THE IRON INDUSTRY IN THE UNITED STATES. 



BY F. W. TAUSSIG. 



[Frank W. Taussig, professor of political economy, Harvard university; educated at 

 Harvard university ; ho is one of the foremost economists in the world, and is especially 

 known as an authority on the tariff, currency, wages and capital; for several years hr; 

 has been editor of the Quarterly Journal of Economics, by special arrangement with 

 which periodical th(> following article is published. Author: Tariff History of the 

 United States, Silver Situation in the United States, Wages ana Capital, etc.] 



The growth of the iron industry in the United States 

 during the last thirty five years has been so extraordinary, 

 and has been attended by changes so striking, as to make 

 the mere chronicle an instructive chapter in economic history. 



Thirty five years ago Great Britain was still the world's 

 commanding producer of iron and steel. Notwithstanding half 

 a century or more of almost continuous protection, the United 

 States held but a distant second place. The output of pig 

 iron in the old country in 1870 was very nearly six millions 

 of tons : that in the new country was but little over a million 

 and a half. But between 1860 and 1870 the product in the 

 United States had doubled, — a geometrical progression, 

 which, if maintained, must soon cause all rivals to be dis- 

 tanced. It is much easier, however, to double a small num- 

 ber or a small output than a large one. Yet in this case the 

 unexpected happened: for three decades the geometrical 

 progression was maintained in the output of pig iron in the 

 United States. The product of 1870 had been double that 

 of 1860, 1880 doubled 1870, and 1890 again doubled 1880. 

 The iron industry of Great Britain held its own, and, indeed, 

 between 1870 and 1880 made a notable advance; but it could 

 not match the astounding pace of its young rival. In 1890 

 the United States turned out more than nine millions tons 

 of pig iron, for the first time passing Great Britain, and dis- 

 placing that country suddenly as the leading producer. 



This enormous increase, however, has been by no meane 

 evenly distributed over the United States. Within the 

 country a revolution has taken place, which is part and parcel 



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