The accepted estimate, however, is that normally more than 50 per cent. of the steel passes into permanent use. One of two things is the case. Either the current needs of the country have tremendously increased, so as to represent more than 60 per cent. of the capacity. or there really has been at least a moderate amount of buying of steel for permanent use or investment. In either case the steel outlook is obviously favorable, for buying for current use would naturally increase as unsettlement due to the war's ending passes, and buying for investment purposes is certain to come, or to increase. Investments must be made, for large quantities of capital have accumulated, awaiting investment, and steel in the form in which it leaves the mills is cheap, since finished steel products are now about 80 per cent. above their ten-year pre-war average, whereas the Dun and Bradstreet index numbers, covering commodities in general, stand at double their ten-year pre-war averages. Thus commodities in general will buy more steel than formerly. Steel has been affected less by the expansion, commonly though unfortunately called "inflation," than have commodities in general. Hence, when investments must be made, investment in steel is particularly attractive.

EFFECTS OF PEACE TREATY

While a great many views that were entertained just before and after the signing of the armistice have had to be modified, there is among others one view then entertained that has molded men's conduct, whereby light upon the future is thrown. That view was that investment would not proceed freely until the peace treaty should be signed. There can be no doubt that investments, particularly in works of construction, have been held back awaiting the formal establishment of peace by the signing of the treaty. The view that there would be an immediate or at least a prompt "deflation" in prices has been discarded, but the holding of the view for so long operated to delay the conversion of liquid capital into works of construction for investment purposes, involving the purchase of commodities and employment of labor.

It is true that some investors might be expected to anticipate the arrival of the formal peace, but the fact that as the months after the armistice passed, peace, with stable governments in Europe, seemed to recede instead of approach, had a tendency to discourage investors. Furthermore, many investments or undertakings rest upon the vote of boards of directors, many of the members being indisposed to anticipate, but to follow one plain policy, of refusing to endorse new ventures until peace should be sealed by the signing of the formal treaty by responsible and stable governments. That event having occurred, a great many new ventures will undoubtedly be launched quickly.

NEW CONSTRUCTION

By no means, however, has the inception of new construction awaited this time. By far the most accurate index to new construction such as particularly interests the steel trade is the monthly compilation of the Bridge Builders' and Structural Society of the amount of fabricated steel work let to the fabricating shops. In terms of monthly fabricating capacity the bookings have been as follows: January, 12 per cent; February, 12 per cent; March, 171 per cent; April, 24 per cent; May, 49 per cent. When the volume of this business doubled from April to May it seems altogether reasonable to conclude that the signing of the peace treaty will result in a very large further increase.

There has been a curious reversal in the outlook as to the time when various new enterprises would be undertaken. Assuming, as practically everyone did, that a large quantity of construction work had piled up, the reasonable view not long ago, when it was expected that construction costs would gradually decline, was that the work undertaken first would be the more pressing work, that in which first cost was the less important consideration and time the more important, so that as time passed one class of work after another would be undertaken. Now, however, when the common view is that construction costs are approximately as low as they are likely to be for several years,

with possibilities that they will increase, the majority of investors are likely to be disposed to take hold at once. Their activities will be limited not so much by fear that the passage of time would write a depreciation on investments through construction costs declining as by inability to secure steel deliveries or labor with which to put the steel into employment. A rapid rather than a slow recovery in steel is therefore to be expected.

PRODUCTION

The low point in steel production fell at some time in May, probably about in the middle of the month, the rate, measured in steel ingot output, being down nearly if not quite to 50 per cent of capacity, the average production for the month having been 54 per cent. The computation is based upon the fact that 30 companies, which in 1918 made 84.03 per cent of the country's total steel ingots, reported 1,929,024 tons as their output in May, while the capacity of the country may be taken at 49,000,000 tons a year. The average 54 per cent rate for May compares with 65 per cent for April, 77 per cent for March, 85 per cent for Feburary and 87 per cent for January. Since this low point of about 50 per cent. there has been a steady increase, consequent upon the increase in the buying of steel that began about the second week in May, and June production may be taken as having been at about 60 per cent of capacity on an average. Apart from such inroads upon output as may be made by midsummer weather, the recent 50 per cent rate will probably stand as the low record for several years.

