New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-05-20
HONEY AND RTSINESS.

Business is improving gradually. but
consistently, and barring unexpected
happenings that may cause a suspension
of progressive tendencies. the trend VIII
be continuously toward betterment. Even
tho backward season, which has retarded
business In some branches OF trade ana
Industry, has not been as serious as
might have been expected. Tho iron and
steel reports are excellent and many
close students Of conditions affecting the
steel industry are extremely optimistic
and predict that 1912 will see the largest
output Of steel in the country's history.
Tho reaction in sentiment regarding win
ter wheat conditions has been growing.
and a comparative tone OF cheerfulness
has taken the place of the dolefulness
which was so prevalent few weeks ago
The gross earnings of railroads In the
United States as reported for the first
week I'm MAY make a comparison with
the same period OF 1911 which shows
an increase of "A per cent for this year.
A satisfactory showing IS that very rev
railroads report smaller earnings than
a wear ago, and even these roads show
an Improvement over the previous
months business so the line of march
is toward the progressive and must be
accepted as a good sign.
Business reports from foreign coun-
tries are encouraging, and the consensus
OF news from various European and Con
tinental points forms basis for predict
ing a real recovery from commercial de-
preston and an activity not experienced
in several years.
The total liabilities OF commercial fall
ures in the United States so far In May
are S.. 4G1 .915. as against SI,I3I, iSS for
the same period of 1911. difference in
favor Of 1912 OF S2,275.573. Tho money
situation, which is the governor OF com
merce and industry. is in state Of ease
and plenty throughout the world. In the
United States the Controller Of the Cur
rency's report OF the condition or all
national banks on April % shows an
increase in loans Of SIl,732,6Jo since
the previous call and Of S32i, ,oi'
since the call for the corresponding pc
Rod a year ago. Most Of the expansion
Of loans has been through tho interior
banks, as the New York city banks re-
port q decrease IN loans OF S32.2So.4Z-
since February 20 this year. but an In
crease OF $23 3OO60I over 1911. There
has been an increase in individual de-
posits greater than the expansion in
loans The increase IN deposits is $751;
491 800 since February 90 and compared
with a year ago tho figures are SHOT,
42G,997 greater.
In the average Of technical positions
Of money and business fairly safe
barometer Of indications Is shown In the
percentage OF loans 10 deposits ana
specie 10 loans, taken together. high
percentage OF loans 20 deposits and
low percentage Of specie 10 loans is a
sign OF distress. as an expansion 81 cred
its is indicated. At tho present time our
percentage OF loans TO deposits in New
York Clearing House banks Is ~. and
our percentage OF specie to loans Is 2lO2.
In 1910 tho percentage Of loans to de-
posltg was 1927, and the percentage Of
specie 10 loans was 1900. Again tho
hank clearings Of the country must be
watched and compared In conjunction
with the percentage OF loans and specie.
In 1910 in April bank clearings showed
S14O14. 09i 900. while in 1912 for April
the total is SD ,Oi3 4S6 900, showing that
we have sufficient money in this coun-
try with which to do our business. In
1906 and 1907 the bank clearlngs were
large, but the heavy expansion Of loans
and small percentage OF specie showed
an unhealthy condition, which could not
last. To-day. however, we have plenty
Of money, no expansion OF credits ana
a generally growing demand for bust
ness Improvement which embraces all
lines Of trade and industry.