case manufacturers. On all these articles the 1913 act requires the payment of an import duty of 30 per cent. Equipment. The modern American watch factory is equipped with automatic and semiautomatic machinery developed to a high degree of efficiency for doing work of the finest and most exacting character. The United States has for years been the leading country in the invention and use of machinery for clock and watch making. Methods of production. The various parts of the American watch movement have been standardized; they are made mostly by automatic or semiautomatic machinery with perfect uniformity, and will fit any case of standard size. In many instances only the finishing requires skilled labor. In foreign countries machinery has never been used to so great an extent. In Switzerland, the chief competing country, much of the work is still done by hand in private homes by men, women, and children; the various parts of the movement and case being made for the particular watch, and if repair parts are wanted they must be specially made. The increasing use of machinery in Switzerland, however, is gradually eliminating the industry in homes. Organization.-There has never been a combination of a monopolistic character in watch and clock manufacture in the United States. In 1914 establishments engaged primarily in the manufacture of watches, clocks, watchcases, and parts of watches and clocks numbered 119. Of these 15 were engaged primarily in the manufacture of watches, 48 in clocks, 31 in watchcases, and 25 in making parts of watches and clocks. The total capital invested in the manufacture of watches and clocks in 1914 amounted to $62,469,496, and was apportioned as follows: Watches, $36,388,700; clocks, $13,564,482; watch cases, $11,220,024; and parts, $1,296,290. (Abstract of the 1914 U. S. Census.) Geographic distribution.-Watch and clock establishments in 1914 were located in 14 States, chief among which were Connecticut, Massachusetts, New York, and Illinois, these four States having over 60 per cent of the total number of establishments. The principal watch-producing centers are located in Massachusetts and Illinois. Over 70 per cent of the domestic clocks made in 1914 were produced in the States of Connecticut and New York; also, the very cheap domestic watches on the American market are made in these States. History. Attempts made in the United States, as early as 1809, to make watches by hand failed because the price of labor was too high and the laborers inexperienced. The manufacture of watches by machinery was first introduced in the United States in 1849, and the first machine-made watch was turned out in 1853 at Roxbury, Mass. Subsequently the works were removed to Waltham, Mass., where in 1859 the company was reorganized under the name of the American Watch Co., and is still in existence as the Waltham Watch Co. In 1867 the Elgin watches were put upon the market by the National Watch Co., of Elgin, Ill., which had been organized in 1864. These companies were soon followed by others in Pennsylvania, Ohio, New York, New Jersey, Connecticut, Illinois, and Although generally called watches by the trade, they have no jewels in the bearings, and in a strict sense are not watches but pocket clocks. Tariff Hearings, H. Doc. No. 1447, p. 1840. Indiana. Later a branch of the watchmaking industry developed which was devoted exclusively to the production of low-priced watches. The pioneer among the low-priced watches was the Waterbury, patented by D. A. Bucke in 1878. Within recent years some of the clock companies have begun making low-priced watches as a joint product connected with clock manufacture, and certain parts, such as watch cases, dials, hands, and crystals are being made largely in separate establishments. American manufacturers introduced the system of cutting out the parts from sheet brass with a die, instead of casting them-a method which at once secured greater accuracy as well as cheapness in production. The adoption of the die and of other forms of automatic machinery in the manufacture of clocks has now been carried to such an extent that nothing is left for the skilled hand laborer but the collection of parts. The invention of a reliable, cheap, steel spring, which could be placed in the least expensive clocks, is due to American enterprise, and its introduction has revolutionized the clock-making industry. In 1849 there were in the United States 23 clock establishments, employing 800 wage earners. The number of establishments increased by only 4 during the following 40 years numbering 27 in 1889. The number of wage earners, however, had increased to 3,491.5 By 1914 the number of establishments had increased to 48 and the wage earners to 6,754. In 1849 the wage earners per establishment averaged 35; in 1889, 129; and in 1894, 141; which indicates more of a growth in size than in number of establishments. 6 Domestic exports.--American watches and clocks are sold in practically all important foreign countries. In 1918 the quantity sent to foreign countries amounted to $6,888,974, this amount being divided in the proportion of two of clocks to one of watches. The exports of clocks have generally exceeded in value the exports of watches; the average annual excess during the 10-year period 1909-1918 amounting to $283,194, and in 1920 to $2,577,000. Most of the American watches exported during the past decade have gone to the United Kingdom and Canada; the shipments to these two countries amounting to 64 per cent of the total value to all countries in 1909, and to somewhat over 90 per cent in 1916. These two countries are also our best customers for clocks, having taken since 1909 an annual average ranging from 38 to 60 per cent of the total exports of clocks from the United States. Domestic production and consumption.