The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1911-01-02

WV LhS year btLDiH-
Pig iron production in 1910 was es-
timated at 27,2O0,000 tons, compaled
with 25,T80,000 tons a year ago. Az
present about one-half of capacity is
being utilized.
Copper production amounted to L.
454.OoG,000 pounds compared with l.
4o1000,000 bounds year ago.
Coal production reached total 81
nearly 500,000,00O tons, compared
with 420,000,000 tons last year
New capital issues reported for the
year aggregated s1,51S,00o,00c,
against 1851 100000 year ago.
New corporations Of $1,00o,000 and
over created in the leading states az
gregated $1,040,00o,000, compared
with 100000 last year.
Bradstrcts Index figure was S.87
at erd of November, against 9.23 at
end Of January, the high record point.
Figures Misleading.
At first sight these figures regard
ed as a whole indicate as large a de
| gree Of activity as a year ago. To
Some extent, however, they are mis-
/! leading, because rejecting past not
not present conditions. 1t is well
|known that values have been highly
inflated in every direction, and that
gains in quantities or volume are not
always as large as would appear. A
bumper corn crop naturally caused a
/ sharp drop in prices which will Offset
1.-THE gain in yield. There has also
/, ben sharp decline in wheat, result
ling from the larger crops In prospect
abroad Cotton has ben maintained
at high level because of crop it,
| adequate to growing demand. The
effect of prices upon our foreign com
MERGE has ben decidedly marked. For
! a long period high prices stimulated
imports and checked exports. As
prices began to yield in the latter half
Of the year this tendency changed and
our exports began to show healthier
development, although the recen.
large excess of exports was mainly
due to the outward rush of cotton in
anticipation of a deadlock over the
bill of lading dispute. Should the
tendency of agricultural prices con-
tinue downwards, as Is not improb-
able, we may hope to see at least a
temporary return of our foreign trade
to the normal condition of a large ex-
cess of exports. As to the gain in
railroad earrings referred to above,
that was probably more than offset by
the large increase in expenses which
is justly causing our railroad man
ayers such serious concern. For eX.
ample, the October report of the In
terstate Commerce Commission re-
ported a gain of $2,600OO0 in earn.
ings and increase in expenses of
s13,700,000, showing loss in net
earnings for that month OF about SILL
100000, which in view of the in
creased capitalization of the railroads
was anything but a satisfactory result
These increases in expenses arise
chiefly from concessions made to la,
Dor; concessions which could be ill
afforded and which managers are now
trying to pass on to shippers by Sc
curing permission from the Interstate
Commerce Commission to make some
advances in rates. Doubtless reason,
able advances will be allowed, but the
railroad outlook would be an uncom.
Portable one were there to be any
important shrinkage N traffic.
The tremendous amount of new
capital issues, which has ben going
on for several years, IS significant
and unquestionably mas much to do
with the present state of inertia in
the financial world. The bulk OF
these applications were ON account OF
the railroads which have been oblie I'd
to spend enormous sums to meet the
demands of growing traffic and whose
calls upon the money market are like.
ly to continue for some time to come
1t is this excessive call for new CAPT.
tai which has had much to do with
present reaction, so heavy an in
crease in the offerings of new seeuri
ties, coupled with the dimunition OF
savings through universal extrava
gance in business and in the home,
largely explain the exhaustion of in
yestors and the over.expansion OF
credit.
/ Finances.
A few words only are necessary on
the financial situation; this topic b.
ing covered in our regular weekly ad
vices. Wall Street seems, as is it,
custom, to have largely descountet
this business reaction. There has
certainly been greater fall In sc
curities than in commodities, and ne,
cause of this adjustment the stock
market Is in a sounder position than
2 year ago. A decided improvement
| mas taken place In both the political
| and monetary outlooks. The las,
election proved that the American
people, though bent on reform, want
a period of relief from unnecessar,
| agitation. Our government has taker
| the hint, and there is already Less
anxiety shown to "hIt the corpora
4 ncD fn