Appendix F Adjustments for Changes in the U.S. Customs Area

This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research

Volume Title: Price and Quantity Trends in the Foreign Trade of the United States

Volume Author/Editor: Robert E. Lipsey

Volume Publisher: Princeton University Press

Volume ISBN: 0-870-14154-6

Volume URL: http://www.nber.org/books/lips63-1

Publication Date: 1963

Chapter Title: Appendix F: Adjustments for Changes in the U.S. Customs Area

Chapter Author: Robert E. Lipsey

Chapter URL: http://www.nber.org/chapters/c1898

Chapter pages in book: (p. 402 - 412) Appendix F Adjustments for Changes in the U.S. Customs Area

THE incorporation of Hawaii and Puerto Rico into the United States customs area in 1900 introduced a degree of incomparability into the official foreign trade records. The official figures, which include the effect of the annexations, are appropriate for the calculation of the balance of payments but not for the comparison of foreign trade with domestic prices and production. The only way to achieve consistent territorial coverage would have been to include or exclude Hawaii and Puerto Rico for the entire period studied; but this would have been too laborious. Instead, we only included the two territories back through 1899. This made the 1899-1913 period internally consistent and provided an overlap in 1899 to which the earlier data excluding the two possessions could be spliced. Recalculating the value of trade involved the subtraction from the published data for the United States of the trade of Puerto Rico and Hawaii with the United States, and the addition of the trade of the two territories with the rest of the world. This computation is described in detail in Table F-i. The change in total exports and imports is small. For exports, it was 6/10 of one per cent in calendar years 1899 and 1900 and no higher than 1.3 per cent in any quarter; for imports it was 2.3 per cent in calendar 1899 and 1 per cent in calendar 1900, the greatest change being 3.7 per cent in one quarter. Imports into Puerto Rico and Hawaii were scattered widely over the commodity list but exports from them were extremely concentrated. Almost all their exports were accounted for by green coffee from Puerto Rico and sugar from both territories; most of the latter was exported to the United States. As a result of this commodity concentration the effect of the adjustment is almost entirely on two of our minor classes, Export Class 004 (green coffee) and Import Class 019 (sugar and related products, agri- cultural). Since all U.S. exports of green coffee were from Puerto Rico, Export Class 004 was empty before July 1900 in the official records, Furthermore, because no commodity data were used for parts of years in which data for the full year were not available, the recorded exports of green coffee for the last half of 1900 were thrown into "all other articles." The inclusion 402 APPEXDJX F of Puerto Rico makes it possible to carry this class back to 1899, as is shown in Table F-2. Only one price index is given because this is a one- commodity class. All indexes are reduced to the ratio of the given year price to the base year price. The adjustments in Export Class 004 require some changes in the intermediate and major classes of which it is a component. These are shown in Tables F-3 and F-4. Adjustments in the price index were carried through Export Class 205; after that they were negligible and only the quantity indexes and dollar values were altered. On the import side, shifting Puerto Rico and Hawaii across the customs frontier lowered the price, quantity and value indexes for Import Class 019 to the levels given in Table F-5. The reductions in 1899, the only year in which all four quarters were affected, were about 9 per cent in price, 15 per cent in quantity, and 23 per cent in value.' As these changes were carried into the intermediate and major classes (see Table F-6) the reduction in the price index for Import Class 019 tended to lower the indexes for the classes into which it was combined. In addition, the adjustments lowered quantities and values for Class 019 and therefore reduced its weight in these combinations. Since the 1899 price index for this class was high compared with those of the classes with which it was combined, its loss of weight further lowered the price indexes for combined groups. Table F-7 gives adjusted and unadjusted quantity indexes for total exports and imports. The adjustment in the export index reflects only changes in the value series while that in imports reflects changes in the price index as well.

1Theeliminated Hawaiian and Puerto Rican sugar imports had much higher average unit values than those from all other countries, 59 per cent higher in fiscal 1899 for example (Foreign Commerce and Xavigation of the United States, 1899, Vol. II, pp. 366—368). Most of this was duty-free sugar from Hawaii, with an average unit value of 3.7 cents per pound in 1899. The average unit value for dutiable sugar was 2.2 cents per pound and the duty on it was 1.7 cents.

