The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1917-01-05

Thus we have the following re-
vised figures of increased and extra
ordinary consumption of coal which
has come into existence since the
first of January, 1916:
Tons.
Eastern railroads ........ 0,0Uu. 900
Cotton mills .............. 4,0O0,O0O
New factories ........:.. .1o,ouo,oOo
Munitions plants ..........
Exports .-.......!. f,ooo'ooo
Coke .............. ....... !U,oOo'ooo
Automobile ................1 O,ooo'oVo
Total ..... .73, 500 900
Making allowances for inaccuracy
in these figures and for over-esti-
mates by those engaged in these in
dustries, we say 1t Is ultraconserva-
tive to estimate the increased con-
sumption Of eastern coal at 65,o00.-
600 tons.
The Character Of Demand.
In this connection 1t Is pertinent
that this extraordinary demand is
ali for eastern coal In other words.
the big demand Is for the bituminous
coal from Pennsylvania. Maryland.
West Virginia, Ohio and eastern Ken
lucky. The eastern consumers natur-
ally take those Goals. The coke ovens
must have them. And, the automo-
bile concerns ere SO located they buy,
naturally, those Goals.
For the shortage which has been
conspicuous mostly in the east. up to
now. the car shortage is only par
TALLY responsible. That is to say,
this new demand has been express
ing itself all through the year from
the first of. January last. This was
indicated four months ago by the
official statement that production and
sale for six months had amounted to
261, 100000 .oas of bituminous coal.
This told that something extraordi-
nary was going on.
The same thing was indicated by
the steady demand for coal which
was evident al through the summer.
This began with the first OF April,
even when the big users. were sup
posed to be stocked.
This extraordinary demand existed
and was a factor even when railroad
cars were abundant. The point is
that while it existed 1t was not recog-
nized. Indeed no one thought 1t a
danger point. AS general rule. 1t
can be said that the railroads. had
virtually a 100 per cent car supply
up to the fifteenth of September. Up
to the middle of August they had
more than a 100 per cent. car sup
ply. This is indicated by the fact
that most railroads reported that
they had surplus cars up to August
Is. The surplus was not large, but
still 1t did exist.
The car situation, in fact. was so
free during the summer there was
some question in the western mar
ket whether the increased circular
price on smokeless cbal would hold
when it went into effect on the first
of August. 1t had been, IL you re-
member, s1.35. On the first OF
August it was increased to $1.50.
The sales agencies were. up to July
rs. in doubt whether any increased
circular price would hold IL an
nounced. Many retailers were so
much in doubt about 1t they said
they wouldn't lay the circular price
because they didn't have to. They
declared they were going to get their
coal for less than circular, during
August and September. They doubt
ed, even. if they would have to pay
circular price IN October.
Many steam users, especially In
the west, took precisely tho same
position. So the car shortage wasn't
q factor in the middle of summer.
Certainly 1t was not even threaten
ing until after the fifteenth Of Aug
ust. AS matter of fact, the car
shortage has been a serious factor
only since September Is.
L.
the car shortage is the only thing
which explains the present prices of
coal. The car shortage has been in
effect for only about two months.
And, two months Of car shortage
even an aggravated car shortage
would not dictate any such prices as
arc now quoted. Therefore, the
shortage of coal and hence the cur
rent prices are due to something
else than merely the car. situation.
The figures which We have just
given explain what that something
else was.
Why Demand Boosts Prices.
We think we have in what follows
found the real cause of the present
distress for coal. Along last sum-
Iu6T. LIE IulUcS were
running to more nearly full time than
ever in their history during the sum-
mer. Naturally they would run full
time because they had to supply the
eastern railroads. the cotton mills,
the new factories, the munitions
plants. the export trade. the coke
ovens, and the automobile industry.
But, to the significance of this the
coal trade was soundly asleep. Find.
ing SO much coal going to the mar
kets, coal men generally felt a sense
of security. They believed and said
that the retailers and householders
were taking coal as customary for
storage purposes. Many other coal
men and market observers said that,
the steam plants were
providing themselves with normal
storage piles. They could not ex-
plain the heavy movement on any
other basis. So everybody felt easy
Ill -