The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1883-02-27
IRON TRADE TROUBLES.
Tot Enough in Them 10 Brighten ii
90 # r Country.

Hot Enough in Them TO Brighten the
Iron Age.
The suspension OF John v. Ayers Sons,
OF Chicago, carrying with it, it possibly
may, at least the temporary embarrassment
OF Brown, Bonnell 4 Co., Of Youngstown,
Ohio, taken in connection with the other
failures in the iron trade, has caused
feeling Of insecurity as to the future, and a
questioning as to the meaning OF these
troubles. In view Of this review OF the
situation as TO failures and condition Of the
country may not be without interest.
The prominent failures or embarrass-
ments in the iron business thus far within
the past few weeks have been the Union
Iron and Steel Company, Of Chicago; the
Kansas Rolling Mill; the Bay State Iron
Company; the Kloman. Iron and Steel
Company, at Moundsville, w. Va; the
Kloman Works, at Pittsburgh; John v.
Ayers Sons, and the Fox River Iron Com.
pany. In all OF these endorsements, no
doubt, two OF the important factors have
been, first, the condition OF trade, with the
large reduction OF the prices Of iron and
steel in the past few months; and, second,
the uncertainty OF the future, largely
brought about by the delay in the action
OF Congress on the tariff question. These,
no doubt, have been the immediate causes
OF the troubles, but in almost every case
they have only developed the condition
OF affairs. Had 1t not been for this, 1t is
possible that most OF these concerns could
have pulled through, but 1t is not be-
cause OF this that their troubles have come
upon them. In-the case OF the Bay State
Company the trouble was an old suspension
some Eve years since. We believe that
with the Union Iron and Steel Company 1t
was too great extension, and the same is
possibly the reason OF the trouble OF John
v. Ayers Sons. The Kansas Rolling Mill
failure was the result OF the Union Iron
and Steel Company's failure, as was also
the Fox River. 1t IL also undoubtedly true
that this condition Of things has made the
banks q little more chary OF taking iron
paper than usual, and discounts TO iron
concerns are not as free as they have been.
All OF these things, taken In connection
with the falling market, have no doubt
given the country an impression Of financial
weakness in the iron trade.
But is there really any cause for serious
alarm? If we consider the state Of the
country at large, there certainly is not. The
country Is in q healthy condition, fnan.
cially. Credits are not largely extended
except in the case Of speculative buying,
such as stocks, oil, &c, but the consumers
OF the countryside farmers, mechanics
and merchants In much better con.
dition financially than they have been for
years; they have been buying for cash.
Stocks are not heavy in any line, and 1t
seems almost impossible with any ordinary
business prudence or courage that anything
like panic should ensue in general
trade. With this condition Of things
| in the country at large, II must be
that the iron business Is in q fairly
good condition. At the time oil the panic
In 1873 the credits carried by the iron
mills were enormous. They had been
compelled to take bonds and stocks In
payment for iron from railroads, and in
many cases 1t was the depreciation Of these
bonds that compelled suspension. Many
OF the merchant mills held large amounts OF
farmers notes, taken as security for iron
furnished agricultural implement manu-
facturers. There were also heavy Dor.
rowers from banks at 10, IL, 10 and even
| is per cent. Not one Of these conditions
exist now. Six and per cent have been
among the highest rates paid by iron
men for discounts. The amount OF credit
given by these concerns is probably not
one-foufth what It was at the time Of the
panic OF 1873, while very few of the manu-
iacturers Of rails and railroad supplies have
had to take bonds or stocks in payment
| for goods sold. In word, the general con.
dition OF the iron mills Is vast improve
ment upon.what 1t was in 1882, and this,
with the fact that In every case Of failure
some good reason other than the condition
Of the trade can be given for Il, should GER
tainly 20 far to dispel the idea that these
failures point TO early financial troubles.