The war years brought about a serious crisis in the supply of newsprint. This commodity, which in 1873 cost 12 to 13 cents a pound and in 1880 6-92 cents, could be purchased in 1897 for 1-5 cents. Even in 1915 it could be bought for 1-91, but after that it went to higher prices than had obtained for 20 years, as the following table shows:
Prices of Newsprint (cents per pound).
1913 .... 2-01 1917 3-17
I9H .... i-95 1918 3-72
1915 .... 1-91 1919 3-65
1916 .... 2-03 1920 6-50
The newsprint manufacturers justified these prices on the score of increased cost of production, but to a large extent they were undoubtedly famine prices due to the inadequacy of the supply to meet an unparalleled demand. There were charges also of a conspiracy on the part of the producers to maintain high prices, and the Federal Trade Commission endeavoured at various times to ameliorate these conditions. A canvass made by a trade organ early in 1920 showed that only 25 % of American newspaper publishers were then assured of an adequate supply of newsprint for the ensuing year. Of the remainder 20% could look forward to to f of their requirements, while 55% had no assurance of being able to get the newsprint they needed. Yet the production of newsprint in the United States and Canada was constantly increasing as the following figures indicate :
Production of Newsprint.
(Tons) 1904 . . . 913,000 1915 . . . . 1,728,000
1909 . . . 1,326,000 1916 .... 2,000,000
1914 . . . 1,698,000 1919 .... 2,183,000
192 2,395,000
Clearly the scarcity was created by the great increase in cir- culation following the outbreak of the war and by the enormous demand for advertising space. Not only had circulation doubled, but the number of pages in the average newspapers had been largely increased. In order to protect themselves certain news- papers began to acquire properties for the production of news- print, but this was only possible for the strongest journals.
Shortage of newsprint was not the only difficulty encountered. To give a basis of comparison it is of interest to note some of the figures on cost of production for the New York Times for the year 1916. In that year, according to the publisher, the Times was employing 1,200 persons and had a pay-roll of $32,000 a week, which was about equally divided among the mechanical, the news and editorial, and the business and executive departments. With a circulation of 325,000 the paper consumed 100 tons of newsprint a day. Telegraph and cable expenses averaged about $100,000 annually, not including the cost of messages received through news agencies, nor of salaries and expenses of foreign correspondents. Cost of newspaper delivery exceeded $5,000 a week. In May (31 days) the combined issues of the Times aggregated 926 pages, of which 47-67% was advertising. As already noted the revenue from sales was about $1,500,000 annually, or approximately one-half the revenue from adver- tising. The total receipts from a single issue of the Sunday Times frequently amounted to $50,000. At this period the rise in pro- duction costs was just beginning to be felt by the newspaper industry. In 1921 it seemed possible that the figures of 1916 might again be typical if wages and prices, especially of newsprint, continued to decline. But in the period beginning somewhat before 1916 and ending with the close of the decade, there was the sharpest advance in prices ever known in the newspaper industry. These advances were summarized by the president of the American Newspaper Publishers' Association as follows: Newsprint, 232%; cost due to increased circulation, 28%; news and " features," 300%; ink, 75%; machinery, 50 to 100%; delivery service, 400%; printers' wages, 108%; pressmen, 102%; stereotypers, 94 % ; office help, 84 % ; drayage, 75%; freight, 107 % ; printing-press blankets, 150%; telephone, 15%; electric power, 90%; fuel, 40%. Costs as a whole were said to have risen 200%. To offset these increased costs both the selling price of the news- papers and advertising rates were advanced. After 1916 nearly all newspapers that had been one cent were advanced to two
cents, and in 1919 and 1920 a great number of dailies, chiefly evening newspapers, went to three cents, a price which had not been general for more than 20 years.
Curiously enough these increases seemed to have had only a temporary effect in restricting circulation. It was thought that the close of the World War would cause a marked decline, but the increasing popularity of the newspaper seemed to have had less temporary foundations. New readers had been taught the newspaper habit, and many people began to buy more than one paper. These habits persisted even after the immediate occasion had disappeared.
This extraordinary circulation was rather a burden than otherwise until advertising rates could be adjusted to cover the expense. Ultimately, however, advertising rates were advanced nearly, if not quite, 100%, and in the meantime some newspapers, partly to save newsprint, arbitrarily restricted the size of their circulation. The stronger newspapers undoubtedly profited greatly during this period. On the other hand, the high produc- tion costs, coupled with the scarcity of newsprint, were the chief reasons for the decline in the number of newspapers and periodi- cals which began in the years 1916 and 1917. This decrease, together with circulation figures for the period, is shown in the following tables:
Number of newspapers and periodicals in the United States. (Based on Ayer's newspaper directories.)
3
3
3 O
'3
Q
1
%
c
o
e
1
J
1
0)
CO
I8io
27
282
37
15
36i
1850
254
1,902
31
IOO
95
144
2,526
1900
2,200
15,681
515
2,328
261
256
21,235
1910
2,470
16,269
620
2,767
264
197
22,587
1913
2,483
16,266
601
2,879
361
387
22,977
1914
2,502
16,323
616
2,981
348
397
23,167
1915
2,494
16,091
605
3,064
445
23,040
1916
16,165
590
3,250
353
515
23,387
1917
2465
15,635
532
3,261
358
591
22,842
1918
2,428
483
3,073
345
564
2 1 ,664
1919
2,398
14,008
487
3,156
360
603
2I.OI2
1920
2,374
13,894
476
3,183
390
624
20,94!
"Includes tri-weekly, bi-monthly, quarterly and other periodicals not included elsewhere in this table.
The number of towns and cities in which these publications were issued was as follows in the years indicated: 1914 10,985; 1916 '1,035; !9'8 10,461; 1920 10,160.
Circulation of daily newspapers in the Un ; ted States.
No. of dailies
Circulation per issue
1850 .
254
758,454
1900
2,235
15,102,156
1909 .
2,467
24,211,977
Morning
794
11,692,368
1914
Evening
1,786
17,085,086
Total.
2,580
28,777,454
Morning
625
11,700,000'
1920
Evening
1,749
18,300,000'
Total .
2,374
30,000,000'
1920 Sunday
600 f
15,000,000
f Estimated. The figure for the total number of daily newspapers
in 1914 is that of the Government census and differs slightly from
that given in the previous table. The circulation of weekly news-
papers in the United States was in 1920 about 20,000,000.
The decline in weekly newspapers, for the most part pub- lished in country towns, was greatest, but many daily newspapers were also forced to suspend or to effect mergers with rival jour- nals. In some instances the opportunity was grasped by men who had made a success in other fields to acquire newspaper properties. Thus, Frank A. Munsey, proprietor of Munsey's Magazine and other periodicals, purchased in New York the Sun (1916), the Herald and the Evening Telegram (1920). Eventually Mr. Munsey discontinued the Sun as a morning paper, that title being given to what was hitherto known as the Evening Sun, which he had also acquired. In 1919 the pub-
