San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-01-01

y
OF steel produced was more than 10
per cent greater than in 1912 or 1918,
by far the two greatest tonnage years
before the war. As population had in
creased less than 10 per cent and ex-
ports were smaller, the indicated con-
sumption per capita was equal TO the
best pre-war record
The steel producing industry itself
was not correspondingly prosperous.
From the producers standpoint the
pleasantest aspect of the year is from
the viewpoint of one year ago, when
after year of unprecedented decrease
in steel demand the hopes and expecta-
lions entertained for the new year were
Of very modest proportions. The steel
production had been 81 per cent under
that of the record year, 1917, and So
per cent under that of 1920. Perhaps
the circumstances of the time were con-
fusing. The low point in production
had fallen at the middle of July, 1921.
and for four months there had been
improvement in output, winding up
with a sharp decrease in December.
Prospects Year Ago.
At the time it looked as if that i'm
provement measured almost all that
could be expected of steel, except by
Athe development of much more favor
ABLE underlying conditions-a great in
crease in the willingness of men to work
and in their efficiency and an improve
nent in conditions abroad creating a
good export movement 1t required, in
deed. some courage TO predict that the
volume of steel trade activity would be
much greater in 1922 than it had beer
in 1921.
Now. however, We have the record
of 1922 producing about 20 per cent
more steel than 1921. The production
of steel ingots has been nearly, if not
? quite. 34,0O0,000 gross tons, against
1924 .0S4 tons in 1921. 4O.SS1 .392 tons
in 1920, a trifle over 30.OO0Q00 tons in
both 1912 and 1913, and 22,624,4S1 in
1906, which was a very great steel
year in its time. with full operation
of all the existing steel making ca
pacity throughout the year.
In passing, it may be remarked that
it is a striking commentary on the
yicissitudes of demand that there was
gave the steel industry a demand sui
ficient to enable it TO operate at jon
per cent as II did in those two years
and a striking commentary on th'
transportation, labor and other trou
bles we have had since 1916 that Their
has been no time at which the stee
industry was physically able TO oper
ate at capacity.
An Exceptional Year.
Usually at the end OF year taI
appraisal of the years results AM
of its augury for the future can b
made The present time is excep
tional in this respect. 1t is impOssi
BILE TO assign to the years consump
ton all the steel that has been mad
in the year. We know that the in
dustries Of the United States were no
less than one-half as active in ~
as in 1920 or that they were 90 pc
cent more active in 49, than in l92I
If the production of steel were tn
\measure of industrial activity tina
<eawould be the case. At the end
'Thel920 there were stocks of steel an
clospf manufactures of steel. while |
;ncf921 there was not merely liquidation
:; OF surplus stocks-there was drastl
lau'dation of normal stocks. In W.
there was renlenishment Of stock
That much We know. but there is lei
daubt as TO whether or not thel
has been accumulation of extra stool
either because buyers had due the
steel at prices that could not be dupl
Gated or because they were fOrtityin
themselves against another coal strlk
Tho observer who did not take n
count OF this factor Of stocks wou
be convinced beyond pcradventurc
doubt that the consumption 0t ste
is proceeding at a very healthy al
heavy rate ard that great lndustrl
nctiyity is assured for approximate
the first half of 1923. RepIenishmci
Of stocks. however. has been grei
factor in all the bulges steel produ
tion has seen in the past. while liQu
dation of stocks has been respOnsib
for the depth Of the troughs by whiI
the curve of steel production has d
scended. One might think that bu
ers of steel would accumulate stocI
when demand is light and draw upC
The stocks when demand is heavy. III
feet. testified to by all steel mark
history, is that they reverse this pr
cedure.
In several important respects co
was fine dominant factor in the ste
industry in 1922. 1t affected deman
production, prices, cost and profits
Greater OUTPUT in 1920.
On account of decreased industri
actiyity. a great slump in building al
a drastic liquidation in stocks of ste
and of manufactures OF steel. the pl
duction of steel ingOts dropped TO
rate OF II 100000 tons a year in Jul
1921. Production then increased u
iii October. and November witness
an average rate of 23000.000 tons. i
cember brought a sharp curtailmel
with the rate for the month und
o0.OO0.000 tons. Right at the beg
ming of 1922. however. demand beg
increasing. and by April l. the df
oof the great coal strike, the rate
about 35.0O0.000 tons. No one cor
avoid the conclusion. considering
circumstances in detail. that the gre
rise in demand was due in part
buyers anticipating influences tr,
the coal strike. not that the steel mi
would stop operating April !. but I'll
eventually they would be crippled
% was commonly expected, the STR
should last several months.
Strikes in the Connellsville regiC
non-union for a generation. prov
much more serious than had been
. pected. but " buving West Virgin
and Kentucky coal. experimenting
y large stocks. the steel industry mi
aged even 10 increase its production
trifle. In August and Septeml
there was ? din. making the ayera
Il