The Ogden standard. [volume] (Ogden City, Utah) 1902-1910, 1909-02-22
IRON AND STEEL TRADE
OUTLOOK DISCOURAGING

New York, Feb. 21.-The light and
shifting currents of the speculative
sentiment in the stock market yeered
decidedly in the direction of dis
couragement in the course OF last
week and carried values rapidly down.
wards. The deciding factor was the
evidence OF languishing trade as ex-
emplsiied, especially in the iron and
steel trade. The halt in the revival
OF trade had been preceived for sew.
eral weeks past and the growing mis-
giVlngs. but the policy OF the United
States Steel corporation was an
nounced to be for the preservation OF
stable conditions by maintenance OF
prices based on the stated conviction
that reduction Of prices at this
time would fail of effect in reviying
demand.
1t was asserted that the waiting on
the formulation of new tariff sched.
ules was the motive for the withhold.
ing of orders. 1t was urged that such
cutting OF prices as was being done
was by small independent steel com.
panies, and that the business thus
placed represented so small a part of
the total business as to be unrepre-
sentative of trade conditions. Insist
ent reports that a cut In prices OF
steel was in contemplation were as
persistently denied, the latest deniaIs
coming from accredited officials until
past the middle of the week. The re.
assuring effect on speculative senti-
ment OF these assertions was con-
firmed by the determined support ac-
corded the stocks of the United States
Steel corporation on the stock mar
ket Repeated bear attacks were re-
sisted and unwieldy short accounts
in those stocks driven TO cover The
impression thus came to be held that
the vast centralized control in the
steel industry was TO be determinedIy
employed to maintain stable condi-
tions in the industries and to await
patiently the turn In the trade With
out going through the disturbing ef-
feet OF a cut in prices and n struggle
for readjustment OF declining scale.
1t is necessary to bear in mind these
preliminary circumstances in order
to understand the force of the sudden
reversal of policy on the part of the
principal interests in the steel trade.
When the realization came TO the
stock market element on Thursday by
a price reduction and an active effort
on the part of the leading producer
to secure business from competition.
the tone Of the speculation became
semi-demoralized. The slump IN
most conspicuous feature of the new
turn In affairs. 1t was rather not
able that the copper industrials were
comparatively stable. those stocks
having been declining for some time
previously in company with the sue
cessive reductions going on in the
price OF the metal The comparative
firmness of the copper stocks was FUR
thered also by the statistics OF the
newly formed copper producers as
sociation given out early in the week
The clearing up of the foreign situa-
ton was of important effect on all n
nancial markets. The definite promise
of growing ease in foreign money mar
kets and the settlement OF interna-
tional questions had stopped persist
ent liqudation of foreign holdings OF
American securities and had given
place to some buying in New York on
orders from abroad
a decidedly favorable impression
was made by the permission accorded
by the New York public service COM
mission for the issuance of Erie
bonds.
The freedom for the money market
of effect by the various cash require
ments upon il were being met was
good thing for the specu-
lativc prospect Another moderate
decrease in idle freight cars gave
some hope of bctterment In the
traffic situation The speculative Ell
feet of these factors were all swept
aside by the later consideration or
the trade outlook and the realization
that scramble was In prospect
among steel producers which might
involve serious consequences to earn
ing powers 1t Is noticeable that the
disorder into which the stock market
was thrown produced but slight ef-
feet on the bond market.