After living for more than a year on his farm, McCormick saw that as a means of raising money it was a failure. It had given him a most valuable period of preparatory solitude, but it had not helped him to launch the Reaper; so he looked about him for some enterprise that would yield a larger profit. There was a large deposit of iron ore near by, and he resolved to build a furnace and make iron. Iron was the most expensive item in the making of a reaper. At that time it was $50.00 a ton--two and a half cents a pound. So as he had been unable to establish the Reaper business with a farm, he now set out to do it with a furnace. He persuaded his father and the school teacher to become his partners; and they built the furnace and were making their first iron in 1835--the same year, by the way, in which a babe named Andrew Carnegie was born in the little Scotch town of Dunfermline. [Illustration: REAPING WITH SICKLES IN ALGERIA] For several years the furnace did fairly well. It swallowed the ore and charcoal and limestone, and poured into the channelled sand little sputtering streams of fiery metal. Cyrus made the patterns for the moulds, and, because of his great strength, did much of the heaviest labor. But the work was so incessant that he had no time to build Reapers. And in 1839, when the effects of the 1837 panic were felt in the more remote regions of Virginia, Cyrus McCormick realized to the full the aptness of that couplet of Hudibras-- "Ah, me, the perils that environ The man who meddles with cold iron!" The price of iron fell; debtors were unable to pay; the school teacher signed over his property to his mother; and the whole burden of the inevitable bankruptcy fell upon the McCormicks. Cyrus gave up his farm to the creditors, and whatever other property he had that was saleable. He did not give up the Reaper, and nobody would have taken it if he had. Thus far, he had made no progress towards the building of a Reaper business. Instead of being the owner of a million, or any part of a million, he was eight years older than when he had begun to seek his fortune, and penniless. In this hour of debt and defeat Cyrus became the leader of the family. Here for the first time he showed that indomitable spirit which was, more than any other one thing, the secret of his success. At once he did what he had not felt was possible before--he began to make Reapers. Without money, without credit, without customers, he founded the first of the world's reaper factories in the little log workshop near his father's house. In the year of the iron failure, 1839, he gave a public exhibition on the farm of Joshua Smith, near the town of Staunton. With two men and a team of horses he cut two acres of wheat an hour. At this there was great applause, but no buyers.