I don't know if this fits your price range but if you want a nice light weight steel frame take a look at Independent Fabrication bicycles or Serotta. Both make nice stock steel frames in small sizes.
My SO has the IF Crown Jewel and loves it.
I was looking at the wrong Surly when I made my comments but the small LHT has 26" wheels (wider tires) and is not the same as a 650C wheel.
If you're not going to be using panniers or a trailer you don't need the extra frame weight and heavier wheels of a touring bike.



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