Show Steel Regains Favorable Place by New Nelv Pay Scale r 1921 STEEL 1 EL 19 1932 2 STEEL ra a J cugaT e 2 CuT cu WILL STEEL FOLLOW THE HE 1921 RouTE 7 Recently when the Un United ted States Steel corporation reduced wages by 15 per cent the security markets re responded responded responded re- re to the development with a sharp rally This rise merely reflected reflect reflect- ed Wall streets street's recollection that in 1921 following similar wage cuts the steel industry was on its way to re re- re- re covery ery If the pattern of ot 1921 should be followed this ye year Sr steel production shortly should begin besin to rise steel prices should take a definite turn upward within five or six months steel wages should be restored at least in part within 12 months These things are exactly what happened af after after after af- af ter the deflation of wages and prices at the bottom of the depression 10 iO years ago afo As pointed out by the magazine Steel all three factors of or the cr great basic basie industry production Industry production wages and prices prices have have maneuvered Into the same relative position they occupied in 1921 just prior to the revival in steel demand which soon lifted both prices and wages In 1921 the United States Steel corporation reduced wages three times in succession the total dropping dropping drop drop- ping 26 per cent from the previous peak This year jear wa wages es have been cut two times the total reduction being being be be- being ing nearly 24 per cent or almost equa equal to that in 1921 Although prices of or steel products are arc substantially below the levels level touched at the low point in 1921 wages wage are still higher than they were then Then business world will watch the trend o of the steel industry with a great deal of interest because any upturn of this Industry will signal signa the coming of general recovery |