,

therefore, no contribution to commerce like that of the shipment of

merchandise. An exception must be made, however, in the case of the

few countries which produce such quantities of gold and silver that

they can regularly export a surplus. The mines of precious metals are

to these countries as much a commercial resource as are the coal or

iron mines to countries like England and Germany. The United States

was not at first among these favored countries: it produced little

gold and less silver, and needed to import most of the precious metals

which it required for use as currency and in the arts. These conditions

were suddenly reversed by the discovery of gold in California in 1848.

The gold production of the country, which had been formerly less than

a million dollars a year, had risen by 1850 to fifty million, and

provided the country with a handsome surplus which it could afford to

exchange abroad for merchandise.

QUESTIONS AND TOPICS

1. Prepare a graphic chart of the figures, sect. 633, for comparison

with earlier and later conditions.

2. Review the distinction between domestic and foreign exports. The

principal foreign wares exported from the U. S. in 1860 were as

follows, in millions of dollars: coffee 2.2, sugar 2.1, tea 1.9, hides

1.6, tobacco 0.7. From what countries do you think these wares came?

3. Write a report on one of the following topics:

(_a_) The cotton plant and cotton fibre.

(_b_) Different varieties of cotton.

(_c_) History of cotton, outside America, before 1800.

(_d_) History of cotton in America before 1800.

[Encyclopedias; commercial geographies; Hammond, pp. 3-33, references

in bibliography.]

4. Invention of the cotton gin by Whitney, [Hammond; Amer. Hist.

Review, Oct., 1897, 3: 90-127.]

5. What changes have been made in the cotton gin since its invention?

[Encyclopedia.]

6. How long do you think the world would have had to wait for an

efficient gin if Whitney had not supplied the need?

7. Importance of cotton in southern agriculture before the Civil War.

[Hammond, 67-119; J. A. B. Scherer, Cotton as a World power, N. Y.,

1916.]

8. What other wares have held the position of “king” in the commercial

countries. In what period and in what country were the following wares

especially important among the exports: tin, silk, wool, spices, silver?

9. Connection of cotton and slavery. [Hammond, 34-66.]

10. The cotton trade, 1815-1860. [Hammond, 243-277.]

11. Rice culture before the Civil War. [Depew, chap. 38 by Talmage;

DeBow, vol. 2.]

12. Later history of American fisheries, and international questions to

which they have given rise. [Census; McMaster and Moore in Cambridge

Mod. hist., vol. 7, 363 ff., 657 ff.; Carnegie History, vol. 2, part 2.]

13. Trade in turpentine and rosin. [Census, 1900, 9: 1001-1012.]

14. The development of the American lumber industry. [Depew, chap. 30,

by Fernow.]

15. Development of Cincinnati or Chicago as a market for meat and

breadstuffs. [Local histories.]

16. What countries were the chief sources of supply of gold and silver

before 1850? [Encyclopedias.]

17. The California gold discovery. [Narrative histories of U. S.]

18. Commerce of California before the discovery of gold. [Read the

interesting narrative of a sailor’s life by R. H. Dana, Two years

before the mast, Boston, Houghton.]

19. The overland route to California. [Henry Inman, The old Santa Fe

trail, N. Y., Macmillan, 1899. Salt Lake trail, N. Y., 1898.]

20. Development of gold and silver mining. [C. H. Shinn, Story of the

mine, N. Y., Appleton, 1896.]

BIBLIOGRAPHY

See chapter xlviii.

CHAPTER L

IMPORTS, POLICY, DIRECTION OF COMMERCE, 1815-1860

=646. Chief imports in 1860.=—The imports of the United States have

been so varied in character that it is impossible to classify them

with any exactness. An attempt will be made in this section, however,

to indicate the leading items in our imports in 1860, giving values in

round millions of dollars. Of the total of the year, 354, the largest

share fell to manufactures. Under this head the chief place was taken

by the textiles (wool 38, silk 33, cotton 32, linen 10); nearly one

third of the total imports of the country was derived from these

four leading branches of the textile manufacture. Most of the other

manufactures imported fell below the mark of 5 millions; a noteworthy

exception is the item of iron and steel in various forms, amounting to

21 millions. In comparison with the amount of manufactures imported,

the class of raw materials, to be used for manufacture in this country,

was still small; we purchased abroad considerable amounts of hides and

skins, wool, etc., but in general we either manufactured our wares out

of materials procured at home or sent abroad for the finished product.

The colonial wares had gained both in value and in the proportion

which they formed of the total imports; the chief items in this class

were sugar 31, coffee 21, tea 8, cigars and tobacco 6, molasses 5,

altogether amounting to about one fifth of the imports of the year.

=647. Significance of the import trade at this time.=—The general

character of our import trade, evidently, had not changed greatly in

the seventy years since the establishment of the national government.

The attractions of farming were so great, when fertile land was to be

had in abundance and when there was an eager demand for such products

as cotton and foodstuffs, that the American people still gave most of

its energy to raising raw materials; and found it profitable still to

look to other countries for much of its supply of manufactured wares.

The policy of protection, which was established in the period under

consideration, had not as yet succeeded in building up manufactures

capable of supplying the wants of the home market. The comparatively

small amount of materials imported for our factories showed that our

manufactures were still local in character, without the strength, or

else denied the opportunity, to reach out and draw from distant sources

the raw materials which they could work up and return to the currents

of the world’s trade.

The growth in the imports of colonial products represented the increase

of general prosperity, enabling the people to consume luxuries in

greater quantity. Dividing the amount of these wares imported by the

population of the country, and so securing a rough idea of the share

falling to each individual, we find that the per capita consumption

rose as follows from 1790 to 1860: coffee from about 1 pound in 1790 to

over 5 pounds in 1860, sugar from less than 5 pounds to over 30.

=648. Growth of domestic manufactures.=—Though the imports of

manufactured wares increased greatly in the course of this period, it

must not be assumed that the United States was as wholly dependent

on foreign manufactures in 1860 as it had been in 1790. A population

growing rapidly both in numbers and in welfare caused a demand for

manufactures which stimulated some producers to choose manufacturing

instead of farming for their livelihood, and the government aided

these individuals by taxing imported wares, and so giving the domestic

producer an advantage in the home market. In the following sections we

shall survey the chief branches of manufacture which grew up in the

United States at this time, and consider the bearing of the protective

tariff on their development.

=649. Increase in the use of coal.=—Some idea of the development

of modern forms of manufacture in the United States can be gained

by tracing the history of coal, the great source of power for the

developed system of factory industry. The demand for coal was still

very small in the first quarter of the century; in 1830 the total

production was less than half a million tons, and the United States was

surpassed in coal output by four of the states of Europe. The second

quarter of the century was marked by a great extension in the use of

steam power, and the successful application of coal to iron making; by

1850 the United States had reached the second place among the countries

of the world in coal production, with an output of over six million

tons. Small as this seems in comparison with the output of Great

Britain at that time (54 million), or the output of the United States

in 1913 (over 500), it marked a tremendous advance over conditions as

they were about 1800, and showed that at least the country had passed

through the preparatory stage of industrial development.

=650. Sluggish development of the iron industry.=—While the use of coal

is perhaps the best index of a country’s development in the modern

forms of manufacturing and transportation, the use of iron is also

certainly of great significance; iron is the fulcrum through which the

power of steam is applied, to repeat Jevons’ figure of speech. Great

importance attached, therefore, as has been noted in previous chapters,

to the improvements introduced in the English iron manufacture

towards 1800, by which it was freed from dependence on charcoal, and

was enabled to turn out increased quantities of pig and bar iron at

reasonable prices. American iron makers showed a slackness which

we find it hard now to forgive in adopting the improved processes.

Coal and coke were not used in the American iron manufacture until

about 1840, and the new methods of puddling and rolling, which had

transformed the English iron industry, were applied in this country

only shortly before that date, about half a century after their

introduction in England. Some excuse can be found for our delay in

the lack of transportation facilities for bringing the iron ore and

coke together. The result, at any rate, was unfortunate. A heavy duty

was laid on imported iron, to protect the home producer, but did not

make up for his inefficiency. It was necessary, therefore, throughout

the period, to import a considerable part of the necessary pig and bar

iron and steel, paying the higher prices caused by the tariff; and the

machine industries could not but suffer from the added expense. Down to

1860 our iron industry was not strong enough to export crude iron in

any quantity, though American ingenuity succeeded in finding a market

for considerable quantities of iron manufactures.

