The Washington herald., 1919-03-28
LOWER STEEL
GOOD FOR TRADE
Holland Quotes Judge Gary
As Predicting Prosper
Gus Times in u. S.

tne OulleQ states Sleel COTpOTallOns
returned to New York. confident that
an era OF great business prosperity is
not far distant. Judge Gary's forecast
of business conditions has been almost
invariably accurate and usually op-
umistic- There was a time a few
months after the war began when
even he was in some anxiety because
war conditions had seriously demorsl-
lied the business OF the United States
Steel Corporation. Nevertheless, while
ft was necessary to suspend payment
or dividends, although wages were
not reduced, Judge Gary thought that
he saw promise OF better conditions,
and did not hesitate TO say so. What
he saw was verified within a few
months and there followed a period
OF extraordinary prosperity for this
corporation.
Judge Gary is Confident.
Judge Gary's enthusiasm after his
return from Washington respecting
future business conditions was
speedily reflected by the action in
the securities market The COM
mon stock OF the steel corporation
touched par and the dealings in
this stock were of magnitude.
Judge Gary's reason for conf
dence is based upon the belief that
the new price for steel and iron
which was agreed upon at the
Washington conference is so low
as undoubtedly to create heavy de-
rnand for these products. This de-
mand will increase gradually. There
must be readJustments in the equip
ment Of some OF the high grade
rlants. for these were established
10 meet the demands OF the gov
ernment for war munitions. His
view is spoken Of as containing
sound business philosophy. For
some time II has been evident that
the need for steel products was
only awaiting such scaling down in
price as would make itself known
in demand for these products.
There are many industries in the
United States. especially the auto
mobile industry and those which
furnish equipment to the railroads,
which have been somewhat impa-
tiently waiting for such reduction
in price of steel commodities as
would make it practicable from a
business point OF view to put in or
ders for these commodities. Then
too II is understood that as soon as
there was satisfactory establish
ders would come from Europe, pro-
vided only that Europe Is able to
make such financial arrangements
as will provide funds with which to
pay for these commodities.
Steel and wheat.
Close observers of American in
dustrIal and business conditions
have for some years felt confident
that upon steel and upon wheat are
based prosperity and very active
business conditions. These two
products are regarded as influence
ing business and Industrial condi-
tfons. Should there be a heavy de-
mand for steel and iron due to a
reasonable price for these cOmmodi-
ties and should there be a satisfac-
tory market for wheat. one depend
ent upon the law OF supply and de-
maRd. then with these influences
established. other American prod
uCts will follow this lead
Vow that Judge Gary believes, and
many others also. that the price
established a; the Washington confer
ence for steel Is to be followed by a
demand for it constantly increasing,
the next most important question to
be answered is the relation of our
wheat supply TO the markets and their
general situation. When tho suggcs-
ton is made to those who have stud
led this question that In any event the
farmers will receive SIS a bushel for
their wheat. the reply instantly fol-
lows that this Is u wholly artificial
price and does not bear any relation
to the law o. supply and demand.
xx-4t1 D-a.o
The American farmers are sure to
receive more than two billion dollars
for their wheat. unless the weather
conditions should be such in the sum-
rner as greatly to reduce the harvest.
Nobody now seems to be able to
forecast what the market price for
wheat is to be- Some think that it
may be as low as SIS busheL, others
put the figure considerably higher
than that. 1t will depend somewhat
upon the harvest in other countries
than our own. II then some reason
able arrangement can be made by
which the American wheat can be
marketed at the normal price. the
farmers to receive the difference be-
tween that price and the government
guarantee OF s2.-6 a bushel BY pay
r7leut by the government Of the diner
suce, then a normal market will be
established: and It should be a salts
factory one, for Il will be based up
on demand ard supply. Those who
y &C familiar with the subject say that
IA That case il wiu De possible to
leave the government relation to the
faTmers gu: Of consideration.
Influence of Wheat.
Shoaid therefore. q normal market
for whcaL be established, should the
demand for It be as great as is cx-
pected. then with steel so modified as
20 price as to create a heavy demand
and with wheat also responding to a
Urge normal demand. then there ep-
Tsars to be no question that the basic
eIs--Sat OF prosperity and industries
n the United States will have been
established.
II wheat il marketed on the basis cs
ne Law Of supply and deElrnd--snd
iris Will be 1T 4 ITice undoubtedly
below the governments guarantee or
,2FS ? 5rShc!-thc1 Il is inevitable.
.nuT the price for almost all Of the
.oodstuffs will fall. That will certain
u be true Of grains Of all kinds. And
= the cost Of wheat and other grains
IS lessentd. jhen there will inevitably
follow a reduction in the high cost OF
living. although profteerinC may Cor
a time delay such reduction
These arc the reasons why the pre-
sumption is strong that basic cond,-
lions will be established before long
which will be followed by a reduction
in the cost OF living. These are un-
Goubtedly the chief reasons for Judge
Gary's pUblicly-expresse confidence
that . dav of great business prosper
itv Is rpeedIly to dawn over the Unite