Democratic Sentinel, Volume 10, Number 51, Rensselaer, Jasper County, 21 January 1887 — BETTER TIMES AHEAD. [ARTICLE]

BETTER TIMES AHEAD.

A Large Volume, of Capital Seeking Employment in Every Direction. An Enormous Amount of Iron and Steel to Be Consumed the Current Year. [New York telegram.] The following interesting summary of the industrial situation is from the pen of a statistician who is quoted as the highest authority in the land: It is yet a little early to present a statistically correct report and review of the American iron, steel, and railroad building interests. Sufficient mateiial has been received to present practically safe conclusions, which are here briefly embodied: The chief matter of anxiety is as to the probable course of prices and the permanency of the present widespread industrial activity. Some sixty syndicates or combinations of capitalists have been formed in Boston, New York, Philadelphia, and Chicago since October 1 for the purpose of prosecuting large railroad, manufacturing, mining, engineering, and,other vast enterprises. To move or stand still for further developments is now the question. A remarkably conservative feeling prevails in all business channels. We are in sight of the possibilities of overproduction. Enterprise is everywhere encouraged and stimulated. Capital is flying into reproductive channels. Building enterprise is straining. Bailroad building has begun on a scale of unprecedented magnitude; already 1,200,000 tons have been sold, equal to 13.000 miles of track, and only 600,000 tons remain unsold. Prices of rails have advanced from $34 to s37@s3B. Steel rail material is up $5 per ton. Small buyers have been taken by surprise, and are rushing in and crowding -up markets for spring delivery. Inquiries are on hand for nearly 100,OOOtons foreign rails and material and all American mills are sold up to September.

This is wonderful activity in the face of foreclosures during the past year amounting to $375,000,000 on forty-five roads and 7,678 miles of track. No less than 12,000 miles of main track will be built this year, and 5,000 miles of side track and repairs. New railroad building projects will be precipitated onto investors of the coming eleven weeks equal to the past eleven. The iron and steel industries are remarkably active and strong. The present productive capacity of blast furnaces is 128,000 tons per week, and 332 furnaces blowing. Prices have advanced in one year $3 to $4 per ton on pig iron, and $3 on steel rails, $5 on old rails, and the same on foreign blooms, slabs, etc. Forty blast furnaces are projected, and about twelve rolling mills of all kinds of large capacity. The following figures show the pig iron consumption for the years named: Gross tons production: 18803,990,415 18844,229,280 18814,982,565 1885...4,348,844 18824,963,278 18865,634,618 18834,834,740 Steel rail production, net tons; 18801,461,837 18811,144,851 18811,844,103 1885:1,094,215 18821,088,794 18861,550,000 18831,360,694 The pig-iron increase is about forty per cent, increase in 1886 over 1885, and the steel rail increase is not far from fifty per cent. It is no use to multiply statistics. They all show about the some general result, viz: A heavy production, an improvement in price, and a diminution of stocks at all points. The sudden expansion of demand in the latter part of 1886 sent prices up rapidly, chiefly in iron and steel, but in all other directions prices have moved up only a little. Building material has not varied much. Lumber is but little above its summer and fall quotations, and builders’ hardware aqd tools, machinery and agricultural implements are all at fair and moderate prices. The most remarkable tendency observable is to increase capacity in shops, mills, factories, and mines. The present upward tendency may crowd prices to a point which will endanger enterprise, but the probabilities are the other way. Capital is seeking for the most favorable opportunities. While the commercial failures are only about 10,600 of persons doing a business of over $5,000, 20,000 new firms and corporations have sprang into life, all with sufficient capital to carry on the purposes of their organization. The cost of living is declining steadily, while the tendency in wages is upward. The incredsing margin for the wealth producers is creating a field for a multitude of small industries. Prices cannot safely advance in iron or steel. In breadstuffs the probabilities are that demand, both home and foreign, will increase, and that a great deal of new territory will be taken up this year. Extensive purchases have been made in the West and South of timber, mineral, and agricultural lands, for speculative purposes. The influence of capital will be heavy, because of the profitable appreciation in values. The heavy orders which have been crowding in for two months have protected the country to a great extent against the possibilities of a reaction. The best trade authorities are of the opinion that the production of 1877 will be 20 per cent, in excess of 1886, and that prices will be 10 per cent, higher all around, including breadstuffs and provisions and textile goods, hardware, and building material. Large orders for steel rails cannot be placed for sooner than September delivery. Heavy machinery establishments are sold until April and May in many instances, and much business has been developed for later consideration through agents and correspondence. Numerous enterprises will be started in the Southern States in iron, steel, textile, lumber and mining. English capitalists will have their representatives in the States in the early spring to examine and report on extensive operations projected and in which they have been invited to co-operate. The enormous volume of capital seeking employment guarantees great activity in all manufacturing directions. The wages of labor will be as a rule uniform, and fewer strikes will take place than last year. The margin of profits will increase on nearly all kinds of manufactured products. The furnace and mill and factory capacity will be increased 10 to 15 per cent. Prices will remain steady for a few weeks, except in iron and steel, until the spring demand can be discounted. The present expanding tendency will show signs of exhaustion by midsummer.