The Birmingham age-herald., 1911-05-13
Business Conditions and Trade Talk

Business Conditions and Trade Talk
 Almost continuously since the spring of 1907, except for an occasional brief spurt, the pig iron, steel and copper trade has kept producers in a complain ing mood" said A. H. Carpenter of Car penter & Hillman. For two years past the textile industries have also been in a bad way.
 "Of the users of iron and steel, the az ricuturaI implement manufacturers are the only ones reporting a satisfactory condition. The rapid increase in the pur- chasing power of the American farmer has saved the day for them.
 "At frequent intervals since 1907 many substantial men of affairs have predicted booms and big times just ahead. Re- spending to this optimism additional fur naces and steel plants have been built, adding enormously to the productive ca pacity, but the anticipated trade expan- sion was lost in the fog. The banquet was spread but the guest of honor sent regrets.
 "A peck measure won't hold bushel of material and we cannot market 3o,- COG, 900 tons of pig iron annually when the consumption approximates 23,OO0,0o0. It Is not remarkable that prices should decline under such conditions. The remarkable part is that many. producers can continue to operate at a profit.
 "Our greatest captains of industry hav- ing missed their guess, the professional trade dope writers continue to ring the changes on conditions; they say railroads are holding off; won't buy legislation in mical to corporations either enacted or contemplated; uncertainty as to supreme court decisions; demoralizing extrava- gance of time and money induced by the automobile craze; wars and rumors of wars. These and many other reasons are assigned, but the stone wall we are really up against is overproduction.
 Bessie conditions, founded on good crops and prices and easy money markets are good The trade of foreign countries is reported excellent, but we cannot get up sufficient steam to keep all of our industries going at top speed.
 During all previous periods of real de- pression the pruning knife was freely ap- piled to wages, but if there Is one excep- tional feature noticeable in these times 1t is the fact that amid this loud lamen- tation wages have been substantially in creased in many instances.
 If invested capital is not earning a fair return then a readjustment must come What form will it take? Many shrewd minds assert we will have to tear down and rebuild. They say while the founda- tion may be sound the superstructure is totterng4 and infirm This will mean shsrt -.ratons and suffering We will have to practice old-fashioned economy and purge our systems of present-day ex- travagance. The prediction being that we will then start building up and have ahead of us many years of expansion and growth. A change of political parties and policies may hasten this.
 ''rhe other alternative is to await nat ural developments and follow the advice of the United States Steel corporation | heads, which is to maintain prices strict | ly and curtail production in line with the demand, each producer may be able to | secure for himself at the full market l fear the latter condition is the least like ly to be realized as no one will ever be satisfied he is getting his full proportion of the orders"