=651. Success of the cotton manufacture.=—With one of the branches of

textile manufacture, that of cotton, the Americans had more success.

Thanks to the alertness of the cotton manufacturers in introducing

improved machinery, and to the advantages they enjoyed in their supply

of raw material, they had soon outgrown the need of protection. The

higher wages which they paid to American laborers were more than offset

by the quantity of work turned out, and in the manufacture of the

common sorts of piece goods they did not fear the competition of any

other country. Large manufacturing towns grew up in New England to meet

the demand for cloth which formerly had been made in the household of

the consumer, and by 1850 there were as many cotton spindles at work

in New England as there were inhabitants. American cottons were sold

so readily in South America and other foreign markets that English

manufacturers condescended to imitate them, and our exports of cotton

manufactures in 1860 amounted to over ten million dollars, more than

double the export of fish products, and not far below the export of

forest products. The strength of the American cotton manufacture lay

in the production of plain cloth; the bulk of the imports consisted of

finer and fancy products.

=652. Failure to establish a strong woolen manufacture.=—The United

States was, of course, peculiarly fortunate in its supply of raw

material for the cotton manufacture. It enjoyed no such advantage with

respect to wool. The wool fibers from American sheep were comparatively

short, and unsuited to the manufacture of the finer woolens and

worsteds. Manufacturers were hampered in their use of other wools by a

tariff designed to protect the sheep growers, and paid for other raw

materials higher prices than their competitors in England, while they

could not, as in the cotton industry, make up for the higher wages

in this country by the skilful application of machinery. Under these

conditions the duties designed to check the importation of woolen

manufactures from abroad were only a partial protection to the American

producer; and the woolen manufacture did not flourish in this country.

We could in large part supply the demand of the home market for coarser

fabrics (flannels, blankets, etc.), but we manufactured no wool for

export, and we continued to import the finer fabrics.

=653. Other manufactures.=—In the manufacture of other textile products

which were imported in considerable amounts, silk and linen, the United

States made no important progress during this period. Sewing silk and

silk trimmings were made in the country, but the great bulk of silk

manufactures were bought in France and England, while there were only

the beginnings of a linen manufacture in this country before the Civil

War.

Other manufactures existed besides those named, but the most important

of them were devoted chiefly to the first processes in working up raw

materials, and scarcely correspond to our ideas of manufacturing at

the present time. This point is illustrated by the list of domestic

manufactures exported from the country in 1860, as given by the

government. Of the total of 37 millions, the items cotton 10.9 and

iron 5.7 were the product of developed manufacture, and the same may

be said, perhaps, of the item copper and brass and their manufactures,

1.6. Among the other items, however, the leading products were of a

different character, and showed strength in raw materials rather than

in manufacture (manufactured tobacco 3.3, spirits of turpentine 1.9,

oil cake 1.6, household furniture 1.0).

=654. Dependence of the South on the North for manufactured wares.=—It

is noteworthy that most of the manufactures which grew up in the United

States in this period were established in the North. The prevalence of

slavery in the South and the attractions of agriculture in that section

prevented the rise of any considerable manufacturing industry; and the

South manufactured even of its staple product, cotton, less than one

fifth as much as the mills of the North. Conditions were thus adapted

to the triangular trade, as it has been termed above, by which surplus

shipments from the North to the South balanced surplus shipments from

the South to Europe. The results were set forth in the following

extract from a book published by a Southerner in 1857:

“In one way or another we are more or less subservient to the North

every day of our lives. In infancy we are swaddled in Northern muslin;

in childhood we are humored with Northern gewgaws; in youth we are

instructed out of Northern books; at the age of maturity we sow our

‘wild oats’ on Northern soil; ... in the decline of life we remedy

our eyesight with Northern spectacles; in old age we are drugged with

Northern physic; and, finally, when we die, our inanimate bodies,

shrouded in Northern cambric, are stretched upon the bier, borne to

the grave in a Northern carriage, entombed with a Northern spade, and

memorized with a Northern slab!”

We shall see in the following sections, reviewing the course of

tariff policy, that the North and the South took opposite sides with

respect to the protective tariff. The South, which had practically no

manufactures, desired free trade, that it might make its purchases in

the cheapest market, while the North desired protection for its growing

manufactures.

=655. Beginning of the system of protective tariffs, 1816.=—In previous

sections (609-611) attention was directed to the fact that the

earliest tariffs were but slightly protective. The establishment of

manufactures was stimulated much more by the interruption of commerce

at the time of the embargo and of the war with England than by any

deliberate policy of protection. At the close of the war of 1812,

however, the time seemed to have come for the legislators to intervene

in favor of American manufacturing industries. The privations of the

war period awakened people to the dependence of the United States on

Europe, which seemed unworthy of a free state and which seemed unsafe

from the military standpoint. The manufactures which had grown up

during the war were exposed, at the return of peace, to a flood of

imports which threatened to reconquer the American market for the

foreign manufacturer. The tariff of 1816, therefore, included a number

of duties designed to restrict imports for the benefit of the American

producer; the scale of duties was moderate, the highest permanent duty

being 20 per cent.

=656. Course of tariff policy, 1816-1860.=—The conflict of interests

between different sections of the country led to many changes in the

tariff schedules, and occasioned some bitter political contests.

Without attempting to recount the details, it may be said in summary

that the course of the tendency was toward higher duties till about

1830, when some of the duties amounted to 40 per cent and 50 per cent

or more.

The high duties were particularly obnoxious to Southerners, who

considered them a tax taken from their pockets for the benefit of

the North, and who fought persistently for a reduction. They finally

secured a hearing; and duties were steadily reduced in the period from

1833 to 1842 until they stood, at the later date, at a general level

of 20 per cent. The tariff remained at this low level only two months,

when it gave place to another tariff with higher duties; the average

of the duties levied _ad valorem_ was 33 per cent, while some duties

rose far above this rate. Finally, from 1846 until the Civil War, the

country was under a low tariff; duties were reduced until the maximum

protective duty was 24 per cent, while the general level was about 20

per cent.

=657. Effect of the tariff on industrial development.=—What effect

did the tariff policy have upon the industries and the commerce of

the country? To this question the only safe answer is that the effect

of the tariff was much less, for good or for bad, than has commonly

been stated by writers on either side of the controversy between

protection and free trade. The country has grown rich from the wealth

of its natural resources and the character of its people. The tariff

diverted into manufacturing more people than would otherwise have

chosen that branch of production, but it did not succeed in making

them all prosperous. Manufactures which were suited to the conditions

of the time, as the cotton manufacture, grew strong under the tariff,

and would have grown strong without it; other manufactures, such as

those of iron and wool, were still feeble after years of protection.

Commerce must have felt the effect of the tariff, for protection could

be effective only as it restricted the exchange of wares with foreign

countries. We are tempted to ascribe the rapid increase in imports and

exports after 1846 to the reduction in duties. Yet, even here, many

other influences favored the growth of our foreign trade, and it is

impossible to determine which of them all was most effective.

=658. Changes in the relative importance of shipping ports; southern

ports and the export trade.=—In the course of this period the

development of new land in the West and Southwest, and the rise in

importance of the cotton crop, effected some notable changes in the

relative rank of the ports of the country. Measuring importance by the

value of the domestic exports, we find that New York now held the first

place; this port was in 1860 the shipping point for nearly one third

of the total export values of the country. A considerable part of the

value of exports from New York, however, was formed of precious metals,

attracted there by the banks and the facilities for rapid voyages on

passenger vessels. If we confine ourselves to the shipment of ordinary

merchandise, we find that New York, in spite of the western connections

afforded by the railroads and the Erie Canal, took second place,

showing but two thirds of the export values leaving the country by way

of New Orleans. This port was the natural outlet for the cotton-growing

country of the lower Mississippi valley, and its export of the one

ware, cotton, exceeded in value all the merchandise shipped from New

York. It was cotton, again, that gave standing to the ports next in

rank, Mobile, Charleston, and Savannah; the exports from these cities,

aside from that single staple, were insignificant. Old ports like

Boston and Baltimore had sunk to the sixth and seventh place, while

Philadelphia, once the leader, was still lower on the list, and was

outranked by San Francisco, if the gold shipments from that port be

counted.

