The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1879-08-21
The Business Revival.

The Business Revival.
Hon. Abraham S. Hewitt, OF New York,
Is not only successful business mar, but he
has made his mark in the country as a re-
markably clear thinker and as one of the
most promising of our rising statesmen
The following paragraphs, published in the
New York SUN, embodying his opinions ia
regard to business prospects, are well
worthy of public attention.: ssThe revival Of
the iron trade" said Mr.. Hewitt, us the
legitimate result OF the revival of business
generally. In February said in Congress
that as soon as we came down to a basis OF
solid salues-that is, values measured BY
god-we should have prosperity. The trou.
BILE was not that there was no money. There
was plenty of capital, but there was lack
OF confidence. Capitalists were afraid to in
vest their money when we had a deprecated
and fuctuatng currency. Now that values
are fixed an era OF prosperity begins. Rail
roads are being constructed, factories built,
Western settlements are rapidly springlng
up, and )ong-hoarded capital is again in cir.
culation.-In short, there is general in
crease OF prosperity. A revival of the iron
trade never precedes, but follows, revival
of general business. Iron is needed to car
ry out the revival. When an era of prosper
ity begins, when trade revives, and great
enterprises are planned, iron is needed to
carry on the work. Hence the revival of the
iron trade is proof positive of genuine reviv-
al OF business generally. The evidence is
this: Every iron works that kept at work
during the period of depression is now over
run with orders, is working at its full capac-
ity and unable to fill its orders. Others,
that had to stop operation are going to work
again. The raw material for making iron
ores, pig and scrap iron has advanced from
ten to twenty-five per cent. Coal alone has
no advanced. The reason is unusual. 1t is
because the producers have capacity for
putting coal on the market far in advance Of
the demand and not warranted by the condi-
ton of things. Hence coal can't 60 up.
'Gray forge pig iron, the standard pis iron,
has advanced from $14 to $17 ton, and
there is a demand for all that can be made.
But the price will not 90 up much higher,
for the reason that, if the price goes up, then
foreign iron will be placed on the market.
We are now importing iron in the form OF
steel and iron rails and old rails. The great
demand for iron has stripped the country OF
the Immense stock OF old rails that had accu-
mulated in the era of depression. Old rails
are used, you know, for working over, and
made into new IRON. Most OF the material
used on the elevated roads is made from
rails.
"The only question is whether the pros
perity will continue. 1t is bound to contin-
ue, think, but we shall have no era OF high
prices simply a healthy, remunerative bus
mess, with moderate prices, that will enable
consumers to go on with their enterprises.
This Is true prosperity. High prices check
progress. We have got TO that stage when
will go on without an era OF high
prices. said that many iron works were
again beginning operations. This relates
primarily to blast furnaces. But the fur
those that can make iron cheaply. Those
that, from their situation or any other causes
cannot make iron for less than $l5 ton can
not 60 into blast. This country can now pro-
duce about 100000 tons Of pig iron
], 100000 of this can be made under $l5 ton
the other 10000 cannot be made for less
than 500. Now, pig iron can't 60 above $40.
When it does the importer steps in. Why.
can import first grade gray forge iron for
sl9, paying duty of 81. So you see gray
Jorge iron can't 60 above $40.
Now, word about the duties on iron.
On pig and scrap iron, steel rails and many
kinds of manufactured iron they are excess
we seven dollars is too much to ply on pig
ron. But they have conferred one great
benefit. 1t is that in this era of depression
hey have prevented this country from being
The sink into which the iron of other coun>
,ries could be flung. Had the duties been
ow enough the importatlons of iron would
lave destroyed our business and closed those
that have just been able to
Keep above water aud are now ready to reap
The advantages of this renewed prosperity.
Duties, in my opinion, ought only to take
effect in periods OF. extreme depression.
Then they protect our home industries.
But there should be u sliding scale, and
with the return Of prosperity the duties ought
20 decrease, and when iron reaches $40 then
hey should be taken off entirely. Thus the
will be protected and will be able
20 buy his iron at Il reasonable price.
But, as | said, there is no doubt that we are
beginning an era of healthful prosperity.
Nothing eau check it. We are the granary
.or the world. Our crop is enormous. In
lustries thrive. Last year we put down over
1000 miles OF railroad this year it will be
1000. Many manufacturers who were able
,ook advantage of the period OF depression
Ind rebuilt their furnaces. Under the most
improved plans iron can be made as low as
BIB a ton. The profit Of 81 on ton is not
great, but tits remunerative, and so the out
look is encouraging"