The Savannah morning news., 1904-09-04

will be in an excellent position finan-
clally, and there is a disposition gen
orally to discount this in speculative,
financial and commercial circles.
Steel Prices Cut.
Steel prices were cut to stimulate
trade. At Pittsburg structural ma
terial was quoted 80 cents a hundred
pounds below the pool prices Billets
were shaded also. These prices have
been given on the quiet and so far no
member of the pool has made an open
cut If this was done it would mean
a disruption of that particular pool
and a war that would benefit the buy
er and the consumer
After the quite cutting had contin-
ued for some time in the structural
trade a new pool was formed, with
the selling price near the cut rate.
1t is understood that all the pools ex-
cept the rail pools have made conces-
sionS to buyers. There has been some
talk of cutting rails from $2S a ton to
$24, but that this will be done is de-
MED by members of the pool. There
are many well informed railroad men
who believe a big order could be
placed at prices below $2S ton. That
the officials of the United States Steel
Corporation expect a revival and are
preparing for it is proved by the eff
forts made during August to get out
ore The August ore shipments of
the corporation are the heaviest on
record. The months shipments of the
Messabel & Northern will be close to
100000 tons. The Duluth and Iron
Range has already broken all records
and in one day during the week trans
shipped to the lake fleet S7,SS5 gross
tons of ore. The ore was shipped in
sixteen vessels. The men at the head
of the great corporation are far-sight-
ed, and unless they saw clearly better
times coming it is hardly probable that
such shipments would be made. J.
Plerpont Morgan recently in discussing
the iron situation held to the opinion
that, fundamentally, the trade situa-
ton is all right, and he seemed to have
no fear on that score. He also has
great faith in the future of the South,
and holds that within a few years
Southern properties of the country
will take rank on the same plane with
the best properties of the North.
The Bond Market.
The bond market has continued ac-
tive, and according to the best bond
houses the supply of really first class
bonds is almost exhausted. This means
that soon the public demand for good
investment securities will have to turn
to preferred stocks. The manager of
a prominent bond house says: Our
business this month has been fully up
to that of last month, in spite of the
fact that August is generally the dull
est month in the year in the bond mar
ket. Prices have been steady, and de-
mand for both long and short-t term is
sues has been brisk. We look for
more active market next month.
The income basis of railroad bonds
is steadily working lower. During our
last financial boom there was an idea
that we had reached a 315 per cent.
basis, but we have since found that
we were a little premature. We are
now on 4 per cent. basis. That we
will work down to a 315 per cent. basis,
and later per cent basis, there
can be little question. In England, of
course, the returns on investments is
very much lower. Incomes are higher
here because we are still a rapidly
growing country and must experience
violent business changes.
II do not think that we will see any
large issue of railroad bonds until the
railroads have demonstrated their abil-
ity to refund their present floating
debts around a 4 per cent. basis. The
amount of this floating indebtedness
runs very high in the millions. and it
certainly must give some anxiety un-
til it is funded on a lower interest
basis. The record of the past has been
that heavy increases in railroad float
ing debts precede period of receiver
ships.