=659. Northern ports and the import trade.=—The reader who remembers

what has been said above about the triangular course of trade in this

period will not be surprised to learn that the figures of imports tell

a very different story. New York enjoyed an import trade nearly double

that of all the other ports of the country together; it was the great

distributing point for European manufactures, from which the various

ports of the country secured most of their supply. Second in rank, but

separated by an immense interval, was another northern port, Boston;

while New Orleans was but a poor third, and Philadelphia and Baltimore

followed in the order named. Other southern ports, ranking high in the

value of their exports, had only an inconsiderable import trade.

=660. Changes in the direction of trade. New character of the trade

with England.=—There had been changes also in the direction of our

trade abroad. The following brief table gives figures in round

millions, for 1860, which may be compared with the figures for 1790

given in section 586.

It will be noted that our trade with English-speaking people formed

still the most important part of our total commerce. A noteworthy

change had taken place, however, in our trade with the British

possessions. At any earlier period we imported from them far more than

we could sell to them in return; the balance of trade was against

us, as men said. This condition had been reversed by the rise of the

cotton trade, and was to be still further affected by our export of

foodstuffs. Great Britain was now dependent on us for the raw material

of her most important manufacture, and was seeking from us also

increasing supply of food, for her factory population.

=====================================+=========+========

| Exports | Imports

-------------------------------------+---------+--------

Great Britain and her dominions | 228 | 177

Including Canada | 11 | 18

British West Indies | 5 | 1

France and her dominions | 57 | 43

Spain and her dominions | 20 | 44

Including Cuba | 11 | 34

=====================================+=========+========

=661. Trade with Canada and the West Indies.=—Our trade with Canada was

of comparatively recent growth. Restrictive duties had formerly checked

exchange with our northern neighbor, but as population and industries

developed on either side of the frontier a demand for greater freedom

of exchange made itself felt; duties were reduced, a reciprocity treaty

was negotiated (1854), and under it many articles were exchanged free

of all duties.

It will be noted that trade with the British West Indies had not

developed to a similar degree; and it would be apparent, if other

figures were included in the table, that our West India trade in

general was far less important than it had been in the earlier period

of our history. Trade with the French and the Dutch West Indies was, in

fact, less in 1860 than in 1790. Among all the West India islands Cuba

alone was a prominent exception to this tendency to decline. Slavery

was still maintained in that island; and the sugar industry, which had

felt severely in other islands the abolition of slavery, continued to

flourish there.

=662. Expansion of American commerce in Europe, South American, and the

Far East.=—It may be said, in general, that our commerce had broken

through the rather narrow bounds which had formerly directed so much

of it to England and to the West Indies. We were building up our trade

with the continent of Europe. Our trade with France had increased

greatly under the liberal commercial policy of Napoleon III, and we

were establishing profitable connections with other European states, as

is shown by the following figures for our total trade with them in 1860

(millions of dollars): German states 33, the Netherlands 10, Italian

states 9.

Still more noteworthy is the extension of our commerce to the South and

to the Far East. During the period under review the states of Central

and South America had won their independence from Europe, and were now

free to establish such trade relations as they chose. With Mexico and

various states of South America (especially Brazil and the Argentine

Republic) we had in 1860 a commerce amounting to about sixty million

dollars. Our trade with China amounted to about twenty million; and

while our trade with Japan (about $150,000) gave no immediate reward

for the American enterprise which had opened the ports of that country,

it was at least a promise for the future.

QUESTIONS AND TOPICS

1. See sect. 695 for figures of imports which may be charted for

comparison with later development.

2. How did the import trade of the U. S. compare with that of England

at about this time?

3. Why was it cheaper for the Americans to buy manufactures abroad

than to make them at home?

4. What is the effect of a protective tariff, (_a_) on commerce, (_b_)

on production, (_c_) on the price of the product?

5. Industrial development, 1790-1860. [Wright, 132-142.]

6. American coal fields. [Nicolls, part 1; commercial geographies.]

7. Early transportations of coal by rivers and canals. [Nicolls,

chaps. 17, 18.]

8. Assuming that the protective duty on iron raised its price to

purchasers, what must have been the effect on manufactures and

transportation? [Compare the sections on Russia, above.]

9. Development of the American iron industry before 1860. [Taussig;

Depew, chap. 46 by Huston; Swank.]

10. Difficulties of the woolen manufacturer. [Taussig; North in Depew,

p. 482.]

11. Contributions of the U. S. to improvements in machine tools.

[Depew, chap. 49 by Sellers.]

12. Cotton manufactures in the South before the war. [DeBow, 1: 233,

2: 101 ff., 3: 24 ff.].

13. Industrial conditions at the close of the War of 1812. [Histories

of U. S. by McMaster and Henry Adams.]

14. Tariff of 1816. [Taussig.]

15. Why was the South opposed to protection in this period? [Review

the description of the industries and commerce of North and South, and

try to see what effect a protective duty on manufactured wares would

have on Southerners.]

16. Study in detail the influences, economic and political,

determining the character of _one_ of the following tariff acts: 1824,

1828, 1832, 1833, 1842, 1846, 1857. [Tariff histories by Taussig and

others; narrative histories of the U. S.]

17. Study the commercial history of one of the ports named, sects.

645-6. [Local histories; Encyclopedias.]

18. Commerce of the South before the War. [Maury in DeBow, vol. 3, 1

ff.]

19. Reviewing the list of ports, which of the following factors seems

to have been most important in determining their relative rank in the

import trade: nearness to Europe, excellence of harbor, facilities

for distributing goods by waterways, railroad facilities? Can you add

other factors of importance to the list?

20. Make a chart of the figures, sect. 660, and compare it with the

chart for the earlier period.

21. Effect on commerce with Canada of the reciprocity treaty of 1854.

[Haynes, Robinson.]

22. History of the commerce between the United States and South

America. [Rutter; Curtis in Senate Exec. doc., first session, 51st

Cong., vol. 8; check list 2685.]

23. Development of American commerce in the Pacific. [Callahan.]

BIBLIOGRAPHY

See chapter xlviii.

CHAPTER LI

NATIONAL DEVELOPMENT, 1860-1914

=663. Survey of commercial development, 1860-1914.=—In the chapters

introductory to the history of commerce in the nineteenth century,

attention was directed to the increasing rapidity of movement, which

makes the second half of the century a period by itself, distinguished

above all others by its wonderful commercial development. That the

United States enjoyed a full measure of the world’s progress in

commerce is shown by the following table, which gives the figures of

imports and exports in millions of dollars.

==========+=======+========+=======+=======

| |Domestic|Foreign| Total

|Imports| exports|exports|general

----------+-------+--------+-------+-------

1860 | 534 | 316 | 17 | 687

1870 | 436 | 377 | 16 | 829

1880 | 668 | 824 | 12 | 1,504

1890 | 789 | 845 | 13 | 1,647

1900 | 850 | 1,371 | 24 | 2,244

1910 | 1,557 | 1,710 | 35 | 3,302

1913 | 1,813 | 2,429 | 37 | 4,279

==========+=======+========+=======+=======

Prices were falling in the last quarter of the century, so that the

figures in the text, giving the value of imports and exports, do not

do justice to the growth in the physical volume of trade. On the other

hand prices began to rise just before 1900 and, therefore, the figures

exaggerate the increase of trade in the most recent period. Prices of

1913 were, however, only about one-third higher than in the decade

1890-99 so that after allowance is made for their rise the growth of

American commerce in this period remains extraordinary.

=664. Internal development of the country.=—During this period the

natural growth of population was augmented by a steady stream of

immigration, which has increased with time and has made to appear small

in comparison all previous movements of people to the country. In

spite, however, of this growth, the increase in the value of foreign

trade has been even more rapid, and the share contributed by the

average person to the commerce of the country was greater at the close

of the century than at any previous period. The average inhabitant had

in 1913 a share of about $18 in the imports, and of about $25 in the

exports.