403 ADJUSTMENT OF VALUE OF U.S. DOMESTIC EXPORTS AND IMPORTS TO INCLUDE PUERTO Rico AND HAWAII IN U.S. CUSTOMS AREA, TABLE F-i (dollar figures in thousands) 1899—JuNE 1900 U.S. Exports Adjusted Adjusted PublishedU.S. Ex-Importsports or (1) Puerto Rico (2) U.S. Exports to or Imports froma Hawaii (3) EXPORTS Exports to orfrom Imports other(4) Countries (5) (cols. 51, minus 4and and Imports cols. 2 and 3) (6) Value(1913 IndexesU.S. =and Export Import (7) 100) 1899 IIIIII 304,455272,558308,291 653962825 2,8972,1442,815 (from Puerto Rico)b (from Hawaii)C 2,3552,513 869 44332013 301,818271,170307,855 49.31144.30350.297 1900 CalendarIIV Year 1,252,932 364,435367,628 3,4701,7711,030 806 10,7634,0452,907 6,6701,252 557933 111 2814 1,245,481 360,850364,638329,829 58.95650.87259.575 CalendarII Year 1,453,010 334,245 2,578 7,2743,229 IMPORTS (to Puerto Rico)b (to Hawaii)C 1,808 42 1,445,009 59.0253.887 1 1899 IVIIIIII 213,065197,126191,319197,458 3,4172,244 579538 56 4,0802,6918,7636,654 5,8521,7591,4741,2641,354 1,049 283282274209 211,955780,263190,157189,977188,174 42.39147.29642.43241.989 1900 CalendarIII Year 829,150208,165231,253798,967 2,4442,352 92 22,1889,2546,2003,054 1,9631,335 628 1,521 675846 820,937200,917230,289 51.387 45.79644.83343.527 F Noms TO TABLE F—i aFromvarious issues of U.S. Treasury Department, Bureau of Statistics, Monthly Sum- mary of Commerce and Finance of the United States, 1899, 1900, and 1901. bJuly 1899 to April 1900 from U.S. Customs and Insular Affairs Division, Monthly Summary of Commerce of the Island of Puerto Rico. Calendar year 1899 and Jan. to June 1900 totals including coin and bullion, from the Statistical Abstract of the United States, 1906, p. 487, were used, after adjustment for gold and silver imported and exported July 1899— April 1900, to estimate the remaining quarters. Therefore the figures for Jan. to June 1899 and May and June 1900 may include some coin and bullion. The Jan. to June 1899 total for exports was distributed between the two quarters in the same proportion as exports of green coffee (see Table F—2); for imports—the same proportion as U.S. exports to Puerto Rico (Sec col. 2). °Calendar1899 and Jan.-June 14,1900 totals from the Statistical Abstract of the United States, 1906, p. 488, were distributed for exports among the quarters in the same proportions as imports, col. 3, and for imports, in the same proportion as exports, col. 3.

TABLE F-2 ADJUSTMENT OF EXPORT 004, GREEN COFFEE, TO INCLUDE PUERTO Rico IN U.S.CUSTOMSAREA, 1899—JuNE 1900

Value Quantity Value of Exports Price Index Index Index ($000) (1913=100) (1913 =100) (1913 100)

1899I 2,028 77.057 125.70 1 96.862 II 1,901 56.206 161.531 90.790 III 510 59.008 41.327 24.386 IV 585 74.422 37.524 27.926 Calendar Year 5,023 65.548 91.520 59.990

1900I 817 86.769 44.968 39.018 II 328 82.137 19,105 15.692 [II 14 100.915 .648 .654 IV 26 91.614 1.376 1.261 Calendar Year 1,185 85.669 16.524 14.156

SouRcE: Data are from various issues of U.S. Customs and Insular Affairs Division, Monthly Summary of Commerce of the Island of Puerto Rico. Figures for May and June 1899 include exports to the U.S., but these were assumed to be small since U.S. imports of coffee from Puerto Rico were only $222,000 during the whole of fiscal 1899. We esti- mated figures for the second quarter of 1900 by multiplying the April values and quantities by three.