-Watches, clocks, watchcases, and watch and clock movements were manufactured in the United States in 1914 to the amount of $34,152,535, and the domestic consumption amounted to approximately $35,415,000.7 Watches and parts of watches were manufactured in 1914 to the amount of $23,207,620, and the domestic consumption was approximately $25,000,000.8 Clocks and parts of clocks were manufactured in 1914 to the value of $11,969,811, and the consumption amounted to approximately $11.320,000. New International Encyclopedia, vol. 5, p. 476. U. S. Census of Manufactures, 1910, Vol. VIII, p. 466. Domestic production plus imports for consumption, minus domestic exports includes also time detectors, chronometers, jewels, and other parts. *Includes also time detectors, but not chronometers and jewels. Includes also chronometers, but not time detectors and jewels. FOREIGN PRODUCTION AND TRADE. SWITZERLAND. PRODUCTION. Size and importance of the industry. Switzerland stands preeminently among the nations of the world as a producer of watches, exporting annually much larger quantities than all other principal watch-producing countries, and only slightly less than all the countries of the world combined. The manufacture of watch crystals has become of importance in recent years. The war in Europe (1914-1918) greatly stimulated this trade; only after the outbreak of hostilities were crystals manufactured in large quantities in Switzerland. In 1916, two factories were occupied in the production of watch crystals.10 The number of people employed in Swiss watch factories and in the so-called "house industry" in 1915 is estimated at 60,000, but it is claimed that 300,000 persons, or one-twelfth of the total population of the Confederation, are directly affected by the industry." The industry may be called national in character: the Swiss cantonal governments exercising a paternal care in fostering the industry in every way. Condition of the industry. The industry is highly organized, both in factory and labor. The factory owners and workmen have organizations for their protection, at the head of which is the Swiss Chamber of Commerce for the watch industry, which has branches at the principal factory centers, Biel, LaChaux-de Fonds, Geneva, and Neuchatel. Special schools have been established and courses of study devoted exclusively to watchmaking are given. Large numbers of skilled operatives and also high-grade technical men have been developed in this manner. In order to promote and assist the watch industry, the cantonal government of Berne has encouraged the establishment of information offices in the principal watchmaking centers, through which manufacturers are informed regarding the stocks of watches, materials, and parts available, and labor conditions in the industry; it has established a permanent exhibition of articles in the watch industry; prepares statistics relating to the waten industry; has established a watch manufacturers' association, in order to regulate the production of specialties and to permit of the discussion of technical and commercial questions, and it has protected the industry by establishing protective tariffs and negotiating commercial conventions. The war in Europe (1914-1918) cost the industry for the time being the loss of two of its largest customers, Germany and Austria, which countries practically discontinued their purchases on account of their diminishing buying power; the French market was curtailed in the latter part of 1916 by the prohibition of the importation of gold watches, and the trade with Russia, once very important, was all but eliminated after 1917 by revolutionary conditions in that country. However, the industry as a whole suffered little, due to increased business with countries outside of Europe. This is evidenced by the volume of 10 Commerce Reports No. 306, Dec. 30, 1916. Report of American consul, Berne, Switzerland, October, 1916. exports, and also by activities shown to increase production capacity. Early in 1919 the Swiss Financial Bulletin announced that three large factories for the manufacture of watches and clocks were being established at Geneva. It was stated that the largest of these factories would give employment to 400 workers, and the three factories. to a total of 800 or 900 work men and women. It was estimated that during the course of the year about 2,000 more watchmakers would obtain work in Geneva." Although the outbreak of war seriously affected the Swiss watch industry, the splendid organization and energetic efforts of the manufacturers soon overcame the difficulties which confronted them. The losses in near-by European markets affected by the war were replaced by increased sales to more distant countries, and the volume of foreign trade was well sustained until 1917 and 1918, when import restrictions of belligerent countries became less favorable, practically eliminating their markets from