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Show IRON AND STEEL TRADE OUTLOOK DISCOURAGING New York. Feb. 21. The light and shifting currents of the speculative sentiment in the stock market veered decidedly in the direction of discouragement dis-couragement In the course of last week and carried values rapidly downwards. down-wards. The deciding factor was the evidence of languishing trade as exemplified, ex-emplified, especially in the iron and steel trade. The halt In the revival 01 trade had been precelved for several sev-eral weeks past and the growing mis glvlngs. but the policy of the Uinted States Steel corporation was announced an-nounced to be for tho preservation ot stable conditions by maintenance or prices based on the stated conviction that a reduction of prices at this time would fall of effect in reviving demand. It was asserted that the waiting on the formulation of flew, tariff schedules sched-ules was tho motive for the .withholding .withhold-ing of orders. It .was urged A 'hat such cutting of prices' as was. btynR done was by small independent foleel companies, com-panies, and that the business thus placed represented so small a part or the total business as to be unrepresentative unrepre-sentative of trade conditions. Insistent Insist-ent reports that a cut In prices ot steel was In contemplation were as persistently denied, tho latest denials ccming from accredited officials until past the middle of the week. The reassuring re-assuring effect on speculative sentiment senti-ment of these assertions was confirmed con-firmed by the determined support accorded ac-corded the stocks of the United States Steel corporation on the stock market mar-ket Repeated bear attacks were resisted re-sisted and unwieldy short accounts in those stocks driven to cover. The Impression thus came to be held that the vast centralized control In the steel Industry' was to be determinedly employed to maintain stable conditions condi-tions in the industries and to await patiently the turn In the trade without with-out going through tho disturbing effect ef-fect of a cut In prices and a struggle for readjustment of a declining scale. It Is necessary to bear in mind these preliminary circumstances in order to understand the force of the sudden reversal of policy on the part of the principal interests in the steel trade; When the realization came to tne stock market element on Thursday by a price reduction and an active effort on the part f the leading producer to secure business from competition, the tone of the speculation became semi-demoralized. The slump m United- States Steel itseir was the most conspicuous feature of the new turn in affairs. It was rather notable not-able that the copper industrials were comparatively stable, those stocks having been declining for some tlmo previously in company with the successive suc-cessive reductions going on in the price of the metal. The comparative firmness of the copper stocks was tur-thered tur-thered also by the statistics or the newly formed copper producers' association as-sociation given out early ln the week. The clearing up of the foreign situation situa-tion was of important effect on all financial fi-nancial markets. Th definite promise of growing ease in foreign money markets mar-kets and the settlement of international interna-tional questions had stopped persistent persist-ent liquidation of Torelgn holdings of American securities and had given place to some buying in New York on orders from abroad. A decidedly favorable impression was made by' the permission accorded by the Ncw Y.ork public service commission com-mission for the Issuance of Eric bonds. The freedom for tne money market of effect by the various cash requirements require-ments upon it were being met was considered a good thing tor tho speculative specu-lative prospect Another moderate decrease in idle freight cars gave some hope of a betterment in tho traffic situation. The speculative effect ef-fect of theae factors were all swept aside by the later consideration ot the trade outlook and the realization that a scramble was in prospect among jstcel producers which might involve serious consequences to earning earn-ing powers. It Is noticeable that tho disorder into which the stock market was thrown produced but slight effect ef-fect on the bond market. |