The republic. [volume] (Washington [D.C.]) 1849-1853, 1849-09-18
TIL E R E ? u B Lie.
WASHIN GTON:
TUESDAY MORNING, SEPT. 10, IS4s.


The Iron Trade Pennsylvania Maryland.
A few weeks since meeting of furnace
owners of Western Pennsylvania was held
at Pittsburg, to take into consideration the
depressed state of the iron trade, with the
view Of pointing out remedial measures to
protect that great branch of industry from
falling into the decay and ruin with which
it was visited in 1S41-'42. They arrived
at the conclusion that the present embar-
easements in the trade are entirely owing to
the low rate of duty at which English iron
is admitted into this country under the
tariff act of 1916, and its injudicious ad
calorem principles !; that fre-sirths OF the
value of pig iron consist of LABOR and
that the only mode in which AMERICAN
LABOR can be saved from a ruinous COM
petition with the pauper rates OF Europe IS
by change from the present adralorem to
system of specific duties Of adequate
protection.
The operation of the ad ralorem prnci-
pie is simply this: When iron is in good
demand at fair prices in England, duty
competent protection but when there is a
glut in the foreign market, and vast sur
plus stock is to be disposed of at any
price-that is to say, at the very time that
protective duties are indispensable-the
duties, diminishing with the diminished
foreign value, let in the foreign article at
rates so absolutely ruinous that it compels
the American furnace master to suspend
his operations. He can only manufacture
at loss-and therefore cannot manufac-
ture at all. Wages fall in the first instance,
but no fall in wages can meet the exigency.
The works must stop.
1t has been the policy of all nations ca
pable of producing iron, to protect this
great interest. As early as 1740, SwE-
DEN established bank to promote this
production, by lending money upon the
ore at per cent and the Bank of Stock
holm still receives iron as security for
loans. With these facilities, the trade
soon established itself upon firm footing;
and as late as 1905, Sweden undersold
England in the iron market, notwithstand-
ing the immense mineral resources and
advantages of the latter kingdom. This
was under duty of two pounds per ton.
In 1904, the duty in England was raised
to five pounds one shilling sterling. 1t
was gradually increased, till, in 1919, it
reached seven pounds eighteen shillings
and sixpence, In the interval, the pro.
duction of pig iron had increased from
25S,000 TO 5Sl 1867 tons and English
capital, instead of being withdrawn to
Russia and Sweden for their benefit, was
distributed among English farmers, English
furnace men, English golfers, English
laborers, and remained in the country to
swell the aggregate of English comforts
and English wealth. Under the operation
of this benignant and just protection to
home labor, the English production of
25S, 900 tons in 1906 was swelled to the
enormous amount of 100000 tons in
ls43. Within the fifty years preceding
1874, the production of coal in England
had increased from 500 tons a year to
100000 tons; and the manufacture of
iron from $4,000 to 1878, 260 tons of pig
metal. Reflect for moment on the ad
vantages which accrue to labor in every
department Of human industry from this
vast increase in production and manufac-
ture. Ii is not too much TO say, that the
development Of her coal and iron, within
the last half century, has been the source
of greater benefit to England than all the
other branches of her productive industry
united.
A great question now presented TO the
American people is, whether the United
States Government shall foster and en-
courage the domestic iron trade-so as to
realize from it a portion Of the vast adj
vantages that the agriculture and labor OF
other countries have realized from the
protective policy; or, whether this great
interest shall be entirely abandoned to
foreign countries, leaving Us dependent
on foreign skill and labor for the manufac-
ture Of our cannon and ball, our bayonets
and musket barrels. The great fuctuations
in English prices render il impossible to
prosecute the trade successfully, under a
system of nd Uaiorem duties. If the home
manufacturer cannot calculate whether
the foreign article is to pay duty on a
price Of five pounds or price Of tent
is evident enough that there can be nc
safety OF stability in the home manufac.
tuTe.
Under the tariff of 1912, the iron trade
in this country had attained a condition Of
high strength and prosperity. The effect.