Omaha daily bee., 1889-10-30

In convincing the world that, IN permitting
big pension to be tackled on to his salary as n
senator of the United States, while hun
dreds Of worthy veterans are left to strug-
Gle hard for a bare existence, he did not
compromise his own honor and the dignity Of
the legislative body to which he belongs.
The Iron Trade and General Business
The recent advance in the price of pig iron
has been made the occasion of or the excuse
for putting higher market rate upon most
IL not ALL of the manufactures of iron and
steel, says the CINCINNATI Commercial Ga
zette. But it was the large demand for the
finished products which at first started tho
tendency to an enhanced value Of pig iron.
The demand for steel rails, which during the
first half of the current year was disappoint-
ngly small and had much to do with de-
pressing the market for pig iron, has re.
Gently become quite active, there being large.
purchases by old and strong corporations for
renewals of track, besides an increased dc.
mand for the construction of new roads.
The Investigations which have been made
show that about. $500 miles of new railroad
were built during the nine months of the
current year, andSthat there is work in pro-
gress that will swell the total for the full
year to 5000 mics in the United Statos, which
is not quite 1000 hiles less than the total con-
structed in 1888; sp that instead of reduction
of moro than one3half in the requirements of
steel rails as compared with last year, which
was the estimate along in the spring, it is
likely to be less,than one.third and it is not
probable that the demands for renewals of
old track will, considerably lessen the dis
crepaucy. In the meantime there has been
a material enlargement in the use of iron and
steel in almost every direction; the low
prices which have prevailed have promoted
consumption foryarious reasons.
The enlarged traffic of the railroads has
made it necessary for them to increase their
facilities of transportation, and new locomo-
tiveS, cars, &C.. nave been built and are now
In process of construction in larger numbers.
Ship building has received an impetus to
which it has long been a stranger and no
small part of the increased demand for iron
and steel comes from that source Iron pipe
works are pushed with orders far in advance
of production. For architectural purposes
the demand for iron has increased as prices
| have declined. The practical usejof ciectrici
ty for motive power and for illumination has
opened new field Tor the employment of
| large quantities of iron and steel and much
more has been used in that way this year
than ever before.
The consequence of this general enlarge
| ment in the consumption of iron is TO stimu-
late production, and the statistics show that
| the output of pig iron by the furnaces is now
! larger than ever before, and yet it appears
! to be short of the consumptive requirements,
| and the natural result is an advance in
| prices. The advance has, however, been
] mainly on the lower grade Of iron, and the
| contention that prices of all finished goods
| should advance because of the enhanced
value of certain grades OF pig iron is not
| strictly logical. 1t is manifesty for the
| better interests of the iron trade that values
| should be kept on plane that will not dis
| courage consumptlon but that is matter
that will regulate itself, for the higher
| prices 90 the more will production be in
| creased, There are numerous furnaces in
the country which could not be protitably
| operated az the low prices current for pig
| iron last June, that will be put iEto blast
| when prices reach remunerative point; the
| only trouble is that this matter may be
| overdone, ana the market glutted, TO the det-
| rmenC of the trade. The condition OF the
| iron trade in Great Britain IS at present so
| flourshng that it is helpful to the
prosperity which prevails there. Prices
| there have advanced so much
| that our tariff serves to practically prohibit
the importation of any considerable quantity
of pig iron. and most of the finished pro-
| ducts. so that we have our home markets to
| ourselves and the DEVELOPMENT of our iron
resources goes rapidly on, giving employ
| ment to a vast amount of home capital, and
what is Of still more Importance, utilizing
| the labor of our own citizens.
| 1t has become automatic that when the
iron trade fiourishes all other branches of
| business are prosperous. Perhaps il is the
| general prosperity which stimulates the con-
| sumption and production OF iron. for the de-
| mand must proceed an enlargement In the
| volume of trade, and the manifestation Of
| prosperity in the iron trade Is more conspic-
| uous only because of It's magnitude and
| greater prominence. But, be that as 1t may
| there has undoubtedly been vast improve
| ment in the general business situation dur
| the past twelve or fifteen months but more
| especially since the-assurance that ii was to
be year of exceptionally good crops of nearly
all neutrality-suspicious. Prices OF com
| modites are no lppger declining as rule
and although tneSare generally low, busi-
| less has become adjusted to low plane of
value. which inures 10 the greatest good of
| the great mass OF the people. But the mar
kets can not stand still: there must be fiuctu-
| ations and gepcrally q positive tendency
| values. I e
In Great Britain and In most countries on
the continent there has been an advance in
| prices of most-furnu factured commodities
during the current year, and with that has
| come better remuperatiOn of labor. To such
an extent haveApfices risen there that i'm
porters in this f2untry have found it neces;
| sary 10 dc cline otdcrs at previous prices and
in some cases goods which have been imported
TO sell IN competitiDn with nome productions
are now practically barred out. Between
commercial nations there is a bond of sympa-
| thy, and when there IS a tendency 10 general
| advance Of prices in Europe IL is more than
| probable that the same course will obtain
here. IL may not be rapid nor reach high
point, for the facilities of production are so
| great that any increased demand can be
quickly supplied, but it may require the in.
| ducement OF larger profits to bring these
facilities INTO full operation, and increase
them If necessary. The larger the volume
of business and the greater the activity in
trade the more promptly will the tendency 10
higher prices be made manifest The indca
| tions are that our foreign as well as our do,
nestle trade is steadily increasing In regard
to the latter, it is only necessary to point TO
the fact that railroad earnings and bank
clearings during the nine months OF this year
are much larger than for the corresponding
| time last year.
The preliminary report OF the bureau of
statistics shows that during the month of
/, September our exports OF breadstufs pro-