Republican news item. [volume] (Laport, Pa.) 1896-19??, 1903-11-05


Is an Unusual Advance In the Price
of Some Commodity.
At the time last year when the Iowa
shelter for monopoly" idea was receiy-
ing the greatest amount of attention
because of the persistency of Governor
Cummins and his followers, who be-
lieved that they had discovered ''some
new thing" one of the favorite argu-
ments of the tariff reformers was
based on pig iron prices. At one time
No. l foundry northern was quoted at
S2I, and those who We're compelled to
buy pig iron or shut down their works
Were forced to pay that price. For
months the price of this commodity
ranged from $23 to $25, the second
quality being quoted at 500 to $23.
The tariff reformers argued that these
prices We're arbitrarily fixed by the
manufacturers, who We're sheltered by
the import duty on iron, and that the
only way to reduce the cost of pig
iron to the manufacturers, whose raw
material it is, was to lower the tariff
charges or place pig iron on the free
list.
The advice of the reformers was not
followed, but pig iron today is selling
at $1S, and large contracts have been
made at lower figure. 1t is conceded
even by the tariff reformers who are
opposed to furnishing a shelter for
monopoly" that at current prices of
iron ore, coke and labor pig iron can
not be sold for less than from ST. to
SIS and return a fair profit to the
manufacturer. This being the case 1t
probably will be acknowledged that
the price at which the product of the
furnaces is now being sold is normal
one, not an eXtortionate figure arbi-
trarily demanded by monopolists who
are sheltered by protective tariff.
The high prices last year were due to
several causes, not the least of which
We're the coke famine and the coal
strike. Labor was high and the de-
mand for pig iron was unprecedented.
Consumers of the product of the fur
aces were bidding against each other
and against themselves at times, as the
available stocks and prospective output
were both exhausted by the foundry
men and machine manufacturers. Some
of the factors that operated to bring
about the condition mentioned have
changed In many cases the consumers
of pig iron temporarily postponed con-
templated enlargements of output, thus
keeping the demand well within the
limit of production and enabling the
furnace men to keep pace with their
orders and overtake the demand. The
result has been downward tendency
of price which has now reached a fig
ure that is approximately normal. In
other words, the matter which the tar
if reformers insisted on adjusting by
law has adjusted itself through the
operation of natural business forces or
the laws of trade.
That the slump in the stock market
lad nothing to do with the decline in
the price of pig iron is conclusively
shown by the fact that foundry men
and machine manufacturers are buy
ing literally at current prices and
making preparations for an active
year. There is no thought of a panic
in industrial circles. On the contrary,
manufacturers of farm machinery are
making preparations to meet and sup
ply an increased demand for their
products, their estimates being predict
ed on the prosperity the farmers are
enjoying.
The lesson to be learned from the
facts recited is plain enough. The fool
ish notion that it is necessary to fly to
congress every time there is an unusual
advance in the price of some commod.
Try and ask that body to let in foreign
competition with view to adjusting
the market is altogether too common.
but it Is without warrant in reason
nevertheless. The only way in which
the American standard of living, which
rests upon the American standard of
wages as basis, can be maintained is
10 insure the American home market tc
the American producer-and all Amer
leans are producers first-and in that
way they secure that which enables
them to become consumers. Having
established that standard of living, pro
lection must be continued in order thai
the standard may be maintained. The
natural adjustment of the price Of pig
iron illustrates the operation of the
laws of trade, which may be relied up
on TO work more equitably and to ac
complish better results than would
violent assault upon the principle OF
protection by believers in the shelter
for monopoly" heresy Sen.
tinel.
Willing to Help Him.