PRICES

The test of the stability of the "regular" or "recognized" steel prices, those that became effective March 21, is the cutting that has occurred during the past three months. When with light mill operation there is no price cutting the evidence is clear that mills are afraid to cut, lest the bottom drop out of the market. Such a fear actuated the producers from the time of the armistice until April. Lately there has been price cutting in nearly all finished steel products, not by the majority of mills, but by a minority. The majority have been content to let the price cutters take such business as could be secured by that means, finding that their relations with their customers, and the service they furnish year after year, have been sufficient to bring them a very fair volume of orders, at the full prices. It seems now altogether improbable that there will be any further and general decline in steel prices. At the present time advances are not looked for, except perhaps in spots, but it is quite possible that the market will broaden so rapidly that some price advances will occur before the end of the year.

The Chemical Market

New York, June 26, 1919. One of the most hopeful signs pointing toward a return to normality in the chemical trade is the increased domestic demand. This is attributed to the belief that the heavy stocks held by consumers when the armistice was signed have been used up.

HEAVY CHEMICALS:-The most interesting development in the heavy chemical field is the strong position taken by caustic soda and soda ash. With the decision last week of the Alkali Export Association to advance caustic soda to $3.30 per cwt. f.a.s. a strengthening tendency immediately invaded the market. Caustic soda has been in steady demand for some time, particularly from Japan and South America, but recently, realizing that offerings in secondhands were rapidly disappearing, buyers came heavily into the market with the domestic call showing the greater strength. Soda ash is running a close second in point of demand from both export and domestic quarters, and following the example of caustic soda has registered an advance, now being quoted at $1.85-$1.90 per cwt.

The recent arrival of several thousand cases of potash from Japan, with rumors of the future heavy importation of Alsatian potash, continue the weak position of all potash products.

Muriatic and sulphuric acids are in good demand for

Cuba and South America. Last week domestic dye manufacturers were in the market for sulphuric in quantities. Citric acid is again weak due to heavy arrivals from abroad, in particular from Italy. Bleaching powder has advanced 2c, due to absorption of resale material.

COAL-TAR PRODUCTS:-The improved tone of the crudes, noted in the last writing, stands at the same level. Benzol remains firm and is meeting a heavy demand from the rubber trade. As in the case of solvent naptha, xylol, commercial, has been advanced because of heavy demand and short stocks. The same is true of phenol, with drums at

10-13c. per lb.

Intermediates are keeping their stride and as the month closes a better general business is reported from all quarters. Not only is the domestic phase on the increase, but South America is purchasing in the local market. A leading manufacturer is receiving orders for August delivery of paratoluidine and para-nitro toluol, but doubts whether he can meet the heavy July demands. Alpha-naphthylamine is hitting a good place for domestic use while H-acid is in good demand for export, not in large quantities but from a number of sources.

NAVAL STORES:-Although for a time there were no spot stocks of turpentine on the market here, owing to the heavy call from Europe-particularly Scandinavia-new supplies have meantime arrived sufficient to take care of the normal domestic demand. During the past two months London has purchased approximately 60,000 bbl., which is thought to have filled her needs. Domestic buying has fallen off due to high prices. The result is an easier market.

The principal reason for the firm tone of rosins is the heavy export demand. With only one-half the normal crop of rosins being made this year a scarcity is predicted if present buying continues. However, with the exception of the pale grades, spot stocks here are normal. Savannah, where buying is also brisk, reports a shortage of pale grades. South America and the United Kingdom are the principal operators in rosins. Other naval stores show a slight rise in sympathy with rosins.

CRUDE RUBBER:-It is estimated that present plantation stocks in London amount to 24,000 tons, with 10,000 tons in the Far East, and over 60,000 tons in the United States. In view of this condition, the market is weak, dealers being the principal operators. For the past week there has been an active dealers' demand for distant positions, presumably to cover short sales at a profit. Manufacturers, however, manifest no interest.

Manu

Paras are weak, in sympathy with planations. facturers have fair-sized stocks on hand, future selling higher than spot. A Singapore cable reads: "Large holders primary markets weakening. Market weak.", while London wires: "Market stagnant awaiting political developments."

OILS: The interrupted European demand remains the dominant factor, vegetable oils now going even into Germany and Austria. Domestic buyers realizing that the export demand will hold up the price are purchasing at prevailing levels. There is a scarcity not only of spot stocks, but of August and September futures. Linseed oil is particularly scare, owing to short crop of seed, and heavy demand. Although several shipments of seed have arrived from Argentina recently, linseed oil is firm at $1.88-$1.89 per gal.

