COMMERCE AND FINANCE, AMERICAN, IN 1882. 



115 



glycerine cartridges at the bottom of the wells 

 when the flow diminished. In September the 

 Cherry Grove wells suddenly declined, reduc- 

 ing the daily production by 25,000 barrels. 

 For the first time in five years it approached 

 the consumptive demand. A speculative ex- 

 citement followed, which transcended all for- 

 mer limits. The sales in September in the 

 exchanges of the oil districts, where the largest 

 transactions took place, amounted to as much 

 as the whole existing stock multiplied several 

 times. The price rose above $1 a barrel. 

 With an immense stock on hand, such prices 

 could not be sustained, notwithstanding the 

 failing supply. When the bubble burst, and 

 the price receded to 80 cents, thousands of 

 speculators were ruined, business firms all over 

 the country embarrassed, and three banks 

 obliged to close. The extreme range of prices 

 during the year was from 87 cents in February 

 to less than 50 cents in June, then to $1.46 in 

 November, and back to 75 cents in December. 

 The field for future discoveries of petroleum is 

 probably limited to Warren and Forest Coun- 

 ties, Pa. ; Butler, Armstrong, Clarion, Venan- 

 go, Crawford, and Bradford Counties being 

 nearly exhausted of their deposits, and the 

 territory in McKean County and New York 

 State thoroughly explored. 



IRON. The production of iron and steel in 

 the United States, in 1881, was reported by the 

 Secretary of the Iron and Steel Association as 

 follows: Production of pig-iron, in net tons, 

 1,041,564, including 21,086 tons of spiegel- 

 eisen ; production of all rolled iron, including 

 nails and excluding rails, 2,155,346 tons; Bes- 

 semer-steel rails, net tons, 1,330,302; open- 

 hearth steel rails, net tons, 25,217; iron and 

 other rails, net tons, 488,581 ; production of 

 iron and steel street-rails, included in above, 

 21,554; crucible-steel ingots, net tons, 89,762; 

 open-hearth steel ingots, net tons, 146,946 ; 

 Bessemer- steel ingots, net tons, 1,539,157; 

 blister and patent steel, net tons, 3,047. Pro- 

 duction of all kinds of steel, net tons, 1,778,- 

 912. Production of blooms from ore and pig- 

 iron, net tons, 84,606. The imports during 

 the year were, in value, $61,555,078; exports, 

 $15,782,282. 



The iron business is peculiarly subject to 

 fluctuations, owing to its dependence on rail- 

 road-building, and to the fitful way in which 

 railroad extension takes place. In 1881 com- 

 menced the greatest era of railroad construc- 

 tion which the country has seen, but the one 

 of the shortest duration. In 1882 there were 

 over 11,000 miles of railroad built, more than 

 in any previous year. In the spring a great 

 strike of the iron- workers for higher wages 

 was started at Pittsburg, Pa., and extended to 

 all the iron-producing districts. For over 

 three months, more than 100,000 men were 

 kept out of work. But the fever for railroad 

 extension had already subsided, and the wants 

 of the lines under way were in great part sup- 

 plied. The dissatisfied workers lost the con- 



test. The powerful trade organization of iron 

 and steel workers was broken up. Before the 

 year ended this great branch of industry began 

 to languish. Rails were sold in large quan- 

 tities for $38 a ton, the lowest price ever 

 reached. In December hundreds of establish- 

 ments were closed, or running on half-time. 



The production of coal was reported for the 

 year 1880 as 28,646,995 net tons of anthracite, 

 and 42,420,580 tons of bituminous. In 1881 

 the anthracite product amounted to 28,500,- 

 016 gross tons. 



THE MONEY MARKET. Notwithstanding the 

 expansion of the currency, the demand for 

 money was so active in 1882 that the average 

 rate of interest rose perceptibly during the 

 year. The diminution in the volume of the 

 currency from exports of gold was more than 

 restored by the silver certificates which repre- 

 sented the silver dollars which had accumu- 

 lated in the Treasury since their coinage was 

 begun, and were now added to the circulation 

 by this device. The Secretary of the Treasury 

 endeavored to return to circulation the sur- 

 plus accumulating from taxes as rapidly as 

 possible, and his payment of bonds and other 

 transactions he conducted with regularity, so 

 as to disturb business as little as possible. In 

 October and November there was great strin- 

 gency in the money market, which was in- 

 creased by the manipulations of bank funds 

 by stock operators, but relieved, as far as it was 

 due to this cause, by the accelerated payment 

 of called bonds by the Treasury. In Decem- 

 ber the market was easier. 



In January, 1882, the inflow of gold, which 

 began on a large scale in 1879, and had con- 

 tinued without interruption since, ceased, and 

 in February a contrary movement began which 

 continued until August. During this period 

 $34,000,000 net were exported from the coun- 

 try. In September, although the balance of 

 trade was still heavy against the United States, 

 the draughts against future shipments and the 

 purchase of American securities abroad turned 

 the tide. Nearly a million was received in 

 that month from the West Indies and Mexico 

 on English account,- and about $3,750,000 in 

 October. Small consignments arrived later 

 from Europe, but, owing to the return of some 

 speculative securities and of called United 

 States bonds, exchange wavered for the re- 

 mainder of the year about the gold-importing 

 point. 



The rapid payment of the Government debt 

 endangered the note circulation of the national 

 banks. The process could not go on as rapidly 

 in the latter half of the year 1882-'83, since 

 by the 1st of December about $85,000,000 of 

 the estimated surplus income for the year had 

 been already thus applied, leaving only $35,000- 

 000 for bond redemption up to June 30, 1883. 

 Comptroller Knox suggested three ways of 

 enabling the banks to continue their circula- 

 tion: 1. Reducing the interest on the 4 and 

 4-J- per cents by paying or compounding the 