405 ADJUSTMENT OP EXPORT VALUES AND MAJOR CLASSES TO INCLUDE COFFEE EXPORTS FROM PUERTO Rico, AND PRICE TABLE F-S AND QUANTITY INDEXES FOR INTErn I)IATE (dollar figures 1899—JuNE 1900 in thousands) FISHER INDEXES 100) EXPORT ci.Ass104 1899YearQuarter or Unadjusted Value of ExPorts Adjusted Unadjusted Price Adjusted (1913 = Unadjusted Quantity Adjusted 1900 229,339 216,760 234,362 217,946 73.9 73.8 74.173.6 189.6 179.6 185.1 201 1899 I IIIII 171.1 55,031 Calendar Year 1900 I IV 49,589 Calendar Year II 65,663 229,823 59,540 44,998 57,058 54,952 217,324 66,17451,490 234,846 60,124 45,815 77.5 218,509 55,281 76.1 72.873.5 74.272.1 76.8 77.5 74.1 75.2 72.873.2a73.0

72.5 170.9 74•4a76.9 215.2197.1156.9 186.5 150.4 172.2 168.8 176.6 207.7189.5157.0 183.9 144.9 164.8 202 1899 168.4 1900 259,809 244,210 264,832 245,396 74.0 74.2 73.7 74.4 160.3 150.3 158.0 205 1899 I IIIH 145.0 Calendar Year IV 135,085 Calendar Year 1900 I II 117,875 138,964 533,616141,692 120,012 137,112 526,475131,966 119,774 139,474 538,640142,276 120,829 69.8 527,600132,294 68.4 68.6 69.4 68.969.4 72.1 69.9 71.5 68.2 68.5 69.5

69.6 166.5 72.271.6a 148.3 174.3 175.7 166.7 148.8 157.6 165.8 158.5 148.5 172.1 173.2 165.4 146.8 155.0 a Adjusted Paasche and Laspeyres Annual Price Indexes for these classes: 155.7 LaspeyresPaasche 76.071.81899 201 75.573.31900 69.967.81899 205 72.570.81900 ADJIJSTMENT OP EXPORT Aiw INDEXES FOR MAJOR TABLE F-4 in 1900thousands) TO INcLuDE COFFEE EXPORTS FROM PuERTO Rico, EXPORT Year or (dollar figures Value of Adjusted Unadjusted Fisher (1913 quantity Index = 100) 206 18991900 I Quarter Unadjusted 553,361563,602136,514 554,547568,625138,541 161.7149.0157.3 Adjusted 161.3147.0156.1 207 IVIIIII 540,613144,427140,485119,187 145,011140,995121,087 161.9171.5168.9144.1 160.6169.2166.6143.9 Calendar Year 1900 I II 133,581122,032 133,909122,849545,637 153.3145.0 151.1143.5 208 Calendar Year 19001899 569,059575,800536,435 570,245580,823537,620 152.2145.2154.7 148.4151.2152.4 ADJUSTMENT OF IMPORT INCLUDE PUERTO Rtco AND HAWAII IN U.S. CUSTOMS AREA, 1899—JUNE 1900 019, SUGAR ANt) RELATED PRODUCTh, AGRICULTUEAL, TO TABLE F-5

