October 11, 1890





Record and Guide.





471





principal govemmente, have offered to contract for our companies' entire
production for a period of ten years. The proportion of copper and nickel
in the ores belonging to our companies are just about those used by the
French (government in the manufacture of cartridge shells. The propor¬
tions of iron and nickel are about what are used in nickel-steel, which it is
proposed to use in the manufacture of guns and armor plate."

It is understood that Mr. Ritchie last summer visited the principal iron
and steel works of Great Britain and the Continent, and that the above
statemente are ba?ed upon actual investigations. Certainly his statements
indicate eariy and most important developmente in the steel industry.—
Journal of Commerce, Chicago, Ills,





How Germany has Beaten Us.—In considering the question of enlarg¬
ing our trade with other American countries, it is interesting and instruc¬
tive to study the course that has liaen Ifpursued by the great commercial
nations of Europe in securing the coveted trade. During the past twenty
years no country of continental Eurcpe has been more active in expanding
ite commerce than Germany, and her progress has been especially marked
in the South American trade. In the last annual report of Consul Baker
there was a striking showing of the advance of German intereste in the
Argentine RepubUc, and in the latest volume of consular reporte at hand
there Ls a statement showing that the trade of Germany vrith Brazil now
ranks next to that of England, and is more than twice in value that of the
United States. But a full exhibit of the foreign commerce of Germany has
recently been made in a pubUcation by Dr. Francke of the royal bureau of
statistics of Prussia, who shows that within a few years the relative gain
of Germany in the trade of the southern countries of this hemisphere has
been greater than any other European country.

The exporte of Germany in general to Mexico and Central America more
than doubled between the years 1880 and 1887, while those of her com¬
petitors, including the United States, were either barely holding their own
or d.stinctly decUning. In the South American trade, during the same
years, the business of Germany increased nearly *wo-fold, while the com¬
merce of neither England, France nor the United States made any
decided progress. For example, the comparison between the export trade
of Germany and the United States with South America for the period
named shows that while that of the former increased to the value of six
million dollars, the increase for this country was only two milUon, and in
1883 our trade was larger than in 1887.

What have been the causes of Germany's marked success in securing this
trade ? In the first place her manufacturers and merchante have been
better represented by commercial agente than those of any other country.
These agente, unsurpassed in intelligence and zeal, have been so ubiqui¬
tous as to have attra::ted the attention even of South American touriste.
These commercial travelers have introduced the wares of Germany into
every South American market, and sustained by a judicious aud liberal
policy of dealing have been enabled to win business from all competitors.
Another cause of Germany's success is the superior technical education
applied to manufacturing industries, aud still another, and not the least
important is in making goods cheaper and better than ber competitors.
German manufacturers carefully consulted the peculiar wante of the
people and provided for meeting them.

Such were the resulte of German commercial enterprise down to 1888,
and the fact that the foreign commerce of Germany has not continued to
grow, but has rather fallen off, is unquestionably due to the increase of
her tariff on raw materials, which have put her at a disadvantage in com¬
petition with England and France, and particularly the former. But so
far as the United States is concerned. (Jermany stiU holds a very great
advantage, which will not be wrested from her untU we apply the methods
which brought her such notable commercial progress in a few years. How¬
ever much we may theorize regarding the possibilities of reciprocity, until
we can make goods for the Southem markete cheaper^and better than our
competitors, and can offerthe people of those countries equally favorable
trade arrangemente in all respecte, we sball make slow progress in getting
the trade now controlled by England, Germany and France.—Omaha Bee.





The German Iron and Steel Trade.

[COMMUinCATED.]

