New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-03-07
IRON AND THE TARIFF

With an increase OF only about onc-Scyenih.
or 900. O0O tons in the demand for plg-lon
in Great Britain, the price had been al an'ed
in January more than GO per cent since febiu
arv Of last year. and 20 such figures that there
were recently bid, for American non 10 he cN
ported to Eng7and Then came slackenine
in the demand. and the price IN, fallen ~
chillines in less than one month having uSen
20 shillingS in the previous eleven months.
This experience has is lessons Tor Amer
cans There are persons in this country who
control the action Of one Of the great political
parties in and out of Congress who propose that
the duties ON pig-ron shall be removed. lhey
reason that American consumers would thus
eocnre cheaper raw materials. year ago the
price of Scotch warrants in England was about
$40 per ton 50 that with height ana com
.si0ns uaid the iron could be delivered in
this country at not more than Sli per ton. nor
was this the lowest mark, Tor the year before
the price had been II lower. But there are
comparatively few furnaces in the United
states which could compete with foreign iron
deliverable Il, Sli per ton in Atlantic seapoitS.
and il j. far within the truth to say that FUR
naces yielding about half the American pro
duction, or 4. 900. 900 tore would have to stop
if iron were selling at that price.
The Free Traders answer here, "Thc price
could not be so low with an American demand
to sustain the foreign market But that is an
evasion The American demand would not
exist nor influence the foreign market until
American furnaces had been stopped. For the
furnaces in this country are now producing M
the rate OF about Q 600. 900 tons yearly, while
tho consumption here has never been 3s great.
The British irOn-m masters would at the outset
have TO underscI American producers long
enough to stop the production 10y many OF them.
With the powerful organization they possess.
and the enormous stocks they have on hand,
they could do this with ease, certain OF an I'M
mcnse profit later. BY selling for few months
at prices not lower than those made last year
in February fhc British makers could shut up
at least half the furnaces of this country, and
then could sell their iron at whatever price they
please The rise in January 10 moro than G6
shilings per ton is only a faint indication OF
the advance which might in that case he eff
icctcd, and with perfect impunty, for when an
iron furnace has once gone out of blast, il can
not be started again Immediately, and will not
unless the conditions promise some rermanence
Of profit
The result would he peculiarly artificial
market in which the British iron makers would
have all tho advantage. They could control
the price on both sides of the ocean. British
manufacturers in league with them could buy
largely at period Of sudden and temporary
weakness, knowing that the price would add
vance whenever their demand had been sup
Piled. They could eiTcctually shut out com
petition Of American manufacturers by putting
up the price Of raw iron at their convenience.
With no certainty that the foreign price would
be maintained or would not at any time be in
tentonay depressed in order to accomplish
! their ruin, the American producers of pig iron
would hardly venture 10 enter the unequal race.
| Higher prices than are now paid would prob
ably rule most of the time. Lower prices would
be obtained only in spasmodic depressions con-
trived to ruin American producers.
This is the free trade programme, to shut up
American furnaces and bankrupt American
manufacturers. 1t offers seductive hope of
! cheaper raw materials. In all probability il
would force American consumers TO pay moro
for their pig-iron than they now do. Ii an in
creased demand of only 100000 tons has
enabled British makers TO lift the price to
about the present American level. an increased