Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-02-27
FEATURES OF TRADE.
Views of Jobbers as to the Situation
of the Hardware Business.
MARGINS CLOSE, PROSPECT GOOD.
How Manufacturers Have Expanded Beyond
the COuntry's Wants.
BULL AND BEAR TUSSLE ON WHEAT
OFFICE OF PITTsBURG DISPATCH, I
TUESDAY, February 26, 1889. I

OFFICE OF PITTsBURG DISPATCH,
TUESDAY. February 26, 1889. ]
One of the leading hardware dealers of
the city gave his views of the situation and
outlook of his trade to-day, substantially as
follows: "The hardware trade has under
gonesgreat changes in recent years, and the
whole tendency has been toward lower
prices, and as a consequence closer margins
Of profit. There are good and sufficient
reasons for this downward drift of prices which
has brought so many of our goods down to
scarcely living profit for manufacturers. In
nearly every line business has been overdone.
The prosperity of few years ago led to expan-
sion beyond the ccuntry's needs. Manufact-
urers were not content TO let well enough
alone. When they were having nice profits
they wanted more, and very few of the manu-
facturers of hardware but enlarged their
capacity, so as to gather in more of the sinews
of war. The manufacturers of the country
have, for the past decade, been following too
closely the example of one we read about in an
old book which is not as familiar as it ought 70
my barns and build greater, and there will
bestow my fruits and my goods.
Too Much Expansion.
"The barn builder of Judea found himself
suddenly left So has it been with manufact-
urers of hardware in recent years. The ca
pacity OF our factories has grown too fast for
the wants even of this great and expanding
country. Prices have drifted down so that in
most lines margins are already wiped out Tor
the manufacturer. And it is not now as it
once was, that output may be curtailed or
factories stopped at the will of the owner.
With such immense establishments as we now
have it is better to keep the wheels moving
even at a small loss than to stop. The loss
would be greater TO put out the fires, and the
rsrsera arI~cK
hope that the tide will turn. / know of large
manufacturing establishments devoted to the
production of hardware, nails, for instance,
which are run at loss, but it is better TO the
owner to run them, for the loss would be
greater if the factories were closed up. The
time has gone by when our manufacturers can
shut up at a moments notice, or when one
product proves improbable they may turn
their works into other channels"
As to the present situation and outlook OF
the hardware trade, the the dealer quoted
above said: 't is too early in the season 10 give
any indications of what the spring trade Will
be. We never do much till the winter is
broken. Trade has been quiet since the first
Of the year. but not more SO than usual In
fact we have sold more goods than we did for
the corresponding period of last year, but mar
gins have been much closer There is hope
full feeling. While hopes have not yet ma
terialized, because the time has not come for
this, feel confident that when the spring trade
opens up we will see a very active movement.
The country is growingaand expanding at such
a rate that il will not take long to overcome
the present lull which has been caused by over
production"
Wheat and Flour.
1t will be seen by reference to the domestic
market column that prices of wheat at Chicago
in February have fluctuated Il cents on the
bushel Advices to-day are of bearihs char
acter. A leading jobber gives his views of the
situation as follows: THE bulls and bears are
having their tusse and legitimate dealers are
very cautious until the fight is over. The
hand-to-mouth policy is generally pursued by
consumers of wheat They are naturally afraid
TO go in deep in the present situation of mar
kets. But you may put it down as a fact that
good milling wheat is scarce and cannot settle
70 lower level.
There is scarcity Of the article all over the
Northwest Prices of wheat are almost low
enough now in New York to justify its ship
ment TO Chicago. In the fall large quantities
were rushed into New York in the expectation
of heavy export demand which failed to ma
terialize. This has made wheat scarce in the
West. If New York could only unload its
wheat stored last fall it would at once go up
l0e bushel. yai-- ..--..
il is well to remember. that the figures which
give the visible supply of wheat may leave a
wrong impression. as fully one-third of that
supply is frosted wheat and utterly unfit for
milling purposes. Last fall l 0O0 cars of wheat
were in short time shipped from Minneapolis
TO New York, which would not be received
into the elevators of the former city. This
frosted wheat, which comprises probably one
third of that now held in Eastern ele 5ators is
no good for milling purposes, and know of
no use to which il can be nut