The Birmingham age-herald., 1913-06-02

what seems to be a paradoxical condition
y lollowed by plausible explanation. and.
so lar as any one can see. this is not
In the least specous. First of all. the
ueVe,ophent of the natural resources.
Which Is the chief way in which new
wealth. and capital are obtained. is so
pressing that not only in the United
o.d'es, put ON the continent of Europe
ana at this time in China, as also in
south America and parts of Africa, the
oenaho Tor capital with which develop
ihent may be made is far greater than
the immediate supply of capital.
/ In this country the railroads will he
compelled. within the next 12 or Is months.
| TO seek very large amounts of capital II
! Is the unvaryfng statement in the offices
| of men OF finance who are relied upon to
assist in the assembling of capital which
the railroad companies need that an enor-
NOUS propaoly unparalleled, amount of
railroad financing must be undertaken
within the next year or Is months, two
years at the most.
Thls represents an imperative demand
| Inc United States cannot continue the
harvesting of crops which In amount and
| quality, and money value surpass any
record made by any other nation without
at the same time calling upon the rail-
! roads of the United States for efficient
! service.
| President Brown of the New York Cen
trail recently said that the company of
winch he is president must in a future
! which is near at hand six track con-
siderable portion of its system and -four
| track all the rest. Unless this be done,
traffic upon that system is in danger of
congestion.
| other railroad presidents, notably the
mastery intellect which Is in chief au-
| thority over the Pennsylvania and the
wonderfully clearsighted and clear
| headed president of the Baltimore and
OHIO, Daniel Willard, have recently int
| mated that the enforced economics of the
| past four or five years show themselves
| in somewhat impaired or insufficient
equipment, so that there is imperative
| need for the improvement of roadbeds and
| the laying of new rails.
In the South
Throughout the entire south. which is
speedily to feel the stimulus which will
be occasioned by the opening of the Pam
anna canal. the necessity for improve
ments, expansion and perfection of the
railway systems is imperative.
Knowing well what the approximate
needs of the railway companies of the
United States are to be for new capital
within the next II or Is months, the men
of finance are convinced that this is a
demand which must be needed. Contem-
plated development of natural resources
must await the satisfaction of ,ne needs
of the railroad companies.
Then, again, wherever inquiry has been
made it has been learned that the convic-
ton is general that almost all of this
financing must be accomplished with
American capital. We cannot look with
any confidence to Europe or to Great
Britain for the reservoirs of capital from
have got to meet the demands of the
railroad companies for the most part
ourselves
In meeting these demands there will be
visible demonstration of dear money
market, for the railroads, in order to OBJ
tain the new capital which they need
will be compelled to offer greater interest
rates than those which were the standard
rates for high grade security a few years
ago. If investing capital were plentiful
or If capital on the whole was not at this
time a little timid-so timid, in fact, that
temptation in the form of high rates of
interest Is necessary to coax 1t out-then
the railway companies would easily OBJ
tain in the United States a Good part of
the new capital which they need.
Business Will Be Cared For
Every one of those who speak with
certainty of conviction of dear money
market, for the next two years at least
asserts that what is called Legitimate
business s''-trade, wholesale and retail,
commerce, existing industry of all kinds
must be fostered and protected by the
banks of the United States. All the coun-
sells i'm favor of caution and of the delay
of contemplated plans for the exploita-
ton of natural resources are, it Is OBJ
served, accompanied by the statement
that business and commerce must be- and
therefore will be, adequately scared for.
Merchants may look with confidence upon
the support of their banks unless these
merchants seek new capital for the pur-
pose of undertaking new enterprises.
Recent montion had been directed al
most exclusively to those who contem-
plate large exploitation of natural re-
sources. There has been no desire to in
timidate that trade, commerce or indus
try, as these are now directed, is in dan
ger of curtaiment of credit or the lack
of reasonable banking accommodations.
The railroads must be cared for. or else
all business will be, sooner or later, more
or less impaired. There is also "a friendly
warning, rather covertly expressed to
government, state and national, municipal
and village, counseling a repression at
this time instead of expansion of public
works For works of this kind divert a
large amount of capital which might be
utilized to greater advantage just now in
other directions.