About the spring of 1878 matters had not improved in any very material sense; and the ironworkers insisting on a settlement of their former claim for an advance, were met by the employers with a proposal to increase the working hours from 51 per week, as arranged in 1872, to 54 hours per week, or to reduce the then rate of wages. The men were not unnaturally averse to the increase of working hours, and signified their opposition. Subsequently a reduction in wages of 7½ per cent. was enforced, with the result that the ironworkers came out on strike for a time. Ultimately in the spring of 1879 a return to the 54 hours was made. The prevailing great depression continued well on into the autumn of 1879. In October of that year the shipbuilding industry experienced an unexpected but very welcome revival, and an unusually large amount of work came to the Clyde. The output which in 1879 had fallen to 174,800 tons, now took a sudden and remarkable jump, the figure for 1880 amounting to no less than 248,650 tons, affording ample grounds for the belief that the impetus at the close of 1879 was no mere temporary spurt, but a solid revival. Subsequent experience has more than justified this belief. In 1881 the output reached the aggregate of 341,000 tons, in 1882 it overstepped even this, and the output curve continued in the ascendant until for the year 1883 the stupendous aggregate of 419,600 tons was reached. Following the course which accepted theories regarding industrial activity and depression suggest, and which actual experience in the past exemplifies, the curve of output ought still to be in the ascendant, reaching its maximum in 1884, and thereafter declining. Although the close of the year is still some distance off, there is already ample reason to believe that this will not hold good for 1884. This result is after all only very natural when the most exceptional activity of the past four years, coupled with the present very unhealthy state of the shipping trade, are taken into consideration. * * * * * The history of iron shipbuilding on the North-East Coast district does not commence until the year 1840. In March of that year the _John Garrow_, of Liverpool, a vessel of 800 tons burthen, the first iron ship seen in the North-East Coast rivers, arrived at Shields, and caused considerable excitement. A shipbuilding firm at Walker commenced to use the new material almost immediately, and on the 23rd of September, 1842, the iron steamer _Prince Albert_ glided from Walker Slipway into the waters of the Tyne.