The sun. [volume] (New York [N.Y.]) 1833-1916, 1900-06-09
This Country and the Iron Markets
Of the Old World.
The following paragraph appeared in the
news columns Of The Sun Yesterday:

news columns OF HE u yesterday.
Special Gable D.spateh to THE SUN.
BERLIN june THE reduction made In the
United States In the prices OF steel and wire. com
bined with unfavorablc news from the Belgian and
home iron centres. to-day caused a panic on the Der
lin Bourse that has not been precedented since 1890
Most Of the Industrial shares fell from 10 TO IS PEI
cent"
Probably the vast majority Of those who
read this item considered II. in the first
place, simply as an illustration Of the great
interdependence OF the financial markets
of the world and Of the readiness Of COM
munication. now greater than ever. be-
tween them; and In the second, as the
~long-expected news Of a collapse. or
something like IL. In the inflated industrial
speculation Of Germany. That the item
did, indeed. possess this double signif-
canoe is undeniable. The business OF the
civilized world is practically conducted to-
day in one great mart. Daily. orders given
on our Stock Exchange for transmission to
London and execution In Capel Court are
so transmitted and executed and the
report made to the person giving the
order within two or three minutes. A
tremor In one great capital, whether Of
good news or bad. Is felt instantaneously
in the financial centres Of other countries.
There is no doubt, too, that the commercial
position of Germany is. to say the least. I'M
sound. A great fabric OF business expansion
and stock jobbing in new enterprises has
been built up in that country with I'M
checked speed for several years. The
Imperial Bank Of Germany has fire.
auently averted crises during this period
by issuing paper money. as the law allows
It to do, In excess OF the amount secured by
its reserve. paying a tax Of 8 per cent.
upon these ISSUES to the Imperial
Government. This has. of course, re-
suited in an imitation Of the German
currency. Money Is tight In Germany
and has peel for a long time. While the
resources of the Imperial Bank are in
somewhat better shape than they formerly
were, they are still strained andthe German
situation Is, ina word. the one great ena
to the financial prosperity of the world at
the present time.
But the true and deep meaning Of the
despatch from Berlin In yesterdays SUN Is
its irrefragable testimony to the commercial
and industrial supremacy that has now
been attained by u own country. Prices
on the Berlin Bourse did not break because
the owners OF shares there feared that
business houses In America in diminish
ing their liabilities would hastily dispose
| OF securities in the Berlin market. Rather
| was the peril before their eyes that a reduc.
| ton In the cost Of American iron and stee
products meant an influx Of those com.
| modities into the German Empire In such
| volume and at such alluring cheapnesS
| that German competition with them woulc
be impossible. At the same hour /;
| shudder of similar origin ran through tn,
| iron markets Of Glasgow, Brussels and Paris
| Never before did the word American
| have such dreadful omen to the manufac.
turers and producers Of raw materials o
Europe. Never before did a news item o
greater Importance than that which head
this article throb along an Atlantic cable.
Fifty years ago the great producing anc
manufacturing country Of the world wa,
England. Her large population. assuring
workmen in plenty. her great beds Of coal
her rich mines Of iron and the instincts Of
large class Of her people for a seafarins
life easily gave her prominence as a manu-
featuring and trading nation. At that tim,
the wisest thinkers In England calculated
that the possession Of this wealth and pros
perity would rest In England hands for
century further. at which time IL wa:
thought that America might possibly becom
a dangerous competitor. 1t was admitted
that the great question for England t.
consider was that Of her supplies Of coal
Coal was then cheap. was readily minet
and could quickly be brought to the man
ufacturing centres. How would 1t be whe,
these advantages then possessed in sucI
predominating measure disappeared?
The simple fact is about this matter tina
all that was predicted concerning 1t hal
a century ago has come to pass II
an amazingly shorter period than wa.
dreamed Of. The export Of coal from Eng
land to the country's old-time customers Il
the Mediterranean and other countries |
ceasing. and the leading English com
mercial journals frankly admit that unles
their manufacturers can get coal cheape
than they now do. they cannot attempt t
compete with the manufacturers Of Amer
lea. The English coal and iron mine
are nearing exhaustion. while the de
posts Of these minerals in our own coun
try are seen to be OF an immeasurabl
extent and richness. IL is probabl
that the State Of Alabama alone coult
supply the worlds needs for iron 10
an indefinite period. Whereas the sur
face coal area Of Great Britain Is bu
about 1900 square miles, the United State
has now nearly 200. 900 square miles devote,
TO coal mining. and while the mines Of Eng
land are now so deep that they can b
worked only with grea. cost and difficulty
the American mines may be said PRACTICAL
to be at the surface of the ground. Becaus
Of these facts and OF the extra de
mand for coal. caused by the indus
trial revival In Europe. the price Of Goa