811d Ecollomic Statistics Adrllillistra!tioll BUREAU THE CENSUS • I n i • I Charles G. Langham Issued 1973 U.S. D OF COM ERCE Frederick B. Dent. Secretary Social Economic Statistics Edward D. Administrator BU OF THE CENSUS Vincent P. Barabba, Acting Director Vincent Director Associate Director for Economic Associate Director for Statistical Standards and 11/1",1"\"/1,, DATA USER SERVICES OFFICE Robert B. Chief ACKNOWLEDGMENTS This report was in the Data User Services Office Charles G. direction of Chief, Review and many persons the Bureau. Library of Congress Card No.: 13-600143 SUGGESTED CiTATION U.S. Bureau of the Census. The Economic Censuses of the United by Charles G. longham. Working Paper D.C., U.S. Government Printing Office, 1B13 For sale by Publication Oistribution Section. Social and Economic Statistics Administration, Washington, D.C. 20233. Price 50 cents. N Page Economic Censuses in the 19th Century . 1 The First "Economic Censuses" . 1 Economic Censuses Discontinued, Resumed, and Augmented . 1 Improvements in the 1850 Census . 2 The "Kennedy Report" and the Civil War . • . 3 Economic Censuses and the Industrial Revolution. 4 Economic Censuses Adjust to the Times: The Censuses of 1880, 1890, and 1900 .........................•.. , . 4 Economic Censuses in the 20th Century . 8 Enumerations on Specialized Economic Topics, 1902 to 1937 . 8 Censuses of Manufacturing and Mineral Industries, 1905 to 1920. 8 Wartime Data Needs and Biennial Censuses of Manufactures. 9 Economic Censuses and the Great Depression. 10 The War and Postwar Developments: Economic Censuses Discontinued, Resumed, and Rescheduled. 13 The 1954 Budget Crisis. 15 Postwar Developments in Economic Census Taking: The Computer, and" Administrative Records" . 15 IC CENSUSES IN E 1 The collection of census-type statistical data by the a statistical report. Mr. Tench Coxe l was hired for this United States Government actually began with the first purpose, and his report was published in May 1813. This Decennial Census (1790), within a year after George report basically covered the kind, quantity, and value of Washington became President. This first census and goods manufactured and the number of manufacturing the subsequent decennial censuses were authorized in establishments in each State, territory, district, and the Constitution (Article I, Section 2), which specified county. In his summary, Mr. Coxe candidly admitted that "the actual enumeration shall be made within three that there had been serious undercounting and omissions years after the first meeting of the Congress of the in the enumeration. Although the report indicated total United States, and within every subsequent term of ten manufactures valued at about $173 million, Mr. Coxe years, in such a manner as they shall by law direct." estimated that the actual figure probably exceeded $200 million. The 1790 and 1800 censuses were confined to a few basic population inquiries (name, race, sex, and age). The War of 1812 (1812-1815) and the Napoleonic The prime reason for taking these censuses was to Wars in Europe caused an interruption of American apportion Congressional representatives and direct taxes trade with Europe; the scarcity of imported goods among the States, with little consideration of providing (and the diversion of capital from mercantile to indus­ for any systematic collection of statistical data for trial investments) encouraged the further development Government or private use. There was no substantial of U.S. manufacturing. Although agriculture was still need for the Government to collect economic statistics the predominant occupation, about 12 percent of the because agriculture was by far the most important labor force in 1820 was employed in "manufacturing occupation of the American people and because the and mechanical arts." As might be expected in view of duties and powers of the Federal Establishment were these developments, several additional manufacturing narrowly defined by most political leaders. inquiries were included in the 1820 Decennial Census. A total of 14 questions were asked to elicit information on location of establishments, raw materials used (kind, quantity, and cost), number of employees, ma­ The First "Economic Censuses" chinery, expenditures (capital, wages, contingent ex­ penses), and production (value, demand, and sales). By 1810 the fragile beginnings of industrialization Again, the data were collected by the Federal marshals were becoming manifest, encouraged by various Govern­ and their assistants, and an abstract was published, this ment bounties and subsidies and by a persistent desire time under the auspices of the U.S. Department of State. among many Americans to be as independent of Europe Statistics were published for each