Part 27

The increase in the production of manufactures in the United States, far in excess of home requirements, has forced our manufacturers to seek markets in other parts of the world for their surplus product. The result has been a rapid increase in the exportation of manufactures. The total value of manufactures exported from the United 269 States has grown from less than 8 million dollars in 1820 to 23 million dollars in 1850, 48½ million in 1860, 70 million in 1870, 122 million in 1880, 179 million in 1890, and 485 million in 1900, since which time the annual total has not fallen below the 400-million-dollar line, while in the year 1908 the total exceeded 750 million dollars. In the fiscal year 1908, the latest period for which detailed figures of the exports by countries are available, the exports of manufactures were valued at 750 million dollars, of which 368 million dollars’ worth went to Europe, 188 million to North America, 72 million to South America, and 71 million to Asia, while the remainder was divided between Oceania and Africa.

That this growth has been especially marked in recent years is shown by the fact that the actual increase by decades in exports of manufactures has been as follows: During the decade ending with 1830, 1.8 millions; 1840, 5.8 millions; 1850, 7.8 millions; 1860, 25.2 millions; 1870, 21.6 millions; 1880, 51.8 millions; 1890, 57.2 millions; 1900, 305.9 millions; and during the eight years ending with 1906, 265 millions. Thus the growth of exports of manufactures in the eighteen years following 1890 was practically three times as great as that of the entire seventy years preceding that year.

Exports of manufactures from the United States now exceed 750 million dollars per annum and have doubled in value in a single decade. Not only has the exportation of manufactures doubled in a decade, but the share which products of the factory form of the total exports is steadily increasing. In 1880 manufactures formed but 15 per cent of the total exports of domestic products; in 1890 they formed 21 per cent, in 1900, 35 per cent, and in 1908, 41 per cent.

With the rapid increase of population in the United States, and therefore of the consumption of natural products, the quantity of 270 food and raw materials remaining for distribution to other parts of the world has not increased proportionately; and with the development of manufacturing facilities and the trend of population to the manufacturing centers, production of manufactures has rapidly increased, and the surplus of these manufactures which may be spared for foreign markets has also increased. Foodstuffs, which in 1890 formed 42 per cent of the total exports of domestic products, formed in 1908 but 28 per cent of the total; articles in a crude condition for use in manufacturing, which in 1890 formed 36 per cent of the totals, formed in 1908 but 30 per cent; while manufactures, as already indicated, increased their share in the exports from 21 per cent in 1890 to 41 per cent in 1908.

In the decade ending with 1905 exports of manufactures from the United States increased 198 per cent, while those from Germany increased 75 per cent, those from the United Kingdom 40 per cent, and those from France 25 per cent. This rapid increase in the exports of manufactures from the United States has brought her to the third rank in the list of the world’s exporters of manufactures. The four greatest producers of manufactures for exportation and the value of manufactures exported by each of them in 1906 are as follows: The United Kingdom, 1,400 million dollars; Germany, 1,000 million; the United States, 700 million; and France, 500 million.

To Europe the exports of manufactures from the United States in 1892 was 76 million dollars, in 1901, 213 million, and in 1908, 368 million. To North America the exports of manufactures from the United States in 1892 were 33 million dollars, in 1908, 189 million; to Asia and Oceania the total was 25 million dollars in 1892 and 112 million in 1908; to Africa, in 1892, less than 4 million dollars, in 1908, more than 10 million; to South America, in 1892, 17 million, in 1908, 72 million. Considering the distribution by principal countries, it may be said that the total exports of manufactures from the United 271 States to the United Kingdom was, in 1892, 40 million dollars, in 1902, 100 million; to British North America, in 1892, less than 10 million, in 1902, over 54 million; to Germany, in 1892, 14 million, in 1902, 30 million; to Mexico, in 1892, less than 8 million, in 1902, over 26 million; to British Australasia, in 1892, less than 9 million, in 1902, over 23 million; and to China, in 1892, 5½ million, in 1902, more than 23 million.

