New-York tribune., 1921-04-18


The interplay of the foregoing do
mestic events on the commodity and
security price structure was impeded
by q focusing of attention on British
social politics. Professional specu
lators here tA1e much of the threat
ened strike OF the Triple Alliance Of
miners, transport workers and railway
men In Great Britain. The possibility
of a stoppage of the flood of the life
blood Of commerce through the arteries
district here and, even while sterling
exchange was rejecting confidence on
Thursday that the breach could be
averted, security and comm edity prices
here were receding. indicating that
bear traders were seeking to capitalize
the sentimental effect Of the industrial
dispute overseas. There was some need
less alarm on this side, because the set
of facts obtaining here in respect to
business and labor resdjustment down
ward do not correspond exactly with
conditions in England Therefore it
was fallacious to argue that what was
happening abroad was necessarily a
forerunner of what is likely to come to
pass here. AS a matter of fact, the
event itself did not materialize on
schedule. The interest here in the
British strike conferences indicates,
however, the increasing public con-
sciousness of how closely interlaced
the activities of the two countries are.
The only element Of surprise in
connection with the reduction Of the
prices Of the Steel Corporation was
that it came a week or two before eX-
pected. What the leader Of the steel
industry does is important, as is we'll
recognized, because Of the basic char
acter of the metal which touches a
myriad eother industries. There is,
however, an added psychological factor
which gives significance to such de-
velopments. Men of business have
been taught to regard steel as the
! barometer Of industry, and have be-
come accustomed to looking to the
prime factor in the steel industry for
leadership. Until the United States
Steel Corporation Joined the process
! sion marching toward lower basis, OBJ
servers lacked confidence in the stabil-
ity of prevailing schedules. They felt
uncertain and in a waiting mood until
Judge E. H. Gary was ready officially
to speak the language of defation. The
Steel Corporation has made it's utter
ance. Other factors in the industry
believe that the action will impart
are not confident that it will immedi-
ately stimulate business. Experts are
wondering whether steel prices are now
at the bottom, and they are expert
mental, rather than dogmatic, in their
replies. The average price Of six lead
ing steel products, despite the new
reductions averaging per cent, is still
81 per cent in excess of that prevail
ing in August, 1913. Steel is still ex-
pensive, in terms of commodity prices
as q whole.
The change in the steel schedule af.
fected the price Of securities of stee
companies only slightly after the
event, which was to large extent dis.
counted. Although on previous occa
sions, notably in 1909, revision down
l ward has adversely affected the marke
= worth Of the stock of the Steel Corpo
ration, there is nothing intrinsicall,
"a bearish in step toward the inevitable
In SO far as the reductions in pric,
last week stabilized steel prices, tn,
development is extremely favorable i,
strictly market sense. The independ
ent stocks on the two sessions
previous to the announcement las
Wednesday anticipated the impact of tn
development by sharp declines. From
March, 1919, until last Wednesda,
tbs schedule Of the Steel Corporation
was that which the Redfeld Industrial
Board characterized as fair. In tho in
term, while the leader Of the industr,
! adhered to that level, the so-called In
dependents increased prices during tn,