Arizona republican., 1901-09-16
THE PRICE OF IRON
PuzzIing HaIt in Decline Here
 and in England
Quotations are Practically the Same as Six Months Ago-The Conti- nent Meanwhile Furnishes the Cheapest Market.

London, Sept 15.-In considering the history or iron trade prices during the last twelve months there is probably no feature so remarkable and so con- trary to all precedent the dead stop in the decline of values. both in Great Britain and in the United States. which took place last January. During the previous six months there had been drop of p per cent in Scotch iron, of 30 per cent in Cleveland and about 2S per cent in hematite, the fall in the three classes being 1Gs., 2Os. and 23s. per ton respectively; but the low prices to which we have been accustomed in Great Britain for many years were still a long way off, and hence there was pgenty of margin for further depression. | On the continent of Europe the fall proceeded in the ordinary and ortho- | doN way. as will easily be seen by a comparison of Belgian and French prices at the present time with the quotations during the first week in January. Thus Luxembourg foundry pig. which fell from 92s. per ton in July. I 1909, to 54s. in January. 1901, has fur | ther declined since then to AS; and | basic steel plates, which were quoted at e9 in July 1900. and e7 in January, | 1901, are now at f5 1Ss.
 In France again merchant bars | have fallen a full 25 francs per ton I duringsthe last six months, and the ten- dency is still towards lower prices. In Germany also precisely the same movement has taken place. so that
 while a year ago the continent of Europe was the dearest place in which
 to buy iron and steel material, it has
 now become the cheapest. It is i'm
 possible to avoid the conclusion that
 something other than the natural
 strength of markets is supporting | prices in Great Britain and America
 and it would be both interesting and l instructive to find out. with any degree
 of accuracy what that something is.
 The lowest figure quoted for Scotch iron during the past six months was sos Cd. (July 8; for Cleveland 43s 71sd.; and for hematfte, 56s. 3d.: and hence the movements for half a year are to be confined to almost As. per ton
 This remarkable steadiness existing
 during time when values abroad were falling consistently is worth considera- tion. If We turn to American rec ords we find the same thing. From
 July,s 1900, to January, 1901, there was
 a drop of about s2.5 per tons but from
 January, 1901. to the present time. in spite of various disturbing influences.
 and notably that of the strike which is
 now in progress. values of pig iron
 y.
 In Great Britain it is believed by
 some people acquainted with the trade
 that the reason for a sIoppage in the
 fall of prices which took place in Jan
 uary last is to be found in the deter
 imitation of blast furnaca owners to
 curtail the output so to make pro
 duction balance demand. This was a
 very unusual proceeding in the pig
 iron trade, and although at present we without fn do IS
 to the pecuniary result of this policy
 as far as ironmasters are concerned, it cannot be doubted for a moment t.lat the cost has been very great | Undoubtedly the rapid decline in pig
 iron values, unaccompanied by any
 correspondingly great fall in coal, put
 the owners of furnaces into a very
 awkward position. If they continued :, , normal output they assisted to keep up
 the price of fuel. and to delay the time
 when it would be possible to make
 good profits on iron: and the other
 course. as all know who are acquainted with the working of blast furnaces was also disastrous
 In this dilemma they chose the alter , native of reducing output, with the f hope that this policy would arrest, the
 market and prevent pr,ces from fur
 ther decline. That this is a short
 sighted policy. and is rapidly leading tc loss of trade-especially of export $ trade-cannot be doubted. The return. of pig iron shipments for the first sever . months of this year are sufficient |,
 convince us in this respect. It may b; ? Iscinted cut that the attemp to hold ui :; quotations by a reduction in output i: l purely temporary expedient. It car f never. at all events in free-t trad, . country be continued for any length O d time, and hence when values depen. $ upon it the situation is always yer, - precarious. Unless a decided revival O V trade should come quickly to Britisi Y ironmasters it is therefore pretty cer l. tain that we shall see another slump V which will be only the more severe il O consequence of the efforss which hay e been made to postpone it.
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