The recent embargo placed by Spain on the export of olive oil is felt here in the small arrivals and the stiffening price. The commercial grade is held at $2.30 to $2.50 per gal.

During the past two weeks, oils, both vegetable and fish, have risen sharply. Winter pressed menhaden, quoted at the last writing at 90-92c per gal., has added 20c. to its market value. The foreign demand has developed to such an extent that surplus stocks are used up, necessitating reliance on the new catch of fish. Another factor in sending up fish oils is the fact that when these oils were at the lower level they were substituted wherever possible for the higher priced vegetable oils.

SHELLAC:-The shellac situation has not been aided by the information that the steamer "City of Rangoon," with about 5000 packages of shellac on board, had been in colli

sion in mid-ocean with a Brazilian steamer and had put back to Gibraltar. While small amounts continue to arrive all go to fill back orders. Most dealers have stopped quoting and are merely delivering on previous sales or alloting small quantities to their regular trade. One dealer, however, is quoting orange, superfine at $1-$1.15, spot, in one and two-bag lots; futures, Sept. to Dec. deliveries, TN, 72-75c, orange, superfine, 80-85c, and bone dry at 80-85c. It is not until September that any relief is expected.

WAXES:-Firmer tone and higher prices characterize the wax market, carnauba and stearic acid showing the sharpest increase. The Brazilian crop of carnauba is exceedingly light, and trading has become speculative, with Europe buying heavily. Three shipments of this wax are expected soon, but they will have little effect, being already sold. With production cut because of the warm weather and a shortage of basic manufacturing supplies, stearic acid is scarce and higher in price. With a general shortage of spot stocks prices of waxes are expected to mount still higher.

St. Louis, Mo., June 23.

The past two weeks have shown a steadily increasing activity in most branches of the heavy chemical market, according to local producers. Demand for sulphuric acid from the fertilizer manufacturers and for sodium bisulphate or nitre cake, especially, has grown to such proportions that one of the best informed men on the subject characterized the market as having "gone crazy." Producers of nitre cake say that there is no accounting for the present demand for this item which until recently was "dumped" for indefinite storage at plants where it was a by-product. A nearby producer is understood to be digging into such a storage pile of nitre cake for the first time in years.

Sulphuric Acid-Sixty per cent sulphuric acid was the most active item on the list here in the last two weeks. This may be accounted for by the fact that producers who asked $12.50 to $14 a ton several weeks ago, on noting the reluctance to buy, accepted contracts at $11.50. Heavy sales at this figure are reported. The 66 per cent grade, still quoted at $18 a ton, is stationary, but firm. The same is true of oleum.

Muriatic Acid-A large number of sales is reported in this commodity at the quotation of the previous report, $22 a ton for the 18 per cent grade. The starch, glucose and graniteware people are alike actively in the market for the chemical.

Sodium Sulphate (Salt cake)-The demand for this item fell off during the fortnight sufficiently to induce manufacturers to offer it at a dollar concession, or $18 to $20 a ton, according to grade and quantity.

Sodium Bisulphate (Nitre Cake)-A sudden and unaccountable demand developed in the last week or two, but heavy stocks maintained the price at $4 to $5 a ton.

Nitric Acid-This branch of the market in comparison to the others is quiet. The price, however, remains firm at 10 to 10 cents per pound for the 38 Baumé.

Zinc Chloride-In view of the conditions in railroad circles this item (used largely for treating ties) is considered fairly active by producers here. Compared to previous week, however, the demand has fallen off somewhat. The price remains stationary at 4 cents for the 50 per cent solutions.

Zinc Oxide-Developments of unusual importance are expected in the Mid-West zinc-oxide market momentarily, as a result of the action of Eastern producers in doing away with quarterly price announcements. While no definite statement of policy is forthcoming today, indications are that this market will now become wholly competitive with price changes developing from day to day or at most from week to week, rather than from quarter to quarter, as in previous years. The present quarter expires on July 1 and the basis of doing business in this item is to be readjusted within the next few days. With this condition prevailing an almost total cessation of buying would be expected. Producers, however, report an excellent demand. Prices at which current business is being done range from 8 to 9 cents a pound according to the lead-sulphate content in car lots and half a cent additional for smaller quantities. It is rumored that the inauguration of an open market will result in an advance in prices of this item.

DUNCAN-The Ash Peak Mines Co. plans to build a mill to have a yearly capacity of 45,000 tons. A. Murphy, superintendent.

