The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-07-10
COUNTRY IS IN
GOOD CONDITION
At the End of First Half of the
Year, 1910
BIG NEW CAPITALIZATION
For Eight Years the Average Yearly
Dividend Paid BY One New YORK
Bank Is 200 Per Cent-It Is
Capitalized mt 100000
BY PRESTON ADAMS

I
The ending of the first half of the year
1910 the United states finds itself IN
! q prettv good condition in business
way. 1t is true there are some pretty
knottv problems to be solved durlns tue
second half of the year, notably Lie
rate question with the railroads ana a
c,-.eressional election. but men who
take q broad view of the financial SIT
uation do not anticipate any trouble.
New capital issues for the SIX
months exceed 000o00,0Oo.
New charters have been taken out
for companies capitalized at $1,ooO,ooo
ard inward TO the extent of s1.12o.-
oon 200 during the last five months,
contrasted with Just over s5oo'ooosoee
for the same period in 1903, showing
| that the spirit of enterprise has reY1V-
ed to a remarkable extent. Nor Is IL
without significance that immigration
is increasing; since January l about
| 500. 600 steerage passengers arrived at
american ports a gain of almost ~
600 over a year ago. Railroad traffic
is larger than it was twelve months
ago. and. although loud complaints are
heard today concerning the shrinkage
in net earnings, there is at least pos
sibility that the returns for subsequent
months will not be painted quite 50
black, now that the railroad bill has
been signed by President Taft and that
the agitation for higher freight rates
| has entered a new stage. Trade is
not booming but there has been little
or no overproduction (saye In copper,
and price levels are no longer as DAN
gerous as they were six or twelve
months ago. AS for crops, good win
ter harvest is now assured, while me
outlook for the larger fall crops is
at least reasonably satisfactory. TIE
many disturbances that were threat
ened between capital and labor have
all been settled, so that today indus
trial peace reigns throughout the
country.
The claim cannot be made that in
flation has been everywhere eradicated
or that smiling content yet prevails
from end to end of the land But
sub stantial progress has been made
The cost of living has come down ap-
probably and promises to become ma
terially lower.
Taking it altogether the country is
| in a prosperous condition with good
promise it will remain so.
| More encouraging reports are being
received from the steel industry, es-
pecially from the finishing department
One of the most prominent features Is
the radical change in the attitude of
the railroads, who are making free
applications for shipments on contracts
and are placing many small orders for
bridges and other structures In all
parts of the country. Alth ough no
large tonnages are coming out, the
! aggregate of small orders is quite
satisfactory.
The demand for fabricated and struct-
ural steel from other interests than rail-
roads. bat more particularly in the
central west and far west The Amer
lean Bridge company has just booked
an order for a crane shed at Salt
Lake City. for a school at Denver, for
bridge at the Zenith furnace at
Duluth.
Three years ago New York was lev
| led upon by the Bank of England for
| gold through means of special in
ducements" for the first time since the
Boer war. Three years ago Egypt was
the sore point The gold exported from
New York to London during the cur
rent year. while not going forward
under what is usually understood as
| special arrangements" would not, new
ertheless, have been shipped had not
|
ing the price of American eagies-a
mild form of special facilities. Now
that our foreign trade balance has
been transformed from one of excess
| imports into one of excess exports 1t
would appear probable that the next
transatlantic gold movement would be
in our favor. Indeed, it is more than
possible that this autumn the Unit
ed States will receive from Europe a
considerable amount of the precious
metal sent thither in recent months
Banking in New York is sometimes
a profitable business
| For over eight years the average
dividend paid to holders of stock of
one institution amounted to about ESQ
per cent. This bank was organized
twenty five years ago by number of
prominent merchants and 1t is still con-
trolled by men of this class. AL
though the par value of this stock is
500, 1t recently sold for $4,000 per
share. Because of its small capitaii-
cation of 100000. and its surplus Of
over 900, the bank has been able
to distribute these large earnings
among its stock holders.
While the regular quarterly divi-
dend of 20 per cent. has been maintain
ed for years, the special dividends de-
clared in recent years are as follows:
1908. 100 per cent; total dividends,
220 per cent for year.
1905. 100 per cent mo extra dividend
being declared)
1907, $50 per cent; total dividends,
$50 per cent.
1903, 100 per cent; total dividends.