On the Crises of 1837, 184J, and 1857 25 



amount, increasing from $239,000,000 to $417,000,000 for the 

 same period. Previous to this period imports had been increas- 

 ing at a more rapid rate than exports.^ This increased export 

 trade we would naturally expect of a manufacturing country 

 experiencing extensive improvements in machinery during an 

 era of general prosperity. It would also be natural to expect 

 that increased imports of raw materials such as iron, wool, cot- 

 ton, etc., would be accompanied by a more than corresponding 

 increase in exports, manufactured goods being of less bulk and 

 higher value. 



In the United States, exactly the opposite process from that in 

 England was taking place. Imports were increasing faster 

 than exports. From 1830 to 1837 the excess of imports 

 amounted to over $130,000,000, while at the same time there was 

 a net import of specie of $34,000,000.^ We were buying much 

 more than we were selling, and also much more than we were 

 paying for. 



The phenomenon in the United States also is not difficult to 

 explain. We experienced a slight increase in exports consisting 

 principally -of raw materials such as wool and cotton. We were 

 not a manufacturing nation and, furthermore, were devoting all 

 our energies to the internal development of the country. This 

 situation was certain to result in an unfavorable trade balance, 

 and that for two reasons : In the first place, if we were devoting 

 our energies to internal improvements and speculative enter- 

 prises, we could not give the proper amount of attention to ordi- 

 nary trade, especially manufacturing; hence no large increase in 

 exports; in the second place, these home investments greatly in- 

 creased the demand for all kinds of goods, consequently increased 

 imports. From 1830 to 1^2)7 imports increased from $62,000,000 

 to $176,000,000, almost trebling, while for the same period ex- 

 ports rose from $71,000,000 to $124,000,000, not quite doubling. 

 Previous to this time exports and imports had increased at prac- 

 tically the same rate.^ 



^Monthly Summary of Commerce and Finance, February, 1903. 



^Ibid. 



'Ibid. 



167 