Considering the exports by great articles or groups of articles, it may be said that manufactures of iron and steel as a group form the largest item in the exports of manufactures, having grown from 52 thousand dollars in 1800 to 322 thousand in 1830, 1 million dollars in 1850, about 6 million in 1860, 13 million in 1870, 25 million in 1890, 121 million in 1900, and 184 million in 1908. Mineral oils form the second largest item among the groups of manufactures, having grown from 30 million in 1870 to 98 million in 1908. Copper manufactures rank third, the total exports having grown from 1½ million dollars in 1860 to 2⅓ million in 1890 and 104 million in 1908. Leather and its manufactures have increased their exportations from 1½ million in 1860 to 6¾ million in 1880, 12 million in 1890, 27 million in 1900, and 41 million in 1908. Exports of agricultural implements have grown from 1 million dollars in 1870 to 4 million in 1890, 16 million in 1900, and 24 million in 1908. Thirty articles or groups of articles exceeded 1 million dollars in the value of their respective exports in the fiscal year 1908. Of these thirty groups now exceeding 1 million dollars each in value annually, not one aggregated as much as a million dollars in 1820, and only three groups exceeded 1 million in 1850; in 1860 eight groups exceeded each 1 million; in 1880 the number of groups exceeding 1 million in value was 13; in 1890, 20; and in 1908, as already indicated, 30 exceeded 1 million each in the value of their annual exportations.

The causes of the rapid growth in the exports of manufactures from 272 the United States are not difficult to determine. The growth as already indicated, has occurred chiefly since 1880, and especially in the last decade. From 1790 to 1880 the growth was a hundred million in ninety years’ time. This was a period which was devoted to the development of the agricultural resources of the country and to the construction of railroads. The value of agricultural products exported grew in this period from 19 million dollars to 686 million, an increase of 667 million, while exports of manufactures were increasing 100 million. From 1880 to 1900 agricultural exports showed a gain of 206 million dollars and those of manufactures 330 million. Thus the development of domestic exports from the United States has occurred in definitely rounded periods: The first, a long period of growth of agricultural products; the second, a shorter and more recent period, in which the largest growth, and especially the largest proportionate growth, has been in exports of manufactures.

A study of the production in the United States of a few of the great articles which form the basis of manufactures and the manufacturing industries offers ready explanation of the great increase in the production of manufactures and the consequent marked increase in the exportation of manufactures. Six great articles supply the principal requisites for manufacturing, viz, iron, copper, wood, cotton, wool, and coal as the material which supplies the power by which they are first assembled and afterwards converted into manufactures. The production of pig iron in the United States which up to 1880 had never reached 4 million tons, was by 1890, 9 million; in 1900, 13½ million, and in 1907, 25 million. Of steel, the production in the United States in 1880 for the first time exceeded 1 million tons; in 1890 it exceeded 4 million tons; in 1900, more than 10 million, and in 1907, more than 23 million. Of copper, for which the demands of the world are now great, the United States produced in 1880, 27 thousand tons, 273 in 1890, 116 thousand tons, and in 1906, 409 thousand tons. The total value of the mineral products of the United States was in 1880, 369 million dollars; in 1890, 619 million, and in 1908, 2,069 million, or 5½ times that of 1880. The cotton production of the United States was in 1880, 5½ million bales, in 1890, 7½ million, and in 1908, over 13½ million. In 1880, American mills took 31 per cent of the total American production of cotton, and in 1907 they took 32 per cent of the greatly increased total. Of wool, the production of 1880 was 232½ million pounds; of 1890, 276 million, and that of 1908, 311 million. Of coal, which has an important relation to manufactures, both in supplying the motive power for the assembling of materials and heat for smelting ores and other features of manufacturing work, as well as the power for operating the machinery of manufacture, the production in 1880 was 64 million tons; in 1890, 141 million; in 1900, 241 million; and in 1907, 428 million.

