The Dominion. MONDAY, OCTOBER 11, 1909. THE TRADE BAROMETER.

Dominion, Volume 3, Issue 634, 11 October 1909, Page 6

The Dominion. MONDAY, OCTOBER 11, 1909. THE TRADE BAROMETER.

•» Last week private cablo achices re coivod in Wellington announced a further advance in tho quotations for American galvanised wire and barbed wire, and a risa was also recorded in English galvanised corrugated iron and steel joists and bars The tendency of tho market is to harden, but manufacturers are not likely to rush up the prices and so check tho revival of trade. There will be a gradual hardening of \alues, and the improvement in tho iron and steel trade is one of tho most pleasing features of the moment, A great revival has really begun in tho United States, and may bo expected to Bpread to other countries Tho railway magnates aro going in for extensive construction. In. Texas about 3000 miles of railroad construction is to he put in hand at once, while on established lines extensive orders for freight and passenger cars and loco motives have been placed The Altninq Journal (London), m a recent article on the iron and steel trades, remarks — "While the business of the first half of tho jear was unfavourable to most trades, it is satisfactory to bo able to state that improvement is now really appearing in most branches of the iron and steel im dustnes, and wo may fairly expect that tho, worst of the depression is over. Ono excellent feature is the condition of af ; fairs in the United States. It can hardly be doubted that a revival is in progress theie, and as it was in America that the slump began in October, 1907, extending to all European countries, bo it is probable that those latter will follow in the upward course, though as jet it is only British manufacturers who have had any increase in business to report The ie-. vival in tho shipbuilding industry, whicL IB onco again in progress, is a matter of tho greatest importance to the iron and steel trades, foi so many branches of the latter aro drawn upon to supply the ma> tcnals required in the construction of vessels. There arc fewer vessels laid up than was the case at the beginning of the year—less than half, in fact—and in some trades better freights are procurable, Owners of steamship lines aie ordering new vessels to replace their old craft, .is they recognise that they will not be ablo to have them built at cheaper rates than aro now asked Thus it is that the ship: yards are better oft for work this summer, than they have been.for two years at least, and establishments that have been wholly idle for a considerable period havo lately been reopened. This cer. tainly is a good sign, and there is justification for saying that the putlook in trado is once again encouraging,' after fully two yoara of depression." Tho overpowering optimism which has been tho dominant note in the American iron and steel markets has caused a greater buoyancy in tho pig-iron market |Of Great Britain. Concurrently with the improvement in business there hae been a marked development of the tendency oE prices to advance. About the middle of July the cash quotation for warrant pig iron was 485., on August 3 it was up to 495. 10d., and on August 11 tho cash price was carried over 50s. per ton for the first time since November 10, 1908, and then the advance has further developed, being quoted last week at 525. 2d. per ton. For the whole of 1908 the,average price was 50s. 5d.; for 1907, 555. 7d.; for 1906, 53s.;'for 1905, 40s. 6d.; and for iUOI, 435. lid. The advanco has been effected, in face of circumstances which on some occasions at least have been regarded as sufficient to warrant a considerable fail. For instance, the stocks in public stores, have always been regarded as a factqr of primo importance, havo continued to incrcaso steadily. Id America also the output has increased enormously, the output to the end of August to 13,124,000 tons, as compared with 8,136,000 tons for tho corresponding period of la-st year. There is obviously' some strength in the revival of trade as it affects the iron and steel industries.

Most of ,the soundest judges, regard, pig iron as the best barometer of trade. When the metal is in. active, demand at . fair prices it is reasonable to. suppose that many industries besides, those of shipbuilding and engineering are prospering. But it is impossible, for these main! industries of Great; Britain to bo ■ active without oxorciaing. a beneficial; effect on the .entire ■ trado'of the United Kingdom; and indirectly; of tho world. As .the revival gathers strength more people will secure employment,:.and the daily. ex"pondituro for the riedessarica'o.f-life must i.ricren«V.'"Presently'•■'th'ore.'.eHould'. bo" a . str.o»eer_.dfloiand:Jorj t\iok ..ot.. tho /J ood

products as New Zealand' exports,, and prices may bo expected to advance'as the demand strengthens. In theso circumstances we find confirmation, of our re-cently-expressed views that there ,is a decidedly good prospect of better ahead in the near future, , • »■ '