In 1867 the United States again enlarged its territory, by the purchase of Alaska from the Russian government for $7,200,000. This has proven to be, like other extensions of our boundaries, a profitable investment, the seal fisheries alone being worth much more than the price paid for the entire country. Alaska is 1,200 miles long from north to south, and 2,100 miles wide from east to west. It is the chief source of supply of salmon fish, which abounds plentifully, and the industry of fish canning here is the largest in the world. Valuable gold mines have been discovered and partially developed, and the country is no doubt rich in other minerals. The extensive forests will also prove a source of wealth to the nation.

One of the most important achievements of the decade following the Civil War was the completion in 1869 of the great transcontinental line of the Pacific Railroad. The astonishing development of the Pacific coast, and the travel and traffic that inevitably followed, created an imperative need for a cheaper and easier method of transportation to and from the eaast. This great achievement in railroad building, difficult as it was, has since been followed by other routes across the continent. The cheapening of transportation, together with improved facilities for carrying perishable freight, has enabled California to market her fruit, one of her great products, throughout the East. The Eastern and Middle states have been brought next door to the West, and prices of all commodities have tended to become lower to the consumers. Vast areas of unproductive and apparently barren land in the West have become productive and valuable because they are brought within reach of a market.

At the commencement of the Civil War our foreign trade footed up about $700,000,000, the imports and exports being nearly equal and the balance being about $20,000,000 against us. Our principal export at that time was cotton. The war blockades seriously interfered with foreign commerce, and especially reduced our exports, so that in 1865 these amounted to only about $166,000,000, almost wholly from the Northern states. The great staple, cotton, had been neglected or destroyed and very little raised. Industries in the South were prostrated, and home consumption demanded nearly all the North produced. But the foreign commerce quickly regained its activity, and continued to increase until arrested in a measure by the panic of 1873, the imports, however, considerably exceeding in value the exports. The principal industries of the country at that time were the textiles, clothing, lumber, iron and steel, leather, boots and shoes, flour and meal, sugar, paper, printing and publishing, farm implements, carriages and liquors, malt and fermented. The principal exports consisted of the great natural products, cotton,' petroleum, tobacco, wheat, lumber and iron, for the United States had not yet arrived at the point where its manufactures could compete with those of Europe. The depression which followed the panic of 1873 caused a falling off in our foreign trade, but after 1875 trade revived, and for nearly ten years showed a steady increase. The exports now began to exceed the imports, and with slight exception have continued in that relation until the present time. Since 1896 our imports have increased comparatively little,* while our exports have enormously extended, leaving a balance of trade in our favor of nearly $700,000,000. The United States is now a vast exporter of meat and other food products, while its manufactures are constantly finding a wider market. The skill and ingenuity of American workmen, with the latest and best types of machinery, enable the United States to manufacture goods cheaper than Europe, while paying American workmen larger wages than are paid in the old world. In 1861 the banks throughout the country suspended specie payment. The National Treasury was empty, and to carry on the war the government resorted to an issue of paper money, called "greenbacks." The volume of this currency ran up to $450,000,000, and, as was inevitable, depreciated in value, thereby causing a rise in prices of commodities. Two years later (1863) the National Banks came into existence, with authority to issue paper money based on their deposit of government bonds. Thus the country went entirely upon a basis of irredeemable paper money. After the war closed, it was the desire of the government to get back towards a specie basis, and to that end proposed to gradually pay off and retire the greenbacks. This was done until the volume had been reduced to $356,000,000 in 1868.

*Our total Imports In 1901 were $823,172,165 and total exports amounted to $1,487,764,991.

There was a general outcry against a contraction of the currency. Speculation throughout the country was active and business was constantly expanding. Corporations, individuals, cities and states were active in the promotion of their various enterprises and works. An unprecedented mileage of railways was constructed, and a corresponding bonded indebtedness floated. Thus the condition of the country was unstable. Our foreign commerce from the year 1872 had been very unsatisfactory, the balance of trade setting heavily against us, and foreign investors had called in some of their loans. The crash came like a clap of thunder out of a clear sky when the firm of Jay Cooke & Co. failed in New York. This was the beginning of a general break in public confidence, and numerous failures of banks and business houses all over the country followed. Credit in business was refused, and debtors everywhere were pressed for payment. There was a general run upon savings banks, many of which failed, disclosing shocking irregularities in management. The prices of agricultural products declined, and manufactured goods were a drug on the market. Factories closed or ran on short time, and thus the months drew on until after nearly two years business began to revive again. Severe as the lesson had been it taught the people the necessity for a stable currency, and resulted in steps being taken to reach the resumption of specie payment, which was accomplished in January 1, 1879.