The Birmingham age-herald., 1903-10-18

tion. Yet, it is vividly clear to those conversant with the facts that but for the out-o -the-way tragedy there would have been no slip in the organization of the United States Ship Building com pany, or in the sale of it's stocks to the public. The goods would have been Handed" and the promoters would have l collected their millions of so-called profits The sequel would have been a different story.
 Tn conversation with an official of the Smelling trust the other day, the ex- pert opinion was advanced that the pro- duction of gold in the United States had l for the time being, about reached it's maximum. There has not been any great variation in the aggregate for the past l three or four years, and, although new mines are being continually uncovered l and developed, the new finds do not very much more than offset the exhaustion of old fields The amount of gold mined l in Mexico is on the increase, and the same is true, also, of the important dis 1 tricts in Canadian territory and Alaska. l The worlds supply of gold is, neyerthe- | less, being added to on a continually in creasing scale, amounting at this time to only little less than $1000,000 a day | But, for the fact that the establishment of all commercial nations upon gold basis is still an incomplete process, the worlds stock of the yellow metal might ere this have become cumbersome and menace International exchange brokers are watching the production of gold with the closest attention, and, although not free from apprehension for the future, they do not anticipate serious disturb ance in the financial world on account of the gold imitation for many years to come.
 These international exchange bankers and brokers rarely agree as to the amount of the international balance one way or the other between the United States and the old world. Each has his own method of computation, and the con clusions arrived at are not infrequently wide apart.
 One of the best informed of his class said to me the other day that as near as he could figure out this country was called upon to provide average month 1y balance to Europe of approximately $20 00O0,000. In making this estimate, he went on the assumption that the official reports Of imports and exports were near ly correct, although, in point of fact, there is notorious undervaluation in the item of imports Among the items he
 
 20.0O0,000 monthly invisible total, was the stereotyped one of $5,O00,OOO to s6000,OOO paid by American tourists the interest on S25, 000, ,000, to 80, COG. 900 government bonds. the interest and dividends on $400.- 000, 900 to $500, ,000.000 foreign capital invest ed in American railroad stocks and bonds, the large amounts paid to foreign part ners in American mercantile, manufac- turing and banking houses. and, lastly.
 
 of America to their poor relations abroad. If these figures are anywhere near cor rect. and strong proof in support of their accuracy was offered, it will be seen that the trade balance in favor of the United States must run about S240,000,000 a year in our favor before we can "break even' with the old world.
 The annual reports of railroads which are coming forward in a flood now tells the same story of great expenditures for betterments, maintenance and equipment. For a time the bears endeavored to make capital out of these exhibits, but their claims in this respect are losing force as the public takes time to analyze and con- slider the facts. There is a growing dis position to apply to railroads the same rule that applies to growing mercantile or industrial businesses. With these lat ter 1t is usually not considered an unfav- orable sign for owners to enlarge their establishments in order to accommodate a growing trade Why then, investors ask should it be looked upon as a bear ish argument to enlarge their facilities in order to handle a growing volume of traffic. One feature of most reports which is occasioning remarks is fact that a large share of the money expended during the last few years in railroad bet terments is made from current earnings. The amount raised by increases in bonded indebtedness have not kept pace with the actual expenditures. Most of the money raised by the sale of bonds has gone into extension of mileage. the outlay on exist ing properties having been made as be- fore stated from current revenues. When the money market becomes easier, it will no doubt. be the policy of the man. agements to convert these expenses or a good share of them into capital account, as has already been done. Railroads are still finding use for considerable sums in carrying out plans already so far ad- vanced when the rich mans panic over whelmed Wall street. that they could not be abandoned, but this demand is no longer urgent. I saw an estimate the other day that the railroads were carry ing a floating indebtedness of approxi- mately sl60, 100000, which will inevitably in due time be funded in the form of bonds The entire bond issue of railroads in the next twenty-fcur months may ag- gregate as high as $4o0,000,000. Some es- inmates make the amount even higher.