The times. [volume] (Richmond, Va.) 1890-1903, 1893-07-15
LOW PRICES MEAN PLENTY.

| or the STEADY 'ali IN tne price OF Wnea,
which has been produced by improve
mcnts in the machinery for sowing Il
and reaping Il, together with the I'M
proved methods for transporting and dis
tributing It. We add this morning some
striking facts illustrating the effect of
improved methods In cheapenlng iron.
That most excellent and reliable trade
Journal, the Iron Age. states that the
actual consumption OF pig-iron in all
brsLches Of the manufacture during the
first half OF the year 1893. was 10000 tons
| greater than during the last half OF the
year 1892, notwithstanding the widespread
and really painful depression noticed in
some quarters. There are said to he H.
900 men Idle at this time In the mining
regions OF Michigan. the failures OF iron
and steel works this year have been UNI
usually numerous, and some OF them
important, and the prospect is that the
shutting down during this summer for
repairs will far exceed the average.
| added 10 this is the fact very definitely
asoertained. that the consumption OF iron
in rail- making is greatly reduced. II IL
stated by parties who ought 10 be well
Informed that there have been built less
than enc thorsand miles OF railways this
year. Nevertheless the consumption Of
iron has been enormous and growing. as
shown by our first statement. Though
railway building has almost ceased. the
producers OF agricultural machines have
contracted for immense supplies Of iron
and steel, the ship-yards and locomotive
Lucdrrs are taking more iron than usual,
and the structural works. plate mills and
stove works are crowded with orders.
Nevertheless, iron steadily declines in
price.
The Populist and the demagogue will
tell yon that this is the result Of stagna-
ton I'm business which they can cure II
you will only allow them TO
turn the crank Of the legis-
lative machine and impose some
II ere bad statute laws upon US. But
nothing can be more certain than that
tho fall in the price Of iron is due TO
activity in those emrloyments which con-
sumo iron instead Of TO stagnation in
them. The quantity consumed in the first
half Of this year as compared with that
consumed in the last half Of the preceding
year, proves indisI utably that there is
no stagnation in the businesses that use
hot
they stimulate the production of iron by
always furnishing a market for 1t, and
thus keep the wits and ingenuity Of men
always strained TO devise new methods
for cheapening it's production. 1t is the
operation of the same law which caused
the Sherman act, intended 10 raise the
price Of silver, 10 produce a steady de-
cline in Il, by furnishing a constant mar
ket for it and thereby encouraging
men to devise newer and cheaper pro-
cesses for producing silver. The fall in
the price Of iron, like the fall in the
price Of silver. is the result Of the never
failing influence of demand upon supply.
The most important factor in the
cheapen;ns Of iron is undoubtedly the in
fuence Of the South. Because of the con-
tiguity in the South of iron .ore, coal and
limestone. the cheapness Of labor and the
midness OF the climate, iron can be pro-
duced there under conditions more favor
able than exist anywhere else.
The influence OF competition and the
desire Of the Southern iron masters 70
hold their market despite Northern rivals
have caused improvements in the methods
of production of iron in the South; so
that iron is now sold at a good profit for
a price much less than the cost Of produc-
ton of q few years back In face of this
great reduction in what was received for
IT, the foolish Populist would have you
believe that this iron producer was there
fore being ruined. But he is not and he
is making money at the reduced price
at which he sells his goods Why? Be
cause the ever increasing consumption
of our market for iron secures him sale
for what he produces, and this certainty
OF n sale for his goods stimulates him to
devising every possible improvement in
the processes for cheapening production,
and he thus makes his profit notwith-
standing fall in cost 1t is an illustra-
ton of the unvarying law that money
making comes from large sales at small
profits rather than from small sales at
large profits.