The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-09-18

more equipment and making prepara-
lions for expenditures in other direc-
tons, whereas they are pursuing a
rigid hand to- mouth policy and keep
ing expenditures down to the lowest
point.
They are ordering no more cars; no
more rails, and no more anything than
they can help The effect of this is
directly apparent in the iron and steel
trade and allied industries. The rail-
road equipment companies are doing
next to nothing and the United States
Steel corporation is running on 81 per
cent capacity, the very lowest point
reached in several years. In truth, the
iron and steel mills are doing less bus
mess in PROPORTION to capacity than
they were during the extreme depres-
sion of 1904
This statement may not be literally
true as applied to every individual con-
Germ, for some of the closely managed
Independent companies are doing fair
ly we'll under the circums tances. Where
this is the case the good luck is due
to local conditions or to superior man
agerial ability. In some lines of mer-
chandsing the usual seasonable activ-
ity is reported but the rule is restric-
ton in the volume of business. Com
mercial agencies and banks bear sub
stantial testimony to the accuracy OF
| this statement.
Taking all kinds of conditions into ac-
| count conservatives In the stock mar
ket say they do not feel encouraged to
look for higher securities prices or any
permanent increasing speculation or in
vestment.
On the contrary they do not hesitate to
say that the current range of prices rep
resents at least the full value of the
goods, and that they look for declining
| prices instead of higher. AS rule 1t
| is safe to 60 on the theory that market
prices on any given day or hour or week
is a correct general appraisal of actual
values at such time. Because there has
been a protracted decline in prices Is no
valid or convincing reason why there
might not be further depreciation.
| To such an extent does this feeling
prevail that many important and far-see-
/ ing people are shaping their operations
| in the expectation of general scaling
| down in the dividends of the railroads.
For some reason Baltimore and ONO
| Atchison ST. Paul and the Hill roads
| have been singled out as those likely to
| take the lead In this matter.
| recent development of broad applica-
| ton is the increasing interest which in
| surance companies and other combina-
| lions in control of large private capital
are taking in western and southern farm
| mortgages.
| For many years this class of invest
ment was in disfayor In the east but
| now that the field for safe investment
of accommodations of public capital along
recognized lines has narrowed there Is
growing tendency to go back to the
| farm.
The remarkable success of the Union
| Central of Cincinnati, which has special
! lied in farm mortgages for at least ~
years. is being held up as an example tc
eastern institutions and combinations.
The increasing flow of this kind Of money
Unto the west and south for investment
| in farm mortgages promises to have ar
! important bearing on those sections In
the first place 1t may give the relief
which the banks seem to be in need OF
and to generally help In the development
of natural resources throughout large
areas.
The prediction made by President For
gan of the First National bank OF chi
cago that there would be a glut OF money
after the crop moving season Is over IL
food for earnest thought in Wall street
Mr.. Forgan is recognized as the leading
banker of the west, and his views carry
weight.
II this prediction turns out to be true
and the banks become again overloaded
with surplus funds. 1t will be because OF
hard times in the business world. Wher
business Is jumping and the country IL
experiencing prosperity banks never com
plain of having too much money
4 The Standard OIL company has this
| week distributed 100000 In dividends to
its stockholders making $40 900 900 thus
far this year The supreme court may
eventually compel Standard Oil to put or
a new suit of clothes and otherwise re-
organize itself. but that danger does not
seem to curtail its income or cut down
its business ,g
The purchase of $4,000 shares Of Rocs