Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-01-22
SOUTH'S RETURN TO LEAD
IN EXPORT TRADE is SEEN
Recent Development of Industries Il
Considered Indication That Former
Commercial Position Is i'm Sight.
BY JULIUS KLEIN.
Director. Bureau of Foreign and Domest
Commerce

commerce.
" HE yellowed pages of our oficia
statistical publications of q
cent Try or so ago reveal many
n interesting facts regarding the
commercial awakening of the
young Republic. One of the outstand
Ing features was the astonishing pre-,
dominance of the South in our foreign
trade.
In fact, during the 1s2os not les.
than Is or so per cent of our tota
export trade was in cotton and a,
least half Of the remaining proportion
was III other products of the Southern,
plantations and forests, particularly
tobacco and naval stores. Today. cot
ton still heads the list. but ii repre-
sents only Is per cen. Of our total
overseas sales Our economic historians
have made much of the rapid develop
ment of the West and its repercus-
sions upon the commercial and indus
trial life Of the Nation. but so far as
foreign trade was concerned. the period
before the Civil War had as its most
conspicuous feature the predominance
OF the South
Cotton Raising Increase.
Indeed. the rapid expansion OF cot
States Of Tennessee and the lower Mis-
siSsippi Valley during the first quarter
OF the century had much to do with
this situation. These newer planta-
tons were contributing nearly half of
the total supply of exportable cotton
by 1880. when the shipments were Just
under 500 900 900 pounds. as compared
with only $1,000 900 pounds in 1919.
This accounted for the rapid rise in
Importance of the port of New Orleans
IN our foreign trade during this early
period. BY 1888 Louisiana had passed
New York as our leading export State
and she retained this leadership down
70 the Civil War, not simply because
growing. but also because Of the de-
velopment of the Southbound river
traffic from the newly opened lands
o. the West. In fact, by that time
three of the four leading States In our
export trade were in the South. New
York was second to Louisiana. and
South Carolina and Georgia followed
closely thereafter.
All of this is simply by way OF a
forewosd-a confirmation of the COM
monty accepted impression that the
'olo South" lived by its foreign trade
In plantation products. The picture
was. Of course, entirely distorted by
the Civil War. and particularly by the
profound changes in industry and
transportation which took place during
tn. decades thereafter But although
wars are usually thought of primarily
Is destructive and are associated chief
~ with the appalling losses Of men and
materials, there Is also at least a mod
erateiy compromising factor in their
stimulation OF new constructive ener-
g'es BIZ way OF carrying on the conflict
end especially Of restoring the resultant
damage And 50 IN the case of the
holocaust Of iel4-ieiS there were a
number OF profound commercial and
Industrial transformations In this coun-
try and abroad which have reacted
upon the economic life of the South
IN bringing 1t back to a position OF
prominence In our foreign trade.
The war completely rerlade the In
ternational commerce OF the world.
FACTORS and influences were set In mo-
ton which had never been contem-
plated previously. This has been par
tsculariy true Of the real;gnment OF
trade rot 1es and Of the stimulation OF
new indT1<ies into activity IT no
other pr. OF the United States were
these two elements more vigorously
evident ii an. In the South.
Canals Eject on Trade.
In the first place. the Panama Canal
by the most fortuitous circumstances
was opened at the very gateway Of the
South on the eve of the war. As a
result. what had previously been one
Of the most retarded trade areas on
the globe was suddenly made Access
Eible. and our Southern States were on
4k~A N11~fr &SyA xf f~EN "A
commercial possibilities The s..nifi-
cart factor in this connection was the
TREMENDOUS demand stimulated by the
var Tor the very type of raw ma
teriais most Immediately available along
the western seaboard OF South America
Eityzte& were imperatiycly necessary
for explosives and TO stimulate the
overburdened soils OF the combatant
nations. Then, too. the minerals OF
those countries. notably copper, tin and
such minor but none the less signifi-
cant ores as tungsten. moiydenum,
etc. were Immediately in great de-
naand Tor ammunition purposes.
Our ports. especially from Baltimore
southwark. became the centers Of much
Of this commerce Trade routes iname-
0ia.ely began " shift and the South
came 10 the fore III traffic along the new
l.r7es.
Associated with this DEVELOPMENT
there came series o! new industries
throughout the South, utilizing on the
enc hand the raw materials Just mem
toned and on the other drawing slim
u.us from the unprecedented demands
from across the Atlantic. Among these
vas, OF course the great reW iron and
steel development oi Tennessee and
Alabama, which hac opened before the
war, but was given us greatest impetus
curing that crisis. Chemical plants
siSo sDgsng up throughout this area. and
the newly established textile industry
shot upward With spectacular speed.
Agriculture Loses Ground.
without TOO extensive a statistical de-
tour. II may be noted that these new
1eyeIotlyYlTYltg have crowded agriculture
srt Of ITS once dominant position IN fhe
South, and as result manufactures are
Y,.,a ri first place. with an annual value
f,f well In excess III 50 900 600 900 a.
syos1y,afed With q grOfE value VI 5000
900 600 foy agriculture and livestock
oyD<sl.etg not 6edIctiIg crops fed " i've
ef<,ck. II We are " Include mineral
syfoduela on the non agricultural SIDE III
the scale We add another 81 TOO. 900 900
In fact, Mississippi ard Arkansas are
the only Southern States showing q
f;gfer value tor farm products than foi
manufactures and minerals.
The Interesting phase u this new de-
~el1tanert IN ito foreign trade aspect u
is truiy astonishing diversity, which ha'
GRABBED the South W spread us oyfrseai
MARKET risks IN multitude ~ nad'
areas, whereas IN the oic Gays pfscu
$50 tbs whole " It's commercial futuTs
49, tied no with the buying power u
s,1s GREAT customer namely the Eztlb
f,.d,astry Of England, Today the ek
<,lal,ati0n Of an astonishing array of ray
nisterials. which mad been praetie ca
Wy small scale. has greatly minimize e'
ihs rlsEk u her industrial position an
very substantially strengthened hsf gen
Srsj economic stability. a.
Iile Yaine u msnufaGtnIes ~ VI