Value ofImports Paasche Price Indexes (1913 = Laspeyres 100) Quantity Index Fisher 100) Value Index 1899 III ($000) 20,24526,23519,906 112.789116.626103.770 112.635118.449105.380 Fisher "ideal" 112.712117.534104.572 (1913 = 72.87690.56477.234 (1913= 100) 106.44382.14080.765 1900 ICalendarIvIII Year 22,63683,50617,90717,120 115.615105.429109.299102.285 118.383113.097110.606102.940 116.991109.196109.951102.612 66.53678.50477.03667.693 91.84272.65484.70269.461 United States, 1899 and SOURCE:1900. Data are from various issuesIICalendar of U.S. Treasury Dept., Bureau of Statistics, Monthly Summoiy of Commerce and Finance of the Year 79,846 111.656 114.937 113.285 7 1.492 80.990 ADJUSTMENTAND MAJOROP IMPORT VALUES AND PRIcE AND QUANTITY INDEXES FOR INTERMEDIATE TO EXCLUDE SUGAR IMPORTED FROM HAWAII AND PUERTO TABLE F-6 Rico, (dollar figures in thousands) 1899—JuNE 1900 FISHER INDEXES (1913 = 100) ISSPORT 111 QuarterYear or1899 Unadjusted Value of Imports Adjusted Unadjusted Price Adjusted Unadjusted Quantity Adjusted 1900 132,607 116,768 108,178 105,645 109.4 109.9 101.4104.6 75.8 66.5 67.7 113 1899 63.2 1900 131,074 114,540 106,645 103,418 107.7 108.7 103.5 99.8 71.8 62.1 63.0 58.9 203 1899 1 II III Calendar Year IV 31,200 42,591 36,042 26,920 141,29531,462 34,160 26,894 101.1 116,86628,891 108.8 112.7 100.9 95.0 106.3 101.8 101.9 99.la96.7 64.3 81.9 66.6 59.0 65.069.2 69.9 55.0 62.2 61.4 Calendar 1900 I II Year 28,157 125,61438,125 25,111 114,49230,049 105.8 112.8 106.1 102.4 99.5 55.5 70.4 61.7 52.6 61.2 204 1899 58.8 1900 143,635 128,000 119,206 116,878 105.9 105.6 101.1 98.9 68.5 61.2 60.9 205 1899 I U 58.4 III 56,615 Calendar IV Year 67,297 54,805 52,336 230,164 51,447 58,866 45,656 81.2 205,735 48,875 89.4 79.0 84.388.076.8 85.4 81.774.6 77.170.6 63.8 68.6 67.9 70.0 70.6 57.3 67.1 65.7 TABLE F—6 (continued) FISHER INDEXES (1913=100) IMPORT QuarterYear or Unadjusted 54,282 51,236 Value of Imports Adjusted Unadjusted 84.9 Price Adjusted 81.8 65.5 Unadjusted quantity Adjusted 64.1 206 Calendar Year 18991900 I II 241,954217,843 57,779 217,525206,721 49,703 85.988.195.4 82.185.7889.4 66.063.362.1 62.161.857.0 207 18991900 I IIIII 232,711 57,48469,57858,903 221,589 48,33661,14854,622 88.288.982.089.0 82.285.186.879.0 62.769.261.275.3 56.669.266.659.8 Calendar Year 1900 I IV 241,567 59,93156,68655,602 217,139 53,64053,030 84.684.978.2 82.080.8876.2 64.368.868.4 56.263.067.064.7 208 Calendar Year 19001899 II 255,697230,248247,502 236,379231,268219,126 51,854 88.786.187.894.6 86.682.585.5888.9 60.964.963.161.0 59.661.261.7 209 Calendar Year 1899 I IVIIIII 431,474111,486113,293108,60098,095 88,946 407,046108,914104,319104,862 83.084.683.785.186.4 82.6a82.781.984.281.5 60.752.5 58.159.859.6 56.149.556.858.360.0 1900 I 123,830110,442 102,365120,784 89.892.7 88.489.8 62.854.3 51.962.2 210 Calendar Year 19001899 II 635,287625,804420,673 624,165601,376409,551 86.582.188.4 80.787.3a85.7 58.954.256.7 56.257.553.5 216 1899 I IIIII 148,808157,753144,354 161,751139,658149,321140,073 83.181.577.9 82.479.479.976.9 56.6 57.753.354.1 57.351.454.553.2 Calendar Year 1900 I IV 615,239162,313174,095164,324 171,049590,810154,237 89.286.881.2 87.385.979•9a 55.353.258.6 54.051.658.2 219 Calendar Year 19001899 II 804,771777,901623,858 753,472 612,735793,648 86.781.586.5 86.180.485.7a 54.956.552.7 54.555.452.2 a Adjusted Paasche and Laspeyres Annual Price Indexes for these classes: 1899 203 1900 1899 205 1900 1899 207 1900 1899 209 1900 1899 216 1900 LaspeyresPaasche 100.3 98.0 101.2101.7 82.777.8 88.183.3 83.478.2 88.183.0 84.880.5 89.984.7 82.577.3 88.483.1 APPEXDIX F

TABLE F-7 ADJUSTMENT OP QUANTITY INDEXES8 FOR TOTAL EXPORTS AND IMPORTS FOR INCLUSION OP PUERTO Rico AND HAWAII IN U.S. CUSTOMS AREA, 1899—JUNE 1900 (1913 =100)

Exportib Importsc Unadjusted Adjusted Unadjusted Adjusted

1899I 73.4 73.3 54.0 53.7 II 61.9 61.6 54.0 52.9 III 67.2 66.6 53.9 53.0 IV 80.1 79.4 57.1 57.2 CalendarYear 70.8 70.3 54.7 54.1 1900I 75.5 74.7 59.5 59.7 II 66.2 65.3 52.4 51.5 CalendarYear 73.2 72.8 53.4 53.2

a Fisher "ideal" indexes. b Export Class 220. CImportClass 221.

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