consideration. The situation was furthermore influenced by the unfavorable rate of exchange for Swiss money and the falling off of the large demand, created chiefly by the war, for cheap watches (especially gentlemen's wrist watches), with the result that exports fell from 15,100,000 in 1916 to 13,500,000 in 1917, and to 10,400,000 in 1918. The decrease in the 1918 exports was due in part, also, to foreign wholesale purchasers holding back their orders during the last quarter of the year in anticipation of reduced prices. Owing to this fact enormous stocks accumulated and the Swiss Chamber of Watch Manufacturers was compelled to call the attention of the Swiss Loan Institution to the critical situation. This official institution, organized for the benefit of manufacturers in Switzerland, could, however, aid only in financing raw materials and not finished products. (Com. Repts., Dec. 3, 1919.) Late in the year 1919, the Swiss department of public economy issued regulations governing the exportation of clocks, watches and watchcases of gold and platinum. The restrictions are said to have been made necessary by the uncertainty of trade and the abnormal fluctuations of exchange, the object being to guarantee a sufficient supply of the precious metals to the Swiss industries. Under these restrictions exportation of the above articles was permitted without the authorization of the department of public economy, and permission to export was ordinarily granted only to firms entered in the Swiss commercial register before August 1, 1914, or belonging to an approved syndicate of Swiss manufacturers. A fee of 1 per cent ad valorem, with a minimum of 1 franc ($0.193) and a maximum of 10 francs ($1.93) was collected for each license issued. No control is exercised over the exportation of watches and watchcases of silver or common metals and separate parts for watches. (Com. Repts., Jan. 18, 1920.) Raw materials.-Raw materials, such as steel, iron, and so-called white metal are received from Sweden, the United States, France, and Germany. Since the war the difficulty of procuring these materials has become more pronounced, and it is stated that the Swiss watch trade is looking to the United States for supplies of raw "Report of American consul, Geneva, Switzerland, Jan. 16, 1919. material, especially white metal and steel. of watch parts are received from France. Considerable quantitie Methods of production.-Handwork in the Swiss watch industr has been practiced extensively for many years in homes of workers this manner of manufacture is, however, being gradually eliminate by the increasing use of machinery. EXPORTS. Exports in the Swiss watch industry largely exceed the imports In 1916 (the year of largest export) more than 15,000,000 finished watches were exported, and only slightly more than 3,000 were im ported. Official statistics of Switzerland do not show the tota watches annually passing between that country and, the United States, for the reason that substantial quantities of Swiss watches reaching the United States come via other European countrie which receive credit as the exporting countries. This is especially true with regard to England, the largest part of whose watch export business consists of Swiss products. Complete watches during the past decade have been annually exported to the United States in increasing amounts. Exports of complete watches to this country increased from 122,201 in 1910 to 1,324,917 in 1920; watch movements from 254,032 in 1910 to 2,348,556 in 1920. Most of the watches shipped to the United States are of the cheaper grades, encased chiefly in cases of metals other than gold and silver. In the normal times preceding the World War Germany led in importations from Switzerland of gold and silver watches; the United Kingdom has always led and still leads in the importation of watches in cases of metals other than gold and silver. According to Swiss official statistics, prior to the war about 2 or 3 per cent.of the total Swiss exportation of gold watches, 1 per cent of the silver watches, and 1 per cent of watches in cases of baser metals were annually sent to the United States; in 1918, of the totals exported to all countries, the amounts sent to the United States had increased to about as follows: Gold watches, 4.75 per cent; silver watches, 2.04 per cent; and watches in cases of other metals, 18.09 per cent. Movements. In watch movements the United States has for many years been Switzerland's largest customer, and amounts shipped to this country show steady and large annual increases since 1912. In that year exports to the United States numbered 244,914 movements, which increased to 2,348,556 in 1920. Other Swiss customers of importance are Canada, Russia, Germany, United Kingdom, and Japan, in about the order named. Cases. At the end of 1919 the watch trade with Russia had practically ceased, the Bolshevists being bad customers. Renewed trade relations with the southern part of that country which was delivered from the Bolshevists was attempted, but the difficulties to contend with were great on account of the exchange situation, and it was only direct barter that at the time gave any satisfactory results. Russia up to 1918 was Switzerland's best customer for watchcases. Annual shipments to the United States since 1910 fluctuated between. 13 Commerce Reports, No. 17b, Nov. 7, 1918. |