The Sun.
London, England, 1862-12-09 00:00:00

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7HE IRON 7 RADE.

While one great staple industry of the country is
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ry depression,fferingfromsovneracebeuout,oitt
ofis theto bdeeahrtohpeodf ,ttheemrpaow-
material, it is gratifying to find that aignootsheorfehqauvailolgy
important trade shows unequivocal s
emerged from a depression of now five years' dura-
tion. It would appear to be the rule that the iron
trade receives its periodical impetus from the abund-
ance of money which springs from the lack of em-
ployment in the ordinary channels of trade, and
that a cheap money is invariably followed by great
activity in the iron manufacture, lasting until the
schemes then set going have been fully completed.
Hence the alternate series of years of slack demand
and low prices, and of active demand and high
prices (generally about five years of each), which
have hitherto characterised this trade.

Notwithstanding the expected adverse influence
of the American war, a very marked increase of
activity has taken place this year in all the iron
manufacturing districts of the country, resulting in
an advance of prices varying from ten to twenty
per cent.; and although, as is usual at this period
of the year, there is, for the moment, a comparative
slackness of fresh demand, there seems every reason
to believe that the present activity of the trade will
be lasting and progressive.
We could especially call attention to the re-
markable prosperity of the iron shipbuilding trade,
attributable partly, no doubt, to the building of iron-
clad ships for our own and for other Governments,
but also owing to the continually increasing de-
mand for screw-steamers for merchant service of
the whole world. In all quarters iron manufactures
are said to be quite full of orders for shipbuilding
purposes.

- -
For railway iron there has been a considerable
revival of demand, and the price of Welsh rails has
advanced fully twenty shillings per ton, from which
however, there is at present some reaction.
For foundry work some very large orders have
been given out during the year, one eminent firm in
Scotland having alone booked orders to the extent
of nearly 60,000 tons of castings, mostly for de-
livery in the course of next year. The present
consumption of pig iron in malleable work and
foundries in Scotland is said to be quite un-
precedented.
The stocks of pig iron on hand in England are
very small, but of Scotch:pig iron, which is largely
used abroad, there has been a continual accumula-
tion during the five years of depression, owing to
the fact that consumers and merchants abroad work
off their stock, and purchase only from hand to
mouth during a dull period. The stock has now
reached a total equal to seven months' production,
but it is to be noticed that the present stock, large
as it is, is relatively smaller than that with which
the last prosperous period of the trade commenced
in 1852, when there was eight or nine months'
supply on hand. This large stock did not prevent
a rise in price of two pounds per ton during that
year, and by 1856 there was little over one month's
supply left.
In Scotch pig iron the rise in price has been little
over 10 per cent., an advance which is being entirely
swallowed up by the advancing wages of the
miners. While thousands of operatives are starving
in Lancashire far lack of employment, there has
been a succession of strikes for advance of wages
amongst the Scotch miners, and hitherto the masters
have invariably yielded- In many quarters the
advance within the last month or two is fully 30
per cent., and the cry is still for more. Unless,
therefore, the price of iron should largely advance
to enable the masters to pay increased wages, there
must be a combination to resist the men, and of
necessity a blowing-out of furnaces, so as to reduce
the present large demand for coal and iron.
The advices lately received from America are
such as to lead to the belief that the war will, in-
stead of being injurious, benefit several of the indus-
tries of this country, the principal exception being
the one which is starved for want of raw material.
The immense absorption of labouring power to keep
up enormous armies is causing a rapid advance of
wages throughout the Northern States, while, as
usual after the first disorganisationof business caused
by the breaking out of hostilities, the demand for
most classes of goods has become active. As regards
the iron trade, we learn from Pennsylvania that
wages in this trade are becoming absurdly high,
and that, consequently, coal, which was formerly
delivered to the furnaces at 11 dollars per ton, costs
now 4 dollars. We may, therefore, confidently ex-
pect that a portion of the American demand for iron
will again come to this country ; and, with the rail-
, ways of the States remarkably prosperous, we may
look for a healthy demand for peaceful as well as
for warlike purpose.
Already a very considerable rise in the prices of
iron is quoted in New York, resulting in American
orders being sent to this side; and, from the causes
just mentioned, it may be reckoned that 1863 will
bring us a full revival of American demand.

Let but the evident desire of both North and South
to let cotton out have fruition in some shape—per-
haps by the Northern Government levying a heavy
export duty, which might yield them a very large
annual revenue, while it would prevent any foreign
intervention—and the American War will finally
cease to be a bugbear of the manufacturing classes
of this country.—Money Market Review.