The present position of the German iron and steel trade is of special
interest both to members of that trade in this country and to operators in
the stock markets, inasmuch as the interest of the latter are in some meas¬
ure mixed up with the fluctuations in the Berlin market, and whatever is
connected with it Members of the EngUsh and Scoteh iron and • steel
trade know that it is the ambition of tfaeir German colleague* to become
at least their equals, and to run a race with them in foreign markets. It
is true that this competition has been abandoned, or has, at least, slack¬
ened very much during the past year or two, because the Gterman iron¬
masters and manufacturers have done so weU at home that they have
thought they could do without exports. Indeed, they have not only been
unatue to compete with this country abroad, but have also had to sustain
our competition in their home market Prices in Germany rule higher
generally t^n anywhere else, and orders until the cloee of 1889 were very
large. This offered a good chance to English exporters, and the reporte
on German foreign trade contain the proof that our exporters
have not failed to avaU themselves of tbe opportunity. Their success
would have been more signal stiU were it not for tbe Gennan customs
tariff, the raUway tariffs, which contain exoeptionaUy high rates from the
seacoast to the interiw, and last, but not least, the unfair practice of tbe
German railway departmente in receiving foreign tenders, but aUowing
their own countrymen to make reductions whenever their original demands
are higher than the tenders sent from England or Belgium. It is obvious
that this practice tends to encourage the German works to demand high
prices, and, going to the bottom of tbe affair, there can be no doubt that
the Gennan consumers and tax-payers have to pay considerably more for
tbe supply of their waute than they would have to do if the law of supply
and demand were not interfered with. The pretext which is urged in
favor of this system is tlwt it " reserves the German market, to the Ger¬
mans," and that the proflt goes not only to thi bame manufacturers, but
also to the hundreds of thousands of German workmen. This is, indeed,
the justiflcation which the German iron producers plead whenever com¬
plaint is made about the exceptionally high prices they ask. If
this were true, however, it would follow that the German workmen were
receiving very high pay, as their share of tiie higher prices the govern¬
ment (i, .e., the railway department) pay to the manufacturers. But
there does not seem to be much contentment among the German work¬
men, and, if their complainte deserve to be listened to, it would seem
that their situation .has improved Uttle, if at aU, since the adoption of
the high import tariff and the reicm of high prices. The growth of social
democracy m Germany would seem to support such views. The trouble
in Germany is that the principles and practices in fashion invest the
development <tf industries tiiere vrith essentially artificial features.
They tend to increase rapidly the number of works and of
workmen, but they are far from bmlding up what may be
caUed solid prospwity. At present the German iron and steel
trade has assumed immense dimensions as compared with fifteen or
twenty years ago. But it bas grown beyond reasonable Umit There
must be some proportion between production and consumption, and,
wherever this proportion is vranting or deflcient, thwe is cause to fear a
catastrophe sooner or later. To this view the experience of aU protection¬
ist countries bears ample witness. Tbe German iron and steel market has
been completely isolated from the rest of the wwld, and tbe large orders





which the government have distributed for same y6ars have caused the
production to grow enormously. The whole system, coupled with the
exclusion of all foreign competition, has led to a large accumulation of
wealth, principally employed now for Stock Exchange speculation. An
inquiry into the business of the Berlin Stock Exchange during tbe past
twenty years will show that operations iu the shares of iron and steel and
coal concerns give it a characteristic featore. At the same time, it
cannot be denied that the German iron and steel trade constitutes
a centre of the dangerous social-democratic, and, in the end,
revolutionary agitation. The chronic condition of the CJerman iron and
steel trade Ls that it shows a tendency towards over-production. Symptoms
of this have appeared recently, and to protect themselves the works have
had recourse to the system of conventions, by which they have obtained
control of the market. The coal and coke mines have imitated their
example, and so it comes that the cost of production is higher in Germany
than anywhere else. The natural result is, in the first place, a consider¬
able decline of exporte, and in the second place, a growth of foreign
importe, for, at the present level of prices in Germany and abroad, foreign
iinporte leave sometimes a margin in spite of aU tariff obstacles.

The difficulties of the present subvention makes It necessary that the
German iron and steel masters should wish:

(1)  For a rise of prices abroad, because it would operate against the
import trade.

(2)  For the rejection of ah foreign tenders by the raUway departmente
and other buyers.

(o) That the railway departments should distribtite large orders for rail.?,
engines, cars, and other material. In tfais respect the iron and steel
masters are now doing their utmost in order' to'induce the government to
adopt the new tyiie of rails called the " GoUath " rail. It does not seem
likely that tbey will have an immediate success.

(4) For cheaper coal and coke prices, in order to be enabled to reduce
their own prices for exporte.

It is a noteworthy feature, that the prices for exports are far lower than
the prices exacted in the home market.

The development of the iron and steel production in Germany is shown
in the foUowing table:

1889.            1887.            1885.            18S4.            1878

Production.                    Tons..        Tons.          Tons.          Tons.          Tons.

