Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-09-19
BETTER AND BETTER.
Optimistic Views of Business Borne
Out by the Highest Authority
GROWING BRIGHTER DAY BY DAY.
Prosperity Assured to Agriculture, Greatest
of All Interests.
BENEFIT OF THE HIGH PRICES ABROAD

In regard to business, there is but one
voice heard in all this broad land-that it is
active and steadily growing better. THE
DISPATCH has said so times almost without
number, and given reasons for it; but to
fortify its position and leave no room for
doubt, even in the mind of the chronic
grumbler, the following is reproduced from
the Iron Age. standard authority on Pitts
burg's greatest industry. and close observer
of business movements everywhere. 1t says:
Day by day the business prospects are grow
ing brighter. Reports concerning the crops are
very favorable for all the leading agricultural
products, while news from the principal CON-
petitive countries indicates that our surplus
will be readily taken at remunerative prices.
This means prosperity to our greatest-the
agricultural-interest, to the railroads and to
all the industries dependent upon them. Even
now railroad earnings are creeping up steadily,
and with growing business the temptation to
cut rates is disappearing What an influence
this tendency will have upon the iron trade
will be readily appreciated by brief review of
the situation.
Consumption of iron and steel in all the
forms which enter into miscellaneous uses
has been enormous. The most tangible proof
is furnished by the pig iron statistics. The re-
ports of activity in shipbuilding, in the ma
chinery trade, in the cast and wrought pipe
trade, in the wire business, in car and bridge
building, all corroborate it. Thus far, how
ever, the rise in values has been pretty nearly
confined to raw materials.
The second great factor influencing our near
future, and, let US add. responsible to con-
siderable extent for the volume of business
thrown into the hands of our home works, has
been the rapid rise of prices abroad. 1t has cut
down importation to close figures, and what is
more important, has practically stopped the
flow of orders to European works for months
to come Where in former years importers at
this time were actively taking business for de-
livery prior to the close of navigation and were
entering contracts for shipment till the sue
ceeding spring. they have done nothing thus
far Nor does there seem the slightest chance
that they will accomplish anything during the
present season, since we are considerably below
the parity of European prices, which continue
to rise more rapidly than they do with us.
The only quarter from which the demand has
been slack thus far is from the railroads for
rails. The time is near when a considerable
share of that business is usually placed. Dur
ing September and October the greater part o
the orders for winter and spring delivery come
into the market. If they are heavy then thee
will be an enormous demand for ore, pig irn
and coke, soft steel, the basis now of SO may
industries, will rise rapidly and our capacty
will be strained in every direction.
We have already alluded to the fact tlat
poverty alone has led the railroads to withhold
thus far very large amount of renewal wrk,
the necessity of which is recognized by railrad
officials. With the heavy business which god
crops, now probable, will throw upon the all
roads, their net earnings will come up realty.
Requisitions for material of all kinds, 'ong
shelved by boards of directors will be pre-
sented more urgently. They will receive more
consideration and far greater quantities will be
approved.
With the exception of one or possibly two
branches of the iron and steel trades hopeless
ly mired in excessive capacity, the direct and
indirect effects of large crops at good prices
and of swelling net earnings with the railroads
will cause rapid rise of prices all along the
line. Consumptive and productive capacity
are very nearly balanced now. Even modest
increase in rail orders will tip the beam heavily
The next two months will tell the story, with,
it seems to us, all indications favoring SUBJ
stantial advance.