Railroads: Rates and RegulationsRipley, William Zebina
History
Railroads: Rates and Regulations
Ripley, William Zebina
Railroads -- Freight -- Rates -- United States; Railroads and state -- United States
The rapid development of an export trade in grain to Europe between
1870 and 1874 was a direct result of improvements in agriculture and
the opening up of a surplus grain-producing area. As yet this territory
lay mainly east and south of Chicago. Even as late as 1882, over
four-fifths of the eastbound trunk line traffic originated not further
west than Illinois. Wisconsin and Iowa contributed less than ten per
cent. of this business. The methods of handling wheat were still quite
primitive. During the Civil War thousands of men were employed to
unload the grain by hand, every tenth barrel being weighed. Elevators
had been used in Chicago for some time but no eastern city had them
until 1861. Prior to 1872, when the first grain elevator was set up at
Baltimore, the cost of thus unloading grain by hand amounted to four or
five cents per bushel. At Boston until 1867, all the export grain was
still unloaded back of the city and hauled across to the waterfront.
The volume of exportable surplus products of the country rose rapidly
after 1870. An increase from five or six bushels of wheat production
_per capita_ in 1860, to nearly nine bushels in 1879, left a large
margin for foreign sale. The growth of such traffic, big with
importance for the carriers, is indicated by the opposite diagram.
The large total of 59,000,000 bushels of wheat and (equivalent) wheat
flour reached in 1862, partly as a result of the closing of markets in
the southern states, was not again surpassed for more than a decade.
The most notable increase ensued after 1873, when the level rose about
fifty per cent., to become established thereafter upon a permanently
higher plane. A second sudden boost occurred again in 1877 when wheat
exports rose rapidly to a total of 180,000,000 bushels within three
years. The disastrous failure of European crops in 1879, with a
coincident bumper yield in the United States, led to the immediate
climax of the movement in 1881. These exports, moreover, which fifty
years earlier, owing to the cost of carriage, were almost exclusively
in the form of flour, were now in 1880 about three-fourths constituted
of raw wheat. Examination of the diagram with its steep pyramid of
development at this time is convincing as to the stimulus thereby given
to the railway interests. Foreign trade in cattle and beef products
also enormously increased during these years. In 1876 only 244 steers
were exported, while in 1877, 71,794, and in 1881, 134,000 head were
shipped abroad. The value of preserved meats exported quadrupled in
one year after 1877, and grew eightfold by 1880. Doubtless part of
this disposition of products abroad during the seventies was due to
a cessation of demand at home owing to the prevalent hard times; but
the important discovery was incidentally made that the demand abroad
existed, and merely required cheap transportation for its successful
development.
[Illustration: EXPORTS OF DOMESTIC WHEAT AND FLOUR]
Public-domain text, read in full here on John Shaqi.
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