118 



COMMERCE (INTERNAL) OF THE UNITED STATES. 



being an increase of about 187 per cent. The 

 increase in the values exported of this group 

 of commodities amounts to 64 per cent, of the 

 total increase in American exports during this 

 period. The exports of breadstuff's were over 

 two and a half times greater in value in 1878 

 than they were in 1868, the increase in quan- 

 tity being still greater. The value of the total 

 exports of provisions was more than quad- 

 rupled, while the average export price had 

 sunk for bacon and hams from 12 T 6 o cts. per 

 pound to 8 T 7 o- cts., and for lard from 14 T 6 cts. 

 to SyV cts. That of live animals increased 

 eight fold, and that of fruits over three fold, 

 the preparation of desiccated and preserved 

 fruit for foreign markets being almost a new 

 branch of trade, as also in that of exporting 

 live animals and dressed meat to Europe. The 

 export of oilcake nearly doubled. That of 

 coal shows a steady increase. The export of 

 petroleum has more than doubled in value and 

 quadrupled in quantity, since the average ex- 

 port price has declined from 29f cts. per gal- 

 lon in 1868 to 14f cts. in 1878. The export 

 of copper and brass products has more than 

 trebled ; in 1873 there was a net import of cop- 

 per and brass and their manufactures amount- 

 ing to nearly $3,250,000, while in 1878 the im- 

 ports were only one quarter as great and the 

 exports four times as much in value as in that 

 year, and there was a net export to the amount 

 of nearly $2,250,000. In iron and steel and 

 their products the exports increased from $6,- 

 333,000 in 1868 to $12,000,000 in 1878. Since 

 the opening of the Lake Superior mines the cop- 

 per production of the United States has grown 

 to astonishing dimensions, so that already in 

 the year 1874 there were 17,548 tons of cop- 

 per mined ; the importation of this metal from 

 Germany and Belgium must cease altogether 

 at an early date. 



Since the crisis of 1873 there has been a 

 complaint of bad business and a feeling of 

 doubt and discouragement in nearly all branch- 

 es of trade and all sections of the country. 

 The depression has been prolonged and wide- 

 spread, but not so paralyzing as that which 

 has occurred in some other countries. It has 

 had a most injurious effect in producing misery 

 and demoralization in the ranks of the most 

 useful class of citizens, the skilled mechanics 

 of many trades. It has brought great num- 

 bers of traders to bankruptcy, who in ordinary 

 times could have held their position. Yet it 

 has had its good effects in compelling the busi- 

 ness community to adopt methods of system 

 and economy, and in accustoming them to ac- 

 cept rates of profit considerably below the 

 standard which has hitherto prevailed, and 

 which are necessitated by the greater develop- 

 ment of trade and industry, the larger accumu- 

 lation of fixed capital, and the sharper compe- 

 tition which must exist henceforward. Since 

 the harvesting of the large crops of 1877, there 

 has been a general improvement in the tone and 

 disposition of the commercial community. The 



general shrinkage of values was the most ac- 

 tive cause of the stagnation, and was a pro- 

 cess which had to be passed through. There 

 is a general impression that the lowest decline 

 in prices has been reached, so that there was 

 much more inclination to resume business en- 

 terprises in 1878 than in the foregoing year, 

 and less lack of work for laborers. The signs 

 of recuperation can be traced perhaps as far 

 back as the middle of the year 1876. 



The transactions of the New York Clearing- 

 House afford one of the best available criteria 

 of the volume and activity of business through- 

 out the country, making allowance for the gen- 

 eral fall of prices, through which an equal 

 amount of business can be performed with 

 smaller money transfers, and also keeping ac- 

 count of the perturbations of the investment, 

 the stock, and other speculative markets, and 

 all the accidental movements of money which 

 are not immediately connected with the opera- 

 tions of regular commerce. The comparison 

 of the daily clearings of the New York banks 

 shows a gradual improvement since the mid- 

 dle of 1877. In the beginning of 1873 the first 

 week's currency clearings amounted to $128,- 

 000,000 a day. In the beginning of February 

 they had declined to $109,000,000, then rose to 

 $130,000,000 on March 10th, and were large and 

 variable until the panic, reaching their highest 

 amount on April 21st, $143,000,000. In the 

 summer they sunk rapidly to $70.000,000 in 

 the week ending August llth, increasing again 

 to $108,000,000 in the week ending September 

 15th, and falling off suddenly to 50 millions after 

 the panic. They then increased toward the end 

 of the year, amounting to 86 millions in the 

 second week of January, 1874. They fluc- 

 tuated between 80, 70, and 60 millions through 

 the spring and early summer, falling off to 50 

 millions and under in the dog-days, and in- 

 creasing as usual toward the end of the year, 

 amounting to 88 and 89 millions in some 

 weeks of October and November, and. clos- 

 ing the year with 81 millions. The average 

 clearings in 1874 w r ere about 72 million dol- 

 lars daily. In 1875 we find a brisker business 

 in the beginning of the year than in 1874, 

 and a higher average for the year, 74 mil- 

 lions a day; but the contraction in trade is 

 reflected in the diminished amounts of the 

 clearings in the latter half of the year, com- 

 pared with 1874. After the middle of 1875 we 

 find them also varying less from week to week, 

 and more obedient to the usual variations- of 

 business at the different seasons of the year. 

 In the spring and early summer of 1874 the 

 diurnal transactions averaged some 80 millions. 

 In the autumn and winter there appears to have 

 been less business activity than in the year 

 before. All through 1876 there is marked de- 

 cline in the volume of the bank transactions 

 compared with 1875., The average clearings 

 were the least of any year, being about 63f 

 millions; in the latter half of the year 1873 

 they had averaged 62 millions. In 1877 we 



