explains the solid foundation upon ported compared with the 1921 figwhich industrial America rests and ures. The amount paid to wage earnits position among the manufacturing ers during 1923 increased for each nations of the world. The annual of the industrial groups reporting in output of many of these groups 1921 and made a gain, compared with shows a small decline in value com- 1919, for all groups excepting the pared with the boom period of 1919. chemical and allied-products group With the exception of lumber and and the transportation equipment, allied industries each of the ten air, land and water group. At the groups discussed made a gain in pri- bottom of this page appears a commary horsepower utilized in 1923 pilation of the ten principal manucompared with 1919. Excepting in facturing groups in order of value of the number of establishments, all the output for 1923 compared with former groups increased in every item re- years. ANALYZED SUMMARY OF MANUFACTURES OF TEN LEADING GROUPS OF INDUSTRIES IN VALUE OF PRODUCTS (COMPILED FROM UNITED STATES CENSUS REPORTS) Food and kindred products Textiles and their prod ucts 1923 26,797 1,719,438 303,345,000 2,503,932 1,748,069,000 3,801,701 675,902,000 2,728,084 1923 51,931 682,318 $ 795,583,000 3,708,438 $ 9,529,773,000 714,901,000 8,145,082,000 774,722,000 3,203,106 12,748,348,000 4,977,760,000 9,487,184,000 6,963,886,000 9,226,646,000 3,445,481,000 1921 1919 1914 1923 8,830 384,479 Summary of Billion Dollar Estab- | was an increase of 0.1 per cent. in lishments. Sixteen individual manu- New England, a decrease of 1.7 per facturing industries produce annually cent in the Middle Atlantic states, more than a billion dollars each per an increase of 1 per cent. in the year. Four of these industries pro- East North-Central states, a decrease duce annually goods valued at more of 4.3 per cent. in the West Norththan two billion dollars. Motor Central states, and an increase of 6.2 vehicle manufacturing heads the list per cent. for the Pacific Coast. with an annual output valued at over The value of New England's manu$3,160,000,000, and iron and steel | factured products in 1923 was $6,420,works and rolling mills are a close 000,000, or an increase of 30 per cent. second, with a production value of compared with 1921; while the value $3,154,000,000. The table on page 564 of the manufactured products of the gives a summary of the billion dollar Middle Atlantic states in 1923 was industrial group in the order of their $19,739,000,000, an increase of 35 per importance as to annual value of cent. The value of the manufactured output. products of the East North-Central states was $17,821,000,000, or an increase of 50 per cent. over 1921. The West North-Central states increased Economies. In reviewing business conditions of last year Secretary Hoover stated that the manufacturing census taken for the year 1923 the value of manufactured goods from "brings out vividly the rapid progress in industrial efficiency and in elimination of economic waste during recent years. The figures for 1923 when reduced to a quantitative basis (in order to avoid the effect of decreased purchasing power of the dollar) show that our manufacturing output is increased by fully 60 per cent. over that of 1914. It also shows a gain over 1919. Against this large increase in products the number of wage: earners increased by about 25 per cent. as between 1914 and 1923, and it is interesting to note that the horsepower used increased 50 per cent. in the same period. Wages for 1923 and 1924 were generally maintained at about 100 per cent. higher than in 1913, and with the cost of living on a basis of about 70 per cent. over the pre-war level our labor is receiving a large share of the result of this increased efficiency in the highest real wages of our history. The higher real wage has been expressed both in advancing standards of living and in greater savings on the part of the masses of the population." $3,506,000,000 in 1921 to $4,299,000,000 in 1923. In the South Atlantic group of states the value of manufactures in 1923 was $4,238,000,000 compared with $2,985,000,000 in 1921. Banner States.-New York and Pennsylvania are the leading industrial states of the country. In 1923 the state of New York reported 38,186 manufacturing establishments with an output valued at $8,961,000, 000 and Pennsylvania had 19,054 es tablishments with an annual produc tion of $7,382,000,000. The fou states of New York, Pennsylvania, Ohio and Illinois in 1923 produced an aggregate value of manufactures of $26,530,000,000, which is nearly 44 per cent. of the country's total, and $2,284,000,000 more than the total value of all manufactures produced in the United States during the prewar year 1914. Massachusetts was the only New England state to report an increase in the number of establishments in 1923. New York had a very slight increase in establishments Sections Compared. In a study of the industrial development of the country by geographical divisions and states it will be found that the South as a whole (Missouri in this estimate is classed as a Southern state) fared better than any other section of the country, except the Pacific while Pennsylvania reported a loss Coast, in the increase in the num- of 6 per cent. in the number of estabber of manufacturing establishments. lishments; but the value of New This was achieved in spite of many York's manufactures in 1923 increased consolidations of plants in textile only 28 per cent. against a 45 per centers to bring them under one cent. gain in Pennsylvania. Ohio, ownership; they therefore count as Illinois, Michigan and New Jersey folone establishment instead of several lowed in order New York and Pennas formerly listed. The South in-sylvania in the value of manufactured creased its establishments in 1923 products. Massachusetts is sixth in over 1921 by 1.5 per cent. There manufactured output. ANNUAL PRODUCTION VALUES OF OVER ONE BILLION DOLLARS (1914-1923) (COMPILED FROM UNITED STATES CENSUS REPORTS) SELECT REFERENCES ON MANUFACTURES BY LAWRENCE B. MANN ACTING CHIEF, U. S. DIVISION OF STATISTICAL RESEARCH Encyclopedias and Books of Reference ANDRE, George G., and LOCK, Charles G. W.