Page:Popular Science Monthly Volume 36.djvu/309

Rh depression in the construction of railroads in this country, is now active. The very rapid extension of railways, not only upon this continent but upon other continents, has induced an enormous demand for iron and steel for other purposes. Therefore, during the last years, 1888 and 1889, although the construction of new railways diminished from the standard of 1887 by fifty to sixty per cent, yet the demand for iron and steel has gone on increasing, and is now larger than was ever known before.

Again, the new sources of supply in this country are rapidly furnishing iron at low prices, but at such profits that the production increases very rapidly so as to meet the increasing demand. In spite of this, there are indications of an insufficient supply of iron the world over, from which, of course, the present rising prices have ensued. Now, the production of iron is a matter of relatively small consequence, either in the value of the product or the number of men employed, as compared with the consumption. Gauged by my favorite standard, even the present large production of iron in the United States is only equal in value to the product of hens' eggs.

Now, suppose for an instant that under these conditions of increasing demand we were to remove the duties. New England would at once supply herself with ores and coal from the vast and easily worked deposits of Nova Scotia. The New England production of heavy machinery would be resumed, and we should no longer send to Milwaukee for our heavy stationary engines, but should again make them either at South Boston or in Providence. Even then it would be doubtful if the supply of iron could keep up with the increasing demand.

Then imagine, if you can, what would be the effect upon the price of iron in Great Britain, if we were to call upon her only for a million tons extra, or only for the increase which we shall require next year. That would be a demand for about twelve and a half per cent in addition to the present product of her ironworks, and even the present product can not be kept up without a great increase of cost. Witness the recent statements in the London "Economist" to that effect.

Finally, let it be assumed that, without any reduction in the present low price of iron in this country, the consumers of iron in Great Britain—the machinists, the builders of ships, of locomotives, the makers of rails, and the like—were called upon to pay as much for their iron and steel as our consumers of iron now pay, what would be the result? They have had an advantage ranging from five to ten dollars per ton of iron, and from fifteen to thirty dollars per ton of steel, for many years, over our machinists, engine-builders, and ship-builders. Imagine what the conditions would be, if you can, if our relations were reversed, and