Mineral Point tribune. (Mineral Point, Wis.) 1869-1938, 1872-08-15
IRON.
The Iron Trade ia England and
America.

commercial world. The price of iron,
after having been nearly stationary for
n number of years, has more than
doubled In value during the last twelve
months In September, 1871, bar iron
was quoted in England at IS per ton
At the commencement of the present
month it was selling at el5 Is. cd. per
ton, and with probability that it
would increase to SIS per ton. The
advance in all the other kinds of iron
was at "A corresponding rate OF increase.
The result is general disturbance i'll
values In all the various branches of
trade in which iron constitutes the
chief or leading component. All kinds
of hardware, such as nails, ploughs,
and all kinds OF agricultural and me-
chanical implements and cutlery, have
advanced from 80 to 100 per cent,
and the market is still rising. Both
the iron masters and the iron manu-
facturers refuse to accept orders for
future delivery except ut current prices.
All the usual trade discounts have been
recalled, ana the market is entn ely un-
der the control of sellers, persons hold
ing back in anticipation of a reduction
being finally compelled to buy mt great
ly increased prices. And this inflated
condition of the market is very far
from producing the usual effects of
diminishing consumption. The iron
masters in England, Scotland and
Wales are absolutely bare of stock and
have more orders to fill at the highest
rates of quotation than can be com
pleted for six months to come. Buyers
from all parts Of the world are in the
manufacturing districts trying TO place
orders for immediate delivery, and are
frequently unable to do SO Mt any price.
This extraordinary condition of the
English iron trade shows that the sup.
ply has failed to keep pace with the in.
creasing demands for consumption.
The close of the war between France
and Germany led to an extraordinary
demand for iron on the continent, and
the effects were soon felt in England,
the chief iron producing country i'll the
world. In that country exceptional
causes conduced to the enhancement OF
prices. In the first place, general re
duction in the hours of labor increased
the cost of production from 20 to 30 per
cent. Then there was very consider
able increase in the price of coal. To
add to all this, the demand for iron was
largely increased by the new branch
es of industry to which it was
applied. We now have iron
bridges, iron houses, iron ships, and
even iron forts and defenses. There
was also an enormously increased de-
mand for iron for railroads in all parts
of the world. Under these circum-
stances, there is little wonder that the
price of iron should increase TO con-
siderable extent Nor does there seem
to be any present prospect of reduc-
ton in rates. English iron-masters
now have orders SIX months ahead,
and, as has been stated, stocks are alb
solutely depleted. A similar condition
of affairs prevails in Belgium, France
and Germany. The iron trade III all
these countries presents the same feat
ures as in England. The demand is
greater than the supply, and buyers are
everywhere compelled to accede to the
terms Of sellers or producers.
The remarkable increase in the price
of English iron, even without the aid
of the tariff, ought to stimulate the
production of American iron, and If we
mistake not it will produce that effect.
The Hon David A. Wells estimated
that in 1869 the absolute cost of pro-
ducing pig iron, including interest on
capital and a reasonable allowance for
repairs and other incidental expenses,
was from s24 to $26 per ton currency.
English pig iron could not now be de-
llvered in New York, without duty, at
anything like this price, and if
we add the tariff rate the profit
on home made iron would
be simply enormous. In 1871 total OF
10,GlS tons Of pig iron was imported IN
TO the United States from England. 1T
is estimated that it would only require
1S furnaces, producing 40 tons a day,
to supply this demand. The cost Of
building these furnaces would not ex-
coed 81, 500, 00C, and at the present
price Of pig iron, from $50 to $50 per
ton, the returns would be ample. The
cost of coal and production generally,
although it has advanced so much in
England, is, if anything, less
in the United States than it was three
or four years ago, when pig iron only
cost an outside price of $26 per ton to
make n.
We look for some such results as
this. The advance in iron III England
is likely to continue for some time, and
it is both probable and possible that
the present rates cannot be reduced
without an increased production III
other countries that would make the
supply equal to the demand. And no
country in the world possesses more
unbounded mineral resources than the
United States, or is better qualified to
compete with England for the iron
trada of the world. The entire Allie