Mr. Lothian Bell.
In the evidence, which he gave before the Committee, Mr. Lothian Bell stated that the greatly increased demand for the manufacture of iron, although not the sole cause, was one of the causes, of the rapid advance in the price of coal.
In his district the iron trade gave a great stimulus to the coal trade. ‘But,’ he observed, ‘all industry throughout the country has been, and still is, in a very flourishing condition. The manufacture of alkali in the North, the increase of railways, the substitution of steam for sailing vessels, all added to demands on an output not very greatly increasing.’ It is to be observed that the rise in the price of iron preceded the rise in the price of coal. Mr. Lothian Bell quoted figures, from which it appeared that, in September 1871, forge pig iron was selling for 50s., while coke was selling for from 10s. to 12s. a ton. In July 1872, the forge pig iron rose to 120s.—more than double the price of nine months before—and coke, following the advance in iron, rose from 37s. 6d. to 41s. a ton.
The Committee rightly observe, in commenting upon these figures, that, although the disturbance in the proportion between the demand and the supply of coal might not appear sufficient to explain fully the great rise of prices, yet a comparatively small deficiency in the supply of an article of paramount necessity may produce a disproportionate increase of price, through the eagerness of buyers competing with each other, each for his own supply.