The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1889-12-05
The Boom in Iron and Steel.

From the Chicago Journal.
1t has long been considered a sound
commercial maxim that the condition of
the iron and steel industry constituted
an accurate criterion of the state of
general commercial prosperity. If we
can accept this statement as embodying
an actual fact that has been illustrated
and proved through history, this coun-
try and England are certainly to be con
graduated over the present outlook.
Within three months steel rails have adj
vanced in price here about - per ton,
while within six months the advance in
England has nearly doubled the former
price.
There have been several booms in the
iron and steel markets before, but hither-
to the sole cause Of such advances has
been large increase of railroad build
ing. Now. however, the advance in this
country is owing not SO much to railroad
building as to the erection OF extensive
business structures and blocks for man
ufacturing and commercial purposes in
used No one can watch the construc-
ton of the large and high business
blocks now going on in this city without
being powerfully impressed by the fact
that iron for building purposes is taking
the place of lumber to a remarkable
extent.
In England the principal cause Of the
rise is the unwonted activity in ship
building. The same transition from
lumber to metal is witnessed in the
building of all kinds of vessels that is so
conspicuous in the construction of large
business structures on land. And since
this change has come about. it may be
remarked, in passing, that the ship
building industry of this country has
also been greatly revived, because iron
and steel plates are native products. and
having no duty to pay, can be used with
unlimited freedom. There is compare
lively very little new. railroad building
in this country going on this year. al.
though many railroads are putting down
new steel rails and making other inn
proyements as fast as their earnings will
warrant.
This enlarged business among the iron
and steel mills cannot fail to be very
beneficial to the workmen employed in
! them, and also beneficial to general
trade. Already wages have been adj
vanced in many of the mills. and the
present prospect is that the earning ca
pacity of this large class of workmen
will soon be greatly multiplied. But
when men earn more they always spend
more, SO that any Improvement in one
labor will sooner or later effect all the
others.
Another important feature OF the
present boom is that it carries along
with itself no immediate necessity or
prospect of a sharp reaction. Hereto
fore these sudden temporary booms in
iron and steel have been produced al
most exclusively by an extra demand Of
railroads for steel rails, and when the
urgent construction period was over, the
demand dropped off so suddenly as to
bring about state of collapse which
partly robbed the boom of its inteni ed
benefits But as long as the building OF
new business structures and new shiIs
continues. the call foriron and steel ids
/ fair to be more or less permanent as
! the railroads will be sure to use II certain
quantity every year in repairs and for
the construction of new lines, and this
combination of demand from two sepa-