1853.] Memorandum on the Iron Mines of Baneegunge. 489 



that I purposely avoided any allusion to the then cost of Iron, as I 

 was fully aware, that at the time alluded to, Iron was being sold at 

 the smallest possible profit, and in many cases at an actual loss. 



"With regard to the question of freight, I have no means of ascer- 

 taining the probability of a continuance or non-continuance of the 

 present high rates, though I am disposed to think, that these rates 

 are exceptional, caused by the sudden diversion from the ordinary 

 channels of trade, of a very large amount of shipping, in consequence 

 of the rapid and immense extension of intercourse with the gold- 

 producing countries. I have no means here, of ascertaining by a 

 reference to commercial reports, what the average charge for freight 

 has been, during the last twenty years, but I am inclined to think 

 that the tendency has been to a regular decrease, and not to an 

 increase, and to suppose that the present is only a temporary de- 

 rangement in the scale of charges, arising from the temporary causes, 

 which are even already passing away. On this, however, I cannot 

 pretend to offer an opinion, and of course, any increase in the 

 freightage charges will be so much in favour of the Indian manufac- 

 ture. 



If therefore, my former conclusions were just (and I was glad to 

 find that Major Baker fully confirmed the general correctness of the 

 argument) I am still of opinion that the only really well founded 

 advantage in favour of the manufacture in India, will be the saving in 

 the original cost of the materials and that this saving will be from 

 4s. to 7s. per ton of pig Iron manufactured ; this saving being over 

 and above the amount sufficient to counterbalance all additional risks 

 in this country. And I think that this ought to be sufficient to induce 

 the investment of capital in such undertakings. 



Major Baker has suggested that any persons engaging in such 

 manufacture, should at first confine their attention to the production 

 of cast Iron only, in the justice of which advice I fully concur. In- 

 deed, such must be the necessary consequence of any attempt to 

 work these ores, on an efficient scale. I do not, however, see that 

 there is any sufficient demand for cast Iron, to justify the commence- 

 ment of such heavy works as would be required ivith a view to the 

 production of cast Iron only. Major Baker states that there is " a 

 considerable local demand for cast Iron." A reference to the tables 



3 q 2 