While the preceding period was called the period of national expansion,

the period lasting from the Civil War to the close of the century may

fitly be termed that of national development. The population continued,

it is true, to spread out within the national frontiers. It occupied

the great plains leading up to the Rocky Mountains region, and the

strip of fertile land along the Pacific Coast, and penetrated the

mountains and semi-arid region in all parts where mineral wealth and

agricultural possibilities promised returns to the laborer. The most

striking feature, however, in the progress of the last forty years

has been not so much the breaking-in of new territory as the improved

means adopted for making the most of all resources, in old and new

territory alike. Improvements of a technical character have transformed

the methods of transportation and manufacture, and new methods of

cooperation have changed the aspects of business life completely.

The first subject requiring attention is the development of the

transportation system.

=665. Extension of railroads.=—In the recent history of the

transportation system of the United States the most noteworthy feature

has been, of course, the development of railroads. The railroad mileage

of the country in 1860 was divided almost equally between the North,

the South, and the West, each section having roughly 10,000 miles.

The section which felt most keenly the need of increased railroad

facilities was the agricultural West, where the products of rich farm

lands were wasted and where corn was not infrequently used for fuel,

for lack of means to reach a market. After 1860 the railroads were

rapidly extended through the upper Mississippi Valley, and in 1869 the

first transcontinental route was completed (Union and Central Pacific).

Railroads reaching out like feelers into new regions attracted

population and stimulated traffic not only in the new country but also

in the older settled districts, where the opportunities for profitable

business were multiplied by the increased supply of raw materials and

by the widened market for finished products. Old lines were extended

and new lines were built until, in 1913, the mileage of the country had

risen from about 30,000 as it was in 1860, to over 250,000, showing an

average gain of about 40,000 miles in a decade, a greater amount than

the total of 1860.

=666. Improvements in the operation of railroads.=—Equal in

practical importance to the extension of the railroad system were

the improvements effected during the period in the construction and

operation of the lines. This was the time in which steel rails and

bridges were introduced, which permitted the use of more efficient

locomotives, drawing heavier trains, and so reducing the expense of

carriage. Lines which had been constructed in short sections under the

control of different companies were now merged in great corporations,

operating thousands of miles of track. The railroads had previously

been so independent of each other that there was not even a standard

gage for the track; some lines set the rails 6 or even 7 feet apart,

a California law fixed the gage in that State at 5 feet, while the

Missouri Pacific had a gage of 5 feet 6 inches. A difference in

gage necessitated, of course, the unloading and reloading of wares

in passage from one line to another, and prohibited distant freight

movements. Soon after 1860 a movement toward the present standard,

4 feet 8-1/2 inches, brought a uniform gage into use, and when the

consolidation of railroads was under way there was no longer a thought

of varying from the standard. The first consolidation of a through line

from Chicago to the sea was effected in 1869 under the management of

Cornelius Vanderbilt (Lake Shore and Michigan Southern and New York

Central and Hudson River); and the movement soon spread to other lines

(Pennsylvania, etc.). The benefits were greater than the reader may

be inclined to suppose. The management of railroads was made at the

same time more efficient and less expensive; uniformity of policy was

established in such matters as the track gage; and, most important, a

new policy of freight rates, designed to stimulate distant shipments,

became practicable.

=667. Reduction of railroad rates.=—The charges for freight movements

before 1860 rarely fell below 2 cents per ton-mile. Railroad managers

believed that the lowest rates which they could profitably make were,

roughly, 2 cents for heavy agricultural produce, 3 for groceries,

4 for dry goods. The improvements effected in road-bed and rolling

stock after 1860 suggested the possibility of reducing rates, and the

reorganization of small railroads in large systems made it possible

to institute reductions to stimulate distant freight movements. The

results exceeded all expectations. The railroads found that a reduction

brought such an increase of traffic that the lower rates were not only

an advantage to the shippers, but also a benefit to themselves; and

rates have fallen almost constantly in the course of the period. In

1914 the average freight rate was only three quarters of a cent per

ton-mile, and some of the lines between Chicago and the Atlantic coast

had reduced their charges very close to half a cent.

=668. Contribution of the railroads to recent national

development.=—The importance of this change in a country of great

distances can scarcely be exaggerated. It has transformed the railroad

from a luxury for the use of passengers and high-class freight

to a necessity for the producers and consumers of the commonest

articles. In 1860 even a ware like wheat could not pay the expense

of transportation over a distance exceeding many hundred miles, and

distant freight traffic was restricted to manufactures and the most

valuable of farm products, such as live stock. The reduction in

charges has opened a profitable market for the commonest agricultural

products of distant western States, and has made accessible the natural

resources of all kinds, which otherwise would count for nothing among

the economic assets of the country. In 1913 more than half of the

tonnage carried on the railways of the United States consisted of

ores, coal, and other products of mines, which could scarcely have

been carried at all in 1860. The railroads now carry a tonnage far

exceeding that transported through other channels (rivers, lakes,

canals, and coasting trade); and it may be said in sober earnest that

a considerable proportion of the people in the country would starve,

without the means of earning a livelihood, if the railroad improvements

that have come since 1860 were suddenly swept away.

Some idea of the growth of railroad service in the United States in

recent years can be gained from the accompanying brief table, which

pictures the contribution of the railroads in their two important

activities, the carriage of freight and the carriage of passengers.

RAILROAD SERVICE IN THE U.S., 1890-1910

(_Figures in milliards: 000,000,000 omitted_)

==============================+======+======+======+======+======

| 1890 | 1895 | 1900 | 1905 | 1910

------------------------------+------+------+------+------+------

Tons carried one mile. | 77 | 85 | 141 | 186 | 255

Passengers carried one mile. | 11 | 12 | 16 | 23 | 32

==============================+======+======+======+======+======

=669. Relative decline in transportation by canals and rivers.=—The

development of the railroad system has not entirely done away with

the previous systems of internal transportation, but it has reduced

them to subordinate importance. The decline is especially noticeable

in the case of canals. Even in 1880 nearly half of the total canal

mileage had been abandoned and a large number of the canals remaining

in operation were not paying expenses. The cost of transportation on

the canals has been reduced by deepening them to take in larger boats;

tolls have been entirely abolished, as in the case of the Erie Canal;

and still the superior speed and certainty of transportation by rail

have robbed the canals of the bulk of the traffic. Some of the river

routes have fared better. The Mississippi River system, notably, is

still an important channel of trade, but even in the territory it

serves the railroads far outrank it in importance, and most of the

inland waterways have lost their previous significance.

=670. Importance of the Great Lakes; St. Mary’s Canal.=—While the

country could now renounce, without very serious loss, the rivers and

canals which were formerly so important as means of transportation, it

could ill afford to dispense with the Great Lakes along its northern

boundary. In the first half of the century Lake Erie was a useful

means of communication with the growing States of the West, and gained

greatly in importance with the construction of canals after 1825. It

was not until the second half of the century, however, that the three

western lakes showed their possibilities as channels through which the

national resources might be conducted to districts where they could be

best utilized. Between 1860 and 1900 the tonnage on the Great Lakes

grew sixfold, and increased even more in carrying capacity as wooden

sailing vessels gave place to large steel steamers. Freight rates have

fallen below one tenth of a cent per ton-mile, and immense amounts of

ore, coal, grain, and lumber have thus found a cheap means of access to

market.

In 1855 a canal was completed to avoid the rapids in St. Mary’s River

at the outlet of Lake Superior, and this canal, since deepened and

improved, has become one of the great commercial channels of the world.

The Lake Superior region has proved to be wonderfully rich in iron,

copper, timber, and other products essential to modern industry. In

1913 the tonnage of vessels passing through the St. Mary’s Canal was

greater than the tonnage entering the seaports of the United States

from all foreign countries, and was more than double the tonnage

passing through the Suez Canal.

=671. Decline of American shipping.=—In contrast with the great

development of the means of internal transportation we have to note,

in this period, a decided decline in the American shipping engaged in

foreign trade. The total tonnage of the country was in 1913 nearly

double what it had been in 1860, and entitled the United States to

a position high up among trading countries. About one third of this

total, however, was employed on the Great Lakes, and most of the

remainder was engaged in the coasting trade. Both of these branches of

navigation could be, and were, protected by law against the competition

of foreign ship-owners. The trade of this country with other countries,

however, could not be restricted to American vessels without danger of

retaliation; and the attempts of the United States to favor its own

vessels in foreign trade, by taxing foreign vessels at the port of

entry, had been given up before 1860. Now in this branch of shipping,

in which the vessels of all countries of the world compete on equal

terms, the tonnage of the United States declined from 2.5 million in

1860 to 1.0 in 1913.

