The Birmingham age-herald., 1907-07-16
From the London Statist.

From the London Statist.
 @ HE prosperity of the United States \0 Is built on such solid foundations
 that any reaction in their trade is unlikely to occur. The signs indicate a slowing down of the rate of expansion and diminution in the activity of cer- tain industries by reason of the greater activity of others.
 The accumulated wealth of the United States has during the past ten years grown al an average rate of over $3,000, 0O0OO0 per annum. But recent calculations show that 1t is now growing at the rate of about $4.5oO, ,OOO,0 900 per annum. Doubt less a portion of this large addition is at- tributable to the higher prices now ruling for property of all descriptions-houses land, live stock, machinery and materials. But even when allowance Is made for this fact it is evident that the annual growth of wealth must be very large.
 Of this large amount the proportion de- voted to railway construction on the aver age in the last few years has been only about $400, 100000 per annum, which Is only about one-half the sum required for wd- enings, extensions, Improvements and equipment if the transportation industry is to be placed in a position adequately to handle the growing traffic of the coun- try.
 On the other hand, the outlay upon real property has been enormous, having. it is computed, been at the rate of about $2,- 5O0000, GOO per annum. A portion of this large outlay has been upon new works and factories, but a very large amount has been for house construction. and now that the railway companies are offering higher rates of interest to obtain the cap ital they require larger portion of the annual savings will flow into railway in- vestments rather than into investment in real property.
 This operation will doubtless cause a moderate amount of depression in the building trades In certain districts, but It will create increased activity in the dis tricts which supply the materials and the labor for railway construction. And thus the total growth of trade will rot be apprecably affected. Further, the ln- fuence upon the building trade of the increased demand for capital for railway purposes would be minimized were Europe to become willing to supply capital to the United States as freely as in the eighties.
 Thus, apart from the diversion of an increased share of the stream of new capital from house to railway construc- ton, and the necessity to reduce somo- what the rate of the total capital expen- ditures in order not to outrun the supply, the United States are likely to maintain their great prosperity. There is no lack of demand, either at home or abroad, for the productions of the country. The annual amount of real wealth produced Is of colossal extent, the purchasing powsr of all sections of the country has never been greater the stock of money is un- equaled in extent. and is yearly being in- creased by large production and by i'm ports of gold.
 Individuals are more free from debt than they have ever been, and corpora tions have been careful to raise capital by stock rather than by bond issues, and by using profits for capital purposes they have greatly added to their financial strength. Indeed, at no time in the his tory of the country have the underlying conditions making for permanent pros perity been so sound they are at the present time, and any slacReningi in the rate at which trade has recently been growing, arising from the diversion of capital from one industry to another, or resulting from the necessity of restrict