New-York tribune., 1878-10-05


functions which it performed in 1878, and thus to
reduce still further the demand for it which then
existed. Inlalrn, therefore, If it caused agricul-
tural and manufactured products to advance in
Price, would probably affect the price Of gold in
mach less degree.
But high prices and cheap gold ncutTaliz' our
tariff laws and encourage foreign countries to send
their goods 20 this country ~ compete with those
which we ourselves produce. single illustration
viii make this truth apparent, which, although
perfectly understood by practical business
men, seems to have been lost sight OF
in the recent discussions Of the cur
rcncy question In 1878, No. 1 American
pig iron was selling in the New-YoTk market for
$l4 and $40 a ton, and Scotch pig iron for Sli.
During several years preyous to that time there had
generally been very little difference in the prices oi
American and Scotch ron although much OF the
time the latter had been the cheaper, aud had, on
that account, been used in considerable quantities.
especially in the manufacture of machinery. Scotch
iron was then selling in Glasgow for SO a ton,
gold the duty was 81 and the freight charges and
commissions amounted to about %G 80, gold, max
ing the selling price S3S 30, godor Si4 in currency.
In this case high prices this country accompanied
by cheap gold ncutralizcd a tariff OF - ton, and
enabled the Scotch irou-mastcrs to compete with
The present price of pig iron in Glasgow Is about
Sf1 % a ton, gold the reduction since 1873 being
% per cent, while No. l American iron is selling in
New-York for S16 80 and SIS. or about 90 per cent
lower than i'm 1878. The duty on Scotch iron IS
ST. and the freight charges and commissions are
about s. 80; Scotch Is therefore worth S23 20
a ton here, or - 7j more than the best brands OF
American iron. OF course, very little of the former
is now used, and the importatiOns last year were
very small in amount.
In 1873 the competition of British ron-masters in
our own markets was Of little importance to the
American capitalist or laborcr who was engaged III
the production of domestic iron. Then the railroad
building mania was at its height, and Amer
lean furnaces were unable to keep up with the
demand for their products. During that and several
previous years, hundreds Of furnaces were
erected, and extensive preparations were made Tor
supplying a demand which turned out to be only
TEMPORARY The importatiOn of Scotch iron threw
no one out of work IN this country, and caused no
furnaces to close. Now things have greatly changed.
The capacity Of this country for producing iron
has been increased far beyond its present ability
to consume. No Imitation ot the currency ana 10
rise of prices VIII induce the present generation or
capitalists TO sink their money again IN useless
railroads; we must send our surplus iron abroad,
or we must expect many OF our furnaces TO remain
idle for years 20 come.
But an increase in the cost of producing iron in
tins country caused by initiation, without corre-
spending increase in the currency price OF gold tan
increase which, as has already been shown. Us not
likely to take placel will not only prevent us from
connecting with Great Britain in South America
and Asia but will give rivals an opportunity to
undcrse us right here home, in spite Of the tariff
Suppose an imitation of the currency shomd take
place causing such rise of prices that iron should
advance 80 per cent and be worth S27 ton-Whch
would not be considered eXtrayarant price.
Suppose also that gold at the same time. for the
reasons already given, should 90 only to 10, then
Scotch iron could not only be sold in all foreign
markets ST or ~ less than American iron but
conld he lad down III Ncw-lOrk nearly 4 dollar
cheaper
What is true of our iron industry is trne Of sew
cral others Of ouG most important manufacturing
enterprises. Their future prosperity, and that of
tile WorkugmCn whom they employ, depend upon
their ability 10 compete wit foreign producers, not
only here at homr but in the markets Of the world.
For the first timc we able % export many of our
staple products; an initiation of the currency Will
nut stop to this trade. and will more than neutral
ize any apparent stimulus that Ii may gave 10 bnsl-
ness. e J. W.
Nf3r- York Sept fl, 1873.