New-York tribune., 1920-12-26
English Steel
Trade Nearly
AT Standstill
Cost of Coal and Iron Said
To Be Main Factor in Re-
tarding Industry at Shelf
field; Wages a Problem

Business in the steel trade in the
Sheffield (England) district continues
spotty, according to Consul VIII am J.
Grace, who says that buying of pig iron
and all classes of steel is at stand
still. The manufacture of saws, files
and Jolners' tools, on the other hand,
fails to supply the demand, he says.
Quotations by American producers
are under those of British manufac-
turers, he adds, quoting the following
article from The London lronmonger:
THE real reason of Amer cas- abil-
ity to undersell the British steel
makers at the present time, of which
the significance is not appreciated in
this country as it should be, is that the
cost Of production of coal and iron in
Great Britain has gone up above the
Amer can level. Wages have always
been higher in the On ted States tnan
in this country, and the resulting high
costs of manufactured goods checked
the expansion OF the American export
trade in such articles. But the heavy
advance in wages in Great Britain
within the last five or six years, wh ch
has now brought them close up to the
Amer can level, is giving the American
steelmakers an equal or even a better
opportunity of doing business in over
seas markets, and that condition con-
stitutes serious menace to one of our
most important industr es. The con-
sequences must inevitably be the loss
of our export trade unless the costs of
product. on at home can be got down
without lowering wages, and that seems
to be out of the question.
THE last decade has witnessed q
marked advance in the installation in
this country of labor and times saving
mechanical processes in the manufac-
ture of iron and steel and in raising
coal, hut the possibilities in this d.
rection have by no means been ex-
hausted. Americans who have lately
had opportunities Of comparing the
practice in both countries unanimously
declare that Great Britain still lags
a long way behind the United States
in the adoption Of such devices and
express their surprise at the many la
borious operations still habitually car
ried on here by hand that in America
are done more quicklv and more cheap
ly by automatic machinery. The time
has now come when America stands to
benefit by its long experience Of scarce
and dear labor, which stimulated the
introduction of mechanical devices.
British industry now needs to learn
the same lesson. Sir Robert Hadfeld
asserts that the past cheapness and
manufacturers the habit of wasting it,
and to some extent they may have con-
tracted a similar habit with respect to
manual labor.
NEARLY all the great American man
ufacturing concerns have large and
we'll equipped offices in the Orient, ac-
cording to William Pigott, president
of the Pacific Car and Foundry Com
pany and vice-presidcnt of the Pacific
Coast Steel Company, who recently
visited China and Japan in order to
study the conditions Of the steel trade
in those countries. He further stated ::
"'Contrary to the general impress
sion that Americans and the American
government are neglecting foreign
tie ds. the Department of Commerce is
supplying every assistance TO Ameri-
can business men and manufacturers
who seek to establish themselves in
foreign trade. In addition. American
manufacturers, bankers, transportation
interests and shipping companies are
canvassing the field thoroughly and
laying the foundation for stable, per-
manent business
"Although, the average pay Of the
laborer in the Chinese iron mines and
to twelve hours and the American
laborer is paid $3.50 a day OF eight
hours, steel is made in the United
States $40 per ton cheaper than in
China and Japan. Mr. Pigott does not
believe that either China or Japan will
ever become close competitors with
America or Europe in the steel busi-
ness. The following are the blast fur
neces in operation in China or under
constructions: Four blast furnaces at
Hanyang Iron Works. output 500 tons
daily; one 100ton furnace in operation
for the Yangtse Engineering Works.
Hankow; two 400-ton furnaces build
ing at Tayeh for the Han Yeh Ping
Iron and Coal Company; one 250-ton
furnace under construction at Lungyen
Works, near Peking; one 25O-ton fur
mace under construction for Railing
Mining Administration at Tien Sien.
IN addition, Japanese are working two