The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1879-09-25

Furnaces In IIIaAt-LImlted Amount Of
PIG-PrIeCs Rnd wages.
ri AbuTgh h sPateh.
The rapid advance in the price Of iron,
and the accompanying demand for articles
Of iron manufacture, form a commercial
phenomenon quite as remarkable as the
financial panic Of September, 1873, and
Tor some reasons much more interesting.
Since the upward movement commenced,
in July, pig has advanced in price from
Sl5 to $50 per ton, the higher figure being
reached in spite Of the fact that foreign
ores and metals are coming into the coun-
try. The upward movement has been so
emphatic, and has attained such a height
here, that 1t already has extended to Ed.
rope, and il its influence Is not yet ap-
parent to all Of the civilized world, that
condition Is partly due to the fact that It
has an exceedingly large bulk to operate
on, like one man commencing with a
shovel to dig mountain away. But the
mass may disappear as other shoveIers ar
rive.
The English iron market has already
given signs of sympathy with the wonder
tul movement on this side Of the globe,
and the only hope Of continuance Of the
upward tendency here is based on the
theory that 1t will grow still stronger there,
for our metal market cannot continue the
upward movement nor remain for any
great length Of time in its present position
without tirmness on the other side. An
upward movement in the iron market Of
the United States is met by food Of for
eign metal or ore which is, or until recent
ly was, in an unusually depressed condi.
> ton, the business troubles in England be-
ing OF much more recent origin than our
own, and, consequently, the markets there
are still suffering from an abnormal pleth-
ora.
THE UNEQUAL SUPPLY OF PIC.
The great and long continued cry OF
too much production and not enough
consumption" Gun not be honestly raised
against iron in America, for il must be
seen that the production OF pig and
manufactured iron are not now at all
equal to the demand, nor can they be for
some months to come. There are many
obstacles and objections to large importa-
tons for, proverbially in the matter Of pig,
people do not like to buy it in poke.
There is great difference in the quality
Of even so dull looking commodity Is
pig iron, so much so in fact as to vary the
price oil certain grades some % per cent.
Consequently home metal aud ores are
preferable because when available at all
they may be used almost Immediately and
when using them manufacturers know
precisely what they have. Spanish ores
are good, but they are some distance
away, and being largely directed to Eng
land on old contracts, they can scarcely
be diverted to our shores.
This matter OF contract plays an import
ant part in the iron market, and up 10 the
present time has absorbed very large
percentage OF the rise. An advance from
SIG to $40 per ton probably leads to popu,
lar belief that great many iron mer,
chants must have made fortunes within 9
lew weeks, but those in the vicinity O.
rlttSburgh who have been largely bene
ilteu are not numerous as yet. The TACT il
out lew were in position 10 make much
on pig, aud it would be pretty safe to con
clude that none OF the bar men have
reaped any profits at all, though they have
right to expect, and do expect, import
ant advantages from the revival OF trade
should It continue. In order TO arrive al
IN Intelligent understanding OF the effect
OF the recent advance in iron it will be
necessary TO consider It's cause.
CAUSES OF THE BOOM.
Directly, railroads push the price o.
iron up0r down. The railroads are such
aPo"er that they appear to control or in.
nuence the entire business prosperity oil
the country. Railroads are able TO create
new channels for commerce in prosperous
times, but there must be some good
grounds for the commerce or even the
power OF railroads is not sufficient 70
create it. Railroads were able in lS64.5.G
to take up what would otherwise have
been great surplus OF labor thrown upon
the country to the close OF the war for the
Union and disarmament OF two great
armies, and the railroad influence was
able to keep prices from collapsing imme-
diately ut that time. The money expan-
sion oil the war was followed and for a
tune held up by the railroad expansion,
and even as late Us the beginning OF 1873,
when we stood on the verge Of com.
merclal panic, the railroads of the
country. put the price OF pig from $50
to 800; but the railroad expansion reach
ed the collapsing point in that year. and
when railroads went down there was
nothing longer to sustain the abnormal
condition OF general initiation. And now
the country having slowly and painfully
purged itelf to healthiul condition
InF0lVh HnDtFantnI 4
rover profit margin than it has been used
10; having worked down to degree Of
prosperity from economy and saving In
PLACE OF the splendid squallor OF war times
ana Influences; having resumed the old
policy OF paying our debts instead Of the
more modern practice Of redeemng one
note by putting out two; having reduced
the cost OF our products so that they draw
nlther the gold OF foreign nations, and
finally, having harvested the most bounti.
III! OF crops, our mighty railroad system
raises It's thousand heads and pushes our
prosperity by steam.
WHERE THE RAILROADS ARE SHORT
When business collapsed and markets
stagnated in 'T3'4 the railroads corn.
menced to econonize. They had been
reckless; then they began to retrench
They pursued their saving even to parsi.
monY, as rule, and now they begin 10
feel the effects Of too much economy
There Is scarcely a railroad in this conn.
try to-day that is prepared to carry the
commerce flowing to it from the preat
West, The Pennsylvania is an exception,
but the Pan Handle and Fl Wavne
which may be taken as fair examples 81
inc railroad system OF the country, ara
each thousand cars short OF the comple.
ment necessary for the movement Of cFons
% the East; The railroads have been pick.
ing up all old iron they could find
Tor use. They have patched and
repaired !lll all patches are used up and
G9Id repairs can no longer be renewed,
Ihey nave 30 far consumed themselves
Us 70 use up 1000 tons Of old rails
anu now they must have new iron, and