=672. Effect of the Civil War on the merchant marine.=—Of this great

loss in tonnage the larger part fell in the years immediately following

1860, the period of the Civil War. The southern States, unable to break

the blockade which closed their ports and prevented the sale of their

cotton, sought to retaliate by loosing swift cruisers to prey on the

ships which sailed under the United States flag. The most celebrated

of these cruisers, the _Alabama_, was fitted out in England, and for

two years, until its destruction by the _Kearsarge_ in 1864, haunted

the chief routes of trade, and captured no less than 69 vessels. Other

cruisers were less successful, but altogether 261 Northern vessels were

taken. The fear of capture caused a decline in tonnage far greater

than the actual losses at sea; American ship-owners found their

profits eaten up by heavy insurance charges, and sold their vessels to

foreigners, who could navigate them in safety under a neutral flag.

Altogether the country came out of the war with about a million tons of

shipping less than it had owned at the beginning.

=673. Other causes of decline.=—The American merchant marine would have

recovered from the losses of the war but for other difficulties which

it faced. This was the period in which steamers began to gain rapidly

on sailing ships, and in which iron began to be extensively used in

ship-building. The Americans had at this time neither the resources

nor the experience to compete with the English in the new forms of

naval construction, and even before the war it was apparent that the

English were drawing ahead. Moreover, the war had, indirectly, a great

influence on the fortunes of American shipping, for it led to a great

increase in the tariff and to heavy taxes of all kinds. It cost more

both to build and to navigate an American ship than it had cost before

the war or than it cost an English owner. Add to these influences the

fact that the country was just entering the period of great railroad

extension, and that the West now offered wonderful opportunities for

the investment both of labor and capital; and it is not surprising that

the American people turned from the sea to the land, and resigned the

high position which they had formerly held in foreign carrying-trade.

=674. Recent position of the merchant marine.=—Since 1860, therefore,

the United States has relied mainly upon foreigners to carry its

freight across the seas. Of the tonnage that cleared from ports of the

United States for foreign countries in 1913 about one quarter sailed

under the American flag. The effective service of American ships

did not, however, correspond to this proportion; they carried only

about one-tenth in value of the exports that went out by sea. Various

attempts have been made to stimulate the construction and navigation of

American ships by the grant of subsidies from the national government,

but the success has been very moderate, and the people have been in

general unwilling to levy taxes for the support of this particular

industry. In one respect legislation has become more liberal; the

Panama Canal Act of 1912 made it at last possible, under somewhat

severe restrictions, to register under the American flag foreign built

vessels engaged in foreign trade.

=675. Development of national manufactures.=—Part of the energy

diverted from the sea found a fruitful field of labor in the developing

manufactures of the country. The period from 1860 to 1914 marked the

advance beyond the age of trial and experiment in the history of

American manufactures; at the close of this period the United States

was the greatest manufacturing country of the world, supplying most

of its own requirements for manufactured wares, and producing a

large surplus for export to other countries. The development of the

transportation system was the indispensable condition of this progress.

The railroads have brought all parts of our great national domain so

closely together, in a commercial sense, that the choicest natural

resources of the continent have been made available at the centers

of production. Abundant labor has been supplied both by the growth

of the native population and by the increasing flow of immigrants.

Leaders have arisen from the people, stimulated to energy by the rapid

promotion which has been granted on proof of signal ability; and the

necessary capital has been contributed by investors in all parts of

the world, who have sought eagerly the opportunity to share in our

industrial gains. Finally, our factories have enjoyed an advantage

beyond those of any country, in the great market which has stood

waiting to receive their products. Within boundaries, each of which

measures thousands of miles, lay an area absolutely free to trade,

provided with the most efficient instruments of transportation and

communication, and settled by a people numbering nearly a hundred

million, of prosperous producers and educated consumers.

=676. Coal production and the use of steam power.=—Not until this

period did the country realize the full value of its hidden mineral

wealth. The coal deposits of the United States are thought to be richer

than those of any other whole continent, and the Ohio Valley has coal

mines together with iron deposits and rich agricultural resources in

a combination which is unmatched. The coal production of 1860 (13

million tons) was considerably larger than in previous decades, but

it seems insignificant in comparison with 240 million of 1900, or

the 509 million of 1913. Bituminous coal, the kind chiefly used in

manufactures, formed only one third of the total output in 1850 and

only one half even in 1870, while in 1913 it comprised four fifths of

the whole. In coal production the United States now led the world.

The vast increase in the coal product was used in innumerable ways,

but it found its chief employment in furnishing motive power to the

transportation system, and to the factories of the country. In studying

the history of coal production one is inclined to say that the country

did not really enter the age of steam until after the Civil War. The

total horse-power employed in manufactures in 1869 (2.3 million), was

derived from steam and water in almost equal proportion. In the period

closing in 1914 the power employed increased about ten-fold (to 22.5

million), and of the increase steam supplied nearly three-quarters.

=677. Machinery.=—That the Civil War really marks a dividing line in

our industrial progress is shown by the history of the Patent Office;

within a few years after the close of the war the number of patents

granted increased greatly, and the new level thus established was

steadily maintained. American machine manufacturers made in this

period their great contributions to mechanical progress: the system

of interchangeable parts, automatic and specialized machines, the

utilization of by-products, etc. Brass screws at one time could

be produced only at great expense; it is characteristic that some

manufacturers would now make them absolutely free of charge, if the

customer would furnish the brass rod and would allow them to keep the

chips of brass which were cut off in the process.

It is impossible here to trace the history of manufactures in

detail, but a single manufacture, that of carpets, may be taken for

illustration. In the carpet industry about 1835 modern factory methods

were unknown; weavers worked at home with old-fashioned hand looms,

producing 7 or 8 yards of inferior carpet per day. Power looms were

invented, and were introduced little by little, but even after the

Civil War nearly half the carpets were still woven on hand looms.

Since that time has come the great advance in the industry, by the

introduction of improved power machinery, which has reduced the price

of fine tapestries and Brussels to that formerly paid for the rudest

ingrain, and which has stimulated an immense increase in consumption.

The rapid development of the national manufactures in this period may

be shown by brief statistics, in thousand millions of dollars; the

capital invested grew from 1.0 to 22.8 while the value of the product

grew from 1.9 to 24.2.

=678. Extension of manufactures in the West and South.=—There had been,

moreover, a noteworthy change in the distribution of manufactures

throughout the country. The northeastern States had greatly extended

their manufacturing plants, and relatively to population no European

state rivalled New England in output: but American manufactures had

extended also into the West and the South. The southern States, instead

of sending their raw cotton to the North or to Europe, began to

manufacture it in increasing quantities, and now competed with northern

mills for the markets of the Mississippi Valley. The development of

iron production in the South was phenomenally rapid. The rich coal

and iron fields of the Southern Appalachian range were opened, and

contributed now an important share of the total output, while large

industrial centers were growing up in Chattanooga, Birmingham, and

other Southern cities.

QUESTIONS AND TOPICS

1. Chart the figures as before; if the same scale is used the chart

may be pasted to that previously made.

2. Industrial aspects of the Civil War. [Wright, 143-158.]

3. The population of the country was as follows, in round millions:

1860, 31; 1870, 39; 1880, 50; 1890, 63; 1900, 76; 1910, 92. Calculate

the commerce per capita, and insert the line on the chart.

4. What has been the gain in population of your own State in this

period, compared with earlier periods? [Abstract of the Census.]

5. Write a report on the history of one of the western railroads. [Cy

Warman, Story of the railroad, N. Y., Appleton, 1898, $1.50.]

6. Technical improvements in railroads. [See references in chap. xxx,

and Johnson, chap. 4.]

7. Development of railroad organization. [Hadley, chap. 5.]

8. Contributions of railroads to industrial development. [Hatfield,

Lectures, 81 ff.]

9. Freight service of the modern American railroad. [Johnson, chap. 9.]

10. Present and future of the Erie Canal. [Encyclopedia; Poole’s

Index.]

