The Montgomery advertiser., 1904-01-01
DUN'S ANNUAL REVIEW
sU21rAnY or THE BUSINESS
 DOME IN 1908.
Read djustmsnt Has Been Going on in Many Hines, While in Others Prosperity i1i Marked Degree
 Has Continued.

\
 of trade of R. c. Dun & Co. tomorrow will say:
 I Readjusfnaent is the one word that sums up the financial history of the United states during tho year 190o. From the lowest point of depression in 1Ss6-1Ss7 to
 the zenith of prosperity and commercial activity in l902-08. the course of business
 was well defined and uninterrupted. al- though numerous events that were cal
 culated to check even this great move
 ment. But five years of expansion in trade and manufacture brought financial and industrial failures. The result was
 the building of bigger barns, the prepa-
 ration for more business than appeared.
 and the capitalization of the hopes and expectations of the future.
 The past year has chiefly been devoted to retrenchment. Assimilation of secu- rites was only accomplished by the drastic remedy of 90 per cent reduction in prices. Accumulation of iron and steel found a market only with the aid of lower prices and curtailed production. In the process of readjustment there were many failures, the number being espe- cially large in the last quarter. Some industries have not shared in the reaction to any apreciabie extent, and this provides an element of uncertainty ragerding the future. In many sections of the country and the numerous walks of life, the setback has reached such proportions that there Is reason to look for recovery in 1904 Iron and steel, starting with the heavi- est production on record, the furnace stocks of pig iron practically wiped out. the year 1908 has brought some startling developments. Labor troubles especially in the building trades tied up work on buildings costing many millions of dol lars, and cautious investors cancelled many plans for work. The decline in quotations continued through the fall, but at the recent meetings of manufacturers, former price lists were reaffirmed and Southern foundries declined to accept
 future contracts at the lowest figure for pig iron Y
 Agricuituraliy. the year has not fallen short of expectations. A smaller yield of cotton was accompanied by more than an equivalent rise in prices, while the yield of cereals was abundant and the live stock shortage of recent poor corn years was fully made up. Neither corn nor oats equaled the record breaking crops of 1902
 Artificial quotations for meats were dis sipated during the past year, many of the declines reaching striking amounts and erstoring the situation to much healthier positions, although less profita- ble to the grower.
 The last two years saw cotton in
 strong position. averaging to cents per pound for middllng uplands in the New York market Floods and other climatic conditions proved adverse. and injury by
 insects was severe, so that as the season
 advanced, estimates of the crops were gradually reduced to about 10,600, 900. Meanwhile. speculators became active and prices moved steadily upward until the highest figures since 1879 were attained. Hides and leather during the year of 1908 were characterized by severe declines
 In hide values which. continuing into the late fall, carried prices down to a lower point in the Chicago packer market than
 had been reported at any time in several years The shoe business of 1903 exceeded in volume that of, any year in the his- | tory of the industry. More shoes were made and sold than ever before, and this | was rather unexpected, owing to the de- creased activity in most of the other | large trades. -c ,-.
 | It is estimated that the shipment of shoes from Boston for 1903 exceed those | of 1902 by G00,000 or 100000 cases, and up | to the last week of 19O3, these shipments slightly exceeded 5.0O0.0O0 cases for the year, which makes the first time that
 the 100000 mark has been reached and | passed.
 Cotton goods opened with fair degree
 of promise. There was an average de- mand from the home trade and a con
 siderable amount of business doing for ex- port in January. Stocks In most lines were moderate and in some departments
 such as print cloths and heavy brown
 cottons, mills were sold ahead. Prices
 were low compared with cotton, but were advancing in a way to encourage | manufacturers in. hopes of reaching
 normal parity later on. Tn January, spectators took strong hold of the cot
 ton market, and from then until now
 they have practically dominated the situa- tiun at all times.
 In mems wear. woolens and worsteds,
 manufacturers have not had to contend against such manipulation of raw ma
 terial. but they have still had to face | high market for wool with no responsive movement in the prices of finished goods. | On the other hand, prices are in many | directions lower than at the close than
 at the opening of the year.
 | The silk goods division continues the story of high priced raw material, un-
 satisfactory prices of silk fabrics and
 curtailment of production. Financial conditions were precarious for a time
 during 1908, but the season of pressure
 was passed with light mortality and the l year lcosed with less than the customary
 stringency fin preparation for January
 disbursements.
 Unusually heavy exports of gold were | made early in the year, offset by very
 large imports during the autumn. With drawals of funds for moving the crops
 began earlier htan usual and reached very large figures chiefly because of the | abnormal cotton market.
 The readjustment of stock prices that ] occurred during the year 1903 caused no sensational bankruptcies in the stock market. Prices had risen far above the previous records during 1902, the sixty most active railroad stocks averaging | $116.27 at the top point The decline was
 well under way when the year opened and it continued until the same securities
 averaged $S2. .62. There were no sharp | breaks such as occurred during the Northern Pacific in 1901, nor was there
 anything of a spasmodic nature about the
 reaction.
 Incomplete returns Of commercial insol-
 vencies during the year 1903 reported by
 R. G. Dun & Co.,. show that 12,0Ol con cerns suspended, having liabilities of $l56,-
 e3S $50 These figures compare with final
 returns of 11,6l5 failures for $1l7, .T69 in | 1902.
 In addition to these figures there was the collapse of few stock companies not
 properly included under the classifications
 divided, notably the United States Ship building Company, although no great set back has occurred in business and bank ing .olsses were actually smaller than in the previous year.
 | Labor troubles in the building rtades l and abandonment of undertakings soon | provide an usual element calculated to