GLOBE-The Gila Monster Co. plans to build a 10 stamp mill and is in the market for a crusher, two tables, six tanks and an 80 hp. engine. Estimated cost, $50,000. W. H. Seaman, Noted superintendent.

May 15.

GLOBE-The Jumbo Mining Co. plans to build a 25-ton cyanide mill to handle tailings. W. T. Bessonnette, Waco, Tex., superintendent.

MIAMI-The Greater Miami Mining & Milling Co. plans to build a 100-ton concentration mill.

MIAMI-The Miami Mining & Milling Co. plans to build a 50-ton concrete flotation mill at Dook Station, near the Arizona Eastern Railway.

TUSCON-The Yellow Bird Mining Co. plans to build a silver lead furnace at its property 32 miles west of Tuscon to treat S. W. Purcell, manager. 50 tons daily. WINKLEMAN-The Aztlan Mining Co. will build a 100-ton mill and is in the marEstimated ket for equipment for same. cost, $150,000. H. Whitcomb, manager.

California

AVALON-The city voted $55,000 bonds for the construction of a gas plant. A. B. Waddingham, Tajo Building, Los Angeles, city engineer.

BISHOP-A. D. Schiveley, town clerk, rejected bids opened June 2 for the construction of a sanitary sewerage system and sewage treatment tank. Estimated cost, $35,000. New bids will soon be received. Olmsted & Gillelen, 1112 Hollingsworth Building, Los Angeles, engineers.

WASHINGTON — W. F. McCutcheon, San Francisco, plans to rebuild its 40stamp mill, compressor building, etc., near here, recently destroyed by fire. W. L. Williamson, superintendent.

Connecticut

MIDDLETOWN-The trustees of the Wesleyan University plan to build a new chemical laboratory building on the campus. Estimated cost, $100,000.

NEW HAVEN-The Seamless Rubber Co., 534 Congress St., has awarded the contract for the construction of a plant on Hallock Ave. to the Aberthaw Construction Co., 27 School St., Boston, Mass. Estimated cost, $500,000.

District of Columbia WASHINGTON-The Army War College received bids for the construction of a photographic laboratory, from E. Diebitsch, 383 Madison Ave., New York, N. Y., $60,994 (100 days); Weller Construction Co., 816 14th St., $65,893 (160 days); Piel Construction Co., 2519 Edmonston Ave., Baltimore, Md., $68,750 (120 days).

Florida

WEST PALM BEACH-The City Council will soon receive bids for the construction of a large filtration plant. G. W. Simmons, Jacksonville, engineer.

Indiana

INDIANAPOLIS-The Board of Sanitary commissioners, City Hall, will receive bids until July 11 for the construction of a sewage disposal plant for the sanitary district. J. A. Craven, secretary.

Iowa

CLINTON-The Board of Education will receive bids in August for the construction of a two-story, 206 x 226-ft. high school. Plans include a chemistry room, physics supply room, etc. Total estimated cost.

$300,000. A. H. Paddock, secretary, Miller, Fullenwider & Dowling, 6 North Michigan Ave., Chicago, Ill., architects.

Louisiana

BATON ROUGE-The Aluminum Ore Co., St. Louis, Mo., plans to build a bauxite ore refinery here.

Maryland

MD., CANTON (Baltimore P. O.)—The Porcelain Enamel & Manufacturing Co., O'Donnell and 8th Sts., will build a 1-story, 100 X 110-ft. addition to its enameling plant. Estimated cost, $12,500.

HIGHLANDTOWN (Baltimore P. 0.)— Jones & Lamb Co., Pennsylvania and Fulton Aves., Baltimore, will soon receive bids for converting the plant of the Monumental Brewery Co., on Lombard St., into a meat packing plant and oil refinery. Estimated cost, $500,000. C. B. Comstock, 110 West 40th St., New York, N. Y., engineer.

Noted May 15.

SOUTH BALTIMORE (Baltimore P. O.) -The Standard Guano Co., 1214 Continental Building, Baltimore, will build a 2story, 104 x 400-ft. fertilizer factory on EstimatAspen St., near Pennington Ave. ed cost, $96,000. P. S. Gilchrist, 601 Park Ave., Charlotte, N. C.. architect.

Massachusetts

FITCHBURG-Crocker, Burbank & Co., Inc., 545 Westminster St., will soon receive bids for the construction of a 2-story, 60 x 200-ft. factory for the manufacture of paper. Estimated cost, $100,000.