11. Possible future of ship canals in the United States. [Report of

the Deep Waterways Commission, House Doc. 192, 54th Cong., 2d. sess.]

12. River transportation in the Mississippi Valley. [Abbot, chap. 8;

Census, 1890, Transportation by water, pp. 393-465; Report of Indust.

Comm., 1900, 9: clxxxiv-clxxxviii.]

13. Place of the Great Lakes in our modern transportation system.

[Tunnell; Marvin, chap. 17; Abbot, chap. 7.]

The St Mary Canal. [Tunnell; Fairlie, Ship canals, p. 67 ff.]

14. What would be the effect on lake traffic of commercial union with

Canada?

15. The coasting trade of the United States. [Marvin, chap. 15; Van

Metre in Carnegie History, vol. 1, chap. 20, 21.]

16. Effect of the Civil War on shipping. [Marvin, chap. 14; Cambridge

Mod. Hist., vol. 7, chap. 17, by Wilson; Rhodes, Hist.]

17. Decline of American shipping since the War. [Marvin, chaps. 16,

18; Wells.]

18. The question of subsidies. [Ringwalt, Briefs.]

19. Ship building in the United States. [Depew, chap. 18 by Cramp;

B. Taylor in Fortnightly Rev., 1899, 71: 284-299; John H. Morrison,

History of New York ship yards, N. Y., 1909.]

20. Taking the heads suggested (natural resources, labor, capital,

means of transportation, market), how would the following countries,

in your opinion, compare with the United States as a field for the

development of manufactures: Belgium, China, Germany, Russia, France?

21. Industrial development, 1860-1890. [Wright, 159-188.]

22. Transportation of coal by railroads. [Nicolls, chaps. 19, 20, 21.]

23. Geography and organization of the coasting trade in coal.

[Nicolls, chap. 22.]

24. Methods employed in American coal mines. [Nicolls, part 2.]

25. Power employed in manufactures. [U. S. Census, Manufactures,

General report, Abstract of the census of manufactures.]

26. The New South. [Coman, 292-298.]

BIBLIOGRAPHY

BIBLIOGRAPHY.—See chap. xlv and add: Poole’s Index and its

continuations, Annual library index and Readers’ guide to periodical

literature; debaters’ handbooks, ed. R. C. Ringwalt, E. R. Nichols,

and Debaters’ handbook series.

GENERAL.—Wells, **Rec. econ. changes; Edward Atkinson, *Industrial

progress, N. Y., 1890, *Distribution of products., N. Y., 1892; H. R.

Hatfield, ed., *Lectures on commerce, Chicago, 1904; J. F. Rhodes.

*History of U. S., N. Y., 1893 ff.; R. Mayo-Smith and E. R. A.

Seligman, **Commercial policy, 1860-1890, Leipzig, 1892.

SPECIAL.—Railroads: J. Moody, **The railroad builders, New Haven,

1920; Cy Warman, *The story of the railroad, N. Y., 1898; C. F.

Adams, Jr., and Henry Adams, Chapters of Erie, Boston, 1871. Lake

trade: J. C. Mills, **Our inland seas, Chicago, 1910; G. Tunnell,

*Transportation on the Great Lakes, Jour. of Pol. Econ., June, 1896,

4: 332-351; Charles Moore, editor, The Saint Marys Falls canal,

Detroit, 1907, S. V. E. Harvey, Jubilee annals of the Lake Superior

ship canal, Cleveland, 1906. Industrial: H. Thompson, **The age of

invention, New Haven, 1921; J. W. Roe, *English and American tool

builders, New Haven, 1916; B. E. Hazard, Organization of the boot

and shoe industry before 1875, Cambridge, Harvard Press, 1921; M. T.

Copeland, The cotton manufacturing industry, Cambridge, 1912.

SOURCES.—Material in government documents becomes in this period much

richer and more varied. Beside the reports on Commerce and Navigation

(including many special reports on Internal Commerce) and Commercial

Relations, see the Statistical Abstract, Monthly Summary of Commerce

and Finance (including current statistics and useful monographs),

the Census, Reports and Statistics of the Interstate Commerce

Commission, Report of the Industrial Commission, 1900-02, Reports of

the Tariff Board and Tariff Commission (including noteworthy reports

on cotton and wool manufactures, 1912.) The Bureau of Manufactures,

later termed Bureau of Foreign and Domestic Commerce, issued in its

Miscellaneous series, a number of reports useful for a survey of

commercial conditions just before the outbreak of the World War; no.

11., American manufactures in foreign markets; no. 14, Annual review

of the foreign commerce of the U. S., 1913; no. 15, Trade of U. S.

with the world, 1912-13; no. 38, do. for 1914-15; no. 23, Trade of the

U. S. with other American countries, 1913-14; no. 33, Ports of the U.

S. (terminal facilities, commerce, port charges, etc., at 68 selected

ports).

CHAPTER LII

EXPORTS, 1860-1914

=679. Chief exports in 1913.=—The principal items of the export trade

of the United States in 1913 are given in the following table, with

which should be compared the table in section 633.

EXPORTS OF U.S., 1913, MILLIONS OF DOLLARS

Cotton 547

Iron and steel and manufactures 305

Breadstuffs 211

Provisions, including dairy 154

Copper and manufactures 140

Mineral oils 137

Wood and manufactures 116

-----

Total of these items, omitting decimals 1,610

Total exports of domestic merchandise,

including items omitted 2,429

Total foreign exports 37

Exports of precious metals 149

=680. Noteworthy changes since 1860.=—The table shows that in one

general respect the export trade of the country remained unchanged;

seven items made up nearly two thirds of the immense total of the

exports. While the country continued to rely upon a few great staples

for the means of purchasing foreign wares, there had been since 1860

some noteworthy changes in the relative rank of the chief items and

in the general character of the export trade. Cotton continued to be

a leading item, and was still at the head of the list in 1913. In

intervening years it had for a time yielded first place to breadstuffs;

and another item associated with the agriculture of the northern

and western states, provisions, had risen to prominence. This item

includes dairy products as well as various kinds of meat, but does

not include live animals. In general, however, the agriculture of the

country no longer occupied the commanding position which it had once

held in our export trade. In 1860 American agriculture supplied more

than four fifths of the value of domestic exports of the country;

in 1913 it supplied less than half. American industry had become

diversified. While the country still depended largely on the raw

products of its natural resources for the means of exchange in its

foreign trade, it had broadened the field of its activities to include

its mineral as well as its agricultural wealth, and had begun to sell

an increasing share of its products in the form of manufactured or

partly manufactured wares.

=681. Change in character of the export trade.=—The change in the

general character of American export trade through this period can

be best illustrated by comparing the whole group of foodstuffs,

both raw and manufactured, with the group of industrial products

(manufactures for further use in manufacturing, and manufactures ready

for consumption). The table of figures shows that in the generation

from 1880 to 1910 these two groups practically changed places in the

part that they played in American export trade. The value of the total

product of agriculture at home did not cease to grow, and indeed rose

rapidly and steadily. The home market, however, grew so fast that the

surplus available for export remained nearly stationary, and formed a

constantly smaller part of the expanding total. The country began to

look to its industrial resources to buy what it wanted from foreign

lands.

===============+=========================+=========================

Exports of U.S.| Foodstuffs | Manufactures

---------------+--------------+----------+--------------+----------

Fiscal year |Value millions| Per cent |Value millions| Per cent

| of dollars | of total | of dollars | of total

---------------+--------------+----------+--------------+----------

1880 | 459 | 55 | 121 | 14

1885 | 325 | 44 | 150 | 20

1890 | 356 | 42 | 178 | 21

1895 | 318 | 40 | 205 | 25

1900 | 545 | 39 | 484 | 35

1905 | 401 | 26 | 611 | 40

1910 | 369 | 21 | 766 | 44

1912 | 418 | 19 | 1,020 | 47

===============+==============+==========+==============+==========

[Illustration: Products of the United States.]

=682. Reasons for the increase of agricultural exports.=—The great

growth in the exports of northern agricultural products was due to the

improvements in transportation, which opened the markets of the Old

World to the food supplies produced so abundantly in the New. There is

general agreement that no other part of the earth’s surface presents

an area that can compare in quantity and quality of agricultural land

with the Mississippi Valley. The larger part of this area still awaited

cultivation at the close of the Civil War, and was brought under the

plow in the period following it. Good land could be had free of charge

by settlement under the homestead laws, or could be bought for prices

little above what European farmers had to pay as rent or interest.

