feature, and that is, that they are protecting themselves against unwarranted and unexpected advances in the cost of their raw material by making purchases for future requirements, ranging from three to six months.  Users of cotton and wool are largely doing this; so are users of iron ore and iron and steel, as well as users of lumber, stone, cement and building material generally.  This general policy of providing for legitimate future requirements is one of those instincts which safely guide the commercial world out of danger into safety.  One fruitful source of panics in former periods of activity was the failure of consuming interests to supply themselves with raw material to complete their contracts.  The business world has learned wisdom from its experience, and is now quietly turning a corner and wheeling into line safely early in 1890.  The tanning interests of the United States have pursued this course in their limited field.  The boot and shoe manufacturers, if they have not bought largely of raw material, have, at least, taken such steps as will guarantee them against a sudden advance.  The clothing manufacturers have wisely purchased for their future wants; in fact, in almost every avenue of activity this policy has been pursued.  The users of Lake ore have already bought five and one-half millions of the seven or eight million tons of ore they will want this year.  The users of steel blooms and billets have bought so far ahead that manufacturers are now declining to make further contracts, excepting for very strong reasons.  The Southern pig-iron makers are debating with themselves whether they will accept orders for pig-iron to be delivered next summer or wait a few months.  Scores of illustrations of this sort could be enumerated.  In many quarters this policy is believed to be an unwise one.  Experience has shown it to be a safe one.

The iron industry, as a whole, is on a very permanent foundation.  Manufacturers are hurrying to complete new works; lumber manufacturers, especially throughout the South, are stimulated to the greatest exertion by two new causes:  First, a strong demand throughout the North for the superior lumber-mill products of the South; and second, a wonderful expansion of local demand in the South arising from the new industries there.  The makers of nearly all kinds of machinery are busy with new work, fully one-half of which is for delivery in the new Southern or Western States.  The manufacturers of steam-pumps, the manufacturers of appliances for new fuel-gas processes, the builders of heavy machinery for steam and electrical purposes, the manufacturers of hoisting-machinery and of machinery for mining purposes, as well as of machinery for general shop-use, have been booking more business since the 1st of October than their present shop-capacity will allow them to execute.  Consequently, a general system of enlargement is in progress.  Contracts have been lately given out for the construction of