The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1899-08-04

A recent issue of the Bulletin OF the
American Iron and Steel association
has the following article under the
faption "The Iron and Steel Boom OF
1879 and $780,"
I'VE reprint herewith a few extracts
from our annual report dated May ~,
1850, which will give the iron and steel
manufacturers OF the present day a
correct impression of the boom of 1873
and 1880. 1t will be seen that the ad-
vance in prices in those years was tar
greater than il has been in the present
year
Near the close of 1878 it became evil
dent to a few thoughtful observers
that the business depression which had
succeeded the panic in 1878 was slowly
disappearing, and that general re-
vival of prosperity was surely at hand.
The country had been favored with
good crops and short harVests abroad
had caused a foreign demand for our
agricultural surplus. This gave an IN
crease of business to the railroads and
improved their financial condition.
Here were grounds for hope and con-
fidencc. The farmers were prosperous;
why should not all business revive?
Why should not the iron trade I'M
prove? Prices of iron and steel could
not go any lower; importations had
virtually ceased; the prosperity of the
railroads pointed to an increase of con-
sumption in the following year.
FORCED TO SUSPEND.
That prices could not further de-
cline was fully established by the fact
that only works which were favorably
4 ,t.tt nfti nj
al skill could afford to make iron and
steel at the prices that were then
ruling; all others works had been
forced to suspend operations.
"The year 1878 closed therefore with
a more hopeful feeling in the iron
trade than had characterized the close
of any preceding year since the panic,
and this feeling was strengthened by
the successful resumption of specie
payments on the first of January 1879,
and by the generally favorable condi-
tions of the national finances and of
our foreign trade. which made resump-
tion possible. The year 1879 opened
with a firmness in prices which had
long been wanting, but without any
noticeable advance; nor was there to
be noted any marked improvement in
demand. Steadincss in both prices
and demand undoubtedly existed, but
nothing more.
I'm the spring months of 1879, how
ever the managers of the leading rail-
roads of the country, observing a hard
ening tendency in the prices of iron
and steel, and being assured of a con-
tinued increase in their business
through the unfavOrable outlook for
the European harvests and the gradu
elly reviving condition of all domestic
industries, simultaneously began to
give out orders for rails and other
railway material containing iron and
steel. At once prices advanced with
the suddenly increased demand-at first
slowly, but afterward rapidly. a
prompt increase in production was seen
TO be imperatively necessary. and pre-
parations We're made to blow in fur
naces and start rolling mills that had
long been idle. Iron rails, which had
long been neglected, We're again sought
for through the inability of steel rail
makers to take all the orders for early
delivery that were offered to them.
IMPORTS WERE RESUMED,
by the middle of the year it be-
the furnaces and rolling mills which
had been so long idle could not be re-
ligted in time to meet the extraordin-
airy demand for iron and steel from
the railroads and from other indus
tries that had been stimulated into
new life. Imports of these articles
were therefore resumed. Included in
the importatons were large quantities
nf al il, l..
new rails and to supply the place Of
pig iron for miscellaneous purposes.
Vigorous efforts, although only partly
successful, were also made to secure
Bessemer steel blooms of foreign manu-
facture to be rolled into rails in iron
rail mills.
More wonderful STILL the sudden
precipitation of an extraordinary de-
mand for iron and steel upon domestic
Sources of supply disclosed the fact
that the Immediately available supply
of domestic iron ore was wholly insult
ficient, and many cargoes of foreign
ore were brought from Europe, even
England and Ireland being drawn up
on for this raw material of the blast
furnace. So with the supply of coke:
1t was not equal to the demand. The
prices OF ore and coke, of course, ad-
vanced, and advanced by leaps and
bounds, adding greatly to the cost of
producing iron and steel and encourage
ing still further the tendency to ad-
vance the prices of these articles. But,
Notwithstanding the stimulus of high
prices, the importations of raw mate
rails and finished products, and the
largely Increased production of domes-
tic, works, exceeding in the whole of
the year 1879 that of any preceding
year. there was veritable iron fam
Inc in the closing months of 1875.