FOREIGN COMMERCE. The United States does not hold so high a rank in respect to the magni tude of its foreign trade as it does in that of agriculture, manufactures, mining, and transpor tation. Until near the end of the nineteenth century the foreign trade of the United Kingdom was twice as great, while the foreign trade of Germany still exceeds that of the United States by a considerable margin. The commerce of the United Kingdom ranges from 3 to 4 times as great per capita as does that of the United States. As in the other industries, the chief develop ment has occurred since the middle of the nine teenth century. There was a period, however, in the early years of the nation when the commerce (including re-exports) was greater per capita than it has since been. Through the navigation laws (see paragraphs on History), England sought to place limitations ou the production and trade of the American Colonies. But through a lack of the means for enforcing the laws and the tacit recognition of a policy of *salutary neglect,' the laws were evaded through out the greater part of the Colonial period. The majority of Colonial merchants were smugglers, and an extensive non-English trade developed, the most important being with the West Indies. The total foreign trade of the thirteen Colonies is estimated to have increased from a value of $12,000.000 in 1750 to $30,000,000 in 1771, the exports amounting respectively to $2,800,000 and $11,000,000. In 1763 England's attitude toward the Colonies was radically changed; the naviga tion laws were modified and a rigid enforcement of them was begun in order to collect a greater revenue. This new policy helped greatly to precipitate the Revolution. After the war Great Britain subjected the newly independent States to the trade restrictions of the old navigation laws, much to the injury of the States, which were helpless under the Articles of Confederation. The situation hastened the formation and adop tion of the new Constitution, under which Con gress immediately began retaliatory measures. Discriminating duties were placed upon goods not imported in American vessels. Reciprocal commer cial privileges had been secured in the case of some but not all of the European countries, and with the coming of the Napoleonic wars, which created a special demand for breadstuffs, Europe was glad to avail itself of the advantages of Ameri can commerce. Our foreign trade jumped from $43,000,000 in 1791 to $247,000,000 in 1807. Of the latter amount $108.500,000 represented ex ports, of which over half were re-exports. America had become, in proportion to population, the lead ing commercial nation of the world. The embargo and non-intercourse acts and the War of 1812 greatly reduced the volume of American com merce. In the first two years after the war (1815-1816) there was a rapid revival of trade, and the imports exceeded those of any earlier year ; but after 1818 there was a steady decline in commerce until 1830, when the American im ports amounted to $62,000,000 and the exports to $71,000,000. It is noteworthy that the rapid development of the country west of the Appala chians had prior to this time added scarcely anything to the commerce of the country. So great were the difficulties of transportation that that section was rendered economically almost independent. The South was not so severely handi capped, especially with regard to exporting cot ton, the many navigable streams affording a means of conveying the cotton to the coast. After 1S30 trade increased rapidly 1836. when the American exports amounted to $124.000.000 and the imports to $177,000;000. This was the result in a large measure of the improvements of steam navigation and of canal construction (which afforded a profitable trade with the in terior), and of the rapid increase in the produc tion and shipments of cotton. After the panic of 1837 the foreign trade was again backward for a period of ten years. In 1846 the foreign trade was no greater than in 1816. after a period of thirty years. The year 1847 was the beginning of a new era in the foreign trade of the United States. Since that year the trade has rapidly ex panded, subject to fluctuation, however, during A number of factors aided in the development of commerce about the middle of the century. Among these were the enormous production of gold in California and the repeal of the Corn Laws in Great Britain. But greatest were the rapid development of the interior and the radical improvements in transportation through the con struction of railroads and the improvement of steam navigation. It was at about this time, moreover, that machinery began to play an im portant part in the agricultural and other in dustries—a movement which is carried to such an extent that the per capita production of American laborers is greater than that in any other country. In consequence there has been a large surplus of products for foreign ship ment, and an increasing ability to purchase those products which are not produced at home. From
the foregoing table it may be seen that there has been a change from an excess of imports to an excess of exports. This change occurred about 1875, since which year the exports have ex ceeded the imports, except in the ye_nrs 188S, 1889, and 1893. The excess of exports in the earlier years of that period was due to the enormous increase in the shipment of raw pro ducts, particularly farm products. Exports of these have grown less rapidly in recent years, and the excess of exports since 1896 is largely due to the sudden increase of exports of manu factured products. The imports of manufactured goods decreased from 40 per cent. of the total imports in 1360 to 15 per cent. in 1900. Ex ports of manufactured goods meanwhile increased slowly from 12.76 per cent. of the total exports in 1860 to 21.14 per cent, in 1894, then advanced rapidly to 31.65 per cent. in 1900, having since fallen a little under that amount. In 1895 the value of exported manufactures was $183,595,743 and in 1902, $403,641,401. The nature of Ameri can exports. therefore, is determined by the great abundance of raw products and the advantage thus given, together with the use of machinery in producing machine-made products economical ly. It also is influenced by the fact that the Western European peoples do not produce enough to supply the whole market, thereby creating a demand for the American surplus products. The American exports consist, therefore, of raw or slightly manufactured products sent to Europe and manufactured products sent to all parts of the world. The imports into the United States consist of raw products which cannot be produced in this country—or which are produced in in the Civil War period and the panics of 1873 and 1893. The value of the imports and exports in 1902 was ten times that of 1846, while the popu lation in the latter year was only about four times as great. The following statement of the general trade by decades is fairly indicative of its growth: sufficient quantities—and products which can be produced more economically in other regions. The latter comprise mainly food products and materials for use in manufacturing. A con siderable portion, however, consists in manufac tures in which cheaply paid European and Oriental hand-labor enters largely, and with which highly paid American labor cannot com pete. It also consists of products of highly skilled labor, skill which accrues with the long establishment of an industry and which Ameri cans have not yet acquired. The following table shows the growth of the export trade: Thus corn bids fair soon to become a rival of wheat as an export, in value as well as in volume. The greater part of the exportation in meats con sists of hog products, amounting in the year 1903 to $112,110,602, as against $38,470,958 for beef products. The exports of hog products in creased rapidly with the development of the slaughtering industry, the total value having increased from 815,309.647 in 1870 to $86,687,858 in 1878, after which they fluctuated about that figure and did not show any tendency to rise until 1898. The exports of bacon in 1903 were valued at $22,178,525, hams at $25,712,633, and It is noteworthy that after a decade in which no progress was made in the exports of agri cultural products (1880-1890), they have again rapidly advanced. The agricultural group includes a number of products usually classed as manufac tured, such as flour, meats, etc. Of the agri cultural exports, those intended as food are in the aggregate far in the lead. The three principal exports of food in the fiscal year 1903, with their values, were as follows: breadstuffs, 8221,242, 285; meat and dairy•products, $179,839,714; and animals, $34,781,103. Cotton is the largest single item of export, and ranks second to the large group of breadstuffs. The most important items among the breadstuffs are wheat and flour, the average exports of which for the period 1867-72 were 35,500,000 bushels, or 15.53 per cent. of the total production. The exports then rose until the period 1879-83, when the average was 157, 566,000, bushels, or 34.91 per cent. of the total production. For the next ten years the exports were much less, absolutely and relatively, but in creased during the period 1894-99 to an average of 170,098,000 bushels, or 34.63 per cent. Euro pean countries have always entertained a preju dice against corn as a food, but this prejudice seems to have weakened in recent years. The exportation of corn, including corn meal, in creased from an average of 14,200,000 bushels in the period 1867-72 to an average of 127.400,000 bushels in the period 1894-99. The exports of the earlier period constituted 1.54 per cent. of the total production, and in the latter 6.56 per cent.