=683. Improvement of agricultural implements.=—The productiveness of

American agriculture was furthered in this period by still another

factor, the improvement of farm implements and machinery. American

ingenuity, always proverbial, applied itself to the problem of getting

the largest crops with the least labor, and devised means which were

peculiarly suited to the conditions of the country and the times. The

automatic reaper, on which inventors had long been working, had become

a practical success by the middle of the century, and spread rapidly

after its merits had been advertised at the Crystal Palace in 1851. An

agricultural writer expressed himself as follows in 1866: “The reaper

and mower have become ‘institutions’—a necessity, and no farmer of any

standing ignores their use. The machinery for raking and loading hay in

the field, and the unloading in the barn and on the stack, the potato

digger, the corn cutter, the bean puller, the cultivator, the corn

and bean planter and seed sower, threshing machines, corn shellers,

fanning mills, straw and root cutters, hay rakes, tile ditchers, &c.,

&c., though not all of recent introduction, have all been greatly

simplified and improved; in short every implement of farm husbandry,

from the hoe to the reaper, has undergone various transformations for

the better since the late change of the times....”

Every step in advance led to another. The reaper was displaced by the

harvester, which accomplished the same results with less labor; and

this in turn gave place to the twine binder, which showed still greater

efficiency.

=684. Wheat and flour.=—The leading place among the breadstuffs

exported fell to wheat. A large part of the American wheat crop had

found its market in the southern States, before the Civil War. The

closing of this market by war threw the whole surplus on Europe, and

the wheat exports increased actually ninefold from 1860 to 1863. They

declined for a time, when the South was opened to trade, but rose

again as the soldiers from the disbanded armies and other colonists

settled on the western prairies; and about 1880 grew to very large

figures. The method of transportation was improved by building great

elevators and introducing machinery to handle the grain at all points

of transshipment; a system of grading and classification enabled the

wheat to be carried in bulk, without regard to small specific lots;

and the charges for storage and movement fell greatly. The instruments

of modern transportation carried a ton of wheat from Minneapolis to

Liverpool for less than it cost a farmer, thirty years before, to haul

it by wagon a hundred miles.

For many years after 1860 most of the wheat was exported as grain, and

was milled abroad. The introduction of European improvements, producing

flour not by the old millstones but by gradual reduction between

rollers, established again the reputation of American flour; and about

half in value of the wheat export left the country in the manufactured

form.

=685. Indian corn.=—No other cereal compared in value with wheat

among the exports of the United States. In his “Indian corn speech,”

delivered in 1877, Tilden predicted a great increase in the export of

corn, which yields a much larger supply of food from a given area,

and hence can be sold more cheaply. The corn crop was one of the most

valuable assets of the country; it served not alone for food, but

supplied also raw materials for the manufacture of starch, alcohol,

glucose, etc. Its most important use, however, was for feeding and

fattening stock, and its contribution to the exports of the country was

mainly indirect, in the form of animals and animal products.

=686. Stock, meat, and dairy products.=—Live stock, chiefly beef

cattle, were exported in large quantities in this period; the railroads

offered every facility for bringing them to the seaboard, and special

steamers transported them across the Atlantic in about ten days.

Still more important, however, was the export of animal products.

The refrigerator car, patented in 1868, enabled the meat of animals

slaughtered in the West to be carried to market in all parts of the

country, and stimulated the development of an immense packing industry

in the regions where stock were raised and fattened. The export of

fresh meat, which began about 1875, increased constantly in the last

quarter of the century, and formed a considerable item. Of even greater

value was the export of bacon and hams, while lard, tallow, pickled and

canned meats contributed in varying proportions to the total of animal

products exported. The dairy products occupied a less important place

in foreign than in internal trade; and before the end of the period the

export of these products had declined to insignificance.

=687. Relative decline in importance of exports from the South.=—The

exports which have been considered hitherto come mainly, though by no

means exclusively, from the northern and western States. The South

contributed still one great item, cotton, but lost the commanding

position in the export trade which it held before the Civil War. It

would be a mistake, however, to suppose that the war was the cause

of this change. It did, for a time, nearly annihilate the commerce

of the South, and it absorbed so much of the capital as to cripple

productive power for a considerable period. It swept away the system

of slavery, and forced the people to adjust themselves to this most

serious of changes. It left untouched, however, the natural resources

of the country, and the New South, which has risen since 1880, devoted

itself to the task of developing these resources with energy and

success. Meanwhile, however, parts of the country which hardly counted

in foreign trade before 1860, had been brought within reach of the

seaboard, and had been settled by millions of active producers. The

balance of commercial power was thus changed, not by the decline of the

South but by the rise of other parts of the country.

=688. Cotton.=—English manufacturers, who had been in great straits for

cotton during the Civil War, and had in vain endeavored to find the raw

material in sufficient quantity and of satisfactory quality in other

parts of the world, returned gladly to their former source of supply,

the southern States. The cotton crop brought high prices, the records

of cotton production and export in the years before the war were soon

reached and surpassed, and the cotton culture continued to grow down

to the end of the century. There have been years since 1890 when the

price has fallen so low as to leave little profit for the producers;

and it has often been suggested that the South was suffering from an

over-production of its staple crop, and would fare better if it grew

less cotton and more of other crops. Southern farmers were constantly

advised to diversify their products. They seem to have followed this

advice to a certain extent, and have begun to furnish the northern

States with a considerable supply of food products, especially fruit

and vegetables, in direct contrast with the course of trade before the

Civil War when most of the food shipments were in the other direction.

They seem, however, to have found no substitute for cotton as an export

product, and have made that still their single great staple in foreign

trade.

=689. Export of mineral products: iron.=—It has been asserted by

an eminent geologist that North America is richer than any other

continent in the mineral substances which have most contributed to

the development of man. Every metal except tin has been found in

quantities of economic importance. We must concern ourselves here

chiefly with the one metal, iron, that which has held the chief place

in economic progress in recent times, and in the production of which

the United States has made surprising advance. Before 1860, as noted

above, the United States had merely followed England at a respectful

distance, in the methods of iron making. Since 1860 the iron makers

of America have outstripped all competitors, in the efficiency of

their methods and in the quantity of their output, and have made the

United States the leading country of the world in iron production. The

American iron industry has shown itself competent not only to meet the

immense demands of the home market, but also to produce for export in

competition with other countries the large amounts shown by the figures

at the opening of this chapter.

=690. Recent development of the American iron industry.=—The following

table shows that the advance of the iron industry was slow for a long

time, and that its present power is of very recent growth.

=====+======================+=========================

| | COMMERCE IN MILLIONS

|PRODUCTION IN MILLIONS| OF DOLLARS, IRON, STEEL,

| OF TONS | AND MANUFACTURES

+-----------+----------+-----------+-------------

| Pig Iron | Steel | Imports | Exports

-----+-----------+----------+-----------+-------------

1860 | 0.8 | | 26 | 5

1870 | 1.7 | 0.07 | 32 | 11

1880 | 3.8 | 1.2 | 53 | 12

1890 | 9.2 | 4.3 | 41 | 25

1900 | 13.7 | 10.2 | 20 | 121

1910 | 27.3 | 26.1 | 40 | 179

1913 | 31.0 | 31.3 | 34 | 305

=====+===========+==========+===========+=============

Among the causes contributing to this result one of the most important

has been the development of the rich ore deposits of the Lake Superior

region and Alabama. Economies in handling the ore, by means of steam

shovels and carriers, and in transporting it by water and railroad,

have enabled it to be brought to the heart of the coal and coke regions

at comparatively slight expense. In the reduction of the ore and in the

various processes of manufacture the American iron makers in recent

times have been quick to introduce improvements discovered in other

countries; and have themselves contributed important devices by which

the efficiency of the labor employed in iron manufacture has been

greatly increased.

=691. Machinery=.—The least valuable part of the iron export is that

which leaves the country in the raw or partly manufactured state. The

single item of machinery (electrical, sewing machines, locomotives,

typewriters, etc.), makes up nearly half the value of the iron and

steel exports; while other items (agricultural implements, cars,

bicycles, etc.), made up largely of iron and steel, would swell the

importance of the exports of iron manufactures still further, if they

were included in the list.

