the United States of America

In order to promote stability of foreign exchange rates the United States, United Kingdom and France entered into an ac cord on Sept. 25, 1936, with respect to international monetary relations. Shortly thereafter the Governments of Belgium, Switz erland and the Netherlands were added to those countries signa tory to the Tripartite Declaration of Sept. 25, 1936.

An Act of Congress dated July 6, 1939, further extended the powers relating to the stabilization fund and the alteration of the weight of the dollar to June 3o, 1941, and increased the price to be paid for domestic silver newly mined after July 1, 1939, from 64 to 71 cents per ounce.

Introduction.

The industry and commerce of the United States during the past loo years have been characterized by suc cessive waves of growth and development retarded periodically by crises and depressions. Normally the dates of these waves are fixed by the troughs of the depression, but the more significant activities are represented by the crests of the waves. During the century there have been approximately ten periods of so-called prosperity during which trade and commerce increased by leaps and bounds. The panic years most frequently mentioned are 1825, 1837, 1847, 1857, 1873, 1893, 1907, 1913, 1920 and 1929. In reviewing this sequence it appears that trade and commerce have moved in approximately o-year cycles except for the more pro found disturbances caused by the Civil War and the World War.

In addition to the io-year cycles there seem to be longer swings in American industrial development during which certain indus tries have developed with great rapidity and more or less domi nate the industrial activity of the country during the period. From 5840 to 186o, for example, railroads, agriculture and the iron and textile industries spread over great areas of the country with remarkable rapidity. Starting with about loomi. of rail roads in operation in 183o, there was a rapid annual increase until 3o,000mi. were in operation by 186o. Agricultural prod ucts multiplied in volume during the 20 years of 1840 to 186o. The corn production in 1840 was 377,00o,000bu. and in 186o 84o,00o,000bu.; wheat increased from 84,o0o,000bu. to 173,000, 000bu.; cotton from 1,348,000 bales to 3,840,000 bales.

The production of textiles had an equally rapid development prior to 186o as indicated by the consumption of wool in the United States which increased from about 45,600.000lb. in 1840

to about 85,335,000lb. in 186o. During the same period the value of cotton goods increased from about $46,350,000 to $115,682,000. The production of pig iron increased from about 165,000 tons in 1830 to 821,000 tons in 186o, an increase of about fivefold in the 3o years.

From the period of the Civil War, beginning in 1861, up to the World War, beginning in 1914, the growth in trade and com merce continued to show an astonishing rate of progress. Agri cultural production increased during this period many fold for most products. The total value of farm animals increased from around $1,000.000.000 in 1860 to nearly $6,000,000,000 in 1915. Cattle showed an increase from 25,600,00o head in 1860 to more than 58,000.000 head in 1915. Swine numbered about 33,500,000 in 1860 and 64.600,00o in 1915. The production of wheat jumped from 173,00o.000bu. to i,000,000,00obu. in 1915; corn from 839, 000,000bu. to over 3,000,000,00o bushels. Mineral and industrial products increased even more rapidly—petroleum from 21,000, 000gal. in 186o to more than ii,000,000,000gal. in 1914. Coal in creased from 13,000,000 long tons in 186o to 458,000,000 long tons in 1914, and pig iron from 821,000 tons to approximately 30,000,00o tons in 1915.

Manufactured products set even a faster pace in development. Steel, for example, almost unknown commercially in 186o, showed a production of more than 31,000,000 tons in 1913. The value of cotton manufactures jumped from about $116,000,000 in 186o to about $677,000,000 in 1914. Manufactures of wool increased from $73,000,000 in 186o to about $464,000,000 in 19r4.

Within the period from 1915 to 1938, there was another great increase in trade and commerce followed by the most spectacular decline that the country has experienced. The index of industrial production compiled by the Board of Governors of the Federal Reserve System was 83 for 1919, but declined to 67 in 1921, the low point of the post-war depression. From that point, the index increased rather consistently to 119 in 1929. The low point of the depression which followed was reached in 1932 when the index was 64. The gradual recovery which began in 1933 lifted the index from year to year to a high point in 1937, when the annual index was in). In 1938, however, the index declined to 86.