The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1889-05-15


At the outset OF the present year the
prevailing opinion among iron men was
that prices were about attheir lowest, as
there had been q considerable decline
from the highest point in 1888, and that
the spring would see good business at
better prices. This expectation has not
been met. On the contrary, business
has been slow and prices arc lower now
than in January. The very decided
drop in iron last week was the most pro-
nounced and abrupt cut in prices seen
in this country for years, and has added
in u marked degree to the feeling Of un-
certainty as regards the future.
While the cut in prices affects more
particularly the commoner grades Of
iron, such as arc not now made in the
blast furnaces hereabout, yet It's reflex
upon the Bessemer article has been Of q
weakening character. And yet SO strong
is the belief among iron orc men that
we arc nearing a turn in the tide both
as respects activity and better prices
that they hold with considerable firm
ness to their views in regard To the
value Of their raw material, and are en-
deayoring to market their ore at the
full average OF last years prices.
Thus far but little OF their product
has been marketed in this part Of the
Ohio Valley. The nail trade is so poor,
as respects profits, and the soft steel de-
mand so limited, that furnace owners
see no encouragement to buy. Hence
they are holding of and buying Just as
little as possible. The risks Of a full line
ofpurchases for years supply are con-
sidered too great to warrant the accept
ance OF the figures Of the ore men.
Frequent reference is made 10 the
year 1870 as basis Of comparison with
1889. In some respects 1t opened and
ran along for months after the manner OF
this year, and before It's close there came
remarkable turn in the tide and both
business and prices were booming in the
fall, Some people, Ignoring all the
changes that have occurred since then,
seem to expect the history Of 1879 TO re-
peat itseu this year. There is very 1T.
tic likelihood Of such an occurrence.
Tho rise OF 1870 followed tho return to
specie payments and was due to great
demand for our crops In Europe and to
an immense expansion in railroad
building.
The change since then Is very marked.
Tho country hasover 10000 miles Of rail.
road, and no small part Of this mileage
lisa species Of parellolism that has had
deadly effect on the value Of invest.
mOnts. The het house manner In which
this artificial building has qulCkened
into life plants reproducing iron Is now
felt in tho existence Of q productive ca.
pacity out Of proportion TO natural con.
sumption. Tie South Is still rapidly
building fur and iron works Of ali
kinds, and tho markets East and
West arc invaded and domoralized
by pressure from that section. This
fact, together with tho tlmidIty Of capital
A 10 further railroad building on any
large scale, restricts the demand for iron
into narrower limits, And yet such Is
tho effect Of low prices that the demand
for iron 10 really immense, 80 great In
fact that II IL was coupled with an old
time demand from railroads we should
SEQ lively times indeed, As prices fall
iron and steel find new uses and con-
sumption increases. They arc diSplac.
ing wood to an infinite extent This
is tho fact that keeps prices At q point
where 40 many establishments can still
afford 10 run. "
As 10 the future, the best opinions
differ somewhat, but probably the most
Intelligent judgment 10 that weare down
on a permanent lower plane Of prices.
Tho days Of fancy prices have gone.
Tho supply will keep pace with the do