[To the Editor of the SPECTATOR.] Sm,—There has been a
good deal of misconception regarding the iron and steel industry, but stated very briefly the position is as follows:—
(1) The recent increase in unemployment is chiefly due to the plight of the iron and steel industries, and the coal trade which is largely dependent on the activity of the heavy industries.
(2) Continental lower wages, longer hours, and much lower taxation, enable foreign manufacturers, owing to our free market, to deliver the bulk of the steel that is imported in a semi-finished condition at prices below, but only slightly below, our own costs of production.
(3) Iron and steel are not raw materials, labour representing about 85 per cent. of the cost, and the ore and coal being the raw materials.
(4) A very moderate safeguarding duty would enable our manufacturers to secure the bulk of our home trade,.and to regain a considerable portion of our Empire trade which we have been gradually losing.
(5) Our increased production would very materially reduce costs of manufacture and selling prices, as has been the case in all other safeguarded industries.
(6) Industries using iron and steel, without exception, would have the advantage of the superior British quality at lower prices.
(7) Last and most important there would be a rapid and great reduction of unemployment in the iron, steel, and coal industries, in transport workers, suppliers of rolling-stock, tools, stores, and many other subsidiary industries that would benefit directly and indirectly. This, both from the humani- tarian and economic points of view is of the most vital urgency.
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