COMMERCE OF THE UNITED STATES. 



invariably against tlio United States. In tho 

 peril 1 from 1835 to 1850 there was an excess 

 in thu imports of merchandise over the exports 

 aggregating 88 million dollars, and an excess 

 in tho imports of specie over the exports of 44 

 millions. From 1851 to 1860 inclusive the im- 

 portation of merchandise exceeded the exporta- 

 tion l.y :;.'.(> millions; but this was more than 

 balanced by exportation of coin and bullion 

 amounting to 417 millions. During the period 

 of the war there was a small excess of imports. 

 After tho war followed a period of unexampled 

 commercial expansion and extension of tho fa- 

 cilities of production and transportation, dur- 

 ing which the external trade has been nearly 

 doubled. The augmentation in productive 

 facilities was accomplished in part by foreign 

 oapital, and to a considerable extent with im- 

 ported material ; so that during the thirteen 

 years from 1861 to 1873, while the exports in 

 the latter part of the period increased in a rapid 

 and steady ratio, a large debt was accumulating 

 abroad against the United States, which is rep- 

 resented in the trade returns by an aggregate 

 excess in the imports of merchandise over ex- 

 ports of 1,155 millions, against which must be 

 offset the net exportation of bullion, amount- 

 ing to 657 million dollars. In 1874 the mer- 

 chandise balance turned out in favor of the 

 United States for the first time since the war. 

 It was the first time, indeed, since the discov- 

 ery of gold in California, save in 1858, when a 

 similar cause worked a sudden reduction of im- 

 ports, and one year in the beginning of the war, 

 when tho exports and imports nearly balanced 

 each other. The excess of exports in 1874 was 

 18 millions ; in 1875 there was again a slight 

 excess in the imports, amounting to 19 millions. 

 In 1876 the balance changed definitively in fa- 

 vor of the United States, the excess of exports 

 in that year amounting to 79 millions, increas- 

 ing in 1870 to 151 millions, and in 1877 to 257 

 millions. The aggregate excess of exports for 

 these last three years only more than extin- 

 guishes the accumulated debt shown by the ag- 

 gregate unfavorable balances of the previous 

 period, embracing a destructive war and the 

 multiplication of productive and commercial 

 facilities by means of material imported large- 

 ly from Europe, and at prices which were fully 

 double those which obtain to-day. The ag- 

 gregate favorable balance for the five years 

 in tho merchandise account is 488 million dol- 

 lars, which swells by the addition of the net 

 exports of coin and bullion, which were 169 

 millions, to a total of 657 millions. The im- 

 ports of merchandise grew from 357 millions 

 in 1868 to 642 millions in 1873, and then de- 

 clined without a break to 437 millions in 1878. 

 The decline is due in part to the cessation of 

 railroad-building and other improvements with 

 imported material, in part to the diminished 

 power of consumption in the community and 

 the practice of enforced or voluntary economy, 

 and in part to the reduction of values. The 

 exports of domestic products increased steadily 



from 281 millions in 1868 to 586 millions in 

 1874, then fell off to 513 millions in 1875, and 

 increased again with rapid strides to 540 mil- 

 lions in 1876, 602 millions in 1877, and 694 

 millions in 1878. The decline in 1875 was not 

 due to diminished exportation*, but to a largo 

 fall in average prices. 



Tho increase in the export trade in merchan- 

 dise of over one third in value since 1873, in 

 spite of an equal decline in prices, is partly due 

 to the adventitious cause of short crops in Eu- 

 rope ; but there is no reason to expect that the 

 recent improvements in the means of produc- 

 tion and transportation will not enable the raw 

 products of America to hold their own in the 

 markets of Europe. The export trade in food 

 articles occupies a position of natural rivalry 

 and antagonism to the export trade in manu- 

 factures, since the more Europe becomes de- 

 pendent on America for food, the more sharp 

 will be its competition in its own and neutral 

 markets and in the American market for an 

 outlet for manufactures. If the present exten- 

 sion of agriculture and increase in the exported 

 surplus continues, then the test will be the 

 more severe to which the American manufac- 

 turers will be subjected to show in what branch- 

 es of industry superior skill, knowledge, taste, 

 honesty, cheaper power and cheaper raw ma- 

 terial, priority of development, the advantage 

 of accumulated capital, or better commercial 

 communications with the markets, will enable 

 them to sustain the competition of the older 

 industrial nations. 



The magnitude of the foreign trade of a coun- 

 try indicates better than any other sign the 

 material progress and social well-being of the 

 people. The average annual value of imports 

 of merchandise into America during the five 

 years from 1835 to 1839 inclusive was 139 

 million dollars ; the average annual exports 

 amounted to 113 millions. The succeeding 

 lustrum, 1840 -'44, was a period of retardation, 

 in which the average imports declined to 104 

 millions and the exports to 92 millions. From 

 1845 to 1849 the imports averaged 128 and the 

 exports 130 millions. In the succeeding five 

 years, 1850-'54, the imports had increased to 

 230 and the exports to 187 millions. In the 

 five years from 1855 to 1859 the imports had 

 advanced further to 302 and the exports to 271 

 millions. After 1850 a new element enters into 

 the account, which is not included in the mer- 

 chandise returns, viz., the exports of the pre- 

 cious metals. Between 1850 and 1878 the total 

 net exports of gold and silver amounted to 

 about 1,280 million dollars, or some 90 millions 

 more than the total adverse balance in mer- 

 chandise for the whole period. The war had 

 an unfavorable effect on the external com- 

 merce of the United States. In the period 

 from 1860 to 1864, the average imports were 

 278 million and the exports 221 million dol- 

 lars. Both the export and import trades were 

 probably greater than in the preceding period, 

 as the commerce of the belligerent Southern 



