ANNUAL REVIEW OF THE IRON TRADE OF NEW-YORK FOR THE YEAR 1872. GENERAL REMARKS. THE iron trade for the year just closed has proved itself successful almost beyond precedent, if high prices and a large demand be taken as proofs of prosperity; indeed, it is questionable if in the whole history of the iron trade of the United States there can be selected a single year that will compare with 1872. One year ago we called attention to the excited state of the European markets, and particularly to that of Great Britain, remarking and commenting at the same time on the surprising contrast presented by the trade here, and bearing in mind the close connection of the two markets, it was not difficult to foresee that they could not long continue to present antagonistic features. Early in January a change became manifest; but few, however sanguine, would have ventured to predict the enormous advance accomplished during the spring, and it was long before operators really comprehended their position. The suddenness and rapidity of the advance caused a scramble for goods, and it seemed as if an army of consumers had suddenly sprung into the field, of whose existence no one had previously been aware, and whose wants were at once urgent and imperative. The question naturally arises as to the cause of this sudden change from great depression to excited activity, and in estimating it we must take into consideration a variety of circumstances. It is impossible to trace it up to any one cause, and there have not been wanting those who, viewing the whole advance as merely speculative and visionary, concluded that it could only be temporary. This might with many be partly attributed to a constitutional aversion to all sudden and violent changes in values, the consequent disturbance of well laid plans, and the low prices which for four or five years we had been accustomed to view as normal. Others again, more sanguine, saw in the changed aspect of the trade only the natural outburst of a healthy, vigorous industry too long pent in by narrow bounds, feeling assured that consumption all over the world, and particularly in this great and prosperous country, had been silently but steadily overtaking the capacity of production, and that consequently, the great advance accomplished was but the prelude to still greater progress. It surely concerns all who are interested in the trade to study the question, and ascertain as nearly as possible what influences have most conduced to effect so marvellous a revolution in so short a time, whether it is natural and healthy, and in consequence permanent, or speculative and merely temporary; and what in addition are to be the ultimate effects on this great branch of the industrial resources of the United States. We will not enter at length into each of these points, but we will attempt briefly to sketch what appears to us the most prominent among the influences at work. To do this intelligently, we must cast our eye back to the spring of 1866, when there occurred in England the great financial crisis, generally called the Bank Panic. The war in the United States had fostered not only here but in Europe, India, and particularly in Great Britain, a strongly speculative fever, engendering in its turn a hollow and miserably false system of financiering, culminating in great commercial distress. Prices fell to a low point, and capital, frightened from its usual channels, took refuge in the great monetary centres. Enterprises involving large expenditures languished or were abandoned; the trade of the kingdom shrank, and the rail-roads feeling the diminished traffic, ceased to be popular as investments. This in its turn re-acting on the iron manufacturers, so depressed prices that in 1867 and 1868 orders were taken more with a view to keep the hands together than from any profit accruing, and thus presenting no encouragement to embark in new enterprises of this kind. As time wore on and confidence returned, assisted greatly by the general prosperity in the United States during the years succeeding the establishment of peace, prices began gradually to improve, with an increasing demand, though so gradually that it was still insufficient as a stimulus to any great increase in the production either here or in Europe. Capital seemed to prefer the more tempting fields of gold and silver mining, leaving iron, really the most valuable, comparatively neglected. Meanwhile enterprises requiring an almost incalculable amount of iron were being set on foot and vigorously prosecuted, apparently, however, without overstraining the capacity for production, and without inordinately advancing prices. It was then that the trade began to get glimpses of a state of prosperity to which it had long been a stranger; but a severe check ensued in the outbreak of the Franco-German war, throwing everything into confusion, and causing a smart decline in prices, besides greatly curtailing consumption. Then followed the absorption of labor for service in the field, and consequent stoppage of works, such establishments as were not closed being drawn from the manufacture of peaceful to that of warlike material. The decisive events which succeeded and occupied till the summer of 1871 are matters of history, and need not be referred to here; · but equally important in a commercial and financial point of view has been the unprecedented transfer of capital from one belligerent to the other in the indemnity payments, threatening confusion at the centres of exchange, and filling to overflowing the treasury of Germany, where every branch of industry has felt the inflation and stimulus. Relieved of the incubus of the war, the necessity of replenishing depleted stocks demanded immediate attention, and the surplus capital sought an outlet in a vast number of undertakings requiring supplies of iron. England, of all the iron producing countries, being readiest to respond and easiest of access, naturally felt the first force of the wave, and hence the long-continued activity there before we moved here. We have entered into these details, dwelling particularly on the state of affairs in Europe, because they form a series of influences closely linked together, and to them, acting simultaneously with greatly multiplied uses for iron all over the world, and the marvellous extension of the railway system in the United States, may be attributed much of the phenomena of the trade of 1871. We are justified in concluding that the demand has been natural and legitimate, and not speculative. How long this state of affairs will last is a problem not easy of solution. Without doubt we must, to a certain extent, experience that lessened consumption which is the usual concomitant of high prices, but in Great Britain elements have entered into the question that require delicate handling. The vast increase in the price of labor and fuel have raised the platform of costs away from old figures, and it will be a long, slow process to return to the former standards, if indeed it were possible or desirable so to do. We do not therefore look for an early return to former prices, either of raw material or manufactured iron. That the ultimate effect on the iron industry of the United States will be good, may well be conceded, though we by no means believe with many that the power of Great Britain as a competitor is permanently injured, but the future looks bright, and the daily extending purposes to which iron is necessary, justify us in saying, that with wise legislation and the well known enterprise of our people, there is no reason why the United States should not ere long occupy the proud position of the greatest iron producing country in the world. We will be pardoned, we trust, this somewhat lengthy generalization on account of the exceptional character of the year, and we will now refer, under their respective heads, to those articles coming more immediately under our own supervision in the course of busi ness. REVIEW OF THE NEW-YORK MARKET. New Rails.-The import in 1872 at this port falls short of that of 1871 to the extent of 27,363 tons, though this by no means represents the actual decrease, as the import of Bessemer steel rails has greatly increased, and such are included in our aggregate quantity. Business in iron rails has for some months been slow and dragging in character, partly owing to the inability of some and the unwillingness of other rail-road companies to follow the advance in prices. The investment of foreign and domestic capital in the bonds of new roads has also greatly fallen off, and the stringency which has been more or less for a length of time so marked a feature in our own money markets, has compelled the abandonment or postponement of numerous schemes. It is true that we have probably added some thousands to the completed mileage in 1872, and the urgent demands of commerce will continue to offer temptations to capital in this direction; but the number of schemes has been sifted down to those that are generally on a sound basis, and really necessary to the comfort and prosperity of the sections through |