The Birmingham age-herald., 1904-01-01
Readiustment is the Word That
 Sums Up Its History
R. C. OUN'S ANNUAL REVIEW
Accumulation of Iron and Steel Found Market Only With the Aid of Lower Prices and Cur
 tailed Production.

mprrow will say:
 Readjustment is the one word that sums Up the financial history of the uni- ted States during the year 1903. From the lowest point of depression in 1S96-1S97 to the zenith of prosperity and commercial activity in 1902-03, the course of business was well defined and uninterrupted, al- though numerous events were calculated to check even this great movement But nVe years of expansion In IraGe and man. ufacture brought financial and industrial failures. The result was the building of bigger barns, the preparation for more business than appeared, and the capital lzation of the hopes and expectations of the future. The past year has chiefly been devoted to retrenchment. Assimlla- ton of securities was only accomplished 1 by the drastic remedy of a 30 per cent reduction in prices. Accumulation of iron and steel found market only with the aid or lower prices and curtailed produc- ton. In the process of readjustment there were many failures, the number being es- peeially large in the last quarter. Some industries have not shared in the reac- ton to any appreciable extent, and this provides an element of uncertainty regard Ing the future. In many sections of the country and the numerous walks of life the setback has reached such proportions lhat there is reason to look for recovery in 1904
 Iron and steel starting with the heav- lest production on record the furnace stocks of pig iron practically wiped out. the year 1903 has brought some startling developments. Labor troubles, especially Tn the building trades, tied up work on buildings costing many millions of dol iars and cautious investors cancelled many plans fcAwork The decline in quo tations continued through the fall. but at the recent meetings of manufactur CTS, former price lists were re-affirmed. and southern foundries declined to accent contracts at the lowest figure for pig iron. fs
 Aeficulturally, the year has not fallen snort ot expectations. A smaller yield of cotton was accompanied by more than an equiVaient rise in prices, while the yield or cereals was abundant and the live stock shortage of recent poor corn vears was fully made up. Neither corn nor oats equalled the record -breal,ing oro,,., 1902 VI Artificial quotations for meats were dissi pated during the past year. many of inc declines reaching striking amounts, and restoring the situation to much healthier positions, although less profitable to the grower.
 The last two years saw cotton in n strong position, averaging 8 or cents T pound for middling uplands in the New ork market. Floods and other climatic conditions proved adverse and injury bv insects was severe. so that as the season adVanced estimates of the crop were gradually reduced to about 1O,5OO, 900 bales Meanwhile, spectators became active and prices moved steadily upward until the highest figures since 1879 were attained
 Hides and leather during the year of lJ05 were characterized by fewer declines in hide values, which. continuing into the late fal, carried prices down to a lower point in the Chicago packer market than had been reached at any time in several years The shoe business of 1903 exeeed- ed 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. It is estimated that the shin ments of shoes from Boston for 1903 ex- eeed those of 1902 by 100000 or TOO 000 cases and up to the last week of 1903 these ship ments slightly exceeded 100000 cases for the year, which makes the first time that the 5'0O0,00O mark has been reached, and passed
 Cotton gools opened with a fair degree of promise. Hhere was an average de- mand from the home trade and a consid- erabe amount of business doing for ex- port in itJnuary. Stocks in most lines were mo6erate and in some departments such as pdnt cloths and heavy brown cot tons, mills were sold ahead Prices were low compred with cotton, but were ad- vancing inaa way to encourage manufac- turers in hopes of reaching a normal parity latff on. In January, speeulators took a strpng hold of the cotton market and fromthen until now they have prae- tically Dominated the situation at all times.
 In ma1s wear woolens and worsteds, manufacturers have not had to contend against such manipulation of raw ma teriai, but they have still had to face hig's market for wool with no responsive mokement in the prices of finished goods On.the other hand. prices are in many di- redions lower than at the close this year tan at the opening of the year. Silk goods division continues the story of high-priced raw material, unsatisfactory prices of Slih ldDIlCS anu CuTtdllIltlI or prOuuc- tion.
 Financial conditions were preearious for time during 1903, but the season of pres sure was passed with light mortality, and the year closer with this than the cus- tomary stringency in preparation for Jan uary disbursements. Unusually heavy ex- ports of gold were made early in the year, offset by very large imports during the autumn. Withdrawals of funds for nov ing the crops began earlier than usual, and reached very large figures, chiefly be. srors~s ss~s .f the abnormal cotton market. occ,rred dqustment of stock prices that so,,sationai ling the year 1903 caused no market priceegpkruptcies in the stock nrevious recordsad risen far above the most active ailr1uring 1902, the sixty s11s27 at the top pod stocks averaging well under way when th The decline was it continued until the say year opened' ana eraged ss262 There were fius av- such as occurred during the fnarp breaks ciic in 1901, nor was there or.herh fa- spasmodic nature about thdiytning or
 Incomplete returrs of comIi eae'ioh. solvencies during the year 1903 rsrciai in- R. c. Dun x Co. show that 9rteo py cerns suspended having labiltie@l con | e93, ,S59 These figures compare VI s.oo'- ret,,rns of ii e15 fail,,res for s117 tn final 1 1902 ioaos Tn | In addition to these figures
 l the collapse of few stock comhere was ,,ro,,ar,,, i,,c,udad under tbe cIa ,anies not | intd which the foilure statistic csifications II T.tl .F were