State, territory, and as possible. Also, the fledgling American Government district, but there was no attempt to compute U.S. had survived the initial critical period of its existence totals because the data were again admittedly incomplete. and was beginning to exert greater influence on political This incompleteness was attributed to insufficient funds and economic affairs. allocated to pay the enumerators and the fact that many establishments apparently neglected (or refused) to Congress responded to the need for statistics on the provide the required information. In addition, 1820 extent of this newly developed industrialization when, data were not comparable to the 1810 statistics because in an Act passed on May 1, 1810, it directed the Federal household manufactures (goods produced at home) were marshals and their assistants responsible for conducting counted in 1810 but not in 1820. the 1810 Decennial Census to take "an account of the several manufacturing establishments and manufactures Economic Censuses Discontinued, within their several districts, territories, and divisions." Resumed, and AIIIl<>nrll>11ti!>'1I"i No specific questions were outlined, and no report form was prescribed; these matters were left to the discretion Perhaps as a result of these unfavorable experiences of the Secretary of the Treasury. (and the comparatively slow rate of economic growth in the 1820's), no attempt was made to collect economic statistics in the 1830 Decennial Census. The 1830's To facilitate the collection of data, the Treasury witnessed a sharp acceleration of economic activity Department divided manufactured products into 27 broad that reached boom proportions in 1836-37, followed, categories, encompassing more than 200 kinds of goods. however, the country's first great depression (1839- As they conducted the population enumeration, the 43). Although President Martin Van Buren viewed the marshals and their assistants were to visit the manu­ Federal Government as having neither the power nor the facturing establishments in their assigned territories to duty to act firmly to ease the crisis, there was con­ obtain information, generally on the amount produced and siderable pressure to resume the collection of economic value of products manufactured. A total of $40,000 was statistics and to expand the coverage. allocated to pay the marshals and assistants for taking this "account of manufactures." These officials per­ lTench Coxe (1755-1824) was a political economist and formed their tasks during the period August 181O-July a member of the Continental Congress who had held several 1811. However, itwas not until March 1812 that Congress government posts) including Assistant Secretary of the authorized $2,000 for the Treasury Department to employ Treasury, U.S. Co~~issioner of Revenue, and Purveyor of a statistician to "digest and reduce returns" and prepare Public Supplies. 1 2 The Decennial Census of 1840 therefore encompassed data tabulated and published for these three censuses to not only manufacturing but also fishing, commerce, and be of little value except as indicators of the gross mining. One special form, "Schedule of Mines, Agri­ outlines of manufacturing development. For example, culture, Commerce, Manufactures, Etc.," was utilized Messrs. Robert C. Morgan and W. A. Shannon, Treasury by the marshals and their assistants to collect data on Department statisticians, indicated in a technical paper all of these subjects. Manufacturing was divided into prepared for the 34th Congress (1855-56) that economic 30 categories on the basis of the manufactured product census data before 1840 are almost worthless. (machinery, paper, furniture, etc.), plus an "all other manufactures" classification. In general, statistics These inauspicious beginnings of economic census were compiled on the quantity and value of goods taking resulted from several interrelated factors, in produced, amount of capital invested, number of em­ addition to the customary handicaps faced by the early ployees, and number of establishments. census takers, such as wide geographic dispersion, poorly defined boundaries, and inadequate transportation. The Despite the retarding effects of the War of 1812, Federal marshals who supervised the field operations commercial fishing increased substantially during the had many other duties and often could notdevote adequate first part of the 19th century. There was extensive time and attention to the census. The marshals' growth in cod fishing and mackerel fishing, and this assistants who conducted the actual enumeration often period also witnessed the beginnings of large-scale received sketchy instructions or no instructions at alL commercial fishing for herring, halibut, and oysters. Although they might not have