New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-09-06
THE RFcoNSTRrcT1oy or INDUSTRIES.

THE RECONSTRI CTION or lNDi SIRItN
Even while prices Of iron and steel products
are rising. and the only anxiety anywhere visi-
bic is 10 md somebody who can furnish the
products needed. II is well to take warning that
This state Of things cannot last forever. Ger
talnly nobody supposes that the rise in prices
viii continue always. II is only too certain that
il will he succeeded by a reaction as soon as
the supply Of products comes TO exceed even
slightly the demand for them. Indeed il may
come earlier If the conviction becomes general
that the supply is about 10 exceed the demand,
though rs Yet that condition Is not reached. \
certain part Of the buying is suspended the mo
ment men begin to look for lower prices and
when prices have been forced to extreme heights
by unprecedented demands only q moderate de-
crease in buying suftces 20 produce some de-
preston
1t seems especially important that this should
be kept IN mind because there appears ten
hency to regard prices of iron and steel products
as practically assured for nearly year 10 come
by contracts already made II is not by con
tracts for future delivery that prices are con
irollcd. If there remains for sale only small OK
cess over present demands. For six months We
have seen quotations forced upward constantly
because in bidding for the small surplus not Yet
covered by contracts. buyers ran ahead of each
other Wien there comes 10 he a similar
small surplus unsOd. then sellers will run ahead
Of each other 10 prevent being left with prod
uctS on their hands and sales will then make
The current quotations With millions of tons
10 be delivered q prices below $40 for billets or
rails. there have been purchases of small quan-
titles at prices SO 10 Sl5 higher When the
turn comes no amount Of contracts for future
delivery AZ $50 or more can prevent current
quotations falling so lower if sellers grow
anxious
IL is this state If facts which leads the
shrevdest manufacturers 10 watch closely at
such a time for Indications that higher prices
have caused any Shrnkage i'm the demand for
products BY all 10 is considered astonishing
that such shrinkage has NOT appeared before
this time with many prices over 100 per cent
higher than they were on January l. Last week
The stoppas" Of about twenty-five tinplato mills
at or near Piitshurg and the strike Of several
thousand workers in other Mills in Indiana
caused a suspicion that sales had been checked
by the large advance. but the statements by
The COMPANY do not sustain that view More
than once during this extraordinary rise IT has
seemed AZ if q now impulse was given 10 the
buying by further advance in prices in this
and many other branches Of business There
nIe so many buyers who have made future en-
ragements which render the procurement OF
Ills or that material necessary 10 them tina
competition with each other has thus far sus
tanned every rise. Men who have entered int
contracts which they expect 10 he enormousl.
profitable for the construction Of railroads
bridges or buildings. manufacturing works
power plants or machinery. If they must hav
for such construction more unplates or NOR
shapes or bars. cannot afford to hesitate be
cause that part Of the material costs more thar
was expected.
II is because the movement IN iron and stee
depends scarcely at all upon individual con
sumption. but upon the expansion and recon
struction Of the entire manufacturing and trans
porting force OF the country 10 fit much create
requirements, that there is less occasion 70 az
rrehend speedy curtailment Of demand. Will
that work Of reconstruction is in progress Their
must continually arise maRy needs not antic
Iated besides those covered by contracts. l