New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-08-08
THE NOV AND STEFL BUSINESS.

No other business is more important, agriculture
alone excepted than the manufacture Of iron ana
steel. But no other branch Of business has been
more embarrassed by the prostration Of industry and
trade since the panic. The annual report OF the
Iron and Steel Association though not very graft
fying statement is nevertheless both important and
interesting The quantity ofpig-iron produced during
the year 877 was only 2,3l4JS5 tons, and yet was
II per cent larger than the production Of 1876. On
the other hand the product of rolled ron rails IN
cluded Is smaller than IL was in 1876, although the
quantity. excluding rails was larger. In brei, the
substitution of steel for iron rails continues to be
the most important change IN the iron business anu
has its effect also upon sales Of anthracite coal OF
Bessemer steel rails. 49,, 100 tons were used last
wear. against only IA 04I tons in 1874, the year
Of greatest production of pig'ron. An III
crease Of nearly 100000 tons in quantity of
steel laid each year does not mean merely de-
crease Of that quantity in the iron rails required for
each years addition TO the steel in lessons the
quantity of iron rails needed for requirements. In
1872. about one million tons of American rails Of
all kinds were used although the quantity of pig
iron produced WIS only 2.854,55S tons. Nearly
half Of the raw iron produced then went into rails.
But In 1877 the quantity of rails OF all kinds pro-
duoed was only 70i7O0 tons, while the quantity OF
pig-ron produced was more than three times as
large. With liberal allowance for the consumption
Of iron in rail making, It must be said that not
much more than one-third now takes that form, and
this is In the main because the number of steel rails
used has Tor the first tine during the past year ex-
oecded the number Of IRON rails Where the steel
once goes down, il needs comparatively little re-
placement. while sworn testimony in the case Of
the Erie showed that upon that and some other
roads Of large traffic, long as iron was used, the
replacement each year amounted 20 about one
fourth of the weight first laid.
Prices during the year 1877 were peculiarly un'
favorable 10 producers The official bulletin of the
Association gives the average price of No. an
thracte pig-iron at Philadelphia as Sl9 02-the
lowest yearly average ever made in this country
since colonial times though il has been surpassed
by the extreme depression Of the first half Of this
year. The average price OF merchant bar nc Phila-
delphia was only $40 55 and Of the best iron rails
only $50 % while the steel rails cost at the works
only $40 80. These averages must be interpreted
in the light Of the remarkable and steady decline
in prices during the year, from $40 10 to SlS for
pig-irOn, and from $40 to $40 30 for steel rails.
The lowest average monthly price for No. pig
iron ever reached IN this country was reached dur
ing the last six months of 1877, when the range
was from SIS 80 TO S1S, while the lowest monthly
average previously recorded was in October 1851.
viz, S1S 02l2. As to iron, at least we have GER
tanly reached the specie basis, and gone tnile
further.
Prices of bar iron were also lover in 1877 than
ever before IN this country. The lowest yearly
average was reached, viz, $40 80, which is more
than 50 lower than the lowest previously recorded
$54 GO, in 1851. Steel rails have declined from
S1G5 per ton, in January, 1868, TO $40 80, in De
cember. 1877, and there were contracts made that
month for $40 only. Iron rails had never been as
low as $50 80 per ton, except in November and
December, 1851, and January and February, 1852,
but they fell TO $50 so in October last, and the
average for the year was only $35 20, while the
lowest previous yearly average was 81 75 in
1862. These statistics show how completely COM
petition has done its work in this country in the
manufacture of iron and steel 1t is true that the
change from uso Of iron 70 steel is very important
one in effect upon prices Of iron, but the steel rails
have declined even moro than iron rails in value.
The fact is that the manufacture of iron seems TO
have been too much extended throughout the civil
lied world at the close Of the Franco-German war.
and great disasters have resulted in other coun-
tries, as in the United States.