The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1872-12-31
THE IRON TRADE.
An Explanation of the Late Decline
in Prices.


In Prices.
From the New York Financial chronicle)
The remarkable change which has talk.
On place during the past few week In the
condition Of the iron trade In this country
and Great Britain is not we think, gener.
ally understood by those unfamiliar with
the influences operating to unsettle tho
market Il seems TO Be The opinion OF
consumers, as o class, that q crisis has
been reached, and that prices must decline
until they again reach the point at which,
about eighteen months ago, the. advance
began. The opinion Is only in part cor.
rect. A crisis has certainly been reached
In the iron trade, but It Is only 0 crisis in
artificial values. As shown in these col.
umns nearly q year ago, the advance in
prices which carried iron up to S55 per ton
ior No. l was based upon the actual con.
diton and necessities Of the trade. Con.
sumption had overtaken production,
stocks were reduced 10 q nominal amount,
the demand was active and the necessi.
ties Of consumers imperative. Then II
was suddenly discovered that the world
was using more iron than was being
made, spectators became active, large
consumers bought all they could find,
smaller consumers bought all they could
carry, and the result was panic, Un-
der such conditions 1t Is not TO be won
dered at that the prices Of iron advanced
far beyond It's actual value, and tho pro.
ducers knowing that no immediate and
rapid increase Of production was posi-
bic, should have taken advantage OF the
opportunity thus afforded them to reap
the enormous profits placed within their
reach. But the effects were what might
have been expected. High prices check
ed consumption In many directions, and
compelled an economy in use which
would not otherwise have been observed.
Many important enterprises were suspend.
ed, the ironing Of new railroads was post
poned wherever such postponGment was
possible, and in thousand ways the de.
mand fell of. at the same time there
was marked and rapid increase OF pro-
duction. More than fifty new furnaces
have been put In blast during the past
year. and as many more old and aband.
oned have been refined and put to work,
and the production OF the country has in.
creased by many thousand tong. These
facts have not Cscaoed the notice oil con.
sumerS, and a general disposition has pre-.
vailed to deter purchases until better
terms were offered. Producers, however,
preferred TO hold their iron rather than
sell below the highest prices, and consc.
quently considerable stock has accumu.
lated, and the market has broken under
them. 1t Is also said that there has been a
change Of policy on the part of produc-
ers, most Of whom now desire that the
decline between this and the end Of the
year shall be as great as possible, so the
next year consumers shall have the in
duCement to buy in rising market. On
this point 1t is unnecessary to express an
opinion. Nor Is 1t necessary to say when
the decline will be arrested. We believe
that no more iron is being produced than
can beconsumed at fair prices, and when
the fictitious values shall have disappear.
ed the legitimate demand will again as.
sert itself. There is, therefore, nothing in
the present decline 10 discourage the lib
eral investment Of capital in the produc.
ton Of iron, for 1t must be many years
before the supply, at reasonable prices,
shall equal the actual requirements OF the
country.