Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-11-22
THE IRON INDUSTRY.
Trade Less Excited, but Still Very
Active and Prices Firm.
DANGER OF FOREIGN SHIPMENTS
Urged as Reason Against Any Further
Attempt to Boom Things.
SPECULATIVE MOVEMENTS DECRIED.

| bhS iVSAi CoAuinns Cnls morning. Was bne aOsOeD-
ing topic of conversation among business men
of the city yesterday. While all expressed the
hope that reports were exaggerated, and that
the officials of the bank would be able to make
satisfactory exhibit they were equally unan-
imous in the opinion that, however complete
would be scarcely felt.
Il would be serious thing, no doubt to de-
positors who failed to get their money, if such
there were, but that it would have more than
local and temporary bearing was considered
entirely out of the question. As one financier
put it: 'Pttsburg is on too sound a financial
basis to be seriously affected by the failure of
private banking institution IN the outskirts"
AS to the causes of the failure, such as it
might turn out to be, no one seemed to have
any knowledge or to be willing to express an
| opinion, but of all who were spoken
| to on the subject not one could see
| any tangible excuse for failure
at this time, when business Is phenomenally
active and nearly everybody earning good liv-
ing and something more. 1t would be differ
ent if the country were in panicky condition,
with frequent failures and everybody trying to
save something from the general wreck, but in
| the midst of universal prosperity and great
financial ease, trouble of the kind in question
must be accounted for outside of well estab-
| lished principles.
A clear statement, of the affairs Of the Law
renee Bank, and which, no doubt, will be made
in due time, is necessary to clear up what at
present is utterly incomprehensible.
$50
The demand for iron has fallen off somewhat
since last week. but as this is merely an Incl
dent of the season, always occurring toward
the end Of the year, it had been expected, and,
therefore, occasioned no surprise. Indeed, it
had been anticipated and prepared for. The
shrinkage is 80 slight however, as to be scarcely
perceptlble in the output of the mills, which
are as busy as at any previous period of the
season. running to their full capacity when not
hIndered by a shortage of gas, and with enough
orders ahead to keep them running for several
months.
So far as surface indications count for any
thing, the iron trade stands on a solid founda-
tion of prosperity, backed by actual demand,
but it is approaching the danger line, and great
caution is needed to tide it over the perils of
the next three months. The reaction abroad.
which is the inevitable result of purely spec
ulative movement. may have an important
bearing upon the trade in this country,
although the conditions are radically different,
by stimulating imports. The supply of pig
metal in the United Kingdom is very large, as
shown in the daily transactions, and a market
must be found for tiff not at home, then in
this country. and any further advance in prices
here would afford foreign holders the desired
opportunity to dispose of surplus stocks The
possibility of this should put American manu-
facturers on their guard Another danger to
be considered is overproduction, which would
surely follow another advance. This. together
with foreign imports, which higher prices
would bring in, would be more than the market
could hold up under. There have been few
periods in the history of the iron trade when
conservatism was more needed than now.
In an interview with Smithfield street iron
broker yesterday, he said: "While there is
something of lull in the trade, business is
active and all grades of iron are firm. AS to
further advance am somewhat undecided.
There are signs of 1t, however, and there may
be a boom, as in England, but hardly think
our manufacturers are foolish enough to spoil
a market that may last for years If carefully
handled. for the sake of large profits for short
time. 1 think we are very close to the danger
line of foreign competition. The reported
collapse at Glasgow will turn attention to this
country, and if prices here should go any higher
we will be flooded with foreign metal. 1t may
come anyhow, as it can be transported as
ballast in grain vessels at a very low rate.
'Just what the transatlantic furry means
cannot tell at present. but that it will have an
important effect upon the iron markets of the
world there can be no doubt. One effect has
already come to light. A few days ago an Ala
bama fulnaceman passed through Pittsburg
for New York to make arrangements to ship
1000 tons of pig to Glasgow. He said he could
foy Nv 2
he could get in Pitts5urg or Chicago. But the
reaction came before he could complete his
arrangements, and have since learned that
the iron was not sent. This venture was to be
made as an experiment, and, if successful, was
to be followed upon a large SCALE The iron
will probably remain in this coultry, as it
would be folly to send it away on a falling mar
ket 1 am in hopes the drop at Glasgow will
prevent any further advance here. Home
production is large enough for the demand,
and any considerable additions to stocks from
abroad could have but one result-they would
lower prices and put q large number of fur
naces out of blast, throwing thousands of
people out of work"
The Iron Age with its usual caution, re-
marks: 'If our people will observe moderation
in the management of their affairs and refuse
to be unduly influenced by the famboyant
reports from abroad, they have an opportunity
to slgnalize their independence of foreign
sources of supply more strongly than ever. The
way opens for an export trade. American iron
and steel may thus find footing in the open
markets of the world and be able to retain it
even after British prices recede. Having in
this country practically unlimited supply of
essential raw materials, thanks to the marvel
Gus developments of the past five years, we
occupy a position of vantage 'immeasurably
above those countries which are forced to rely
on imported ores.
IAN element of danger which now threatens
our future in this respect is the reported en-
trance of speculative syndicate in the South
ern iron field, with the purpose of accumulat-
ing a sufficient stock to force prices up. Sem
sational kilograms are already being sent out to
alarm consumers, perhaps with the expectation |
of securing unintentiOnal cooperation from |
them in precipitatiDg sudden heavy demand |
on the market, which would advance prices |
rapidly. If these speculative movements can |
be checked and the iron trade kept in its legiti-
mate channels, prices will not be unduly ad- |
vanced and there will be no disastrous reaction |
to be feared"
The Iron Trade RevtetO, OF Cleveland, is
more optimistic. In its issue for the current
week appears the following: THE expected
lulI after recent heavy buying has not proved
to be much of lull. Indeed. present indica-
tions point to greater activity. Foundries are
all using more iron than they anticipated and
need to cover for considerably more material
than they planned early in the season. Lake
Superior charcoal iron has taken another up
ward move and is now held firm at 81. Ohio
grow more and more scarce, and
dealers mark up prices gradually. W. F. Jarvis
A. IN reDort frnnl Detroit. All orades of iron |