Butler citizen. [volume] (Butler, Pa.) 1877-1922, 1879-10-01
The Business Boom.
THE ACTIVITY IN IRON, GRAIN, Pc

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The universal topic of conversation
among business men, for the past few
DAYS. has been the rapid and extraOr-
dinary advance in many leading pro-
ducts and the all-absorbing question
is, whether the enhanced prices can be
generally maintained, or whether things
will go on at this lively rate for a
while, and then recede to about the
old figures. With view to getting
some light on this important question
a representative of the Commerciat-
Gazette yesterday interviewed num-
Der of leading gentlemen engaged IN
the various branches in which the ac-
tivitv has been developed, and it is
gratifying to be able to state, that, ex-
cept in the case Of two or three artl-
cles. the general belief is that the pres
ent advance is a natural and healthy
one, and will be maintained, in large
degree at least. The reason is, that
prices had been undulv depressed by
the paralysis which fell upon the iron
and other leading industries during
the panic, and that now, since the iron
business has revived, calling into activ-
ity all cognate industries, the demand
for the nccessaries of life has increased
with the ability of the working classes
to purchase, and that we have fairly
entered upon an era of prosperity that
must continue for some years at least.
This view, Of course, only applies IN
general way, and must not be under
stood as covering purely speculative or
spasmodic advances. y single product
as, for instance, wheat-may be
forced up by the concentrated efforts OF
capitalists, to point beyond its nor
nal value, and kept there for while ;
but reaction is sure to follow, and
that part of the advance attributed to
speculation will be lost, while that due
to legitimate demand will be main
tained. 1t is the opinion Of the best
informed persons in the business, that
there will be reaction in wheat, and
possibly in pig iron, but that, on the
whole. a decided advance will be main
tained, and that no contingency can
possibly arise to bring prices back to
panic prices.
THE IRON TRADE.
We have, from time to time, kept
our readers fully posted in regard to
the extraordinary advance in pig iron,
and very little remains to be said In
addition to what has already been re-
ported. The advance, within the past
three months, has been from twelve TO
fifteen dollars ton, with a correspond
ing advance in manufactured iron. 1t
must be borne IN mind, however, that
little if any advantage has yet re-
suited to manufacturers. They have
generally been running on work con
tracted for months ago, and many OF
them will have to close out the years
business before they can begin to real
ize advance in prices. In some lines,
as in stoves, the advance on the manu-
facturcd articles will scarcely keep
pace with the increased cost OF theraw
metal, so that time must elapse before
prices will adjust themselves in such a
way as to give that department its due
share Of advantage. There are those
who believe that iron has reached too
high a point, and that it must expert
encc a reaction. The majority, how
ever, think that the advance is in con-
sequence Of a legitimate demand, and
that, should prices recede for a time,
they will rally again, and not only re-
gain what was lost, but go still higher.
They know that the country is bare OF
ore that nearly all the old rails and
scrap have been worked up, and that,
even with the stimulus Of good prices,
it will be a year or two before the
mines and furnaces can keep pace with
the demand.
WHEAT.
Within period Of sixty days wheat
has advanced in Chicago from 50 cents
to SLOT per bushcl. This is ono Of
the most extraordinary advances ever
in the history Of the grain
trade, within the same period Of time.
That the advance has been too rapid
to be maintained scarcely admits OF a
doubt, and there is danger Of q rcac-
ton. A great many have boen spccu-
lating in grain here, in small way,
and there arc from q dozen to Il score
Of heavy operators who stand very
good chance Of going to the wall.
Now il "A very dangerous time to buy,
and legitimate dealers are not touch
ing wheat at all, except for immediate
wants They hayo learned that these
'boosts," caused by the demands Of
SPECTATORS, are injurious and danger
Gus, and they simply try to "stand
from under'' until the speculative
cxhausts itself Dealers
here assert that while the advance is
not all attributable TO the squeezing OF
the "shortsh in Chicago, q good deal Of
it undoubtedly is. Although n reac-
ton is anticipated, strong market is
predicted for the balance Of the year,
and decided advance will be main
tanned over the low prices which ruled
sixty days ago The main reason as
signed for expecting better prices dur
ing the winter, is the universally ad-
mitted fact that there will be an un-
demand for wheat for cx.
port. One Of the largest grain dealers
in Baltimore, who has business con
ncctions here, and who has recently
through Europe, reports that
there will be demand for every bushcl
that we can spare. The question will
be one Of transportation, not Of price.
Notwithstanding the large yield Of
wheat in this country, it is the opinion
Of tho most experienced dealers that
the foreign demand must largely en-
hancc the prices which prevailed before
the recent Jump" 1t is only the
most sanguinc, however, who believe
that present prices can be maintained
for any great length Of time. The
quantity Of wheat in this city is quite
limited The millerS are running on
short stocks. Corn and oats have felt
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