The Birmingham age-herald., 1913-10-11
For Perfecting Large Economies
Currency Bill Offers Opportunity

Standard oil company. The four great
American corporations engaged in man
ufacturing or mining which have within
a few years, so wonderfully increased the
volume of our expectation of manufac-
tured products have mastered the science
of efficient salesmanship so that the sales
men who represent in foreign lands these
corporations are now recognized as equal
in Skill in foresight in energy and IN
tact TO the highly trained representatives
of the English or the German mantfac-
turing interests.
New Field of Economy
There has been developed. however
within a short time-not more than two
or three years-a new field for very high
economies. To cultivate this field is the
work, in part of the men of high techni-|
cal education who look after some depart
ments of the financing carried on BY the
great corporations 1t is commonly re-
ported in this city that the pioneer in
this work of efficiency is Leopold Fried
rich, and they have been for some time
telling in financial circles of the remark
able achievements of this man of financeA
lie is reported so TO have perfected GER
tain economies in the mere handling OF
transactions of the organization identified
year he was able to show to the officers
of the corporation actual savings of sew
eral hundred thousand dollars simply
through highly technical, thoroughly
scientific utilization of banking principles
In some respects this is perhaps the
most remarkable of all the systems of
efficiency which the great corporations
have adopted, and which they have been
teaching to the benefit of the people. For
In
did not require the expenditure of a
single dollar 1t often happens that per-
fected efficiency costs good deal of
money, as, for instance, the maintenance
of laboratories, the carrying on of ex-
pensve research, such for instance, al
has been in operation for some time in the
great electrical works at Schenectady or
have been characteristic of the American
Sugar Refining company. The United
States Steel corporation pays out each
year a good deal of money for research
work and other scientific employments in
the hope of gaining greater efficiency and
reduced cost of manufacture. But in the
case of the Guggenfeim corporations the
peculiar efficiency and economies which
have been perfected by Mr.. Friedrich have
entailed no more than a profound knowl-
edge of scientific banking and thorough
mastery of the financial methods adopted
by all the great countries and leading
merchants of the world. W
Dollars Earn Dollars
Apparently Mr.. Friedrich's plan is based
upon the theory that every dollar in the
possession of the corporation, one of
whose executives he is, should earn some
thing. Not penny is allowed to lie idle.
OF course, the results reach in the ag-
gregate very large figures because the
Guggenheims represent corporations with
..xs4~ -l1x.,.k o u
Furthermore have trade relations with
every civilized and commercial country.
They sold year ago commodities of their
manufacture of the money value of $780,
100000 in foreign markets. and In addl-
ton to that they were engaged in finan-
cial transactions and manufacture in
Chile and Bolivia, the Chile company
alone having a capital of S110,000,000 Bus
mess of this kind involves very intricate
transactions. In South America there are
often violent fluctuations in exchanges,
and IL there are to be perfected high econ
omies in the handling of South American
foreign exchange transactions there must
be a comprehensive knowledge of foreign
exchange, of it's daily relations to the
markets of the world, with a capacity in
stantly to take advantage of these fiuctu-
atoms. One of the methods adopted by
Mr. Friedrich for perfecting his new kind
of efficiency involved the Capitalization
of the cash resources of the corporation.
Formerly these were scattered in all cor
ners of the globe. But by centralizing
these resources they are made available
for economic handling. In December, 1872
the annual statement of the company
showed that they had $2O,O0O.000 cash on
hand, including demand loans, and this
did not take into consideration bank bal
ances of numerous subordinate companies.
BY centralizing these resources 1t was
possible to put every dollar to work and
to demonstrate by authoritative statement
what the quota of earnings of each dol
lar was.
The Greatest Company
This corporation is one of the four
greatest American companies. and one
of the greatest in the world. If one cor
can, in addition to other highly
perfected economies and greatly refined
efficiency in manufacture or operation or
methods of selling, do what this corpora
ton and what the other three which are
numbered among the greatest of Amer
lean corporations are able to do, what
cannot be accomplished when all large
corporations still further enlarge the
field for economies by making every dol
lar whether invested in operation, In
plants or in selling departments, or
whether on hand or in the course of col
lection. contribute it's quota to the earn
ings of the corporation? The savings or
this kind alone should greatly strengthen
American manufacturing corporations ana
enable them the better to meet the new
conditions which will be created When