The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-03-21
The Business Situation

Henry Clews' Saturday review of the
business situation is in part as follows:
while general business is fairly ac-
tive, and has promising outlook, still
activity is not evenly distributed. The
farming classes probab bly, lead in point OF
genuine prosperity owing to the abnor-
mally high prices of all agricultural prod
ucts. The iron trade too, in its leading
branches, appears to be enjoying a full
share of activity, though on a basis of
lower prices. There is also great ac-
tivity in the real estate field especially
in the west, where speculative opera
lions are being conducted upon an un-
precedented scale. In other directions,
however, the outlook is not so roseate.
The cotton goods industry is in very
unsatisfactory condition Many cotton
mills are idle. The high price of cot
ton is a serious embarrassment to manu-
facturers, and distributors are decidedly
reluctant about stocking up at the pres
ent high level.
Our foreign trade situation continues
very unsatisfactory. In February the
exports amounted to $125, 900, 900. the small
est in that month since 1906. Our imports
in the same month were s129,000.000, the
largest February on record The net re-
suit was an excess of imports of over
81, o00, 900 compared with an excess of ex-
ports last year of 100000, and an .ex-
cess of sss, 100000 in 1908. This persistent
deficiency of exports is. of course, ex-
planned by the abnor1nally high level of
\ orrirt wi nv
ports, while high prices and trade activ-
ity naturally stimulate imports. The bal
ance which has been running against
us for many months must. of course, be
liquidated by some means. 1t is hoped,
however, that securities will go abroad
in large amounts and thus lessen the
Immediate future of gold shipments We
win have to send gold to Europe when
interest rates here decline. but the loss
of a moderate amount would cause no
uneasiness for the reason that We are a
large producer of gold and already pos
sess a good supply of the precious metal.
A continued efflux of gold, however,
would be regarded as an unfavorable in
dication, inasmuch as it would tend to
weaken bank reserves--the basis of credit.
stock exchange values are likely to be
unsettled until preparations for April set
| Elements are completed and money be-
| gins TO grow easier. The large output OF
| new securities is, of course adverse to
| the stock market, although the fact that
such large sums have been SO promptly
| absorbed shows confidence on the part OF
| bankers in the financial situation, and
should ultimately be reflected favorably
| for investment generally. These disburse-
ments also mean a good demand for la
bor and liberal orders for railroad ma
| terials. The present unsettled tendencies
in the market can only be regarded as
temporary. With the approach of spring
and a consequent resumption of CONNER
cial and agricultural operations, and witt
| the return OF absentees, invigorated by
| season of rest, we look for a renewed
upward movement on the stock exchange
| That, however, will not begin until the
return of crop money starts back to this
center after the middle of April.