The Birmingham age-herald., 1906-09-30

needed in the eenters more than at home, and pays the banker better. Hence the time that the money is actually out of active employment in the larger field of business is in each instance almost in- 1 finitsimal.
 The bulk of the aggregate operations at the front during the few weeks immedi- ately following the harvesting of imBor- tant crops causes temporary ineonven- fence, however and puts bankers and bor- rowers on their mettle, but in all this un- usual commotion incident to the saving of the emergency end of bounteous pro- duetion there Is small cause for distress 1 or gloomy foreboding. With the abso- i lute certainty ahead of unparalleled earn 1 ings on every railroad and industrial stock 1t is the occasion of slight wonder ment that holders refusu to be shaken out of their certificates on account of the l lam en tations of the Jeremiahs who reso- 1 lutely refuse to remove the dollar from before their eyes so that they may ob- tain a view of the gorgeous scene on the other side
 Holds Excess Money.
 There is the best of reason for holding fast to the belief that he government will continue to lend every legitimate aid to the business interests in financing the country through it's strenuous 1906 period l now well along and which will terminate very soon after the national election. | The government at Washington has &C., cumulated about $75,0O0000 excess money which 1t has locked up in the vaults. It is within the power of Secretary Shaw to l liberate a large part of this idle money, | and with it lubrlcate the machinery of trade He has the will to do this very thing, and is under instructions to give | relief when, in his judgment, the need | for action arrives. As far as lies in his | power the general situation will be kept undisturbed and free from excuse for | political or any other kind and species of i dlseontent. By a singular coincidence, ] election day and the natural ending of the annully recurring monetary strin- gency come about the same time. This | circumstance will not operate to the dis i advantage of the money market or to 1 the disturbance of stock market serenity. 1t may safely be assumed, although no direct connection may be traced.
 The biggest crops on record" came along to save business situation that had become strained by overmuch specu- i 1ation and too free indulgence in the | patriotic impulse to bet the limit on the future. The entire business world seems willing to trust itself almost without re- serve or fear on the short bridge across l the gulf of tight money. The pikers and | the beerishly disposed tape players of the stock market are in an agony of fear lest the country go to the bowwows be- | fore the other side is reached, but people of substance appear tO have no tremors of alarm on that account. There has heer some liquidation and now and shen reactions in prices of more or less eolse- quence are in evidence, but so far as can be seen, the men who do things are n | ht11 Il prices. In the whole list of market lead ers of the first class there is only one who is bearish and that one has suffered from chonic dyspepsia for year or more H" couldn't be happy a minute If he was not miserable. Those who know him say Jacob H. Schiff answers to thls de- scription. The only big people who were seriously disturbed at any stage of the game were those who would be held re- sponslble for the financing of huge rail- road Improvements and reconstruction un- der way and as yet incomplete Tie monstrous crops make them safe on that score, and they can now see the bright. blue sky at the other end Of their stu pendous labors They are so nearly out of the woods that they breathe easy and lleep soundly. Another year will place them beyond every danger.
 Bull Philosophy.
 
 are drawing ahead for advance payments on some Of the cotton grain, flour, pro- visions and other commodities, we will ship later on to Europe? We have done the same thing before-dozens of times. and survived. What if money does com mand high rates? If 1t wasn't worth the price, borrowers wouldn't pay it. It Is only when business is at high pressure or in times of general bankruptcy that people pay unusual rates-in the first case because there is profit in the transaction and in the last because the victim must have the cash. You never see high in- terest rates in periods of stagnation. Then it is that idle funds pile up in the banks Solvent borrowers have no use for 1t. It is dead weight. IL goes beg ging at 1 and per cent.
 Annual reports of railroads, most of which are now In, tell an amazing story of increased business and enlarged grocs and net earnings Transportation capac- ity Is taxed to tho utmost In every part of the country, and there is no sign of O reaction, look where you may. From railroad viewpoint the outlook could not be improved upon. The readjustmeat of rates since the abatement of the rebate evil meant tens of millions increased revenues and the beneficial effects of the new Hepburn bill promises to be quite as marked. In the matter or tree tfanS- porta,on alone the Pennsylvania will be fully s5,000,000 better off annually, 1t is estimated. The New York Central will be nearly as large a gainer, although it is not so badly afflicted by the free pass bug. Other roads will add heavily to their passenger income by reason of the abolition of promiscuous dead-head priv ileges. That Item alone will offset many features of the law now construed as unfavorable. The physical transformation that has taken place in Erie during the last three years borders on the wonderful. It has not had the money to spend that the richer trunk line systems could command but it has gone steadily ahead and ac- complished a great work. The property has been strengthened In every way. road bed improved. hundreds of miles O. new rails laid. bridges built, equipment doubled, terminals enlarged, grades re- duced. curves strengthened and further 1 betterments projected that will make the system a rounded out and completed rail- road proposition within the next two years. Norman B. Ream has done most of the p,snning, and President Underwood l the execution.