In 1915 the production and exportation of all of the metals increased largely and in 1916 amazingly, in consequence of which in 1916 the production for some of the metals and their exports was double those of 1914. Thus for iron ore and iron products in round figures the production was increased from 41,000,000 to 81,000,000 long tons and the products of pig iron and steel correspondingly. The exports of pig iron for 1914 rose from 114,000 long tons to 485,000 long tons in 1916, a fourfold increase. Steel exports increased from 1,330,000 in 1914 to 4,968,000 long tons for the first 10 months of 1916, and the increase for the full year will be more than fourfold. Copper production for 1916 as compared with 1914 rose from 1,533,781,394 to 1,942,000,000 pounds, an enormous increase of more than 400,000,000. The exports of copper, however, were not increased. There was a moderate increase in the production of lead and a marked increase in the export of lead. For zinc the production rose from 353,000 tons in 1914 to 672,000 tons in 1916, or nearly doubled, and the exports of metallic zinc, plates, sheets, etc., rose from 64,000 in 1914 to 164,000 tons for the first 10 months of 1916, a more than twofold increase. When the figures for the metals in 1917 are available, these will show a large increase in production and export over 1916. While the amount of metals exported is large, the figures given do not tell all of the story of metals for foreign use, since manufactured commodities of all kinds were exported in great quantities; steel, copper, and zinc, in vast quantities in munitions; steel and zinc in wire, for wire entanglements; steel in railroad equipment; vast quantities of machinery and tools of all kinds. These are but illustrations of the manufactured metal commodities which went abroad. In order to manufacture these commodities it was necessary to extend our own manufacturing, transportational, mining, and constructional facilities. The result was that there was a great demand for the metals in the extension of the railroads and especially in railroad equipment; there was demand for the metals further to develop mines; there was great demand for the metals to expand the manufacturing plants and to install the equipment in them. Altogether the demands were such, as we shall see, as to increase the prices for the metals beyond all reason, especially iron and steel. (See pp. 31-32.) THE FUELS. The production and export of coal, coke, and petroleum are shown by the following tables from 1911 to 1916, so far as the figures are available: 1 1 From the 1915 pamphlets, Mineral Resources of the United States, United States Geological Survey. 1 From the statistical number, Mining and Engineering Journal, New York, Jan. 6, 1917, p. 23. From the figures of the Bureau of Foreign Commerce. Coal. The statistics for coal show how enormously does the production of this fundamental commodity exceed that of any other derived from the earth. In 1915 the amount was nine times as great as that of iron ore. To produce the coke in 1915 required approximately 61,800,000 tons of coal. The tables show that the increase in production of coal for 1915 as compared with 1914 was not large. There was a marked increase in the production of coke, but not sufficiently great to carry it beyond the production of some previous years. Unfortunately the figures for coal and coke are not available for 1916. These will show very large increases. For the winter 1916-17 the demand first went beyond the readily available supply; and there was the beginning of advancing prices. The production and export of 1917 will be very greatly increased over those of 1916. It is the excess demand for that year combined with other factors which led to the mounting prices spoken of on succeeding pages, under which coal at the mines increased in price from twofold to fourfold. These exorbitant prices were maintained until the Government and State intervention led in 1917 to the reduced prices to be mentioned subsequently. The increased production of coal and coke have not been mainly for export, but have been necessary because of the enormous expansion of industry in America in consequence of the war. The railroads are operating to the utmost limit of their capacity. The mills and manufactories of all kinds for metallic products, the textiles, and timber, are not only running at full capacity, but are being expanded. All these increases in work require additional power; and the power in most cases must be furnished by coal. Hence the enormous demand for this product. Indeed, to prepare for the coming winter of 1917, the demands have been so much greater than the supplies as to occasion serious alarm in many parts of the country and serious consideration of the problem not only by the United States but by the States. What has been accomplished to provide coal for the expanded needs of the country is summarized in Chapter VI. Petroleum. For petroleum there was a large increase in the production of 1915, as compared with 1914, and a still greater increase in 1916. The figures of 1917 will show a still further marked increase. Also there was a very marked increase in the exportation of petroleum, both crude and refined, in 1915, as compared with 1914. The increased exportation went on rapidly in 1915-16 and in 1916-17, reaching unprecedented figures. While there has been such a great increase in the production of petroleum, it has been inadequate to meet the demands at home and abroad; and had it been possible to produce considerably larger quantities these could have been marketed. Indeed, the demand for additional petroleum is so acute that the commission on petroleum of the California State Council of Defense recommend that all possible steps be made to increase the production of petroleum during the period of the war. PRICES. Correlative with the increased production and exportation of the essential commodities has been an advance in prices. As showing the effect of the war conditions upon prices, there are here introduced two tables prepared by the Bureau of Labor Statistics, copies of which have been kindly furnished, showing the average wholesale prices of 26 important commodities and the average retail prices of 18 foods for the months of July during the years 1914, 1915, and 1916, and for each of the first six months of the year 1917, during which time the advance in prices has been most rapid. Wholesale prices of important commodities, July, 1914–1916, and January-June, 1917. Cattle, good to choice Beef, fresh, native steers 100 pounds.. $9.219 $9.213 $9.985 $10. 530 $11. 131 $11.869 $12. 310 $12. 475 $12.550 Pound. Barrel. .141 .111 .157 23.625 18.500 27. 167 .141 138 24.313 26. 250 29. 600 30.500 12. 575 .165 .175 14. 794 15. 795 16. 088 32. 250 33. 250 35. 438 .161 .172 .200 .213 1.808 1.984 2.381 Average retail prices of the principal articles of food in the United States July 15, 1915 .051 .220 .113 14.900 14.950 21.950 35.950 35.950 37.700 42. 200 45. 150 54.700 .543 .585 .630 .096 3. 100 For a number of years, indeed, since 1897, there has been a steady outbreak of the war, because of the unsettled commercial conditions at the outset, had the immediate effect of generally staying advancing prices and depressing some; and the permanent tendency for rising prices did not fully assert itself until nearly a year later; and, even then, the advances for most commodities was rather small. Notable exceptions to this statement were wheat and flour, the prices of which promptly advanced. By July, 1915, the upward swing had everywhere established itself, the wholesale prices of nearly all of the commodities listed being higher than in July, 1914, and some of them twice as high. The wholesale prices in June, 1916, as compared with those of 1914, show that the most important commodities were 50 per cent to 400 per cent higher than in 1914. For the more important commodities the wholesale prices of June, 1916, as compared with July, 1914, just before the outbreak of the war, were roughly as follows: Meat animals and meats, 25 to 75 per cent higher. Wheat and flour, more than two and one-half times as much. Corn and corn meal, more than double. Potatoes, more than two and one-fourth times as much. Sugar, more than double. Cotton and cotton yarns, a little less than twofold. Wool and worsted, more than twofold. Bituminous coal, more than two and one-half times as much. Copper, more than two and one-half times as much. Pig lead, nearly fourfold. Pig iron, more than threefold. Steel billets, more than fourfold. Spelter, nearly double. Petroleum, almost double. Retail prices of the foods given in the second table show advances corresponding to the wholesale rates. The facts presented show that for the essential commodities of food and clothing, for coal and the metals, and their manufactured products, the prices have greatly advanced during the past two years, and the prices given for June, 1917, are not maximum prices. Since that month prices have continued to advance. This is illustrated by cotton and hogs, which since that time have made record prices. In order to gauge the changes during the past year there are here inserted the prices of some of the more important commodities for August 1, 1917, as compared with August 1, 1916: |