MALDEN-The Boston Dye House has awarded the contract for the construction of a 3-story, 40 x 100-ft. dye house, a 1story, 30 x 60-ft. naphtha house, and a 1story garage, on Main and Eastern Sts., to EstiC. H. Tenney & Co., Devonshire. mated cost, $50,000.

WESTFIELD-The National Pulp Corporation, 505 5th Ave., New York City, N. Y., plans to build a plant on the Westfield River. Estimated cost, $200,000.

PALMYRA-The city plans to build a sanitary sewerage system to include combined sewage pumping station and disposal works for treating sewage of both Riverton and Palmyra. Estimated cost, $125.000. Remington & Vosbury, 601 Market St., Camden, engineers.

TRENTON-The Albano Manufacturing Co., 40 General Green Ave., plans to build a 1-story, 60 x 125-ft. factory for the manufacture of shoe paste. Estimated cost, $12,000. P. L. Fowler, 317 Broad St. Bank Building, architect.

WESTMONT-The city plans to build a sanitary sewerage system to include sewage ejector station and treatment works.

Remington & Vosbury, 601 Market St., Camden, engineers.

New York

LONG ISLAND CITY-The PattersonSargent Co., 8 Jay St., New York City, will soon receive bids for the construction of a 4-story, 40 x 110-ft. addition to its paint factory on Van Dam St. and Borden Ave. here. Estimated cost, $200,000. Ballinger & Perrott, 47 West 34th St., New York City, engineer.

NORTH

TONAWANDA — The Buffalo Bolt Co., Tonawanda, has awarded the contract for the construction of an 80 x 170-ft. addition to its rolling mill and 40 x 340-ft. addition to its tumbling room, to the Lackawanna Bridge Co., Bell and Abbey Sts., Buffalo. Estimated cost, $60,000.

PIERREPONT MANOR-The Northern New York Milk Co., recently incorporated with $500,000 capital stock, will install laboratory equipment for both dry and condensed milk plant, in connection with the milk station, evaporating plant and milk shipping station which it plans to build. Estimated cost, $200,000. Address F. P. Redfield, Adams, director.

SYRACUSE-The B. G. H. Metal Manufacturing Co., 106 South State St., has purchased a site at 108-112 South State St., Estiand plans to build a 3-story plant. mated cost, $25,000. W. E. Sias, secretary.

Mill Co., 5500 Eastern Ave., plans to build a 1-story, 48 x 106-ft. and 46 x 320-ft. addition to its paper mill. C. Boldt, president.

COLUMBUS-M. Peterman, architect, Rector Building, is receiving bids for the construction of a 1- and 2-story addition to the cleaning plant of the Buckeye Cleaning Co., Main St. and Alum Creek.

DAYTON-The Dayton Oxygen & Hydrogen Products Co., U. B. Annex, has awarded the contract for the construction of a 2-story, 60 x 180-ft. factory on South Broadway, to the Blanchard Building Co., Dayton. Estimated cost, $45,000.

MARION-B. H. Bair plans to build two buildings, 2-story, each 20 x 20 ft., for dry cleaning plant. F. D. Jacobs, Church St., architect.

ENID-The city plans an election soon to vote on $1,000,000 bonds; $300,000 to be used for waterworks improvements and extensions, and $175,000 for the construction of a sewage disposal plant, etc. Black & Veatch, Interstate Building, Kansas City, Mo., engineers.

OKLAHOMA CITY-The Hazelrigg Laboratories, incorporated with $50,000 capital by V. T. Hazelrigg, president, and Dr. J. E. Harbison, 310 Mercantile Building, treasurer, plans to build a plant. Project includes the largest chemical, bacteriological and serological laboratories in the Southwest.

TULSA The trustees of the Henry Kendall College, Cleland and 7th Sts., are having revised plans prepared for the construction of a gymnasium. Plans include the installation of a filtration plant, etc. C. E. Buchner, chairman.

Oregon

CORVALLIS-The Board of Regents of the State Agricultural College has awarded the contract for the construction of a 2-story, 56 x 220-ft. engineering laboratory on the college campus, to Snook & Travers, Albany, $69,987. Noted June 15.

Pennsylvania

FULTON-The National Metal & Moulding Co., Fulton Building, Pittsburgh, plans to build a 1-story, 130 x 250-ft. addition to its plant, here.

ALTO-The State Department of Health, Harrisburg, has awarded the contract for constructing and equipping extensions to