The evening times., 1911-08-07

The following annual business
summary has just been issued by the
Continental and Commercial National
bank Of Chicago:
Fundamental conditions compared
with year ago, according to testi-
monials from men prominent in all
branches of industry, show a decided
improvement. Money is plentiful in
the banks. The agricultural produc-
tion of the country is satisfactory
and little above the average. Our
foreign trade reflects complete re-
versal in tendency, providing credit
balance abroad of upwards of $780,
100000. The cotton crop, big factor
in our export trade, probably the
largest on record, assures mainte-
nance of our ability to import gold
when needed.
Europe is showing more friendly
disposition toward our securities and
with an easier tendency in money
abroad, adds to our ability to sell
bonds across the Atlantic. Our gov
ernment had demonstrated its ability
to float on a satisfactory basis the
three per cent Panamas without the
artificial stimulus of their available
ity for use as basis of bank note
circulation. The excess of loans in
banks over deposits has been ma
terially reduced. The iron and steel
trade, as result Of the cut in prices,
is responding slowly, showing a
steady improvement in volume of
business. The copper metal situa-
ton is more satisfactory in conse-
quence of curtailment and the rail-
road earnings are better than ex-
pected.
Other Favorable Developments.
Other favorable developments have
been the new financing and refunding
operations to the extent of $780,
100000 which have been successfully
put through in the last six months.
Railroads and other corporations and
individuals are practicing greater
economy; savings deposits are re-
f1ecting an increase in both volume
and number of individual accounts.
There is a decided disposition to
liquidate Indebtedness. Collections
are satisfactory The so-called anti
trust decisions and the determination
Of the freight rate controversy have
eliminated some very disturbing un-
certainties Sentiment has improved
and reflects more hopeful tone.
Stocks of merchandise are low. Pric-
es both of raw material and of many
articles entering into the cost of l!v-
ing are less. There is marked alb
sence of fresh speculation. Reel
procity with Canada, now probable,
has opened the way for broadening
of trade relations between the two
countries; and last but not least is
the fact that while wages as rule
have not receded so far as the scale
is concerned, shorter hours and idle
men have resulted in greater effici-
ency in labor.
Some Retarding Influences.
Offsetting in a measure, these IA
vorable fundamental and collateral
influences reflected in the advices re-
ceived by the Continental and Com
mercial National bank in the prepara-
tion of it's annual summary regard
ing crop and business conditions and
outlook, appear as retarding factors:
the approach of presidential year
land the usual increased activity OF
partisan leaders in providing cam
paign material; the uncertainty grow
ing out of the continuation of inves-
| tigation into past corporation man
agement, as to the ultimate effect OF
the rate decisions on railroad in
come, as to some of the late crops
and resulting from the agitation for
tariff revision; the enormous capital
creations in the way of new securi-
ties, yet unabsorbed; the disposition
of investors to discriminate in favor
of bonds yielding large returns or in
favor Of new underwritings; the rath-
er high cost of new capital as COM
pared with low cost of money fol
more liquid uses; the tendency of the
more irresponsible to create distrust
of all vested interests regardless OF
facts and disposition on the part Of
many not to discrininate between
the good and the bad; and the con-
tinued sluggishness of movement in
unlisted bonds. ...
Conditions Which Have Been Met.
Not only are these influences prom
inent in the advices from bankers
and business men in all sections Of
the country but many of them are
emphasized by statistical information
compiled from various authoritative
sources. Conditions year ago re-
fected some strain as result of g
period of widespread speculation
tracing it's inception no doubt to the
sudden and almost unprecedented re.
covery from the i'll effects Of the pan
ic of 1907, the opportunity for large
profits and the heavy initiation Of oul
bank note currency in consequence o.
the governmental policy of main
tanning an artificial market value fol
it's bonds by employing them as {
basis for circulation.
Imitation Leads to Speculation.
An imitation of paper money in ex
cess of actual commercial needs in
variably leads to unhealthy condi
tions in business and to widespread
speculation. This manifested itsel
in this instance first in the stocl
market following an exceedingly &C
tive and broad bond market. Whe1