Of the six great articles here enumerated as the chief requisites of manufacturing, the United States is the world’s largest producer of all except wool. Of cotton, the United States produces three-fourths of the world’s entire supply; of copper, fully one-half; of pig iron and steel, the United States produces 40 per cent of the world’s entire supply; and in 1907 produced more than Germany, the United Kingdom, and Belgium combined, these three countries being, in the order named, the world’s next largest producers of pig iron. Of timber and wood suitable for use in manufacturing, the United States is the world’s largest producer at the present time. Of wool, the United States is only exceeded in its production by Australasia, Argentina and Russia, its total product being in 1901, 302 million pounds against 360 million in Russia, including Poland, Argentina, 370 million, and Australasia, 510 million.

In transportation, for assembling these great natural products for 274 use in manufacturing, the facilities in the United States by far surpass those of any other country. The railroads have grown from 30 thousand miles in 1860 to 53 thousand miles in 1870, 93 thousand miles in 1880, 166 thousand miles in 1890, and 240 thousand miles in 1908, giving to the United States two-fifths of the entire railway mileage of the world; while in transportation upon the Great Lakes the registered tonnage of vessels passing through the Sault Ste. Marie Canal alone in 1907 was 44 million tons, or practically three times as much as the tonnage passing through the Suez Canal in the same year.

Proportionately the growth in exports of manufactures has been even greater than that in production of manufactures. The census figures show that the gross value of manufactures produced in 1850 was, in round terms, 1 billion dollars, and in 1905, nearly 17 billion, so that the product of 1905 may be said to be about seventeen times as great as that of 1850; while the exportation of manufactures, which in 1850 was $17,580,456, was in 1908, $750,000,000, or forty-two times as great as in 1850, indicating that the percentage of growth in exportation has been more than twice as great as that in the production of manufactures.

Of the articles which form the great and growing export trade of the United States, those grouped under the term “manufactures” number over two hundred distinct articles, though many of these are included within the special groupings, such as agricultural implements, iron and steel manufactures, mineral oils, leather and its manufactures, etc. The group agricultural implements, for example, is subdivided into mowers and reapers, plows and cultivators, and “all other,” the latter term including numerous articles which are not of sufficient value to justify at present a separate statement. The group cotton manufactures includes cloths colored and uncolored, wearing apparel, waste cotton, and all other. The group iron and steel includes pig 275 iron, bar iron, wire rods, billets, ingots and blooms, hoop, band and scroll iron, rails for railways, tin plates, structural iron and steel, wire, locks, hinges, saws and tools, car wheels, castings, table cutlery, firearms, cash registers, electrical machinery, laundry machinery, metal-working machinery, printing presses, pumps and pumping machinery, shoe machinery, locomotives (stationary and railway), typewriters, nails (cut and wire), pipes, safes, scales, stoves and ranges, each of which is separately stated, and following these a class “all other,” which includes the less important articles not separately enumerated. Under the group leather and its manufactures are included sole leather, glazed, kid, patent, split, and other upper leather, boots and shoes, harness and saddles. Under the general title of refined or manufactured mineral oils are included naphthas, illuminating oil, and lubricating and heavy paraffin oil. Under the general title of musical instruments are included organs, pianos, and all other. Paper and its manufactures include paper hangings, printing paper, writing paper, envelopes, and all other. Manufactures of tobacco include cigars and cigarettes, plug tobacco, and all other. Wood manufactures include doors, sash and blinds; furniture; hogsheads and barrels; trimmings, moldings and other house finishings; woodenware, wood pulp, and all other. Wool manufactures include carpets, dress goods, flannels and blankets, wearing apparel, separately stated, and all other.

Taking up the various groups or classes, and with them the articles which are not subdivided, it may be said that thirty general articles show a total exceeding $1,000,000 in the exports of recent years. Exports of iron and steel manufactures as a whole amounted in 1908 to 184 million dollars; manufactured or refined mineral oils, 99 million; copper manufactures, 100 million; cotton manufactures, 25 million; leather and its manufactures, 27 million; agricultural implements, 276 24 million; chemicals, drugs and dyes, 21 million; cars and carriages, 22 million; paraffin, 8 million; paper and its manufactures, 8 million; tobacco manufactures, 5 million; scientific instruments, 11 million; fiber manufactures, 5 million; india-rubber manufactures, 7½ million; books, maps and engravings, 6 million.

