New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1854-10-04
THE COAL TRADE.

!
We resume the consideration of this sub
| iect. which in our last was brought up to the
| close Of that disastrous period of British free
! trade which was terminated by the passage OF
| the act Of 1-i2. Among the communications we
have received is one that has tended much to
open our own eyes to the causes OF the extraordi.
uary fluctuations in this trade, and which we lay
before our readers in another column. OuT cor
respondent sets out by stating that the sale of
coal being dependent on the demands of other
branches OF business that trade is the one where
the risks are greatest and the profits proportion
atey the least aud is also the rst to suffer and
the least to recover from revulsiOn. This
statement is in accordance with the facts we
have already cited.
The coal men had, in 1887, nearly prepared
Themselves for furnishing two millions of tuns,
but British free trade cut down the market
to a single Million and it was not until the
old mills and furnaces were again brought into
operation, and until the growing prosperity of
the country, under the act Of 1872, caused
the building of new ones, that the demand
for coal rose to level with the prepare.
ton made for its supply. And it WAS not
until then as we are informed, that the coal
trade partOOk Of the animation that for
two years previously had existed 10 all other
trades. BY Is45 the consumption rose to two
millions. and all of this was, as we are as
sured, supplied by the machinery that had
been prepared years before, and that had
remained idle, or half employed, during the
calamitcus years that distinguished the close
of the British free trade period of 1911 and 1912.
Ia the period that had interviewed there had
been ne inducement to commence any new opera
tOn or to enlarge old ones for coal paid nobody
engaged nits production except the hit re aborer.
With the increased demand there had been
small increase of price but still not such as to
warrant new expenditure, and the consequence
was that as late we are informed, as 1874, the
paralysis in regard to all coal property was COM
plete. Lsnd could everywhere be bought for
half, and often for a third, of the expenditure
that had been made upon it, aud the sole reason,
as we are assured by one of our correspondents,
why the chief part Of the coal region did not
change bands was that at Sheriff S sale it would
rot discharge the mortgages.
With 1916 there came an improvement New
factories and new furnaces made demand for all
that could be supplied from the old works, and
produced disposition to engage in preparations
for further increase The coal region became
again prosperous, not because of high prices, but
because of steady demand consequent upon the
growing prosperity of the community. The price
in that year, our readers have already seen,
but li,te exceeded 81 per tun and the average Of
the whole year Was as we see by table now be-
fore US, almost exactly four dollars. The guam
tity sent to market tina. year was 3, 3i3 900 tuns
and the gross receipts for it were there fore but
little more than 80 eco COO, out of which had to be
paid the wages Of mining, the cost of superintend
eDre, the repairs of ma .hinery the wear and tear
Of boats, cars and locomotives, the hire Of men
and horses the price of fuel the rent of wharves,
and the commissions Of dealers, before there re-
maintd dollar for tie people who had con-
slructed the roads and the canals, and had made
the various Improvements on the land The
capital that had then to be paid for could not
have amounted TO less than severity millions,
IcariHg diogetherom Of riec any rdiue in the land,
for during nearly the whole of the years that had
elSp'ed these people had been deprived of divi-
delds, while their roads and their machinery had
been gradually wearing out. Almost every thiDgha
now to be replaced, anl new expenditures were
required to enable the old works to maintain CON-
petition with the new ones. The Schuylkill Canal
was to be enlarged at the cost Of millions, and
engines Of greater power were required to take
the place of those that had previously been in
use. All these things were done. or being done,
when suddenly, the tariff of 1916 was substituted
for that Of 1872. For short period the railroad
speculation of England maintained the price Of
iron but furnaces and mills ceased to be built
and by le4s the coal men began to learn that
while they had been preparing for an increased
demand the foundation upon which they rested
had been knocked from under them. and the in.
crease had consequently not come. As always
before had been the case, they had been sum.