The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-11-21
Steel and the Business Outlook.

There Is one feature of the conf
naercial news of the week that stands
out, prominently. 1t is the news of
eign markets by American statesmen
bent upon marketing American steel
products. A fortnight ago there were
foreign. steel rail sales reported, and
last week there was a big deal opened
up with German financiers~who are to
build a railroad in the Caucasus. and
expect to get rails in America. More
sales have been entered within a day
OF two on orders from widely disc
tant parts of the globe, and it is clear
that foreign business of enormous
volume is likely to result eya :.
Business men who follow the iron
trade reports as a guide, find them
selves between two minds as to how
to view. this, between the feeling of
satisfaction natural to- an American
who sees the commerce of his coun-
try increasing and expanding, and the
counter feeling that all that is gained
is being more than paid for indirectly,
for 1T is a fact that the iron trade is
dominated by the most gigantic indus
trial combination the country has ever
known, and this trust is just now
selling its products to foreigners
cheaper than to consumers at home. g
This puts the average observer.;in
some doubt, leads him to the very
edge of the great questions of trust
regulation and the tariff. There is
that in the situation, however, more
encouraging than otherwise to any
man whose interests lie less in the alb
stract questions here involved than in
the question of the continuation of ac-
tivity and good business conditions in
our country. There are a few bold
facts that such man should consider.
This country is due for something
Of recession In the general volume of
business. Six prosperous years, each
marked by expansion greater than in
the one preceding could bring nothing
else in the ordinary course. A period
of lesserled activity has been the ex-
pectatlon for some time. The wave
that is to sweep the country has been
so much talked about that few fear
1t now. that the breath of it has been
felt. The uncertainties are as to- how
much Of q setback there will be,
whether 1t will long endure, and how
serious will be it's effect. If precedent
be a safe guide there will be no seri-
Gus depression, for if it be true that
when steel is prosperous the country
nrospers and when steel is in a bad
way the country suffers, there can be
no very bad Industrial conditions
when the steel industry remains active
and 1T is this ability to enter foreign
markets and capture large orders that
will Keep many mills going at a time
when, If history were to repeat, the
mills should be closed, the market de-
lnoraiized, and thousands of men idle
Whatever one may think of the
Steel corporation In itself or of the
men who run the Wall street end OF
it there can be no doubt that manage.
naellt of the selling departments has
to this time, been characterized bJ
wisdom fin one important particular
The watchsverd has been stability, an6
the men who have been mark citing the
products Of the great group of plants
Set out long ago to do what the world
said. could not be done--to make {
stable business of q. great business
That had never been stable. Agains
the greatest pressure, at a time whel
the country clamored for steel ant
orders rushed in,. in volume 50 grea
as to overtax all capacity. steel raj
xsrices were held around SIS whel
thousands of tons might have beef
sod at $40 Prices were not advance,
then because enormous temporar
profits would have meant demoraliza
zion later on andTin the hope of main
fainifig, the industry on an even basi
from year to year the management
HAS been slow to cut prices now in TIL
face of lighter home demand, eve