The Birmingham age-herald., 1910-09-04
MANY MERCHANTS
 GO ID NEW YORK Buying for Fall and Winter
 Trade Is Very Active RAILROAD CONDITIONS While Gross Earnings Have Largely In- creased II Is Claimed That Oper- ating Expenses Have Also
 Advanced Materially
RAILROAD CONDITIONS
BY PRESTON c. ADAMS

all over the country this season. Tn, wholesale district is crowded with mer chants from all sections of the country and with hardly an exception they take a rosy view of the trade situation back home.
 New York merchants and bankers take the same view, somewhat modified maybe
 While admitting that trade has been di- minishing and that the retrograde move ment may not cease for time our bank CTS who delve deeply into the subject ex- press confidence that when improvement comes conditions will be such that the re- covery will be rapid. They emphasize that the experience of 1907 taught the mer- cantile world the evils of overproduction. This lesson has not been forgotten. The enthusiasm with which 1910 was entered has given place to more sober ideas and producers of all classes have adjusted their operations to the less optimistic out look. This means that when the demand for goods arises the supplies on hand will not be superabundant; hence the eff feet should be very marked.
 Local bank presidents are spending a good deal of their time in receiving visits from out-of-town bankers, some of whom are going no further afield than New York, while others are on their way to or from Europe. The majority of these visitors carry with them their optimism which is characteristic of the virile west and the prosperous south. They admit hot idly earlier in the year, but they claim that banks have corrected their own ex- tended position and will be able to handle the crops without embarrassing the east So long as the farmer Is drawing wealth from the soil at the rate of &, 900, GOO GOO or more per annum 1t takes a good deal of political disturbance to upset the terri tory lying west of the Mississippi. Poli- tics are more matter of sentiment than wheat, corn, oats, hay and cotton are
 feature of the situation which is worth attention Is that 2S railroads have reported to the interstate commerce com mission for June total operating revenue of s112,5 ,948, an increase as compared with 1909 of s13.014072. but operating ex- penses increased no les sthan s12 2222. .334 lAO tONci Nlil6 Dccl 9fOyotO,UO lD6 ODeI- ating income. which is practically earn ings, was only $2954S,579, showing a de- crease of $1.105,615; 15 roads recorded gains while 13 failed to retain an increase in their net profits; and net increases totaled s2, ,255, ,665, but the decreases reached s3- 371 ,2S0 Only one road kept its expenses below those of last year.
 The improvement in gross earnings Is extremely satisfactory from the railroad point of view. In face of the state of trade, however, the question forces itself to the front: Has this expansion been wholly due to an enlargement in the volume of traffic, or have freight rates been quietly raised by reclassifcation or other devices known to railroad man. agers?
 Were not the New York banks carrying a surplus reserve of between s5O, 900, 900 and s60,000,00o the advance in foreign ex- change to the level of $4.S61a for sight drafts might have produced uneasiness in banking circles, but the rise in rates of almost 11ac during the current month has been witnessed without the slightest perturbation. The monetary outlook both here and In Europe has seldom been more satisfactory than 1t Is today. London Is marking up It's discount charge but this is quite proper precaution to take at this time In face of the coming demands for gold and the desirability of attracting French balances. Our own money market is still being handled very cautiously yet this is not regrettable--an ounce of pre- vention is better than a pound of cure.
 The department of agriculture has snot heard from the New York cotton ex. change on the subject of cotton standarda for the reason that the members have been too busy of late to give any attention to matters outside of the market. This is the explanation advanced by change, who expressed the belief that eventually the government standards would be adopt ed here.
 The members. of the classification com- mittee of the exchange said President Marsh, have been working days nights and Sundays and holidays for the last 160 days, and their work has been very heavy. It is felt that the introduction O, the new standards at this time would complcate things and would make the work still harder for the committee. He explained that the New York exchange oo-operated with the federal authorities in the selection of the cotton standards and that as whole its members werS favorably disposed towards the new standards.
 Making those who pay their bill. promptly settle the accounts of the "deat beats" Is the main cost of high living according to George Gennerich, presi dent of the New York Wholesale Grocers association.
 "One of the greatest perils creeping over our business and every other lins of trade is the ndiscriminate manner o allowing credits. By that, you not onl, endanger the success of your own bus
 mess, but the success and welfare O
 those to whom you loosely extend credit
 By such methods you practically invit, extravaganza, or you induce persons tt whom you give reckless credit to liv, beyond their income. You and the whole
 sale grocer, the manufacturer. or tn, producer from whom you purchase you
 supplies, must bear the burden.
 Certain it is that the profit the dis
 tributer gets for his work is no more
 rather less than he has ever received
 and in addition to this, 1t is equally tru that his expense in marketing thos
 goods is materially higher"
 An Iowa merchant in discussing tn
 talk about the farmers extravaganza fl buying automobiles has this to say '"rhe fever to possess autos applies t the farmer but he is buying 1t for tn
 young man and young daughter at home to keep them there, and 1t Is going to hel do 1t. l seem to see In this larg movement to check the farmer boy iron leaving the farm, and it is the best move ment that can be inagurated today. o course, we know of cases where tn choice was made between an auto and house improvement, and where the aut got the call. The building project mere | ly waits for the time being, and I do no | feel that the country suffers like 1t migh where the case was between an automo bile and the necessities. In other words I do not think that there are multiplie l Of xIha ca1