Coal........................    65,386,100   60,:»4,O0O   .58,320,000   .'57.834,000   39,599,000

Brown coal.................    16,574,000    1.5,884,000    15,355,000    14,88(1,000    10,930,000

Iron ores.................    10,664,300     9,.3.51,0OO     9,157,000     9,00.5.000     5,46V00

Pig-iron.....................      4,337,100     4,0S3,900     3,687,4C0     3,600,600     2,147,700

Half manufactures of pig-
iron, &c...................      5,555.700     5,2-23,400     4,377,800     4,448,.500     2,759.600

Foundry poods............         649,700        763,500        074,900        698,800        414,000

Iron and steel half inaou-

factures...................       838,300       650,300       400,500       377.700        80,400

Commercial iron and steel..     1,227.900     1,127,<K)0       877,400       917,200       568,600

Railway material..........         669,000       640,100       609,200       600,000       599,400

Plates......................       398,200       352,400       291,700       286,700       158,000

Wire, iron, steel...........       411,400       444.fi00       395,100       400,100       178,8)0

Tubes, ete...................         28,600        29.200        20,.500        18,800        10,9(10

Other iron and steel goods.       122,.300       119,800       112,600       122.100         87,300
Totel amount of iron and

steel goods.............     2,857,400     2,713.100    2.306,500    2,853,908     1,605,000

Total amount of manu¬
facture and hair manu¬
facture..................     4,345,.300    4,126,900    3,381,900     3,430,400    2,097,400

The foreign trade is reported on as foUows:

1889.          1888.          1887.         1886.      1886.

Tons.        Tons.       Tons.        Tons.      Tons.

Importe of Spanish ore-;...........   893,000     8.59.000     731.000     645,000     092,000

pig and scrap iron.....    3a3,400      224,500      16.3,7(10      169,500      228,800

Exports of pig and scrap iron....    198,000      172,800      272,900      303,000      250,200

half manufactures.....     41.000      148.400        65,100       62,800        59,200

bar and fashioned iron.   225,500      235,800      250,700      221,000      172,000

railway material ......    169.700      188,900      216,200      198,600      200.300

plates of all kinds.....       67,100       68,400        68.300       44,600       45,200

wires and nails.......    208,400      245,600      285,200      279,500      233,300

"          ordinary and superior

iron goods.......       83,500       92,.5flO        77,800        68,:»0        66,900

"         tubes,etc..............      80,000       31,700       84,800       32,300       28.400

Total amount of exporte......1,014,200   1,053,500   1,260,400   1,210,500 1,049,400





Real Estate Department.

There is not a great deal new to report as to the condition of the market.
This has not perhaps been as lively as last week in the number of sales
consummated, but some very satisfactory negotiations are under way
which will no doubt be heard from before very long. So far this fall it
has been an uncertain market, now looking bright, now duU, and ite
character is not finally determined. Everything favors a large business
and there is no good reason for a dull market At present it is not dis¬
tinctly one or the other.

On Monday the only business transacted on 'Change was the sale of two
small parcels under foreclosure.

Tuesday's crowd in attendance on the sales was ot the large proportions
that bespeak the developing business season. Notbing of importance,
however, was sold. The four-story, brown stone dwelUng, lot 12.6x98.9,
No. 116 West 42d street, adjoining the site of tbe proposed Hammerstein
Theatre, was started at $32,000 and sold for 130,000 to Henry Brash, who
owns tbe adjoining twelve-and-a-half feet which he pui-cbased two years
ago, it is said, for $21,000. No. 53 West llth street was sold for $19,750,
but Nos. 66 and 68 West 10th street did not fare as weU, they being bought in
for the owner at $47,500. Under foreclosure Nos. 39-43 South 5th avenue,
59.5x93, sold for $36,500 to Thos. Eagleton. The other six parcels disposed
of by order of Court were of no special interest

Thesaleof twenty-seven lots at Fort Hamilton which were offered by
Bryan McSwyny was in no way a succecs. Several of the lote were with¬
drawn for want of a bid, and those knocked down did not realize satis¬
factory prices.

On Wednesday there was the largest crowd seen on the Exchange fl<x)r
this season. Tbey were attracted mainly bv the sale of lote on Kings-
bridge Heights belonging to Hugh N. Ctunp and A. B. Claflin. The prop¬
erty sold was a portion of the Anthony estate, which was purchased by
Messrs. Claflin and Camp some time ago. The highest price realized was
tor a villa site on Sedgwick avenue, containing about flve and one-half
city lote, which brought $8,000. Out of twelve villa siies on Sedgwick
avenue offered only three were sold. This is accounted for partly from
the fact that the sites were restricted to $8,000 bouses, and although the
crowd which bid so cheerfully was both large and varied it was not com¬
posed of people who could afford from $8,000 to $10,000 for a site and
$8,000 additional for a house. The other villa sites on Sedgwick avenue .
were withdrawn as the o wneissaid tbey could get more for tfae property at