Weekly national intelligencer. [volume] (Washington [D.C.]) 1841-1869, 1854-06-17
IRON AND SUGAR.


Of iron and sugar. and as any unfavorabe action of
the kind would not only be very injurious to those
directly concerned, but also to the country generally,
beg small space in your columns to offer remarks
on the subject
The present high price of iron cam Think be clearly
traced to the operation OF the existing tariff of 1885, and
to the dd Vaorem principle Of that tariff will endeavor
to show.
The commencement Of the railroad system in England
in 1922 and its subsequent rapid extension greatly s
INFLATED the production of iron in Great Britain which,
from 100000 tons in 1880, rapidly increased to 100000
tons in 1885, 100000 in $780, and 300 900 tons
in 1916 1t was very apparent to every that soon
the home demand became saturated the prices of iron
in Great Britain under such rapid and largely
production, must Decline unless large foreign outlet
could be obtained for the surplus Such in fact the
and the greatly increased home production in the
United States rendered it for the latter
go into the British markets for any considerable supplies
Such the position of affairs in 1885, when the pre-
tariff established The British iron market was
just beginning to feel the effect of supply and prices
fell twelve to fifteen per cent during the of that
year. In 1847 they declined about rs much more,
which the year of greatest production in the United
States; and in consequence there continued alb
in the British markets of American purchasers to
amy considerable extent This only FASTENED the decline
diminished home the absence of foreign demand.
The result that further decline of nearly quite
forty per cent took place during the year ls4s and large
orders then sent from the United States the
ton of which Immediately felt the home produc
ton, which was not only checked but began to
decrease.
The ad valore system now exhibited its banefu infu
enee; for in addition the fall in the cost of iron in
England the duty was also diminished to the extent Of
the decline in the first cost. For every dollar per ton
that the article fell in England the Of importation
reduced dollar and thirty cents, being the add
ton Of thirty per cent duty upon the less cost of
dollar per and though the actual decline Of price in
England might be only Twenty-Five per cent, the real
dimnution in the to the importer in first cost and
duty was thIty-thrse per cent.
Prices continued to decline year after year in England
until finally railroad iron, which in 1916 at el0 los
sterling, ESQ., fell to "a los (S23) per ton. When it
at the former rate, which required but little protec
ton for ronmasters the ad valorem system gave
them protective duty of $15 per ton, and when under
the ruinous decline in the first COST and protection
so essential the same system gave them protecting
duty of less than ST per ton The first cost and duty
at the former rate SEQ per ton and OF the latter
only $50
No business system could stand such rapid and
great changes, and the natural consequence was that
ducon Of the United States decreased from 600
$780, 900, and agreeaby estimates only 100000
tons per annum.
The recent large and heavy advance in the price oil
iron has given great activity to the iron works of the
United States and Great Britain the production of which
will be rapidly and greatly increased those in the Uni
ted States in greater ratio than in Great Britain. The
supply will very overtake and probably exceed the
demand In the latter reaction in prices will Of
be the consequence is therefore evidently the
interest of the of ron and particularly those
new railroad companies which progressing in
their works. and still for projected works Of the
kind yet commenced that the most active compet-
ton should be maintained between the producers in the
countries the certain mode of obtaining iron
permanently at the moderate rate which the cost Of
production will justify The true mode to accomplish
this would be to give the iron producers permanent
but only reasonable duty ton and not leave them to
uctuatng duty depending the price of the article
in Europe and which makes decline in price there fall
with double weight for both cost and duty upon the home
producer until he is ruined and his business broken up
and the country left to the mercy of foreign producers
who, after years supply at low prices, which will
destroy home establishments then double the rates.
and, after making rich harvest out of for three
four, or five years, compel again to go the
routine of low prices for two years. to be
followed with exorbant rates for double treble those
periods. If the duty iron had remained ct the
rate which collected upon it for the first year Of the
present tariff the average cost of the article to the rail-
road companies and other consumers would have been
less for the years following the enactment of the
listing ad valorem tariff in 1886 than it now will be- in
Guiding the very low prices at which it furnished be-
tween 1S49 and 1852. The next subsequent years
will the result under the state Of things
and if Congress- instead of decreasing the duty rail
road ron would enact that the duty exacted under
the existing tariff the present cost of iron in Europe
should be the permanent per on without regard
the fuctuaon ofprces in the foreign market the whole
country would be benefited by having the article at
lower rate than they have obtained it since 1916
There is doubt that iron be furnished a
sonabe profit at much lower rates than it is
handing both in the United States and Europe but the
recent destruction Of the American furnaces has caused
the demand to exceed the supply and hence the present
unnecessarily high prices But if the American producer
only obtain reasonable permanent protection against
runous though only temporary reaction of prices in
Europe, he will promptly up the supply to the full
wants Of the country, which, matter of course will
result in dminuton of the price to the lowest
rating cost and constant and regular supply
fair and reasonable terms.
The principle that applies to iron applies also,
but in obvious and direct manner, to sugar.
That the people Of the United States obtaining
their supply of this necessary of life at far lower rates
than at any previous period is owing exclusively the
large home production the quantity Of which forms
very heavy item in the aggregate production of The world
Tho dad