The times., 1899-02-27
OUR IRON, STEEL, AND SHIPS.
Glowing Prophecy by an English
Financial Publication.
From the London s;atist.)


From the London S;atist.)
Perhaps the most important economic
question of our time is connected with the
Development of the iron and steel indus
tries of the United States and the probable
consequences of that development, not only
on the cognate industries of Europe but
also on the whole maritime relations of
the commercial world. In the palmy days
of the proud wooden clippers" the Ameri-
cans had the bulk of the trans Atlantic
carrying trade and the best OF the carrying
trade between Great Britain and China and
Australia. Their wooden vessels were not
only things of beauty. but were, with ma
tional ingenuity. constructed so as 10 COM
bne high speed with the largest possible
cargo capacity. and with every possible
contrvance for saving labor We are. in
deed. apt to forget that America once di-
vded with us the worlds carrying trade,
it, indeed, for a time she did not have
the lions share. 1t is only since the age
of iron that she has lost that position;
though she need not have lost it had not
the fiscal policy that has developed since
the civil war prevented her both from i'm
porting material wherewith to build ships
at a profit, and also from buying ships
from foreigners. except under practically
probbitive conditions. And now we sre
face to face with two momentous Iacts
that presage a revolution in the worlds
shipping and formidable competitor with
Great Britain as the worlds common car
rier. These facts are % that the people
of the United States have now become i'm
patient OF their sitting navigation laws
and are craving for national merchant
navy; and t2) that now. for the first time
in their history tSince the decline OF wood
en- ships). are the Americans able to pro-
duce shipping material on level with
Great Britain.
1t is probable that Congress will soon
revise. if not repeal, the navigation laws.
Leaving. however. the fiscal aspects OF the
question for the present, we propose to
take n rapid view OF America as an actual
iron and steel producer and as a prospec--
tive builder OF high-class modern iron and
steel vessels. In the first place we have
to note that the States have not yet reach
ed their maximum power in the produc-
tion OF pig iron. Their furnaces are much
larger than ours and the proportion OF oh
solete types must be small, indeed, COM
pared with the number of antique exam
pies we have still standing in England.
Scotland and Wales. AT any rate, their
existing furnaces are computed TO have
a capacity OF over million tons per
month. The actual production has not yet
reached that capacity, and there is, OF
course. no limit but that of capital to the
number of new furnaces which may yet be
built. Can such enormous quantities be pro-
duced as cheaply as. in Britain? The truth
seems TO be, that in the more favorabIy
situated works of the United States. and
with the more economically worked fur
naces (which are three or four times the
size OF Ours), the prime cost of American
pigs is below that of either Scotland, Clevc
land or Cumberland in the respective
qualities. This is a point on which we
mn iiftidpnrR a
matter for industrial experts. and we by
no means accept the shipments of American
pigs to England as evidence of profitable
business. But experienced iron manu-
facturers with whom have conversed
have expressed their belief that the South
ern States OF America, and those OF the
Northern States that are within easy
reach OF the lake ore, can certainly smelt
pigs more cheaply than we can. 1t Is
enough If they can do it as cheaply. when
we pass to the next stage OF competition.
And in all stages the Americans have the
advantage of cheaper fuel. Barring India,
American coal is now the cheapest in the
world. and on the average is to the indus
trial consumer fully Sd. per ton cheaper
than the average in England, Scotland, and
Wales This is an advantage, of course,
that tells at every stage OF manufacture.
II is also noteworthy fact that wages in
the American iron industry have been ma
terially reduced of late years. while the
producing capacity has also increased The
eight hour movement is unknown in the
States and the continuity of energy IS one
of the great factors in American industrial
development. To take one example: At the
Pennsylvania blast furnaces. in 1880. The
wage cost was about los. per ton of pig
iron BY 1890 the wage cost was reduced
TO 6s and now it has been pretty general
" reduced to about IS. per ton. Again.
the average annual output per emDloye
was, in 1880, 1870 tons. 1t is now about 800
tons These facts speak for themselves,
and those who run can read their signifi-
canoe Now. take another fact in rela-
ton to the American iron industry. Until
within recent years that industry practi-
cally depended on the development of the
railway systems of the States. When rail-
way building was slack. the iron industry
was depressed. and vice versa But OF late
years. while railway building has shrunk
to insignificant proportions the production
of all kinds of iron and steel has enor-
mousy increased. Lcok at the following
figures:
Mileage of Output Of
New railroad Outpat OF Finished Iron