The Richmond Virginian. (Richmond, Va.) 1910-1920, 1920-04-02
PLANT EXPANSION
AND EXPORT TRADE

Available evidence indicates that
industrial plant expansion as whole
IN The United States during the war
did not proceed al more than a normal
peace-time rate, the National Bank Of
Commerce in New York says in tine
April issue OF its magazine, Com
merce Monthly, This conclusion was
reached after It study Of the plant cN
panston situation with particular ref
erence to its bearing on the curtal-
ment Of exports from the United
states which is in process as a re-
suit OF the adverse exchange condi-
toms against Europe The expansion
that did occur was irregular as be-
tween different countries, the bank
says being abnormal in some lines.
AZ any country natures indust-i~
ally, the bank says. lit needs eX-
port markets. in part to pay for those
raw materials. and other commodities
which IL must buy abroad, and in part
! to stabilize it's Industries by tho de-
lyelopment Of markets in which it NAV
sell in order TO minimize the effects
+ of domestic depressions and seasonal
variations in domestic conditions. An
export trade however. implies a sur
plus No permanent advantage is to
be gained by exports which produce
a scarcity in the domestic market.
From the beginning Of the war in
Europe until April, 1917, it seems
probable that actual physical plant *
pansion in this country was proceed
ing a an abnormal rate in many lines,
but from the moment of our entry into
the conflict, because of the withdrawal
of men into camps, general expansion
was retarded. expansion henceforth
being directed into those lines neces-
sary for war purposes. while other in
duStries were corresponding retar l.
ed
Industries in which operations we~e
held back included the manufacture
Of passenger automobiles pianos
piano players and parts. cutlery
stoves, black galvanized and enameleI
ware, metal beds. boilers and rads-
tors, automobile pneumatic tires. tin
ylate and agricultural implements
Curtatimept of building operations was
most noticeable. the percentage OF de-
crease Ia the production Of building
materials in 1918 as compared with
19I7 ranging from Is per cent in lum~
Der 10 GO per cent in common brick
and Indiana building stone.
Figures from which the deduction
was reached that the war had now oc-
casinned general over expansion we're:
That volume OF production OF ninety
raw materials was only 16 per cent
higher in 1918 than in 1919
That the total Of revenue tons han
dled by approximately 30 per cent Of
the railroads ef the country was only
90 per cent greater in 1918 than in
tle13;
That the percentages 81 increase be-
tween 1874 and 1913 In the number Of
spindlcs In the three maj or textile IN
dustries was as follows: wool. rs per
cent az compared with 10 per cent
increase during the preceding FIVE
years. cotton per cent. as compared
with a - per cent increase between
1903 and 1874, and SILK, 3 per cent, AS
compared with l6 per cent from 1909
TO 1913
The physical volume OF our exports
using 1919 as r base, decreased 6 per
cent IN 1914. but by 1917 showed an
Increase ~ 60 per cent and in 1918 "a
'rcr Cent The increase in 1919 over
l9l2 was 81 per cent, according TO the
banks computations shipments for
military purposes in SO far as they
were carried on government vessels to
supply the army and navy abroad were
not reported AS exports
"Pr0duction undoubld'v was concen-
trated In certain lines in which output
was Increased, either by new plant de-
yelopment or nv diversion the article
continues by way Of illustration.
carpet looms were diverted TO cotton
duck production. Plant expansion for
the production Of explosives, and chem
reals Is matter of common kuowt-
edge. Great expansion occurred IN
those ferrous and on-ferrous metal
industries whose products were useI
for munitions. However II is not pos
sihle TO measure this expansion.
This country reeds export markets
for .oapper. sine .and, slead.. We mead
export markets adequate to absorb
surplus cotton, oleo oil, meat products,
wheat. etc. During the war there vas
a very marked expansion n our OK
ports OF manufactures ready for con-
sumption, Part of this gain ought 20
b" held In 1913 and lal9 there was q
decided increase in the proportion OF
fpodttufS partly or wholly manutac~
tured to the total value az our exporfs
We are fast getting back 10 pre- var
conditions. however. Practically The
only difference in the percentage dis
tribution Of our exports among tae
large groups Of articles In January.
| 1890. from the year 1918 was that there
were relatively more foodstufre partly
FOR wholly manufactured and less man
aYF.