Tracing the more important of these articles through the period from 1790 to 1908 it may be said that iron and steel manufactures, which began their record in 1790 with a total exportation of $117,060, did not reach $1,000,000 until 1840, when the total export was $1,127,877. Even in 1850 it was only $1,953,702, but by 1860 was $5,870,114; in 1870, $13,483,163; in 1880, $14,716,524; in 1890, $25,542,208, and in the decade from 1890 to 1900 it increased nearly fourfold, the total for 1908 being $183,982,182 against $25,542,208 in 1890. The growth in the exportation of manufactures of iron and steel has been more strongly marked than that in any other important article of export except copper. It has been coincidental with the development of the great iron mines of the United States and the production of pig iron and steel.

The next article in the order of its magnitude in our exportations is refined mineral oil, which only became an article of export after the great oil discoveries in the decade 1860-1870. Its first appearance in the list of exports was in 1864, in which year the total amounted to $6,918,502, the small quantities exported in preceding years not having separately enumerated in the list of articles exported. The value of the exportations of mineral oil increased very rapidly, the total for 1864 being slightly less than 7 millions; for 1865, nearly 10 millions; 1866, over 18 millions; 1867, 22 millions; 1870, 30 millions; 1880, 34 millions; 1890, 44 millions; 1900, 68 millions, and 1908, 99 millions.

Copper, which forms the third article in rank in the exports of 277 manufactures, is of recent date as an article of importance in the export trade. The existence of large copper deposits in the United States had been known for many years, but it was only upon the greatly increased demand for copper owing to the developments in the use of electricity as a motive power that the world began to demand copper in greatly increased quantities; and to this demand the mines of the United States promptly responded. The copper production of the United States had never reached as much as 20,000 tons prior to 1877. By 1887 it was 81,000 tons; by 1897, 220,000 tons; and in 1907, 410,000 tons. The most strongly marked increase occurred during the period of 1890-1907, the production of 1890 being 115,000 tons, and in 1907, 410,000 tons. The growth in exportation was coincidental with the growth in production. The value of copper manufactures exported in 1890 was but $2,349,392; in 1891, it was $4,614,597; in 1892, $7,226,392; in 1895, $14,468,703; in 1896, $19,720,104; in 1897, $31,621,125; and in 1908, $104,064,580 or nearly fifty times as much in 1908 as in 1890.

Leather and manufactures thereof grew from 1½ million in 1860 to 6½ million in 1880, 12½ million in 1890, 27 million in 1900, practically 30 million in 1902, and 42 million in 1909. Agricultural implements have also shown a rapid increase in exportation. In 1870 they amounted to only 1 million dollars in value; in 1880, to a little over 2 million; in 1890, nearly 4 million; in 1900, 16 million; and in 1902, 16¼ million.

Chemicals, drugs, dyes, etc., formed the largest single item of exports in 1790, pot and pearl ashes being then the principal article in the list, and have slowly but steadily increased, reaching a million dollars in 1830, 2½ million in 1870, 5½ million in 1890, 12 million in 1902, and 21 million in 1908. It is proper to add that in the later years patent medicines, which are included under this general classification of chemicals, etc., have formed a considerable 278 proportion of this increase, the total value of patent medicines exported being in 1902, 3 million dollars out of the total of 12 million. The chemical industry of the United States has not made as rapid gains either in the relative value of its products, in the supply of the home market, or in the distribution of exports as accomplished by many other industries. The total value of the chemical productions of the country, according to the census, was in 1880, $38,640,458; in 1890, $59,352,548; and in 1900, $62,676,730, having less than doubled the value of the product from 1880 to 1900, the increase being but 60 per cent, while manufactures as a whole increased 142 per cent.

