The Washington herald., 1910-08-21

In.its annual crop and business report.
the Continental and Commercial National
Bank OF Chicago has some interesting
and timely things 10 say about the bust
ness situation, which are not all gloomy
or pessimistic. II is frankly admitted
that the business of the country has had
to face some serious problems this year.
but the fact is pointed out that they are
neither insoluble nor panic inspiring
Summing UP the adverse conditions OF
business during the first half OF the year.
the report says
Early in the year the unsatisfactory
state Of our foreign trade occasioned
grave concern. With our imports passing
all records. the prices Of our principal
products above an export basis and our
trade balances falling toward the van
ishing point. how were we 10 settle the
enormous indebtedness that Is constantly
.accruing from the so-called invisible
items that enter our account with Eu-
rope? These are the expenditures by
tourists. freights paid 10 foreign ship
ping. interest and dividend payments on
our securities held abroad individual re-
mittances, &C.
Need Merchandise Balance.
a large merchandise. balance In our
favor is needed TO Offset these items. and
IN its absence we must either borrow.
which is a temporary expedient, or sell
securities. which means that the security
market must come down 10 an export
basis, or we must ship gold out Of cur
bank reserves. With bank loans at a
high level, heavy gold exports are a
serious matter. while the other alter
native, lower prices on securities Is GER
tain 70 be more or less disturbing. The
situation was finally relieved by the lat
ter process; gold exports were stopped by
the sale OF large blocks of bonds. and our
standard stocks are now at a level where
there is a broad international market for
them"
Other disturbing influences OF the year
mentioned are court decisions under the
antitrust act and the controversy over
the freight rates. No EFFORT Is made to
take sides in this controversy. the sub
jet being dismissed with the reflection
that when the question is finally settled
the law will probably be such as to en-
able, industrial enlargement to 90 on in a
normal manner AMI so enforced as 20
protect the rights Of the public without
the waste Of excessive competition The
demands OF wage earners Is briefly dis
cussed as well as the special difficulties
experienced in particular industries.
Coming down to the more hopeful view
Of the situation. the report continues:
The output Of pig iron in the United
States for the first half of 1910 exceeded
that Of any other six months Of our his
tory, being l5.Ol2S92 gross tons Of 2.24O
pounds. To comprehend these great hg-
ures it is necessary to compare them with
u,02.Si6 in the first half of 1903. and
6.slSOo4 in the first half of 1908 and 49,
47SOA in the then record-brealxing first
half of 1907. The altered policy of the
railroads as ito Improvements has re-
duced the depnands upon the steel mills.
and at the first symptom of accommodating
stocks. the trade. anticipating price cuts.
reduced its purchases. Production, how
ever. has been only slightly curtailed.
Decline in Building Trades.
The building trades had a phenomenal
" big half year in the first half Of 1903.
under the stimulus of cheap building ma
terial, but the first half Of 1910 was only
slightly behind that record, the total Of
permits in cities where a record is kept