VALUE OF LEADING AGRICULTURAL PRODUCTS EXPORTED FROM THE UNITED STATES.

The facts as to wheat alone, relative to decreased exportations, are shown by the following table:

The facts shown in the foregoing tables are by no means startling. The fear, however, that Indian wheat and cotton and Egyptian cotton are rapidly taking the place of American wheat and cotton has caused producers to feel that the future has no prosperity for them. The reduction in the exportation of grain and cotton has been sufficient, however, to induce those immediately engaged in their production to curtail expenditures, and to this extent practically, and to a larger extent by apprehension; thus the consuming power of one-half of our population has been crippled in a measure. Whatever can remove this apprehension will aid in restoring prosperity.

It should, therefore, be understood that several things have contrib uted to the decrease of exportations in food products as well as the development of the wheat crop in India, such as the increased effort to stimulate the crops of Western Europe, and especially the increase in meat products, induced partly by industrial depression and

partly through the desire of the countries of Western Europe to be more Independent of America. Again, the restrictive measures of European countries as against American meats must be considered. While, therefore, the prospect from the influence of Indian development may cause serious consideration on this side the Atlantic, it is not probable that such development need to be considered as alarming. It has probably had its worst influence so far as crippling the consuming power of a large body of the population of the United States is concerned. The influence coming from cheap wheat is one of a mixed character. If it be argued that the lowering of the price of wheat and flour would be an advantage to the working classes of this country, it may be answered that this is true only in a small degree, for, as it has been seen, if the producers of food products do not get fair prices for such products their power to purchase is crippled correspondingly, and so the influence is felt in all directions. By short crops or reduced prices the agriculturist is precluded from buying the products of mechanical industries except in a limited degree. Thus the disturbing influences resulting from stimulated development of industrial interests abroad act in a contributory way to produce and continue American depression.

It not necessary in this connection to consider the differences in quality between American and Indian cotton and wheat, or the effect of short crops in America.

Tariff Inequalities.-Very many well-informed business men allege that high duties on imported goods constitute a serious disturbing influence in manufacturing, but they complain more of the inequalities in rates than of high or low rates of duty. An illustration of the exist ing inequalities is given in the following table relating to woollen and mixed goods manufactured at Leeds, England, or having Leeds as the point from which distribution begins. This table states the descrip tion of the goods; their width in inches, and the weight per yard of each kind; the price of the goods at the factory; the rate and the amount of duty per pound and ad valorem, and the total amount of duty levied under the compound rate; and also the per cent. which the total duty is of the price per yard at the factory in England:

Name.

PRICE PER YARD OF LEEDS (ENGLAND) WOOLLEN AND MIXED GOODS, DUTIES,

This table is well worthy of careful study. In examining the figures given in the column headed "Price at factory," and the column headed "Per cent. of price at factory," which the total duty amounts to, the startling inequalities in the rate of duty to be paid in this country becomes apparent. The highest-priced goods named in the table is West of England broadcloth, worth $3.60 per yard in Leeds, the specific duty being 35 cents per pound and the ad valorem duty 40 per

.35

.35

35

35

.35

.35

.35

.35

35

.35

35

35

.270

. 287

.557

68.0

1.377

35

.165

35

35

cent., making a total duty of 50.3 per cent. on the value at the fac tory. This is on a high grade of goods. In looking at the bottom of the table, the last entry is for cotton-warp reversible cloth, made in imitation of a better kind. It is worth but 45 cents per yard at the factory. The specific duty is the same as on the West of England broadcloth, 35 cents per pound; the ad valorem duty is 35 per cent. but the specific duty and the ad valorem duty together make the rate on the price at the factory 180.7 per cent. That is to say, the cheaper the goods at the factory the greater is the proportional increment of duty. The column headed "Per cent. of price at factory," which shows the percentage that the duty is of the factory price, brings this out clearly. By looking at this column it will be seen that this per cent. steadily increases from 50.3 on high-priced goods to 180.7 on low-priced goods. It is such glaring inequalities that cause apprehension in the minds of producers, and they constitute a valid cause of, or rather they are a legitimate influence in, causing a disturbance in. values, and therefore corresponding depressions. The adjustment of rates of duty on manufactured goods should be in accordance with the labor cost of production, if duties are to be continued. It is fallacious to attempt to regulate rates of duty by rates of wages alone. The labor cost in production and all the other elements of production must be considered before an equitable schedule can be arranged. Until some such basis is adopted, the inequalities shown in the foregoing table will exist, although they may be shifted so far as products are concerned.

Miscellaneous.-Among the many causes named in the list as given at the beginning of this chapter and which many consider influential causes, but for which causes the agents of the Bureau found no supporting facts or illustrations, may be considered the national banking system. The banking system as it exists may have something to do with the stringency or plethora of the money market, but no facts have come to hand showing that it has in any way been instrumental in bringing about the present industrial depression. The same may be remarked relative to the silver question. What the silver question in the future may cause, whether prosperity or adversity, it cannot be alleged that in this depression it has had sufficient influence to produce the existing condition of things. It may have had some influence in the fluc tuation of prices, but not as yet to a sufficient extent to cite the silver question as containing the important cause of or remedy for industrial depressions. Foreign capital may be a disturbing and contributory cause, but not a primary one. When capital in foreign countries cannot find profitable investment, and it seeks such profitable investment here at a time when manufacturing is overdone, then such capital aggravates the disease. Convict labor is a disturbing element, affecting the moral apprehension of large bodies of people, and thereby aids in irritating the public mind relative to depressions, but the labor of all the prisons in the country bears so small a proportion to the whole product of

the country's industries that such labor cannot be considered as a prime or influential cause of depressions. The inadequate means of distributing the proceeds of labor has far more influence in producing depressions. Extravagant living and excessive parsimony have their contributory influence in producing and continuing periods of industrial depression. Occasionally men are found who consider the enactment or the existence of labor laws as a moving influence in creating and sustaining depres sions, but it is difficult to see how such can be the case. A careful examination of all such laws enacted in the different States of the Union destroys the force of such a statement.a In the minds of consumers, trading in futures, corners, etc., is an influence productive of depressions; but while these things aggravate they cannot be said to cause such depressions. The same is true of strikes. Strikes usually come after a depression begins and just before the dawn of prosperity. They are accompaniments and not causes of depressions. The liquor traffic, as one of those causes which might be classed in the moral list and also among economic causes, is a thoroughly aggravating feature of all industrial conditions other than of prosperity, but intemperance cannot be said to cause industrial depressions. The reduction of wages follow so closely upon the opening of a depressed period that it is often considered a cause instead of an effect. Many workingmen consider the wage system as an obstacle to permanent prosperity, and that it is now, whatever it has been in the past, a failure. In so far as the wage system does not allow earnings to keep pace with the wants of the people, it is a contributing influence in the induction of depressions. As a system it will be treated more fully under remedies. The other causes alleged in the long list are those springing almost entirely from apprehension, and they have such slight effect, if any, that it would be impossible to illustrate their influence by any collection of data.

a See Appendix C for a digest of such laws.