XXI. MANUFACTURES WILLIAM M. STEUART General Condition During the Year. | ment of activity. The conservatism -The activity in manufactures which was more pronounced in the industrial characterized 1912 was maintained and financial East, while in the agriduring the first part of 1913. Trade cultural West and South there was journals recorded a steady conserva- a marked feeling of confidence. Durtive expansion. In the West and ing the summer a considerable proSouth there was apparent a spirit portion of the textile machinery was of optimism as to the future, based idle, pending an adjustment of the largely on the fine crop outlook for tariff. There was a falling off in imcotton and wheat. A conservative ports of articles free of duty, many of feeling developed in the early Spring, which formed the raw material for especially in the eastern states, where manufactures. The tariff law was apmanufactures predominate. The re- proved Oct. 3, but its effect had, apnewed war in the Balkan Peninsula parently, been largely discounted, and put a strain on international markets, there was no appreciable change in but apparently had no effect on in- industrial activities. In the meandustrial conditions in the United time the prospect of legislation reguStates. The revolution in Mexico, lating banking and currency had crethe flood disasters in Ohio and Indi- ated a tendency among banking inana, and the great storms through- stitutions to strengthen their reout the Middle West during March sources. Interest rates were sometemporarily interrupted trade, and what higher than in 1912, loans were had some retarding effect on manu- not so freely made, and there was a factures. The hurricanes and floods, tendency on the part of manufachowever, created an unusual demand turers to reduce their stock of goods. for rails, bridge work, and other There seemed to be some decline in structural material to replace flood business confidence as the year addamage. With the assembling of the vanced, which contrasted with the opextra session of Congress there de- timism that was evident during the veloped the usual tendency for con- preceding year. (See also I, Amerisumers to curtail their orders pend-can History; and XIII, Economic Coning tariff revision. There appeared to|ditions.) be a general opinion that there never The liabilities involved in the failhad been a more convenient time for ures in manufacturing enterprises for testing the effect on American manu-each quarter were considerably in exfactures of a low tariff. The pros- cess of those for the corresponding pects of a readjustment of the tariff, however, necessarily had a retarding effect on manufactures. There was a distinct slowing down noticeable in some industries during March. By the latter part of April manufacturers were glad to accept orders for prompt delivery where they were inclined to be independent 30 days earlier. By May there was a marked falling off in orders for iron and steel and an abate quarter of 1912. For the first quarter this excess amounted to $4,928,510, for the second to $5,450,638, for the third to $8,085,734. While the number and magnitude of the failures in manufacturing industries were greatest during the first three months, they were too large during the entire year to be viewed with equanimity. This, with the higher money rates, tariff trouble, uncertainties of (See also XIII, banking legislation, and declining | propitious close. business did not bring the year to a Economic Conditions.) publications containing information concerning the requirements of the foreign markets were in greater demand. The possibility of successful competition in other countries with their domestic manufactures or with their trade in non-manufacturing countries was apparently receiving more general consideration. The probability of increased competition from manufacturers in foreign countries, following the reduction in duties, directed attention to the necessity of greater efficiency in production, and there was a noticeable increase in the demand for information concerning the requirements of foreign markets. Attention was directed more pointedly than ever before to the fact Magnitude of the Manufacturing that manufacturers were too prone to Industry.-The steady advance and at be content with meeting the require- times phenomenal increase in the ments of a domestic market which manufactures of the United States could not be expected to furnish op- during the past 63 years is shown portunity for indefinite expansion. by the accompanying tabular stateTechnical journals and Government ment. 1913 (estimate) 1909. 1904. 1899. 1889. 1879. 1869. 310,340 7,532,376 22,825,511 $23,030,421 $4,080,312 $15,056,857 $25,374,571 268,491 6,615,046 18,675,376 18,428,270 3,427,038 12,142,791 20,672,052 216,180 5,468,383 13,487,707 12,675,581 2,610,445| 8,500,208 14,793,903 207,514 4,712,763 10,097,893 8,975,256 2,008,361 6,575,851 11,406,927 206,730 3,703,629 5,938,635 6,108,970 1,594,239 4,703,372 8,309,723 176,887 2,545,490 3,410,837 2,697,665 873,074 3,272,088 5,093,922 193,705 1,882,931 2,346,142 2,054,209 719,972 2,380,930 3,989,843 1,764,103 NOTE.