HIUS 714 – Harold Allen Skinner Jr., WEEK 2 Blog, Growth in the Postbellum Economy-Puerto Rico

 HIUS 714 – Harold Allen Skinner Jr., WEEK 2 Blog, Growth in the Postbellum Economy-Puerto Rico

ABSTRACT 

Several authors have argued the 1898 American declaration of war on Spain was influenced by a desire to stimulate the American economy in the aftermath of the depression of 1893-4. Securing former Spanish territories under the United States sovereignty would not only secure sources of raw materials and markets but would give American manufacturers better access to adjacent markets. The primary research question will measure the economic impact of the acquisition of Puerto Rico using selected data obtained through the Federal Reserve economic database, FRASER. Scholarly articles obtained via JSTOR and other databases were consulted to provide historical context and depth to the topic. A summary of the historical topic will be followed by a description and analysis of the data obtained via FRASER, and a tentative conclusion.  

DISCUSSION 

During the summer of 1893, a run on currency triggered by financial disaster in Europe caused great damage to the American economy. Dozens of banks failed during the Panic of 1893, and many of the nation’s railroads declared bankruptcy, causing a ripple effect on agriculture and manufacturing sectors.1 Consequently, the Gross National Product (GNP) of the United States dropped by $1.2 billion, and net capital formation shrank by $230 million between 1893-4.2 As America grappled with the aftereffects of the depression, economists and politicians theorized that American overproduction was a contributing factor; thus the development of overseas markets was vital to resuming economic growth.3 In April 1898, the United States declared war on Spain, partially due to Spanish oppression in Cuba, but partially in response to the sinking of the U.S.S. Maine in Havana harbor. Some economists have argued an additional element of American war policy was the promise of economic growth through annexation of Spain’s Pacific and Caribbean holdings.4   History professor Thomas G. Patterson’s analysis lends weight to the need for the United States to acquire new markets to accept American production. For example, the United States had increased its worldwide market share of manufacturing from 23.3 to 30.1 percent by 1900. 5 On 25 April 1898, Congress approved President William McKinley’s request for a declaration of war. A succession of Spanish defeats on sea and land soon led to a cease fire. In the postwar negotiations, Spain ceded the Philippines, Hawaii, Puerto Rico, and smaller Pacific possessions. With the new acquisitions, the United States theoretically gained access to lucrative new markets that would ignite a new round of economic growth and prosperity. 6 

ANALYSIS 

The research design is derived from Dr. Carey Roberts’ lecture on measuring economic growth. Puerto Rico seems a valuable acquisition due to its sugar cane crops and other raw materials.7 In 1898, the year of the Spanish-American War, Puerto Rico’s total exports were valued at $2.6 million dollars.8   Under the (presumably) more efficient American administration, Puerto Rico showed a clear trend of economic growth. Exports in 1906 were valued at $4.05 million, and by 1910 exports totaled $5.8 million. Furthermore, exports exceeded imports, thus the economy of the island was functioning well enough to produce a net benefit for the United States.9 By 1920, exports had significantly increased to $16.3 million, balanced against imports of $7.5 million, a net export of $8.8 million.10 Sugar and its brown molasses byproducts were Puerto Rico’s major exports. In 1909, the island shipped 3.3 million gallons of molasses, and 244,226 tons of brown sugar. In 1910, that number grew significantly, with 9.3 million gallons of molasses, and 284,519 tons of brown sugar, valued over $25.5 million.11 By 1920, production and export of sugar products had doubled, with 20.7 million gallons of molasses, worth $1.5 million, and 413,054 tons of brown sugar, valued over $119.7 million, shipped from the island.  

Another useful measure of improvement in Puerto Rico is to analyze the educational statistics for the native Puerto Ricans.  In 1898, only 21,873 students were enrolled in public school, out of a total child population of 322,393, an attendance rate of 6.7%. By 1919, those abysmal statistics had markedly improved, with 111, 988 students attending classes out of a total youth population of 138,921, around 80%.12 

CONCLUSIONS 

From a purely economic standpoint, the acquisition of Puerto Rico by the United States appears to have been a profitable decision. From 1898 to 1920, the value of the exported sugar had increased sixty-fold and other exports seem to have followed a similar pattern.  A key quality of life improvement is seen with the major increase in school attendance for Puerto Rican children.  Unfortunately, other key human development indices are not available in the Statistical Abstracts; thus, further research in other primary sources is necessary to form a better picture of human development in Puerto Rico following its acquisition by the United States. Further research is also necessary to determine if economic improvements in the Philippines, and other American acquisitions, follow a similar pattern as seen in Puerto Rico.    

BIBLIOGRAPHY: 

Primary Sources: 

United States. Bureau of Foreign and Domestic Commerce and United States. Bureau of the Census. Statistical Abstract of the United States. 1878-1950. https://fraser.stlouisfed.org/title/66, accessed on April 1, 2021. 

United States. Bureau of Foreign and Domestic Commerce and United States. Bureau of the Census. "1910, Thirty-Third Number," Statistical Abstract of the United States (1910). https://fraser.stlouisfed.org/title/66/item/22003, accessed on April 1, 2021. 

Secondary Sources:  

Beaman, Allan T. “American Economic Imperialism and the Spanish-American War Era,” diss., The College at Brockport: State University of New York, 2013. 

Bienan, Leigh. “The Panic of 1893.” 2012, Northwestern School of Law, https://florencekelley.northwestern.edu/historical/panic/. Accessed on 30 March 2020.   

James A. Huston. The Sinews of War: Army Logistics 1775-1953. Washington D.C.: Center of Military History, United States Army, 1997. 

Paterson, Thomas G. “U.S. Intervention in Cuba 1898: Interpreting the Spanish-American-Cuban-Filipino War.” OAH Magazine of History 12, No. 3 (Spring 1998): 5-10.  

Kapur, Nick. “William McKinley’s Values and the Origins of the Spanish-American War: A Reinterpretation.” Presidential Studies Quarterly. 41 No. 1 (March 2011): 18-38.  

Kopaz, Paul A.  “Spanish American War.” Encyclopedia of Greater Philadelphia. 2017. https://philadelphiaencyclopedia.org/archive/spanish-american-war/. Accessed 29 March 2021, 1-8.  

Roberts, Carey. “Common Scholarly Strategies-Measuring Economic Growth and Standards of Living.” Liberty University video lecture. https://canvas.liberty.edu/courses/57943/pages/watch-common-scholarly-strategies-measuring-economic-growth-and-standards-of-living?module_item_id=7373736.  Accessed 23 March 2021.