The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1910-12-31
Financial Outlook and Steel Pro-
duction

tent rarely known before seems to be
undoubted. For great variety OF
reasons. not the least prominent among
them being the spread OF socialistio
Legislation in England and France. but
the most etfectual doubtless being the
disappointment results OF investments
in other foreign countries. notably in
South Africa and Russia and the i'm j.
provement in general financial estima-
ton of our own business and CONNER
cial status. a flow of money for invest
inent Is proceeding to this country
from England. France and Holland on
a large scale.
! IL apears 10 be- the consensus among
bankers that during the present year
/ onr merchants and tinanciers have
heavily reduced their floating indebted.
ness to Europe previously existing in
the shape OF finance bills and similar
temporary obligations but more graft
Tying than anything else are the ten
denotes now mainfestinc themselves
in our foreign trade. September and
October are always months when by
reason OF the normal outward move
ment at that time OF orr domestic
staples our foreign trade balance as
eumes more favorable aspect. In re-
cent years the countrys purchases OF
goods and commodities abroad .have
been no heavy that. taking the twelve
months period as whole. they have
largely counterbalanced shipments of
merchandise out of the country. II
has come about.at last that our i'm
ports, particularly of Injuries are de.
creasing, ana. what is most important.
that our exports of manufactured goods
az distinguished from staple commodi
ties are increasing This is a develop
ment OF the first rank, because the con
tention OF large army Of critics has
been for a long time that the country
high tariff protection policy was such
as.to absolutely prevent us from build
ing MP foreign trade of any dimen-
sions whatever.
Over the general situation. however,
there are two specific matters hanging
One. the condition of the iron and steel
trade, and the other the decisions of
the Supreme Court in the antitrust
cases. II seems To be anticipated on
every hand that, although prices of
iron and steel product. or very many
OF them. have already been heavily re.
duoed by private and informal oonces-
sion az general and drastic reduction
In so-called official list prices" must
be made before the trade once more
stands on the stable footing and can
look forward 10 "A freer movement and
larger profits. Prospective buyers OF
iron and steel stocks are therefore not
inclined 10 make purchases until the
stock market effect of this reduction or
possible reduction in list price is meas.
ured. On the other hand present hold
crs OF these stocks. or at least Of those
Of the larger companies, such as no
tably the United States Steel Corpora
tion. have not as yet been shown any
figures which lead them 10 fear that
current dividends cannot be maintain
ed Also there is nothing in the
money situation which compels or
even induces liquidation.
The most salient observation Of gen.
eral sort on the iron and steel business
is that, although railway orders Tor
iron and steel ar now practically nen.
existent and the output Of nearly all
the steel producing companies is down
to one.half Of full capacity yet that
this output, small AZ ii is. Is as large
"a that OF the total capacity ten years
ago This proves that the use OF steel
in innumerabls so-called minor forms
has become so great as to make today s
business in these forms as great as was
the general volume OF business alto
gether with that of the railroads in
cludsd decade since. La addition. the
normal growth Of the general steel
business in such record breaking
country as ours has to pe reckoned
with.
The Interpretation to be made by the
Supreme Court of the anti trust law in
the Standard Oil and American Tobac-
co cases has been 80 often discussed
that mere mention OF il has become
tiresome Nevertheless the restraint
imposed upon business 10y the delay in
obtaining this inter, rotation is hecom.
ing more and more apparent every day
The feeling lie strong that the Supreme
Court. even il II orders the dissolution
Of the Standard Oil and American To.
bacco companies by reason OF particu
lar facts as TO the conduct OF Theses two
individual organizations, will point
way out for other corporations engaged