Considering the grand divisions and countries to which we send this $750,000,000 worth of manufactures exported from the United States, it may be said that literally every country of the world is a purchaser of American manufactures. In each grand division and in every country of the world the manufactured products of the United States are being consumed in steadily increasing quantities and varieties; and this consumption of the products of the manufacturing establishments of the United States by other parts of the world is a voluntary one, and not an “invasion” in the ordinarily accepted sense of the term. The growth in the consumption of American manufactures in other parts of the world is quite as voluntary as is the consumption of American flour, or meat, or cotton. This is illustrated by the fact that, while the iron and steel manufacturing establishments have been unable to meet the orders of the home consumers, and, therefore, have made little effort to “invade” other markets, more than $184,000,000 worth of iron and steel manufactures was exported in 1908, presumably, in most cases, to fill orders from other parts of the world. The fact that the home demand for iron and steel manufactures was in 1907 so great as to more than double the importation of iron and steel manufactures in a single year, shows clearly that the condition of a home market was 279 such that the iron and steel manufactures of the United States needed make no effort to “invade” the markets of other parts of the world, and that whatever sales they made in those lines outside of the United States were, as a rule, in response to calls from the countries to which these classes of merchandise are sent. The exportations of iron and steel manufactures from the United States in the fiscal year 1908, were: To Europe, 47 million dollars; North America, 72 million; Oceania, 14 million; South America, 22 million; Asia, 25 million; and Africa, 3 million. Of American copper the purchases by Europe were, in 1891, $4,433,015 in value, and in 1908, $97,324,230. For agricultural implements the home demand is large and active, yet the exportation of agricultural implements, presumably all or nearly all orders, was in 1908, to Europe, 13 million dollars; to North America, 2½ million; to South America, 5 million; to Oceania, over 1 million; and to Asia and Africa, 13 million. The railroads of the United States were in 1906 and 7, according to repeated statements, unable to obtain cars in sufficient number to meet their requirements, yet the exportation of cars for steam railways in the fiscal year 1908 amounted to about $5,000,000.

The large share which manufactures form in the exports of the United States is shown by an analysis by the Bureau of Statistics of the Department of Commerce and Labor of the trade, by articles and groups of articles, with every country and grand division of the world. These figures show that manufactures formed 86 per cent of exports to South America in 1906, 85 per cent of the exports to Oceania, 75 per cent of the exports to Asia, 66 per cent of the exports to Africa, 62 per cent of the exports to North America, while even to Europe manufactures formed 27 per cent of the total domestic merchandise sent in the fiscal year 1906.

This general group, “manufactures,” upon which the above percentages 280 are based, includes both manufactures ready for consumption and manufactures for further use in manufacturing. The first group includes all manufactures in the fully completed form and ready for immediate use. The second is made up chiefly of chemicals, leather, naval stores, lumber, copper in pigs, bars, and ingots, and various grades of iron and steel which have passed through a process of manufacture but are to be further used in manufacturing, such as steel bars, billets, ingots, blooms, sheets and plates, tin plate, wire rods, and pig iron.

Of the 75 million dollars’ worth sent to South America, 72.4 per cent was manufactures ready for consumption and 14.02 per cent manufactures for further use in manufacturing. Of the 105 million dollars’ worth sent to Asia, 65.79 was manufactures ready for consumption and 9.14 per cent manufactures for further use in manufacturing. Of the 35 million dollars’ worth sent to Oceania, 72.97 per cent was manufactures ready for consumption and 11.78 per cent manufactures for further use in manufacturing. Of the 20 million dollars’ worth sent to Africa, 58.79 per cent was manufactures ready for consumption and 6.85 per cent manufactures for further use in manufacturing. Of the 295 million dollars’ worth exported to North America, 50.46 per cent was manufactures ready for consumption and 11.37 per cent manufactures for further use in manufacturing. Of the 1,189 million dollars’ worth of domestic merchandise sent from the United States to Europe in 1906, 12.72 per cent was manufactures ready for consumption and 14.06 per cent manufactures for further use in manufacturing.