The Birmingham age-herald., 1912-01-02
PAST YEAR LACKED
 VIM IN BUSINESS Monthly Review Issued By First National Bank THE PIG IRON OUTLOOK Makers Becoming More and More Convinced That Finished Prod
 ucts Must Be Worked Up
 in the South
THE PIG IRON OUTLOOK

The financial and commercial review of the First National bank of Birmingham of date January ?. 1912, Is as follows;
 "The year 1911 will be remembered in trade circles as one in which lights and shadows alternated in quick succession. Taken as a whole, the volume of ousi- ness transacted during the year was fully up to the average. but in many cases this volume was obtained at sacrifice of profits The year was notable for the absence of the usual vim and enthusiasm with which business is conducted in this country. and any developments ealcu- lated to inspire a feeling of optimism were, up to the last six weeks of the year. soon followed by conditions eaicu- lated to produce the contrary feeling
 Staple crops were above the 10 year average, both in volume and value, and the American cotton crop was by far the largest ever produced amounting in all probability to more than b million bales. The price as compared with the two pre- vious seasons has been disappointing, and the new year finds a much larger pro- portion of the crop in the hands of the farmers and merchants than is usually the case. Consequently, collections have been somewhat slow, and a large num- Der of country accounts have been car ried over. but most of them will no doubt be liquidated before the season of 1912 is far advanced. Much depends upon the prices that will be received for the remainder of the present crop and
 A.. j.1 4a- mand, and by the acreage planted in cotton this spring.
 Farmers We'll Organized
 "The farmers are well organized all over the south, and are signing pledges freely to reduce their cotton acreage at least g per cent We believe that there will unquestonably be a reduction in acreage, and unless there is pro nounced advance in price between now and planting time, this reduction is like ly to be very considerable. Just now the market Is somewhat disturbed over the lookout in the Manchester district which affects 10000 operatives, but 1t Is not believed that this shut down will be of long duration. A well known cotton au- thority states that exports up to De- cember 24 were 5,15S,0O0 bales against 4,g1s.oOO bales last year, being % per cent more than last year when the total for the season was 7,602,000 bales. On the present basis of exports, therefore, the total this season should be 9,3oo,oOo bales against S,7OO00O bales in 1906 which sea- son holds the record for exports up to the present time.
 "The New England mills and the Brit ish mills have not bought as freely as the Continental and Japanese mills, which are reported to have bought liberal sup plies for delivery as far ahead as october next, while some of them are said to have made contracts for three years ahead. Exports to Great Britain up to Deeem- Der 24 were 2,o71,62 bales against 2,o5s334 last year, while the exports to the con tinent this season have been 2,641,70 bales against 2,049,SS5 last year. On the other hand, northern spinners have taken only 1,007. 4l9 bales this season against about 100000 up to this time last year. The cotton mills and oil mills appear to be making money at present prices, and should there be sharp reduction in | acreage, we look for a good demand for | cotton, the better grades especially, this | spring.
 Surprises in Iron and Steel
 "rhe volume of business in coal is sat isfactory, although prices continue com paratively low. The month of December developed several agreeSDe surprises in the iron and steel trade, and it is be- lieved that the United States steel cor poration will report as of December 90, | the largest tonnage of thrilled orders since 1909. A well known local authority l states that December sales of pig Iron in all of the producing centers, particularly in the south, have been on large scale, and that prices have .stiffened. The buy ing movement started with q cut below | slo for the first quarter and first. half of 1912. and it is generally understood that a considerable tonnage was sold on a basis of $950 for No. foundry. The price was advanced with heavy sales to s975 and then to s10 and we are in- formed that some makers are now quot ing $10.J0 for the first half of 1912. Fin fshed steel products, particularly wire, bars and sheets, have been very active, wire products having advanced $2. per ton during the month. Authorities re- gard December normally as a dull month in the metal market, as consumers usu- ally take inventories, reduce their stocks. and prepare for clean start with the new year, but last month proved strk ing exception to the rule. and the sit uation in iron and steel is regarded as decidedly stronger and the outlook for the future seems brighter than for sev- eral months past. The railroads have bought very heavily of cars during the last 60 days, some estimates being that nearly 100000 cars have been placed since the month off October The buying of rails has so far been light. but 1t is thought that the railroads will enter the market actively within a short time.
 Pig Iron Outlook E
 ''The permanent outlook for pig, Iron in the south is not regarded as promising. The need of diversified production is daily becoming more evident to the mill and furnace people, just as diversifcation or crops on the farm has become an ac- knowledged necessity. The number or furnaces in the south has not been ma terially increased during the last 10 years and their percentage of total production has been greatly lessened. Northern com petition Is daily becoming more formid- able, as costs at northern furnaces have been much reduced. We are advised that iron is being made in southern ohio