Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1912-05-16
BUSINESS NEEDS
JUST A BRACER
Improvement in Crops Would
Aid in Restoring Confidence
to Shaky Leaders.
Ru q c. EoRREs.


NEW YORK, May l6. Business leaders
are wavering between optimism and pes
slmlsm. Temporary uneasiness is felt, but
all improvement in the crop outlook prob
ably would revive confidence
Developments have been uneven.
The governments report on winter
wheat holds out promise of crop of only
$4,000 bushels, while six million acres
were abandoned. Moreover, the whole a g-
riculturaI season is between three weeks
and month late. while the excessive
rains will retard progress until a spell
sof real warm weather is enjoyed How
ever, the rain soaked land could be
promptly put under other crops were the
sun to come out for a week or two, and
the whole agricultural outlook easily I'M
dergo an encouraging change.
Industries are moving critically. some
expanding, others contracting. Steel pro-
ducton is at the rate of 5000, 900 tons per
annum, new high record for the country
Consumption has also been stimulated by
lower prices. The railroads are. today
placing enormous orders for cars and
rails, while the demands from the build
ing trade are also heavy enough to JUS
tify the marking up of prices
The Steel Trusts bookings during April
were 100000 tons larger than the alb
normal output, and as the margin of profit
will be larger from now on. the com
pany's net earnings should not again fail
TO provide anything for the common stock
dividend
Possibility of overproduction
Is there danger that the production of
steel in the United States will heavily ex-
coed consumption? The productive ca
pacity of the country today is very much
greater than in any former year. and
expansion is still the watchword of man
ufacturers. Unless. therefore, general in
dustry broadens out the, increased ton
mage will not find a market-at least at
home. The trying experience which cop
per producers have passed through is
brought to mind by the current conditions
in iron and steel
Instead of indulging in discomforting
forebodings. however, il is permissible to
hope that given bounteous crops the
country will resume its forward march
once the presidential election is over
Indeed business is unlikely to wait I'M
til November before casting off its doubts
and fears
Even now bank cearings are running
far ahead of last year and railroad gross
earnings are rising
Much has been said in these articles
concerning the probability Of a traffic
blockade this year The principal rail-
road systems have at last taken cog
nizance of this peril They have placed
huge orders for equipment, and will be-
stir themselves to prepare for the coming
tidal wave of traffic The low prices of
materials is an incentive to place con
tracts without further delay
Setback on Stock EXCHANGE.
The Stock Exchange has suffered quite
a sharp setback. Prominent railroad and
irdt al cto bot ttp Iadi Two m
nearly ten points from the high levels
recently reached although latterly there
have been irregular rallies The break
in stocks had chilling effect upon specu-
lative sentiment The strongest banking
interests had as recorded here. given no.
tice that a speculative boom would not be
IN order-in fact. the impression was
clearly conveyed that the pace had been
unjustifably rapid
Then the lamentabe political tur-
MOL could not be entirely ignored
The financial community had made up
its mind that President Taft would be
nominated and that no legislation of
more harassng nature than that already
experienced would be attempted. But Mr.
Roosevelt's remarkable demonstration of
strength in first one state and then an
other forced reconsideration Of the po-
litical potents. At this moment UNI
certainty ruleS-and uncertainty is never
conducive to financial or industrial sta
bility
Money Everywhere Easy.
one fundamental favorable feature is
the world wide ease in money. Every
where monetary conditions are most COM
Portable The Bank of England WIN
is still the hub of the whole financial
wheel lowered its discount rate last
week. and the Bank Of France, as well
as the Imperial Bank Of Germany, will
ALMOST certainly reduce their charges for
accommodation At New York cheap
money is also the rule
The difference between dear and cheap
money g all Leading centers is of far
greater moment than the average per-
son is apt to realize. a high bank rate
in Great Britain acts as a serious brake
upon the wheels Of industry
whenever the English bank hoists a dan
ger signal every manufacturer takes heed
and curtails activities similar effect
is produced on the continent Of Europe In
the United States strngency sometimes
has to go pretty far before the omen is
given general attention, although in this
respect the business community is becom-
ing wiser every year.
Employment Of Idle Funds.
Provided the crops do reasonably we'll
other conditions taken as whole, should