Outline of the development of the internal commerce of the United States: 1789-1900 — John Shaqi
Outline of the development of the internal commerce of the United States: 1789-1900Van Metre, Thurman William
History
Outline of the development of the internal commerce of the United States: 1789-1900
Van Metre, Thurman William
United States -- Commerce -- History
The important result of the growth and improvement of railways was the
great reduction in the cost of transportation. At the close of the
period before the war it had been demonstrated that railroads could
economically carry high grade freight such as flour, live stock,
lighter manufactured goods and general merchandise, but as yet they had
been unable to compete successfully with waterways for the
transportation of grain, and the carriage for long distances of such
low-grade freight as coal and ore had not been attempted. As the
railway developed, however, its use was extended, and it was soon found
that there was no commodity so cheap that it could not be profitably
handled. Accompanying the extension of the service to include all kinds
of bulky freight there was an uninterrupted decline in the general
level of rates on all classes of goods, resulting from the increased
efficiency of roads, the stress of competition, and above all from the
tremendous increase of traffic. The rate per ton per mile decreased
from 1.92 cents in 1867 to 0.73 of a cent in 1900. This reduction of
transportation charges was one of the most potent factors determining
the course of economic progress. Field, mine, forest and store were
linked together into a unified whole; raw materials could be
concentrated at any point and there was practically no limit to the
extent of the market for finished commodities. The increase of the
tonnage of railway freight from less than 20,000,000 tons in 1860 to
almost 600,000,000 tons in 1900 is the best index of the growth of
internal trade during this period.
As the railways increased in importance, transportation on most of the
inland waterways declined. Nearly 1,700 miles of canals were abandoned
between 1860 and 1900. After 1880 there was a gradual decrease of
nearly all canal and river traffic. The Great Lakes were practically
the only inland waterway that retained an important position in
internal trade. The unusually favorable conditions prevailing for the
growth of traffic on these bodies of water enabled their commerce to
thrive and expand at a rate which compared favorably at all times with
the growth of railway traffic.
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