Steel's Future

Just now the American steel business has staged a thoroughly remarkable "come-back." Orders pile up, prices are firm, extra dividends are the order of the day, earnings are increasing. Nevertheless, some American steel leaders are casting anxious eyes towards Europe. Schwab is in Germany. Gary has departed for South America. To students of the industry, aware of bad conditions in the export trade, these facts are not without significance.

American Labor costs are completely out of alignment with those of Europe. To some extent this is compensated for by superior American natural resources and efficiency. Yet the competition of Continental steel is already felt in the world's markets, particularly perhaps in Great Britain. It is felt that unless new demand at home can be stimulated and maintained, the present pro-'duction rate in American steel can scarcely be continued. Our export steel is already selling 15% under domestic prices, but the large quantities of steel production tied up by the French occupation of the Ruhr has yet to come upon the market in considerable quantities.

The exact purpose of Mr. Schwab's European visit is unknown. Varying rumors report that he is about to acquire an interest in Austrian or German concerns. At any rate, the potential and actual competition anticipated from the European steel centres is no topic of mere academic interest, least of all to the American steel men best qualified to judge conditions in the industry.