The Birmingham age-herald., 1911-08-06

to describe the existing relations between the banks and stock market as dangerous, but they might easily become so in tt,e event of anything like a catastrophe Tn the business or political world. As long as matters run along smoothly, all is well. Stormy weather would lead to such q shortening of sail that the stock market could hardly escape a big slump. The market prices of most of the railroad and industrial shares is now high Dividends are barely earned in many cases, and then only at the expense of plant anc unWise economies in operation. Induct- ments to buy for speculation are daily becoming less. Everything that is good in the situation has been virtually dis counted by present quotations
 Railroad earnings are now being cont pared with those of the lean months of last year and even then the figures are not always reassuring. The period of contraction is still with us. The swell ing movement of wholesale business re- vival which everybody hoped for is not yet felt Talk is hopeful as expressed in the flood of interviews and statements from big men, but the facts are not encouraging. To be sure, a nation of 10o,- o0o,o0O people in the daily effort to live do d huge volume of business among them selves but there is no enthusiasm about | It, no blfthesomenesS and verve. It is just day-by-day handto-mouth pro-
 sramme, and the inertia of the stock mar
 l1et is a reflection of prevailing nation
 wide sentiment. The variations which oc-
 cur in the routine are not of the sunshihy
 kind.
 The efforts that were made about year
 ago and for six months thereafter to
 eurtail interior loans on farm develop | ment while apparently successful in a way, seem to have left the banks over extended in that quarter after all. The Harm land boom loans were only partial | 1y liquidated, it would seem, and now | the banks throughout the western coun- itry and the south as well find themselves obliged to call upon the fiscal. centers earlier than usual and in larger amounts | than usual to meet local requirements for crop moving and other purposes. Easr- ern banks are getting in shape to stand Ia larger drafn than ordinarily, although | they do not anticipate anything serious. They are still flush with funds which is
 OIL call for unlimited amounts. The time money rate has been hardening for some
 time back, but there is no end of ac-
 ommodations offered to anybody and
 everybody, who will use the money to buy Istocks with. The money and the stocks
 are both supplied by the same interests. There is nothing bulish in this.
 The severe decline in cotton Is one
 of the factors contributing to the unsat-
 isfactory state of the stock market. Cor- ton spectators have suffered immense losses and to protect themselves they have been obliged to part with securities in no small volume. Liquidating pres sure from that quarter has helped depress I 11rl- at l,o
 sense of uneasness. Wall street which has rather frowned on cotton speculation at high prices, is now expressing the hope that the decline is over and that values
 may be established and maintained at
 substantial recovery. The country has
 been educated to high prices for the great
 staple and anything under 13 cents for
 next years crop would be looked upon as
 unfortunate for the people as a whole.