The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1906-01-15
NATIONS WEALTH DUE
OBSERVATION-DISCLOSURES
Raw Materials an Impetus to Business Interests of the
Country-Steel and Copper Are Largely Responsible
for Revival of Prosperity.

NEW YORK. Jan. l5.-When calm
reasoning Is INDUCED in 10 weigh
the causes of our industrial improve
ment. 1t will be found that If one
thing more than another has given sub
stance to the present boom, IL is the
great value of our raw materials The
country is fun OF natural wealth and
fun Of capable men and corporations to
develop it, But the natural wealth is
the foundation OF our commercial sue
cess and an appreciation Of its enor-
nous extent is important, and, at the
same time, is not very general. In all
the activity which has thus fer charac-
terized our business Improvement. raw
materials have figured as the basic
cause. Good crops afforded The irst sub
s,antiaI impetus TO reviving business,
but fast following upon the assurance Of
good times afforded by the crops, the
Improvement in the anthracite coal in
4ustry started the recent remarkable
business recovery.
Unprecedented Activity.
The most important as well as the
most discussed revivals in raw products
have been in the demand for iron ana
for copper. Activity in iron carries with
steel, and they cannot be considered
separately. There is something forceful
IN the consideration that never in the
history OF commerce has there been
such activity in both copper and steel
as there Is at present. Inasnuch as
these two trades reflect upon so many
other lines OF business. IL is hard 20 un-
derstand the prosperous situation here
without feeling optimistic upon general
business conditions
The capacity Of the United States
L produce steel has never been ser
ic-ssly tested. The world production
in 1904 was 81. 500 90 tons against II ,S0o,-
900 tons in 1880, and hardly over l,000,-
600 tons fifty years ago. OF the iron
producing capacity OF the world today
re United States has about One-half
From an annual steel production Of
about 1905 tons IN the five years
ending in 1894. the United States has
advanced 10 an average production or
Is, 900 In recent years, and Is now
we'll above the latter total. Within
three years IL is estimated that 20
coo 600 tons a year will hardly cover
our output. Hence, instead OF wonder
ing II we are al the height OF the steel
boom. il is fair TO state that We have
hardly commenced 10 realize our great
Great Value of Ore Lands.
It is only as the use of steel becomes
more general and as the production
and consumption enlarge. that it is
possible 70 attach real value 10 our
vast acres OF undeveloped ore lands.
The 500. OO0, 900 tons OF ore which the
United States Steel Corporation owned
at its formation were valued by its
management at 81 ton. AS condi-
lions then were much OF Il had no ap-
probable value, for no provision eX-
listed for using the ore or for transport
ing it Even the gradual use Of the
ore as consumption reached out for IL
would have indicated little initial value,
so great would be the cost of getting
il sut and the interest upon the capital
used TO carry IL at 81 a ton during the
long years when II was not used. But
s'ie seemingly excessive value placed
on the ore holdings at the outset could
easily be realized IL not surpassed under
an increasing demand. In 1901 the total
output OF ores IN this country was q
600 coo tons Now il IS over $4,000, 600
tons a year. The almost inestimable
volume of ores in the possession Of the
Southern iron companies, hitherto Of
no value. have assumed a value OF great
Importance 10 the holders of stocks Of
coal holding of the Reading Company
which caused the receivership Of 1898
now have added vastly to the value of
the stock. so the neglected iron de-
posits of many belittled iron companies
are now affording them a great harvest
OF sudden riches.
Advance N Prices.
A great part of the increased value OF
raw materials is ascribable 10 advancing