New-York tribune., 1880-02-07
THE GREAT IRON "BOOM."


fFRoM A STAFF coRREsPcSDENT OF THE TRIBUNE1
PHILADELPHIA, Feb. 6.-The most remarkable
feature of the present business revival is the enor-
nous increase in the demand for iron and STEEL and
the really phenomenal advance in prces-an ad-
vance that is without parallel in the history Of
the trade in this country. During the war there
a greater apparent rise in prices but If allow
ance be made for the coincldent depreciation Of
the currency, il will be found that the
upward movement during the past year exceeds
that of any year between 1861 and $50. An i'm
portant increase III the consumption of iron and its
products shows that new farms are being opened
which require ploughs and agricultural machinery;
that new railways are being built, which demand
rails and locomotives; that new buildings are 60
ing up which require nails and hardware; that
mechanics want more tools; that old factories are
revving and new ones going into operation
for which new machines are needed - in
word. that there fresh vigor and
tension in all the muscles and fbres of the
great industrial giant An account OF the wonder
ful prosperity of the iron trade WILL therefore.
venture to believe possess an interest not limited
to those who are engaged in converting the king
of metals into its myriad forms of useful
ness to man. For the facts | have used
below / am largely indebted to Mr. James
M Swank the secretary of the American
Iron and Steel Association, and his assistant. Mr.
George W. Cope whose services to the business
world in gathering and compiling the statistics of
the iron trade and drawing trustworthy deductions
from the figures they obtain. are too well known TO
need word Of cOmmendation here.
COMMENCEMENT OF THE UPWARD MOVEMENT
About twelve months ago the steel rail manufac-
turers began to feel an increased demand for their
product, which they were inclined TO attribute at
the time TO the very low price operating as an in
ducement tOfailway managers 10 prefer steel TO iron
rails IN relaying wornOut portions Of their tracks
As the Spring advanced 1t became evident that the
season was gong to exhibit an unexpected activity
in the construction of new roads, and the prices
of rails began to stiffen. The price OF
pig metal touched the lowest figure in September
1873. when No. Anthracite, which is the standard
for quotations. sold at SIG 80 n ton. About this
time Mr. Swank made tour through the ron-pro-
ducing districts of the West and noticed the striking
fact that, although the price was so low as TO leave
the smallest possible margin for profit, the mills and
furnaces were all full of orders He then predicted
that the trade was on the eve OF better times and
that increased production and higher prices would
soon follow From that date the demand for iron
grew rapidly. but it was long time before a
marked effect produced upon prices other than
to make sellers less inclined to give concessions in
the way Of credits. Not until April 1879, did the
price of anthracite pig show the lrilng advance TO
SIS ron. More than Six months were required
after busy times set in for the iron masters TO
stiflen and harden the old low prices 10 make
a firm foundation for an advance. Even then the
advance was slow at FIRST. By June the quota
ton bad gone up to 500 from which figure 1t
slowly went forward during the Sumner, until on
September /, it reached S22.5O Instead Of com
rotb
held them back. They were afraid Of spasmodic
rise and were most Of ali anxious for steady market
with moderate margin for profit Indeed,
throughout the whole of the extraordinary furry
which soon followed, then action was exceedingly
conservative.
HUNDRED PER CENT ADVANCE.
In September last the market began to grow cx-
cited. Everybody wanted iron aud wanted 1t right
away. The furnaces and mills were pushed TO their
utmost capacity and foreign iron poured in by the
ship load but still the demand could not be met.
BY October 1, the price had gone up by series Of
daily jumps to S31. Then 1t sieadicd iittle
while, partly owing to the fear that the heavy
foreign importations might depress the market and
that the new home establishments getting TO work
would cause an over-production. At times dur
ing the next three months the price would say to
S27 and at other times It would go up to 500, but
the average was about $31. Before the 1st Of Jan
nary 1t was found that the demand still increased
in volume and urgency and that the foreign iron did
not sensibly affect the market. one reason being
that purchasers could NOT always find IN the import
crs stocks Just the kind and quality OF articles tey
wanted. The boom" began anew about the be-
ginning Of the year. On January the price took
n 1ump TO $50 a week later II climbed up TO S37,
and on the 18th to $41 so BY the 27tn Of January
the extraordinary figure Of SAB was reached, and
since then there have even been sales at hgher
rate. .
been the advance In the prices Of the various forms
of iron Nails at the lowest point of the depression
sold at 81 so a keg; now the price is &5 25-an ad
vance of 800 per cent. steel rails were vaiuly OIL
fered at s3S a ton TO the very railways that are
now eager to get them at $50 In fact the railway
managers may be SAID fguratvely TO stand IN line
IN the manufacturers cOunting-rooms anXlously
waiting their turn 10 pay more tnan double the
price they declined TO pay year ago.
KFFECT on THE FOREIGN MARKET
The English market began to feel the effects of
the new life in the American trade last Spring when
some important railroads sent large orders for
steel rails Our mills could not deliver immedi-
ately the quantities the roads wanted. they sent
abroad. BY tho latter part of the Summer when
the English found that there was really not enough
pig and old iron in this country to supply the de-
nand, and that this increased demand showed no
signs of abatng, they began to put up their prices
Then the English consumers grew alarmed and
rushed into the market TO buy large stocks before
another rise should take place. and this produced
the very result thew had feared. AS indication
of the influence the high prices in this country have
exercised abroad will mention the single article Of
Bessemer rails, which year ago sold at $22 per
ion at the English works and are now held at $53.
The high price of old rails Induced large ship
ments and as they can be brought In under
a conparatIvely low tariff rate as wrought
iron scrap, great deal of money has been made in
tins line. hear OF New-York man who netted
500, 900 ON a single consignment which he was
lucky enough to buy Just before the great rise set
in OF course the price of ores went up with tho
price of pig metal Republic ore, the standard Lake
20 a ton. and is now worth $12 30. Shp-owners
were not slow to find ont that there
foreign ores The English steamships brought