The Birmingham age-herald., 1912-02-01
BANK REVIEW HAS
 OPTIMISTIC TONE Comment on the General Business Reconstruction COTTON SITUATION
SITUATION
First National Issues Monthly Reylew of Business Conditions in Bir- mingham and Alabama.
 Extra Session Talk

T"ebruary 1, 1912.
 "Tt is becoming more evident every day that we are reaching the eulmina- ton of a period of reconstruction, which began with the life insurance investiga- tion several years ago. Our national code of business morals has been un- dergoing revision, and the tendency is toward a higher plane. Abuses in nearly all lines of business which only a few years ago were accepted as a matter of course are now no longer tolerated. There has been an awakening of public senti- ment, and many salutary reforms have been effected. Congressional investiga- tions have been disappointing to those who expected them to uncover sensational abuses, and have demonstrated the fact that business itself has kept abreast of public sentiment, and has instituted it's own reforms. The tarlff question Is fast approaching a settlement, and with that out Of the way, it seems that conditions will be ripe for another great forward movement This country IS growing every day. and the lethargy that has prevailed for the past two years must soon run it's course. It is contrary to the spirit of twentieth century, Amerieanism to stand still, and the tremendous reserves of idle money that are accommodating in all financial eenters of the country must soon seek investment.
 ''The south has proved itself equal to the emergency with which it was con fronted last fall, when it became evil dant thn+ if bad produced a cotton crOD of urwieldly proportions. The wisdom of the holding movement has been demon- strated. Prices did not decline to the dis astrous level that many predicted, and have actually advanced during the past six weeks about a cent pound, even though American mills have not bought as freely as had been expected. Exports continue large, the maximum buying be- ing credited to the continent. The rev olution in China does not appear to have had any unfavorable effect upon the mar Set, and the awakening of that country should prove a great stimulus to the mar l1et in future years During the month bar silver advanced in London about 1A pence per ounce, and it Is thought that this has been a sustaining factor in the cotton market, for the reason that silver is the circulating medium in China, India and other Oriental countries, so that the price of silver is a factor in their cot ton trade. Any increase in the purchas- ing power of silver in those countries is usually accompanied by a correspond ing expansion in the consumption of cotton. Preparations for the new crop are backward, and there are still large unsold stocks to be marketed.
 Tt is doubtful, when planting time act ually comes. if the reduction in cotton acreage will prove to be as great as has been expected. Acreage reports and fer tilizer sales will be closely serutinized, and will doubtless have some effect on the price of the staple. The cotton mills, with the exception of some in Massachu- setts. where there are serious labor troubles, appear to be doing much better than for several years past, and the prices of their goods are we'll sustained. How ever, with the large supply of cotton in sight, it is difficult to see anything upon which to predicate 8 further ad- vance, and many who have hitherto ad- vised holding are beginning to look upon present prices as satisfactory.
 Pig Iron Situation
 "There has been but little change in the local pig iron situation during the mcnth. Some good sized sales have been reported but it is understood that prices
 
 that most of the producers are rejecting $10 and asking slO.50 for the second half of the year, at which figure their cus- toners show but little disposition to buy. The export business in iron and steel products is today the most striking feat ure in the southern iron and steel situa- tion. A reduction in the freight rate to Ohio river points of s1 per ton is being actively agitated, and it is said that the at,iaf ah Q pla in 10 Of hafnpr granted is the difficulty in reinstating the rate should prices advance. The mat ter will probably be settled in due course by the interstate railroad commission.
 .It seems that one new large, fireproof hotel for Birmingham is certainty, and that perhaps there may be two. There is a great deal of heavy railroad construc- ton work in sight, which. together with the improvements which are reported, will soon be made by the Woodward Iron com pany makes the immediate outlook for this district brighter than throughout the country generally.
 Extra Session
 Tt is to be hoped that there will be no extra session of the legislature, which is now being agitated in some quarters. Ex- tra sessions are expensive. and in this state have generally failed 10 produce satisfactory results from either busi- ness or political standpoint. The state of Alabama experienced no difficulty in harding it's finances during 1911, and as far as we can see the proposition will be just as easy this fall. After this year, as matters now stand current revenues Will gain on expenditures. For several years past property has been assessed in this state on a nominal basis of 60 per cent of value, although as a matter of fact the assessments have been more nearly on 40 per cent basis. The leg islature during it's last session provided in the revenue bill for 60 per cent basis Of taxation, thus legalizing the policy of previous administrations. This feature of the revenue bill is in no way responsible for any embarrassment that may exist to the treasury of the state or to the finances of any municipality, as the basis of valua- tion has not been changed.
 ''If the state tax commission should bring all values up to GO per cent ba sis there would be an increase in the reve nues of from 30 to 40 per cent. The re- cent action of the democratic majority in the national House of Representatives in sidetracking large appropriation bills is an excellent example to state legis latures. Economy in the sense of adjust ing expenditures to receipts is a virtue in public affairs as well as in private life. The taxing power is the highest attribute of sovereignty, and should be used with moderation and discretion. The prosperity of the people is vitaliy affected by the manner in which this power is exercised. THE FIRST NATIONAL BANK OF
 BIRMINGHAM.'
 Building Permits
 Building Inspector W. o. Mathews is- sued the following permits yesterday .f..,