The Birmingham age-herald., 1911-07-01

"July 1, 1911. There has been a marked improve
 ment, during the past month in the in dustrial situation, at least so far as the operation of plants is concerned. Prices of steel bars, plates and wire products
 have been reduced about s2 per ton, and there has been a further weakening in pig iron. Present prices appear to be at- tractive to consumers and a fairly good volume of business is reported although
 no general buying movement has yet set in.
 First of July disbursements on bond
 interest and dividends on stocks of all kinds in New York city alone are esti- mated at about s2Ss, 7S9 GOO, and including the balance of the country, the total amount so dsbursed will easily reach a quarter of a billion dollars Notwith- standing these tremendous disbursements there has been no disarrangement of finances in any of the money centers and no appreciable. increase in interest rates, which continue abnormally low The as- sociated banks of New York city, which now include number of trust companies, showed last week surplus reserves of more than sS6,0Oo.0o0 the largest amount ever reported. United States treasury op- erations up to June 26 show surplus of S1S,3S3,S SS5 for this fiscal year, against a deficit of S9,155,242 at this time last year and the sale of the Panama canal per cent bonds on June F was a pronounced success. The issue was heavily over-sub- scriped, and the bonds were awarded to a large number of bidders at an average price of about 1o2la As these bonds can not under the law be used as a basis for national bank circulation, they can be regarded as selling on their own merits, and the transaction proves the credit of the United States to be higher than that of any other power in the world
 "The close of the fiscal year shows an enormous trade balance in favor of this country. probably half a billion dollars for the F months. The figures for 10 months given out by the Department of Commerce en1 Labor, indicate that ex- ports of raw cotton will aggregate about s6oo,0oo,0oo for the year; iron and steel manufactures, s250,O0o000 meat and dairy products, $50, 0,0Oo0o0: bread stuffs,, sl25,- 0tO.0oo; copper, s1Oooo0,OOO: oil, s1oo, ,0o9,- 600; wire and manufactures thereof, s9o,- 00o0oo; leather and manufactures thereof, s5p-o0o,ooo; agricultural implements, s4O.- oo0,ooo: tobacco. s4o.ooo,0o; cotton manu- factures, s40.0o0,ooo. and coal, including consumption by steamships, s6,o0oOOO.
 The lumber business. which many peo- pie regard as a good index to general conditions, shows some improvement ill all parts of the country and the outlook for this industry in the future is good.
 ''The textile trade is quiet, and the cur taiment of production of cotton goods con- tinues. There seems to be a desire on the part of consumers as we'll as manu- lecturers to pursue hand to mouth pol icy until the new cotton crop is ready for market. The outlook for all staple crops is most satisfactory with 8 good chance for record yield of wheat and corn, ana wi.h a bumper cotton crop almost as- su-ed.
 Trade Generally Dull
 withstanding all t,iese strong fea. lures. constituting what may be called the underlying conditions, trade generally throughout the country is dull This is natural however, at the present season of the year and it is possible that great revival is ahead of Us in the fall. On the other hand, 1t may be that there will be no great activity in business until the pres ent uncertainty as to the tariff policy of the government is relievel or until there have leen further applications to indi- vidual cases by the courts of the Sher- man antitrust act. The DuPont Powder company, commonly known as the powder trust has quite recently been declared by the United States circuit court to be combination in restraint of trade, or load trust" while the court has sustained the merger of the Union Pacific and the Southern Pacific railroads It is possible that all large co, poratons with interstate business will sooner or later be called upon to run the gauntlet of the courts under the rule of reasor laid down nv the su-, pren,e codrt and be adjudged legal or un- lawful. There is a strong sentiment that the delay in a great industrial and busi- ness revival Is due more to this archaic law than to any other one reason. Eng land and Continental Europe are unusual lyaprosperous: 20 is Canada, and by an- alogy the United States should be. The great manufacturing and commercial na- tions of Europe realize the evils that come from unrestrained competition, and instead of endeavorng to suppress com DlldtOHs, the. regard them as necessary instrunentalities for the public good, and encourage and regulate them. There are almost 30t combinations of national im- portarce in Germany and economists there believe that but for them Germany would now be facing dangerous indus trial crisis because of the violent fiuctua tions in prices, and the reckless specula- ton which comes from unrestrained com petition. The highest courts of that coun- try sustain this view. The United States government has been successful in regu- lating the national banks and the raii- roads and it is possible that in tte course of ri,ne laws will be ena-ted h accord ance with Judge Gary's suges.ior to con binations and to regulate, within reason able l,nlits, the price of their products.
 s Situation in Birmingham
 From local standpoint there is every reason for encouragement With a few exceptions our industries, large and all, are running full time, and there Is marked activity in building. as evi- denced by the Improvements being made on three important corners in the busi- ness section, and throughout the resi- ! dence districts and suburbs The banking situation Is sound, the local banks having just paid July dividends Quarterly and semi-annuaD amounting to 3s7,OO0 The statements made by the Birmingham banks Ion June showed cash re- serves of from 30 to 40 per cent, and those of. all national banks in Ala
 bams 19l20 per cent, against an average for all the states Preserve cities excluded) | of. 17.15 per cent The merchants gener-
 ally are in good shape, having as a rule
 IF roderate stocks and small indebtedness, | ' -f>t IA A-