THE ECONOMIC DISTURBANCES SINCE 187S. 783 



when it was 14,048,000 tons. " After 1879 an extraordinary change 

 became apparent in the volume of the make, for during the ensuing 

 five years the average make was 18,000,000 tons, and in 1883 it rose 

 to 21,063,000, or nearly 50 per cent more than it was in 1879." The 

 witness further estimated that while the product of iron increased in 

 the United Kingdom at the rate of 131 per cent from 1870 to 1884, 

 the increase in the production of the rest of the world during the same 

 period had been 237 per cent. 



The tables of the American Iron and Steel Association, prepared 

 by Mr. James M. Swank, indicate an increase in the pig-iron product 

 of the world, from 1870 to 188G inclusive, of about 100 per cent. All 

 authorities are therefore substantially agreed that the increase in the 

 production of this commodity in recent years has been not only far in 

 excess of the increase of the world's population in general, but also of 

 the increase of the population of the principal iron-producing countries. 

 Thus, for example, in the United States, the production increased from 

 4,044,526 gross tons in 1885 to 5,683,329 in 1886, an increase of 1,638,- 

 803 tons, or 40 per cent. 



Under such circumstances, the price of pig-iron throughout the 

 world has rapidly declined, and in the case of some varieties touched 

 in 1885-'86 the lowest points in the history of the trade. American 

 pig, which sold in February, 1880, for $45 per ton, declined almost 

 continuously until September, 1885, when the low point of $16f was 

 reached ; while in Great Britain, Cleveland pig, which sold for 4 

 17s. Id. in 1872, and 2 5*. in 1880, declined to 1 10s. 9d. in 1886. 

 The decline in Bessemer steel rails in the English market was from 

 12 Is. Id. in 1874 to less than 4 in 1887. In the United States, 

 Bessemer steel rails, which commanded $58 per ton at the mills in 

 1880, fell to $28.25 at the close of the year 1884, reacting to $39 in 

 March, 1887. 



Reviewing, specifically, the causes which have contributed to the 

 above-noted extraordinary decline in the prices of iron, the following 

 points are worthy of notice : 



First. The testimony of Sir Lowthian Bell shows that foreign coun- 

 tries have within recent years, and contrary to former experience, in- 

 creased their production of iron in a far greater ratio than Great 

 Britain, which was formerly the chief factor in the world's supply ; 

 and, in consequence, have become formidable competitors with Great 

 Britain, not only in their own territories, but also in neutral markets. 

 New fields of iron-ore have been discovered in Germany, France, and 

 Belgium, very analogous in point of character to those which by dis- 

 covery and development, about the year 1850, in the north of England, 

 led to the subsequent great and rapid increase of British iron pro- 

 duction. 



Second. The power of producing iron with a given amount of labor 

 and capital has, in recent years, greatly increased. For example, the 



