The Birmingham age-herald., 1911-11-01
OFFERED BY COTTON CROP New Orleans Meeting Tries
 to Solve 1t BUSINESS REVIEW The First National Bank Gives Out Monthly Statement on General
 and Local Business
 Conditions

| The monthly financial and conherciai review issued by the First Nationai panh of Birmingham as of November ]. lsll' | is as follows:
 Mathematics is regarded as an exact science, but this doctrine is someWhaI shaken by an episode which recently oe- cured in a South Alabama school. rho | class in arithmetic was reciting and the | teacher asked. "If one bale of cotton sells for s7o, what will 100000 bales sell for?"
 The bright boy at the head of the class promptly gave the correct answer so- 900, 900, and when he was asked what lz'- 100000 bales would sell for, he was again ready with the correct answer, sS4o,0V'- 0OO The teacher then asked the question, What will 100000 bales sell for?' The answer $1,05o, ,0O0.00O was declared to be incorrect, and the question was passed along until it reached the red headed boy at the foot of the class, who spoke up and
 said. Pa says about s65O, ,Ooo, ,0O0." which
 answer the teacher declared to be correct, and the boy proudly marched to the heao
 of the class. This problem just now is ex-
 citing world wide attention. A confer
 ence was held in New Orleans on October 30 and 3l by the governors and the com
 missioners of agriculture of the cotton growing states. The governor of Texas
 presented to the conference figures ob-
 tained from United States consuls at va rious trade centers throughout the world,
 which indicated that the worlds con-
 thn ntIr
 year would be in excess of 100000 bales Accepting this estimate as correct, and
 unless the American crop is in excess of 100000 bales. which does not appear probable, there is no great surplus of cot
 ton in sight. The problem before the
 conference was to ascertain why, if F. COG, 900 bales should sell for approximately $S40 GOO, ,0O0 as was the case last year, that 100000 bales would not sell for more
 than $65O, 100000. and why this increased
 production of probably 3,00O,000 bales, in-
 vclving additional labor, expense of cul-
 tivating the increased acreage, and ex-
 tra cost in fertilizng, picking and gin- ming, should result in an actual reduc- ton in the gross cash return of s1Soo0O,oOo or taking the seed into consideration, of around S250,000,OOO, less for the crop of 1911 than for the crop of 1910
 "The problem does not seem to be one of financing the crop, as the money sup ply Is abundant, but the usual rush to sell
 cotton at the beginning of the season to liouidate indebtedness in the face of large crop estimates, served to break the mar ket and to shake confidence in stable prices. It is evident, however. that the | rush to sell Is over and that the holders | of cotton are stronger today than was the case a month ago. and if cotton from this | time forth is marketed gradually, it seems | that higher prices should follow, partic- uarly as the mills, where they have bought their immediate requirements are
 themselves in favor of steady prices, in order that the prices of their goods might not be affected. The state warehouse sys- tenn which was adopted by the people of Louisiana last fall by an amendment to the constitution, was explained by the governor of Louisiana, and by the presi- dent of the New Orleans cotton exchange.
 Under this system it is possible to obtain a warehouse receipt issued under state authority and carrying with it the faith and credit of the state, and the system should be adopted by all the southern states, so as to provide the cotton growers with the means of exchanging their cotton for a receipt which will be first class col iateral throughout the world Active steps have been taken to withhold from market a large portion of the unsold balance of the present crop, so that it may be sold gradually, as conditions warrant, and practical plans have been made for the curtailment of the cotton acreage next year. The farmers seem to be thoroughly alive to the advantages of organization and cooperation, and were they in the manufacturing business would no doubt be held amendable to the Sherman anti trust law, but this act does not seem to contemplate placing such restrictions upon the millions of organized farmers in .his country, while there has been some com- rlaint that collections are slow and trade light owing to the present disposition to hold cotton, the condition is only tem- porary one and the year bids fair to
 close in satisfactory way, as far as
 country business is concerned.
 Iron and Steel
 There is little that can be said al the present time of all encoursg ging nature regarding the iron and steel situation. The volume of business is disappointing and prices continue to weaken. For some time past the coun- try has been expecting the suit which has finally been filed by the govern
 ment to dissolve the United States Steel corporation. It was, however. more sweeping than had been anticipated In that the complaint seeks to dls- solve all the subsidiary companies of the corporation. The final disposition of this suit may be two or three years in the future and the government may find that 1t Is easier to bring a suit than to win it.
 "without attempting to discuss the merits of the government bill of complaint against the Steel corpora ton, that part of it which charges that the panic of 1907 was deliberately brought about in order that the cor poration might acquire the Tennessee Coal, Iron and Railroad company and that Judge Gary and MT. Prick wilfully l deceived President Roosevelt as to financial conditions in New York at
 the time of their famous interview
 with him on November 4. 1907, is simp-
 ly absurd and the contention made in
 the governments bill that the panic I