The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1903-06-05
A SCRAP OF HISTORY.

A SCRAP OF HISTORY.
In an article on our large export trade
the Philadelphia Record calls attention to
some significant facts, which we have
| time and again mentioned in these col
umns. 1t points out that exports Of man
ufactures began to be large in 1896, being
in that year $45o0o,oOO more in value
than in the preceding year. We had n
great boom in this country prior to the
summer Of 1893, and there was largo
increase In our manufacturing capacity.
According to tho census of 1890 it was
shown that in the preceding decade the
number of persons employed in Industries
had very far outgrown the population.
There was an enormous Increase in the
amount of capital invested, as we'll as In
the output of the factories. These con-
ditions continued during tho first half OF
1893, but in the summer OF that year
there was money panic, and this
period when mills closed down, when
thousands and tens of thousands Of peo-
pie were thrown out of employment, and
business came almost to standstll.
with the colopse of the home market"
the Record goes on, manufacturers
locked abroad for outlets. AT first their
only object was to get rid OF their stocks
and thelr materials. Then they devoted
themselves to reducing the cost of pro-
duction, so that they could manufacture
| for tho sake of export. This.was facii-
| tated at first by low wages and low
| q }or nlc P,t ca
manufacturers succeeded In reducing the
cost Of production that they wer. ahlc
to keep very much Of their foreign trade
after business at home revived Indeed.
they would have increased 1t had the de-
rland at home not expanded eXtraord-
narily. For example. large recent de-
crease in exports OF steel rails is due less
to foreign conditions than TO the fact
that American railroads TOOK Ill our
mills could produce, and had to inn q t
1850 tens in ten month Of this fiscal
year.
The exports of manufactured soors.
which were s1s3,595,74 in 1895. were
$40 ,032,524 in 1901, and but little less
In 1902 In ten months of this fiscal
year they were s339,0oOO0o. more than
Sc, 900, 900 above the figures for the same
part of 1902. and in April they were the
largest on record for that month
Up to this time the Republicans had
commended for the home market" ard
had urged that the true policy of the
country was to keep out f)reig1 com,'p-
titlon. AMI so enable home manufacturers
to supply the home trade at prices
greatly In excess Of those OF foreign
goods But with the changed condition
above noted. tho Republicans practically
abandoned the home market idea and
Sc in measure abandoned the protective
principle.
The lesson is plain. So long as we con.
fined ourselves to the home market, so
long az we We're protected against foreign
competition. and so long as There was a
fair measure of prosperity, under those
conditions manufacturers did not trouble
themselves much about the cost of pro-
duction, But when the hard tines came,
they were compelled to devise all sa:ts
OF means to reduce the cost of produc-
ton, and having reduced 1t TO the mini
mum, they found that they wore able
to compete In foreign markets. That
was the beginning, as Is shown above,
and as we have so often pointed out. or
The enormous increase in our export trade,
There are those who contend That the
protective tariff has been blessing 10
| the country. and has enabled us TO build
up our infant industries" In a mcayure
that is true, but Is 1t not at least de-
patable question whether or not without
a protective tariff our manufacturers
would not have learned long before they
did how to reduce the cost OF production,
| and how to compete In foreign lnndst
| II that lesson had been learned ten.
| twenty, or fifty years before, our export
| trade would have Increased accordingly
| There is no doubt tina, this Ella of pros
perlty has lasted much longer thar. II
would have lasted because NO havo net
depended upon the home market. because
wc Kaye had a foreign outlet for our sur
| plys products.