The Birmingham age-herald., 1908-07-19

Railroad earnings continue to be one of the big black spots in the situation. They are coming in about as bad as at any time,
 although nearly 100000 of the 100000 idle
 cars on the side track a few weeks ago
 lave gone back into service This 10000
 cars represent about 5 per cent of the
 total equipment of the railroads of the
 country. As the volume of the crop move
 ment increases the quota of idle cars will
 undergo still further reduction. The trou-
 ble is, however, that the general tonnage
 does not materially 1ncrease-nothing to
 compare to the reports given out by the
 apostles of sunshine, who in many cases
 permit their enthusiasm and hopefulness
 10 outrun the hard old facts
 The Pennsylvania system, for instance,
 is running behind at the rate of $75, ,0cl
 a year as compared with 1907, and the
 New York Central at the rate of $52 000,000
 a year. Baltimore & Ohio's net dropped
 back of last year over $7,000,000, and four
 months of that period were good times
 These are only illustrations of the gen.
 eral railroad situation.
 Bank clearings, which are another un-
 failing index of general business condi-
 tions, do not support the interviews which
 are continually appearing about our rapld return to prosperity. In further conf1rma-
 ton of the known fact that the situation is not what 1t IS represented to be, one
  urplus of idle money in the banks. This | money piles up because people are afraid | to Invest it. Nothing more definitely and accurately contradcts the claims that con- 1 findence has been restored and that the whole country js moving joyfully for | ward. Without a doubt the country will I in time get back to former splendid con-
 dltions but it is far from that plane al | this writing. Nobody ever lost money I betting on the United States if they stayed l by the investment, but a lot of money l has been lost in getting it on the bulges and on false starts with too thin margins Many people in Wall street, who compro- | mise what Is known as the experienced | and conservative class, regard the pres cnt bull movement in the stock market | as premature and as unwarranted by I known business conditions It must oe | said for this element, however, that on | tine record of the tape 1t has made nothing
 by standing out against the activity of l the market leaders.
 The bankers of the Wall street district | give open encouragement to moderate | speculation. They like to keep as much | of their surplus at work as possible, and 1 loans on stock exchange collaterals are 1 favorites. Call money within week has | been down as low as 1 per cent. Specula- | tors who have bank standing find it diff
 
 a matter of fact they are not resisting it. | It is their credit and the money they bor- | TOW at the banks which is largely respon- sible for whatever activity there may be and for the apparent stability of values. Cheap as money is in Wall street it is hard to get for purposes of business ex- pansion or enterprise. It is enough to give rise to a doubt as to mans judg- rnent if he wants to borrow money for iew enterprise and enough to justify bankers in turning him down. Hence the money piles up. The banks will let it out cheerfully, but only in such a way that l they can pull back again on shortes. rotice.
 Politics has been very little talked about | this week. although in the back offices of the big men who were at first very, very sure that MT. Taft would have a walkover a haunting fear is developing that possibly MT. Roosevelt's radical or two republicans into Bryan democrats. This idea has been reflected in some of the correspondence which has been pub lished in the New York papers from tue west and middle west. This feeling, which is the inspiration of a large part of democratic confidence, and which has been more or less discussed under cover for months past, Is dlscordant novelty in New York and especially in Wall street.
 H. H. Rogers joined the glad chorus and made a welcome contribution to the ~,. ~Ls.,o ora fovfo ua eaae +b~ t<<,,rn ron1-