The Americans have recently taken the place of leaders among the

machine builders of the world, and no country, however high it may

have ranked in the past, can afford now to neglect the contributions

offered by American machinists. The cheapness of raw materials, iron

and steel, has aided the recent development of the American machine

industry, but has not caused it. We must look further, to the ingenuity

of inventors encouraged by a liberal patent system, and to the genius

of business leaders who have known how to make use of the contributions

of technical science to industrial efficiency. We must recognize

that the Americans got some positive benefit from the fact that they

entered late into this part of the field of production. They were not

tied to the past by heavy investments, or by methods sanctified by

tradition. Finally, we must note again the stimulus of the American

market, the broadest and richest in the world, constantly expanding and

offering unparalleled rewards to those who met its demands for improved

instruments.

=692. Copper.=—Copper is a metal which has long been prized as one of

the components of brass, and which has been still more highly valued

since the development of electrical industry has increased the field

of its use. Until after the middle of the century, however, the United

States had to rely upon foreign countries, chiefly Chile, for most

of its supply, and the importance of copper as an article of export

dates from recent times. The opening of the mines of the Lake Superior

region, the richest copper mines of the world, enabled the country

by 1860 to supply the demand for this metal from native sources, and

the later development, including new sources of supply in Arizona and

Montana, has furnished since 1880 a large surplus for sale abroad. The

copper mines of Michigan, which reach a depth of nearly a mile, are

said to be the best examples in the world of skilful and economical

mining, and improved processes of reduction have made available copper

ores which formerly would not pay the working.

=693. Petroleum.=—Even in colonial times the presence of mineral oil

in the country was known by the film which collected on the surface

of certain springs, and which took fire when a light was applied to

it. A well of oil which spouted fifty feet was discovered on the bank

of the Cumberland River in 1830, but, as stated in a book published

in 1853, “it was found to be useful only medicinally, and is bottled

and exported for that purpose.” The interest in this new product,

which seemed to offer possibilities beyond its use as a proprietary

medicine, led to the organization in 1854 of a “Rock Oil Company”; and

the first oil well was driven near Titusville, Pa., four years later.

Soon after 1860 the export of oil to foreign countries began, with

little idea that the trade thus started was to become one of the great

features of American foreign commerce. Mineral oil was in 1913 one of

the leading exports of the country, and would take a still larger place

in the exports as given at the beginning of this chapter if various

by-products, such as paraffin, were included in the figures.

=694. Development of the oil industry.=—The chief obstacle to the

development of the oil trade in its early years was the difficulty

of transportation. The extension of the railroad system after 1860

furnished the means of bringing the oil to market with profit, and in

recent times the transportation and manufacture of oil products have

been developed to wonderfully high efficiency. Tank cars have given

place to pipe lines; refineries have been extended and perfected, that

the reduction of the crude oil might be carried on with the greatest

economy and with full utilization of all by-products; and the market

for oil products at home and abroad has been enlarged by a great

reduction of prices.

QUESTIONS AND TOPICS

1. Chart the figures, as previously suggested, for comparison with

earlier conditions.

2. What other parts of the world come nearest to the Mississippi

Valley in quality and quantity of agricultural land? How do they

compare in the character of the people, and the facilities for

transportation?

3. History of farm machinery. [Quaintance in Pub. Amer. Econ. Assoc.,

1904, vol. 5, pp. 799-809; Census, 1900, 10: 341-377; Depew, chap. 50

by Fowler.]

4. Effect of improved farm machinery on production. [Quaintance, pp.

810-826.]

5. Agricultural progress, 1850-1900. [U. S. Census, 1900, 5: xvi-xxxv.]

6. Cultivation of wheat in the U.S. [Edgar, Story, chaps. 7, 8.]

7. The grain trade of the U.S. [Monthly Summary, Jan., 1900.]

8. Grain elevators and warehouses. [Rep. Ind. Comm., 1900, 10:

cccxvii-cccxxxix; Monthly Summary, Oct., 1903.]

9. The flour milling industry. [Edgar, Story, chaps. 10, 11; Depew,

chap. 39 by Pillsbury; U.S. Census.]

10. What are the various products obtained from maize? [Encyc.;

commercial geographies.]

11. The packing industry. [Depew, chap. 55 by Armour; Census, 1900, 9:

385-429, 1910, 10: 333-353.]

12. The dairy industry. [Census, 1900, 5: clxv-clxxxvi; Rep. Ind.

Comm., 1900, 6: 268-296.]

13. Economic effect of the Civil War on the South [Cambridge Mod.

hist., vol. 7, chap. 19 by Schwab; Rhodes, Hist. U. S.]

14. The cultivation of cotton since 1860. [Hammond, pp. 120-228.]

15. Recent development of the cotton trade. [Hammond, pp. 324-350; U.

S. Mo. Summary, March, 1900; Depew, chap. 34 by Edmonds.]

16. By-products of the cotton industry. [Depew, chap. 67 by Chaney;

Census, 1900, 9: 585-594.]

17. Recent history of the Virginia tobacco industry. [B. W. Arnold,

History, Baltimore, 1897, $. 50.]

18. Recent development of the American iron industry. [Depew, chap. 46

by Huston; Crowell in International Monthly, 1901, 4: 211-250; Census,

1900, 7: cxlix, 10: 1-77; Monthly Summary, Aug., 1900.]

19. The steel industry. [Hatfield, Lectures, 131 ff.; Thurston in

Century Magazine, 1900-1901, 61: 562-568.]

20. The mining of iron ore. [Fawcett in Century Magazine, 1900-1901,

61: 712-725; Census, Mines, 1902, pp. 393-431.]

21. The transportation of iron. [Fawcett in Century Magazine,

1900-1901, 61: 851-863.]

22. Write a report on one of the following topics, using volumes of

the U. S. Census, Manufactures, Reports for principal industries.

(_a_) Manufacture of machine tools.

(_b_) Sewing machines.

(_c_) Typewriters.

(_d_) Watches.

23. Development of the American copper industry. [Depew, chap. 47 by

Cowles; chap. 27, p. 182, by Rothwell; Census, Mines, 1902, 467-506.]

24. The uses and production of petroleum. [Census, 1880, vol. 10,

first monograph; Mines, 1902, pp. 710-764; Encyc.]

25. Development of the American oil industry. [Depew, chap. 31 by

Folger; G. H. Montague, The Standard Oil Company, N. Y., Harper, 1903.]

BIBLIOGRAPHY

See chapter li.

CHAPTER LIII

IMPORTS, POLICY, DIRECTION OF COMMERCE, 1860-1914

=695. Survey of the import trade, 1860-1914.=—The development of the

import trade of the United States since 1860 is shown in the following

table, which gives the values in millions of dollars of merchandise

imported:

===================================+================++================

| 1860 || 1913

+--—---+--—--—++--—---+--—--—

| Value |Per cent|| Value |Per cent

-----------------------------------+-------+--------++-------+--------

Foodstuffs, crude | 36 | 10 || 212 | 12

Foodstuffs, manufactured | 54 | 15 || 194 | 11

Raw materials for manufacture | 37 | 10 || 635 | 35

Manufactures for further use in | | || |

manufacture | 24 | 7 || 349 | 19

Manufactures ready for consumption | 200 | 57 || 408 | 23

+-------+ ++-------+

Total, incl. miscellaneous | 534 | ||1,813 |

===================================+=======+========++=======+========

=696. Changes in the character of imports.=—The percentages of the

table furnish a ready means of comparing the relative importance of

different classes of imports at the beginning and end of the period.

The most striking change is the decline in importance of the class of

manufactured articles ready for consumption, which amounted to over

one half of the total value of imports in 1860, and sank to less than

one quarter in 1913. The indication here given that the country was

learning to supply its need for manufactured wares, without depending

so much as previously on foreign producers, is confirmed by another

item in the table, giving the imports of raw materials for domestic

industries. This item increased greatly in importance in the course of

the period, and took now the place which was formerly held by the item

of finished manufactures. We now imported raw materials and made the

goods at home, instead of sending abroad for the finished product.

A history of commerce · 第 19 / 21 章