Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1882-11-22
THE IRoN SITUATION.

The unusual attention whicht the pros
poets and condition Of the iron trade Is
commanding, tends of itself to produce
distrust and uneasiness; and 1t may also
be said that the character and tendency
of the comments by the press have been
drawn from rather sombre standpoint,
although they do not seem to have any
thing very substantial to hang upon.
The chief cause of dissatisfaction Is
found in the disappointment arising out
ofthe fact that suspension during the
Summer has not brought the antici-
pated advance in prices.
The Philadelphia Press takes a more
hopeful view of the situation. 1t says:
AS matter OF fact there is nothing in
the position which need cause alarm. There
is no general suspension of work, and as
regards consumption, it may be doubted If
there is any falling off at all. Demand is
unsuestionably much smaller than 1t has
been, and lit does not improve the posi-
ton will soon become rather serious. On
the other hand, it appears TO be the unani-
nous opinion that stocks are not increasing
appreciably, so that the surrent output
must be going into direct consumption.
The point to be determined. therefore, is
whether the falling oifin demand for crude
and finished iron is due to a similar falling
off in the demand for manufactured arti-
cles or simply to an expectation OF lower
prices in the near future. The fact that
steel rails have declined 25 to 30 per cent.
within q year should not be regarded as an
indication of the condition Of the iron
trade throughout. Capacity for the pro-
duction of steel rails has more than doubled
within the past two or three years,
besides which very heavy imports were
made in 1880, 1881 and 1882. A considera-
bic increase of capacity has been made in
other directions, but in no such proportion
ss in steel rails; neither is there any reason
to suppose that there will be any such de.
cline in prices. Pig iron quotations ara
about as they were year ago. and although
s7ch a thing may occur, there are very few
who have a thorough knowledge OF the
trade who predict with any degree of con.
fidence even q dollar per ton decline. Fin
ished iron, unfortunately, is about 10 per
cent. lower than it was year ago; but, on
the other hand, it is 10 per cent. above what
it was year and half ago.
In view of all the facts it is not at all
that the scarcity of demand is the
natural result of a disparity in prices,
which will pass away as soon as values are
brought into harmonious proportions. In
D ther words, pig iron must be lower or fin
shed iron must be dearer; possibly both
may 20 lower before buyers take hold free
", but the principle holds good all the
,ame, and pig iron must give way in pro-
portion to the recent decline in finished
ron. The fact that it yields so little and
20 slowly is convincing evidence of the
general soundness Of the position.
The unremuneratiYeness of bust
ness to consumers will soon deter
mine one Of three things, namely, decline
in crude iron, a curtailment of its consump-
ton, or better prices for its products; but
which of these influences will predominant
time only can show. Reference to our re-
port of the iron trade will show that a
single transaction has just been closed
to s., 600, 900, and that the total
within the past sixty days ex-
reed the large sum of $l2, 100000. The de-
cline in prices should therefore be at.
not so much to q falling off in
demand, as to the extraordinary competi-
ton for business, necessary to employ the
vast increase in productive capacity.