Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-07-11
j. s. BETTER OFF
. IN MONEY THAN
COMMERCE.
Forbes Says That, Although Eu-
rope Is Buying All Our Gold,
Trade Is Stagnant.
BY 8. c. FORBES.
NEW YORK, July 11.-"HevSs she
headline 7D

OF MS experiences declared that
what impressed him most was the
difference between Japanese and
American journalists. 1t would take
a native interviewer half an hour to
perform his saaams and express all
sorts of laudatory sentiments be-
fore leading up to the subject on his
mind. whereas the American cor
respondent would saunter in with
his hat on, cigar in his mouth Eat
conversational ANGLE" dray up a
chair and address him thus: "HelIo,
kato; how's she heading7" the she
meaning, of course, the peace dick
ering.
In this instance she refers to the
general financial, stock market and
business situation. Wall Streets
mission is to gauge how she's head
ing"
In one sentence, | would reply:
"Fairly we'll financially; rather poor.
~, commercially"
Pm told on the highest authority
that an important announcement
concerning the disposal of Union
Paoifis' holdings of Southern Pacific
will be made soon. The news may
not have an electric effect upon the
stock market. One or two issues,
indeed. may be depressed. The an
nouneement may not be confined to
Southern Pacific, but may include a
reference to Baltimore and Ohio. al
though on this point definite Informal
tion was lacking last evening.
The general monetary position has
been strengthened. The country
banks are now thoroughly aroused to
the need for caution. They are hus-
banding their cash to the extent of
a million dollars a day, and ourtail
ing loans even more, whereas, former
ly they were expanding credits reek-
essIy. The pruning process will
probably result in a good many mer-
camille failures.
France formulated a plan at New
Year for drawing from New York
millions of gold every two months,
regardless of foreign exchange con-
ditions. The first shipments were
made on January 7; the second
movement began early in March, the
third early in May, and now the
fourth is under way, S5,ooo,ooo hav-
ing been engaged this week. A total
of 100000 has been taken from
us-at a. stiff price. That France will
make further raids upon our supply
of the yellow metal is accepted as
certain. Meanwhile, Germany is
making desperate and successful eff
fcrts to accumulate gold at a similar
pace. The Rechsbank to day holds
the largest stock of bullion in it's his
tory.
The TransvaaT strike, which threat
ems to stop the inflow of new gold,
is virtually over. The outbreak
among the negro laborers reported
yesterday can easily be handled, but
the white miners know no bounds
when once their ire is raised, and
the authorities hesitate to shoot
them both for humane and political
reasons.
The prospects are that the United
States will be able to get through
the. fall without serious monetary
stringency.
Labor troubles loom up at home
and in high financial circles uneasi-
ness exists on this score.
The renewed fighting in the Bal
kans is depored, but international
complications are not expected. e. e..
The stagnation on the Stock Elk
change is accepted in certain very
responsible circles as indicating
that the market has been liquidateo
to the last share, and that the next
decisive movement will be upward,
although no immediate or drastic
action is looked for.
The Lamar" revelations have in
iured certain individuals more than
stocks. incidentally, the Stock Elk
change, in endeavorins to forbid
members to accept orders from. this
self confessed scoundreI, is attach
ing to him an Importance which he
does not possess. Cannon should not
be turned on "vermin," to borrow
J. P. Morgan's expression.
The Pittsburg failures will have
mere effect abroad than at home, as
the kuhns disposed of many irriga-
ton and other bonds to Europeans.
Following so closely on the heels of
the Frisco fiasco, this incident will
have most unfortunate influence.
And to turn Europeans against Amer
lean securities is no light matter.
1t is infinitely serious. We need
European capital We must have
oyersesa buyers of our securities, for
thus only can we offset our adverse
invisible" financial balance.
Crops are doing we'll enough.
To conclude rambling survey. the
stock market ought to be nearly on.
lir1iIa4iOs, Lrtc4