-Excludes statistics for all industries which are primarily or wholly of the nature of hand, building, or neighborhood industries. Not reported. The increases in values as shown in this statement are affected by the change from currency to the gold standard between 1869 and 1879, and by the increase in prices during recent years. Prices per unit for manufactured products in 1913 were at a much higher level than for any of the preceding years. The number of wage earners employed and the horse power of the engines, electric motors, etc., however, show a marvelous increase since 1849, when the first representative statistics were collected for the entire country. Increase in Population and Manufactures. A comparison of the value of manufactures with the population is necessarily affected by increase or decrease in prices. To some extent it is, therefore, misleading, but the per capita values and percentages of increase in population and value of manufactured products given in the following statement for the years 1850 to 1913, show, in a general way, that the manufactures of the country have increased at a much more rapid rate than the increase in the population: NOTE.-Population for the decennial years is the census population; for 1905 and 1913 it is the estimated midyear population as of date, July 1. Value of products of manufacture is for the calendar year preceding the population year except for 1913, which latter is estimated on basis of the average annual increase for the preceding semi-decade. The census of population and manufactures of 1850 gave a per capita value of $40. With the exception of 1880 over 1870, when the per capita value was affected by the change from the currency to the gold standard, there was a steady, and at times a very large, increase in this value. The largest amount, $261, is shown for 1913. The Tariff and Manufactures.-The tariff law approved Oct. 3 made a number of important reductions in the duty on the raw material used in manufactures, as well as on the finished products of many of the important industries. The free list has been greatly extended. The testimony of manufacturers and others before the Committee on Ways and Means shows a great diversity of opinion as to the effect the reduction in duties will have on domestic production. Many manufacturers contended that the cost of manufacture was so much less in European countries that any material reduction in the tariff would be destructive to their industry. Others thought the rates could be greatly reduced without serious effect. The difference in cost of production in foreign countries and the United States, however, was practically disregarded in fixing the rates of duty. The statement on the opposite page, comparing the rates for a number of metal and textile products as fixed by the laws of 1909 and 1913, illustrates the changes that characterize the new law. The Textile Industries. Of the important factory industries, the textiles are among the most sensitive to tariff legislation. The new law makes radical reductions in all of the principal products of the industry. There 89.144,751 4.166,177 459,229 7,124,918 83,556,432 48,295,131 89,902,474 Wool Hats and PRINCIPAL TEXTILE INDUSTRIES, 1909 Including ESTABLISHMENTS ENGAGED PRIMARILY IN MANUFACTURING Woolen. than Rag Felt Goods, Rugs, Other Knit Goods Total for the Cotton Goods Worsted, and Carpets and Hosiery and Silk Goods, Twine and Industry Cotton Small Jute and Suppur Silk and Cordage and Shoddy Dyeing and 111,659,642 35,941,315 22,596,700| 5,003,014 13.056.850| 23,311.439 Expenses. Salaries. 257,382,343 153,100,519 692,001,200 Value added by manufacture.... Miscellaneous. Value of products. Materials. Wages.. will undoubtedly be a large increase in the imports and a resulting keener competition. The magnitude of the interests affected is shown by the accompanying statement, which summarizes the latest official statistics for the different branches of the industry. When operating at full capacity the industry as a whole gives employment in its factories to approximately a million persons, and its annual products are valued at a billion dollars. Probably as many more persons depend upon the products, directly or indirectly, in the mercantile transactions and in the manufacture of the fabrics into clothing and other finished articles. In a measure, to offset the effect of the reduction in the duties on the finished products, practically all of the material used in the textile industry is placed on the free list. The aggregate quantity of textile fibers produced in the United States in 1909 was 5,497,285,000 lbs., as compared with 4,055,298,000 lbs. in 1889, the increase for the 20-year period being 1,441,987,000 lbs., or 36 per cent. During the same period the imports of textile fibers increased from 557,688,000 lbs. to 1,054,545,000 lbs., or 89 per cent.; the exports from 2,489,050,000 lbs. to 3,241,824,000 lbs., or 30 per cent., and the consumption in the United States from 2,021,224,000 lbs. to 3,740,368,000 lbs., or 85 per cent. The United States uses more than one-fifth of the world's production of raw silk, ranking next to China in the consumption of this product. The increasing importance of manila and sisal for use in the manufacture of cordage and twine is noteworthy. By far the greater portion of the jute imported is used in the manufacture of gunny bagging or burlap, large quantities of which are used for covering cotton bales, for grain sacks, and for various other purposes. The cotton-goods industry is one of the oldest and most typical factory industries in the United States. In 1909 it ranked third among the industries of the country in number of wage earners, being exceeded only by the lumber industry and the foundry and machine-shop industry, and seventh in value of products and in value added by manufacture. |