| Exports of the United States, in Millions of Dollars, to | ||||
|---|---|---|---|---|
| Europe | North America | South America | Asia | |
| 1914 | 1,486 | 529 | 125 | 113 |
| 1915 | 1,971 | 477 | 99 | 114 |
| 1916 | 2,999 | 733 | 180 | 279 |
| 1917 | 4,325 | 1,164 | 259 | 380 |
| 1918 | 3,732 | 1,236 | 315 | 447 |
| 1919[11] | 5,188 | 1,296 | 442 | 701 |
| 1920[11] | 4,466 | 1,929 | 624 | 772 |
The distribution of American exports in Europe has already been described. Of the countries grouped under the heading North America, Canada accounted for rather more than half of the total; Cuba and Mexico also bought greatly increased amounts of the exports of the United States. In South America, Argentina, Brazil, and Chile increased their purchases three-or four-fold; in Asia, Japan raised the value of its purchases from about 50 to over 300 million dollars.
776. Changes in the composition of exports.—This expansion was shared unequally by the different groups of commodities which together made up the total exports. Raw materials for manufacture declined in importance; before the war they had accounted for about one-third of the total exports, but by 1917 they made up only about one-eighth. On the other hand there was a great increase in the export of foodstuffs. The United States had tended in the period immediately preceding the war to consume an ever-increasing proportion of the foodstuffs that it produced. The export of foodstuffs, raw and manufactured, had declined to about 500 million dollars in the years 1910-1913. In the early years of the war it rose to about 1 milliard; in 1918 it amounted to almost 2 milliards, and in the first two years of peace it exceeded that figure.
That part of American trade which showed the most extraordinary expansion was the export of manufactures. Before the war the value of finished manufactures exported had averaged about 700 million. In 1915 the figure exceeded 1 milliard; in 1916 and succeeding years, 2 milliards; in 1920, 3 milliards. The growth was particularly noticeable in trade with non-industrial countries, which had previously relied in large part on Europe for manufactured wares and found now the supply from that source cut off. Exports of manufactures from the United States to Asia, South America, and Africa increased about five-fold, comparing the years 1914 and 1920. Exports of manufactures increased even to Europe, including such important items as railroad supplies, agricultural implements, machinery, petroleum products, etc.; and it was estimated that in 1920 the United States was supplying one-third of the total demand for manufactured wares in the trade of the world.
777. Effect of the war upon the import trade.—The United States made its commercial contribution to the World War, as has already been said, by following a course which was the reverse of that of the European belligerents; it expanded its exports, and restricted its imports. Of necessity it renounced a very large part of that trade which had been the greatest source of supply, the trade in imports from Europe. Before the war Europe supplied about half of our needs (49 per cent of total value of imports, 1913). In the last year of the war imports from Europe amounted to less than one-seventh of the total (14 per cent in the year ending June 30, 1918). The varied manufactures which we had been used to import from the industrial states of western Europe were no longer in the market. Many of these wares were luxuries appealing indeed to the taste of the consumer, but not involving any serious economic consequences when the supply failed. Others, notably the chemicals and the special kinds of glass and porcelain which had previously been imported from Germany, played an important part in industrial processes, and had if possible to be replaced. American manufacturers entered a field which the Germans had long regarded as their own peculiar province, and which, indeed, they would probably have long continued to dominate if they had not broken the peace.
Forced to an extension and diversification of industry by the demands not only of the American but also of many foreign consumers, the country imported an increased proportion of crude materials for use in manufacturing as the proportion of finished manufactures ready for consumption declined. Raw wool, raw silk, crude rubber and items of that character rose toward the top of the list of wares imported, and gave a new importance to the trade with South America and Asia.
778. The excess value of exports over imports.—The war led, for reasons already given, to an enormous increase in the excess value of exports over imports. The table at the beginning of the chapter presents figures which were without parallel in the history of this, or indeed of any other country: an annual excess in the years 1915-1920 averaging over 3 milliard dollars a year, a total excess for the period 1914-1920 amounting to 18.5 milliards. The following table shows how unequal was our balance in trade with the different continents, and indicates the close connection of the great excess of exports with the European war.
| Balance of Trade in Merchandise of United States, 1913-1920 | ||||||
|---|---|---|---|---|---|---|
| (Calendar years; figures in millions of dollars, giving excess value ofimports,) [-], or of exports,) [+], of the U. S.) | ||||||
| Europe | North America | South America | Asia | Oceania | Africa | |
| 1913 | +635 | +211 | -52 | -155 | +47 | +5 |
| 1914 | +556 | +40 | -139 | -168 | +29 | +6 |
| 1915 | +2,027 | +49 | -178 | -156 | +31 | +3 |
| 1916 | +3,180 | +266 | -207 | -152 | +12 | -8 |
| 1917 | +3,511 | +389 | -287 | -327 | +16 | -27 |
| 1918 | +3,541 | +351 | -308 | -408 | -31 | -26 |
| 1919 | +4,437 | +138 | -246 | -340 | +41 | -14 |
| 1920 | +3,238 | +266 | -137 | -512 | +78 | +15 |
Taking Europe alone the excess of exports to the credit of the United States was over 20 milliards in the years 1914-1920. North America was the only other continent showing a large “favorable” balance, and Canada was the single country that accounted for most of this. The balance in trade with South America and with Asia was against the United States, as had been usual in the past, but to an extent which passed the bounds of any previous experience.
779. Items in the international balance before the war.—In approaching the subject of the balance of trade of the United States during the war it is desirable to have in mind the most important items which, before 1914, constituted the international credits and debits of the country. The table below pictures these items in the form of a simple balance sheet, as they were estimated in 1910.[12] The figures are given in round sums, indicating that they make no pretence to statistical accuracy; they are to be understood merely as showing the tendency of a normal year. In the case of several items no attempt is made to do more than indicate the net balance that might be expected, year in and year out.