Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-01-01
MR.. WEEKS ON THE IRON TRADE.
He Fears a Reaction From Present HiAh
Prices-A Conservative View Favored by
the Iron Trade Editor.

He Fears n Reaction From Present HiAh
Prices-A Conservative View Favored by
the Iron Trade Editor.
Mr.. Joseph d. Weeks, Secretary of the
Western Iron Association, was asked yes
terday, whether the association contem-
plated advancing the selling price of bar
iron above the cent point. Reference was
also made to a report that the Eastern
Association had invited a conference on the
question of extras. In this connection, Mr..
Weeks said:
"We have not received any communica-
ton from the Eastern men asking for
conference, either on the conditions of the
markets, or regarding the matter of extra
prices. There seems to be feeling abroad,
that the Western Iron Association should
meet to consider as to whether the state of
the iron market would not warrant an ad-
vance in the card rate, but, as far as am
at the present moment able to judge, there is
positively no necessity for its meeting for any
such purpose. The condition of the iron
market, in point of fact, does not warrant
any advance being made. If you will no.
tice the recent advance in prices, or BOOM
as some people inappropriately term it's
in steel products and not in iron. Business
in rails and steel products generally is very
good, while iron remains stationary"
Continuing, Mr.. Weeks said: "The out
look ror the year is very encouraging. The
volume OF trade has increased wonderfully
in a somewhat limited time, and 1 am pre-
pairing figures on the subject which will
show that the increase in the years trade is
very great. The expectation for next year
is very good, but with regard to the future
of the iron and steel markets it is really
very hard to know what to say. It is a yery
curious condition of affairs when steel con-
tinues to advance as it does while there is no
appreciable change in the iron market.
1 will not attempt to explain this, but
it is Just nice point to foresee what will be
the outcome of the present advances in the
steel market. 1t may be that we are enter
ing on period of unusual prosperity, and
that there nay be legitimate reason for pres
ent prices being maintained. but I think,
for all that, 1t is unwise to regard the boom
as anything more than an unusual stimulus
applied to special lines, and fears should be
entertained for a reaction. The advance in
prices regard as singular, and 1 must con-
Tess am not prepared with an explanation.
'"The iron trade in the latter end of the
year is in very much better condition than
at the commencement. The improvement is
sible to say when drop might occur. Ex-
perience shows us that every period of in
crease or advance is followed by a corre-
spending period of depression, and while
the advance never reaches the point of the
previous rise, the depression always falls a
point lower. That the fall is lower each
time is due to the increased facilities for
cheaper production which are brought into
vogue, the outcome of the necessity owing to
falling prices. From advices from England
learn that the English expect to do large
trade with us during the coming year, but
think they will be disappointed. Ten years
ago Americans we're badly bitten by making
large investments in the English product
when the condition of the home and foreign
markets seemed to warrant them in doing 80.
But the reaction came, and when the time
for delivery arrived the American market
was underselling the English. Just at pres
ent English steel is selling at ahigherfgure
than the home product"
Referring to the prospective increase in
the duty on tin plate, Mr.. Weeks said that
should Congress increase the duty to a point
which will allow of America competing with
England, that within 48 hours after the act
was passed 30 mills would be gotten under
way in this district alone. Up to November
! the amount of tin plate imported during