Evening star., 1921-04-23
Editorial Digest
Cheap Steel as Business Tonic.

The cut in steel prices, says the Bos-
ton Post independent democratic). "fs
Indirectly of as much Importance to
the average man as cut in food
prices" and it is in this light that
| the newspapers comment upon the
! United States Steel Corporations an
! nouncement of a reduction in the
price of the product of this basic
| industry" Prediction of correspond
ing fall in the prices of other prod
uctS and a stimulation of business in
general and home-building in particu-
| lar can be found in many editorial
columns, though some of the more
cautious editors warn their readers
that the drop is hardly enough to
have Immediate widespread effect.
is a question of speculation
The ''profiteering" of the steelmakers
| is alluded to by many who, like the
Petersburg (Va) Index-Appeal inde-
will add much to the impetus of
building in the United States" but
| lament the fact that there was mo
reduction in the prices of steel rails"
The Brooklyn Eagle independent
democratic) thinks that more than
a beginning has been made" though
| it is ''sufficiently belated." AS to the
question of wages, the Eagle remarks
that cit has been alleged that the
company has been charging $50 a ton
, its customary dividends. and it does
not need to be alleged that the pay
roll must share the common fate"
To the Johnstown Democrat demo-
cratic) the results obtained were simply
due to a victorious strike" 1t says:
THE public has managed to rub along
without new structures of various kinds
and seemed disposed to stay out of the
market. The result is the slice in prices
| made by the Steel Corporation"
Until now Mr.. Gary has been "meas-
urably successful in controlling prices
/ enough to secure enormous profits for
the company, but not enough to involve
a violation of the sherman law" says
democratic); now, 'Mahomet Gary goes
to the mountain" However, lit would
have been better for the community if
| the price cut had come several months
tempted by low prices to keep their men
employed
Admitting that the Steel Corporation
has been a hanger back and that
"other companies have been doing the
trick for four or five months past" the
Chicago Tribune Gndependent republi-
cam welcomes the "twofold'' effect:
Its first effect is to hold out a prospect
of relief and business betterment to al
most every manufacturing and operat-
iiS pIoSSSS ~HiCIi 6clS ltS IIs1tcTldl I'll.
rectly or indirectly from the Steel Cor
poration, whether it be a railroad, a
motor factory or a machine plant. The
second is to influence those concerns
which have not yet dared cut their price
and take their loss 10 do so now. and
by iquidating old stocks and starting
off on a new basis, to do their part in
general readjustme ut"
The South Bend Tribune Independent
republican, enumerates the industries
which it believes will feel the effects:
Agriculture, the greatest Of industries,
by permitting the easier prices in farm
machinery; transportation, the second
in size. by permitting the purchase of
third occupation, by allowing better
quotations to prospective owners: and
automobiles, by giving car makers ac-
cess to raw materials at lower prices"
The drop will affect the home-
builder, even if he only intends to
erect a wooden bungalow the Roches-
ter Herald independently suggests,
for "all building materials" are likely
to take a downward trend Following
the lead OF steel"
remarks: Usually price reductions
follow rather than precede wage re-
ductions. There is no use in our
shutting our eyes to the facts. or
trying to convince ourselves or others
that there is no depression in business
i
will go down together as they came
up
Among those who look upon Mr.
Gary's announcement as less momen-
tous are the Springfield Republican
independently and the Union (repub-
lican) of the same city. The former
declares that "the price cutting was
not drastic enough to convince the
consumers of steel that the bottom
prices have been reached; and bottom
prices are the main thing in the
psychology of new buying move
ment"; further. the discrimination |
against the industries using steel
rails or wire nails lis unfavorable to |
their revival" the railroads especially. |
The Union thinks stimulation of trade |
will come within limits.'' but real |
activity will probably await better |
adjustment Of all the costs Of produc-
tion in other industries than has yet |
been made" |
The New York Mail Independently |
points out that the reduction does |
not more than bring the corporations !
price level down to that of some of |
the so-called independents" and while |
ordinarily. activity in the steel trade |
is one of the first evidences of a [
general business revival" now "the |
business times are quite abnormal and !
we can hardly expect steel producers
to commit suicidal bankruptcies for |
the sake of renewed life in other |
lines"
The Manchester Union (independent |
republican, sees building "slightly |
accelerated" but no swift surging |
ahead into great structural activity"