-Spon's Encyclopedia of Industrial Arts, Manufactures and Commercial Products. 3 vols., N. Y., Spon and Chamberlain, 1905. MACFARLANE, John James. The World's Commerce and American Industry. Phila. Commercial Museum, 1903. MACGREGOR, John.-Commercial Statistics. 5 vols. London, Whittaker, 1850. URE, Andrew.-Dictionary of Arts, Manufactures and Mines, edited by Robert Hunt. 4 vols. Longmans, Green, 1878. London, WRIGHT, Carroll D.-Industrial Evolution of the U. S. N. Y., Scribners, 1902. WRIGHT, Carroll D.-Report on the Factory System. Wash., Govt. Printing Office, 1883. Tenth Census, II, 529-610. U. S. Census Bureau, Reports of the United States Census of Manufac tures. Decennial from 1849 to 1899; quinquennial from 1899 to 1919; and biennial since 1919. Recent General Works Containing Discussions of Manufacturing BOGART, Ernest Ludlow.-Economic History of the United States. N. Y., Longmans, Green, 1907. COMAN, Katharine.-Industrial History of the United States. N. Y., Macmillan, 1911. CoWDRICK, Edward S.-Industrial History of the United States. N. Y., Ronald Press, 1923. FILENE, Edward A.-The Way Out: A Forecast of Coming Changes in American Business and Industry. N. Y., Doubleday, Page, 1924. FREEMAN, R. Austin.-Social Decay and Regeneration. London, Constable, 1921. GIBBINS, Henry de Beltgens.-Economic and Industrial Progress of the (XIXth) Century. Phila., Lippincott, 1901. KEIR, R. Malcolm.-Industrial Organization. N. Y., Ronald Press, 1923. McMASTER, John Bach.-A History of the People of the United States. 8 vols. N. Y., Appleton, 1914. MOORE, J. R. H.-The Industrial History of the American People. N. Y., Macmillan, 1913. THURSTON, Henry.-Economic and Industrial History. Chicago, Scott, Foressman, 1899. VAN METRE, Thurman W.-Economic History of the U. S. N. Y., Holt, 1921. WELLS, Louis Ray.-Industrial History of the U. S. N. Y., Macmillan, 1922. DIVISION XXI TRANSPORTATION AND COMMUNICATION IMPORTS AND EXPORTS BY FRANK D. GRAHAM General Considerations. The ex-foreign trade seems in the past year ternal commerce of the United States to have attained what is at least a is in process of adjustment to a series of important changes. The war established our position as a lending nation not only during and immediately after the conflict but for many years to come. The United States is at present the chief capital market of the world and the great loans contracted a few years ago between our government and the governments of the Allied Powers are now being followed by large private investments in foreign securities. These loans must have profound repercussions on our foreign trade, affecting not only its volume and the relation between exports and imports, but also in differing degrees the constituent elements of both of these. The year to year developments in foreign trade are therefore at this time of more than ordinary interest. temporary equilibrium. Ever since the autumn of 1920 gold had been coming into the United States in large quantities. During this time a total of well over a billion dollars moved toward our shores, while the historic function of gold movements in effecting international price adjustments was lost in the spasmodic play of exchange rates. Beginning with the last month of 1924, however, and continuing through the first six months of 1925 exports of gold were in excess of imports and though another reversal occurred in July, there is little evidence that this is likely to continue for any great length of time or involve any very large values. Trade is apparently once more on a fairly even keel, total debits and credits are in approximate balance, and there is a consequent cessation of large transfers of gold. Nineteen twenty-five was the first year of the operation of the Dawes Total Foreign Trade.-The official Plan for reparation payments by Ger- figures for the fiscal year ending June many but the sums transferred were 30, 1925, show a total United States not of sufficient magnitude to cause foreign trade of $8,688,838,000 as any considerable disturbance in inter-against $7,865,693,000 in 1924 and national trade. The trend of the $7,737,692,000 in 1923. Of the 1925 trade currents which these payments will eventually establish is therefore not yet obvious. None the less the confidence inspired by the acceptance of the Plan was a big factor in the investment of American capital abroad and, as a consequence, in our foreign trade. Reference will presently be made to the effect of these loans. For the first time since the war, total, $4,864,667,000 was in exports (including exports of foreign goods) and $3,824,171,000 in imports. Both exports and imports showed increases over the preceding years, but exports grew at the more rapid rate, so that the excess of exports is $1,040,496,000 as compared with $757,619,000 in 1924 and only $175,774,000 in 1923. For several years it has been the expectation of most authorities on inter |