The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-07-25

interest,", out with no little apprehension
1t Is feared that the western country is
suffering from an overdose of prosperity
and may be called upon to pay for ii
| later
| As one Wall street authority puts it.
THE west has money to burn and is
burning it to the queens taste"
Perhaps 1t can we'll afford it. But
whebt will not always bring from s1.1C
| to 81. 20 a bushel, nor will live hogs fetch
$40 hundred at the western farmers
doors-and 1t may be timely to remind
the people of Missouri. Kansas, Iowa
| and Nebraska that money to burn need
not of necessity be burned"
AS matter of fact. Wall street thinks
1t has monopoly on the art of burning
money, and when people begin to spend
money, especially in speculation outside
OF the Wall street game, the street
| feels 1t is being wronged.
prominent banker of st. Joseph, Mo-,
Mr. Graham G. Lacey, has been investi-
eating things and finds that the money
outgo in the west is enormous. Follow
| ing letters of inquiry sent by him to
| more than 600 bankers in Missouri, Kan
sas, Iowa and Nebraska, he reports that
PSI banks in this group of states have
discovered that approximately s1S. 900
has gone out of their regions for the
purchase Of lands in other states or out
side of this country. while 1874 banks rep
resent that a heavy amount of money
has gone from their sections for the
same purpose. but the aggregate of it is
uncertain; APT banks report that total
of fully sl5.000.000 has been expended for
automobiles in months comparatively re-
cent. These banks are In the closest
touch with the peoples money and
know pretty we'll what is being done
with it-and the probability is that at
z mn m IA
into automobiles and outside lands. and
has thus been lost to circulation of these
four states: it may be assumed, of
course, that in the case of the land pur-
chases the buyers went into these lands
and took their families with them-an-
other direct loss to the region-while the
automobile purchases represent merely a
shift in the character of the property !;
but automobiles break down and wear
out, or, at best. they constantly decrease
In value; so, altogether these applica-
tions of the accumulated cash of the
people constitute a drain on the re-
sources of that great farming region.
AS a result of all this 1t Is feared
that the agricultural sections of the
country will be compelled to call upon
New York to an unusual extent for
funds financing the harvests. In addi-
ton the dlsarrangement of the financial
machinery In connection with cotton
expectations as the result of recent
frauds in bills of ladfng has, also in
terposed another unsettling feature in
the monetary situation. Unless new ar
engagements are completed there will
unquestonably be a severe decline in
the part played by foreign bankers in
the cotton export movement, which viii
to that extent place an added strain
on New York.
On the other hand an important off
t. l.. L t..
the dullness of stock speculation and
the tremendous sums in the form of
banking loans that have been released
by the decline in quotations of stock
exchange securities. Still another offset
Is the reactionary tendency in trade and
industry generally which dimishes the
demand for working capital and not to
overlook the REIMBURSEMENT to a lower
level of commodity prices that is so
actively under way.
Dividends amounting to $3421S,t02
were repaid by 112 American mines and
metallurgical works during the first
six months of the present year. ac-
cording to the figures available to the
Mining World. Since their fncorpora-
ton these 112 companies have distrib-
uted to stockholders 1881, 069,0 24. On the
combined issued capital of these COM
panies S564,267,550. this makes turn
in excess of capita liza lions of $66,S01,-
ga or Ill per cent.
In addition to this total are the divi-
dends declared by mine securities holding
corporations which, in the first half OF
1910, totaled $7,397.223 On the issued capt.
tai of these companies. which is sS14172,-
125, there has been paid since incorpora-
ton a total of S109, 1866, 447, or a return
equivalent to "a per cent.
Then there are the hundreds of close
49,. I'D l.xtI IL
from whom no reports are received,
which go to swell the total of profits from
mining.
Though retailers are not ordering far
ahead West Side wholesalers report a
steady business of good-slzed volume.
Three or four of the houses state that
their books show some gain over a year
ago. When questioned as to the prices,
they reply that values are being firmly
held. There is an impression, however,
In the trade that in the effort to get bust
ness these past few months prices have
in many instances suffered considerably.
Volume, in other words, Is expected to
make up for narrow profits.
The uncertainty that prevails in the
business world Is naturally being felt to
some extent among the grocers. steady
demand for food products continues, but
there has been wanting ever since the
first of the year that characteristic which
is expressed by the word SNAP" In
other words, buyers do not take hold
eagerly and order ahead of immediate
wants
BY most of the trade this condition is
not lamented, since money comes in easier
and surer. AS one large jobber has ex-
pressed it, Our comparisons are too often
based on the boom year of 1907. when we
were doing two years business in one
Everyone knows what was the result"
The scheme of guaranteeing cotton bills
of lading, advocated by several Of the
largest banking institutions in the city, it
was learned yesterday is to be carried
out by combination of five surety COM
panies whose total assets are in excess of
$25, 900 and whose capital and assets
aggregate $18,000,000. These companies 1t
is planned. will guarantee that all billy of
lading issued were issued on merchandise
actually delivered to the railroad, and
secondly, that the Endorsements on the
documents are genuine signatures of au-
thorized agents.
While the particulars of the guarantee
arrangement will not be announced until
the committee of representatives of the
surety companies returns from the south
and confers with the bankers, it has
been learned from reliable sources, that
the concerns interested intend issuing
joint bond. apportioning the individual
liabilities. 1t is argued that bond from
combination of five surety companies
would be more secure than bond issued
by one concern. This arrangement was
made with the idea in mind that the gem
eral expense incident to this new form
of insurance would not be quite as heavy
to each individual company as 1t neces-