B. Dependence of Manufaduring on Transportation.—Few other occupations demand such extensive transportation and employ such diverse methods as does complex manufacturing. In order to make the numerous and complicated exchanges which finally enable the manufacturer to get raw materials in place of his finished products, the component parts of a single article may make a score or a hundred journeys by almost every mode of conveyance. Call to mind the steamships, railways, camels, auto trucks, and other means of trans portation used in bringing the raw materials mentioned in connection with shoemaking. Among primary producers, the dairyman and market gardener perhaps depend more immediately than the manu facturer upon steady local transportation, especially at certain seasons, but their products usually move relatively short distances and make only a few trips.
C. Dependence of Manufacturing upon the Labor Supply.—The labor supply for complex manufacturing presents a difficult problem. This is partly because of the number of people employed. In the United States the number of wage earners reported as engaged in com plex manufacturing in 1914 was about 4,775,000 compared with 1,865,000 in simple manufacturing and 2,664,000 employed on farms other than those of their own families. Still more important is the fact that only about 3 per cent of the persons engaged in manufacturing are in any sense owners and only another 11 per cent belong to the office force, whereas about 50 per cent of the persons engaged in agri culture either own their farms or at least rent them and are their own managers, and another 27 per cent belong to the families of the farmers. Although the farmer is confronted by a grave labor problem because of the seasonal character of his occupation, he and his family usually do so large a share of the farm work that the failure of the outside labor supply does not ruin him, unless his farm is large. The manufacturer must hire all his labor, and the very time when he needs help most is the time when his men are most likely to strike for higher wages.
Another difficulty of the labor situation in manufacturing communi ties is the complexity of the work. Where the cattle raiser, for example, requires only a few men who can easily be trained, the shoe manu facturer requires many kinds of operatives, some of whom need long training. Of course it is easy to get untrained girls who can care for " crippled " shoes, but it is hard to find men so skilled that with the naked eye they can judge the shape of heels held against rapidly revolv ing knives. These men make high wages even though they are fined if the fraction of a moment's delay gouges a heel too deep and ruins its shape. So varied and large a supply of labor can be procured only in regions with a fairly dense population, so that the higher types of manufacturing, do not thrive except where the population is dense. b. The labor conditions also cause manufacturing regions to he centers of a grave series of social problems such as unemployment, poor relief, strikes, socialism, and child labor. Where the work is so specialized
the failure of any one group may throw the whole factory out of work. Moreover, one industry depends so closely on another that a strike or a shutdown in the steel works, for instance, may hold up the auto mobile makers, the railway repairers, the makers of cotton machinery, and many other workers. Again, factory work is so mechanical, so minutely subdivided, and demands so little initiative that it is monot onous and disagreeable. Moreover, while the owners of a factory are frequently at the mercy of the operatives, the operatives are also at the mercy either of the owners or of the unions. Such conditions breed discontent. The density of the population makes it easy for agitators to make themselves heard, so that discontent spreads and there is constant social ferment. Permanent success in complex manu facturing demands that the community shall have enough organizing ability and determination to face and solve a vast series of such prob lems which show no tendency to become simpler, but rather to become more complex. Only a few parts of the world have yet shown this ability.
D. Geographical Limitations Due to the Financial Problems of Manu condition which has an important bearing on the location of manufacturing industries is the huge amount of capital required and the difficulty of making wise purchases of (list-ant raw materials and extensive sales of the finished product. In the United States the capital. invested in manufacturing in 1914 amounted to S23,000,000,000. This sum, large as it is, is scarcely half the value of all farm property including land, buildings, implements, machinery, and live stock. Nevertheless, it represents a far greater financial problem, for the farm values are largely the result of gradual growth; while the capital invested in manufacturing has in most eases been deliberately set aside a.s the result of savings, and has been invested in relatively large blocks at a single time. Hence, manufacturing can prosper only when it can draw on a large surplus of savings. But the people who have the ability and determination to lay up much capital are limited to a few areas, chiefly in Europe and the United States, and many of them want to invest their capital near home. Of course many people invest heaxily in remote lands, but it is far easier to get capital for a promising enterprise that is directly under the eye of the investor and in the management of which he has a share, than to get it for one that is far away and whose managers he does not know. This fact is a powerful aid in establishing industries in a state like Massachusetts where 67 per cent of the inhabitants had savings bank accounts in 1920, rather. than in Indiana where only 1 per cent have such accounts, or New Mexico where there are practically none.