Evening journal., 1919-01-09
FRAME AS A STEEL COMPETITOR.

THAT France VIII supersede Germany as the chief
competitor OF steel manufacturers In the Ameri-
market Is the belief of many who are studying The
situation.
The cspulaion Of Germany November 10 found
It's armies In occupation OF an important part OF the
Department OF Meurlhe-e-Moselle, In which is located
the celebrated Briey basin.
This territory having been evacuated by the Germans
restores TO France Of the richest and most extern
deposits in the world which extends into the
AlsaceLorralne provinces wresed from France in the
anco-Prussan War and to be restored by the peace
treaty In process Of framing.
OF the 100000 tons OF iron produced by France
In 1913 the Department Of Meurthe-etMosee supplied
100000 tons also supplied nearly seventy cent
OF the 100000 tons OF pig iron produced by France that
year. nifty per cent OF the 42sOOO Of ngots
produced in 1912 and thirty-seven per cent OF the
3250O0O tons OF roled-steel products Of 1912.
There has been considerable damage done to the fur
and mines the part Of the Huns. but perma
nent destruction appears to have been wrought.
II is merely matter OF a few months when the cut
put of these mines will be subjected to the intensive ap
pcaton Of the French factories which have organized
not only to supply to the extent Of their power the
requirements Of France for economic rehabilitation, but
to expand the export steel manufactures Of that
country
One OF the first objectives Of the German armies.
with the outbreak Of the war. it Will be remembered,
possession Of these vast fields and TO the fact
Germany
due much Of her military success thereafter.
Germany well knew the value of iron in the winning
OF the war; and not until the vast OF
the United States thrown into the balance against
her that she acknowledged the loss of her evil
Nevertheless, shom she Of the rich deposits
Of the Briey, France produced hundred per cent
more pig iron and steel manufactures in 1916 than she
did the year before fact which moved The Iron Age per-
haps the most authoritative periodical the steel trade
in this country to declare in 1916:
THUS there bids fair to be greater French steel out
put after the war; to be added to the increases Ger
many and Great Britain"
who has for years studied the iron and steel
trade in connection with the tariff, remarked at that
time that "in normal times the big steel business Of
Germany England and France is in export markets.
"Of course large proportion OF their iron and steel
industries recently have been devoted to the manufacture
Of material. But their mills and will return
Immediately to the business Of export when the war
ceases while the American industries must inevitably
experience a cutting down Of their export trade"
That his forecast sound is indicated by the ng-
ures showing export trade of manufactures of iron
and steel for the nine months Of the current year ended
September the most recent available They show that
despite the the value Of these goods we ex
ported for that period s9iOOOOOO WORTH compared with
S9OsOOOOOO worth for the corresponding period Of i9i7
while imports, notwithstanding European embargoes
show tendency to get back to the pre-war low duty
normal
More than any other industry. perhaps, the steel in
dustry dependent for production on capacity
operation Of the mills
To achieve this capacity operation. manufacturers
must be able to rely on commanding position in the
home market
II that Is denied them to extent which slows down
the mills and decreases the demand for labor the unit
cost OF production increases and the ability compete
with European producers in foreign markets is essened
We cannot hope to retain such markets as we have
built up, In South and Central America, for instance
maintain wage scale which has been doubled during
the war, and at the time leave the home market
open to French and English competition
knowledge Of this fact is what induces manufacturers
to the Republicans clear the decks for tariff
revision upward