Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-03-26
PEACE To
BETTERF|NANCES
billions of Hoarded Gold Will
Be Released at End of the
War, Says Expert.
sy q. c. FORBES.

,The man worth while is the man VINO
emile when everything goes dead
trong
u pin that invigora ting motto on your
esk right in front of your eyes. II
hrrs flow along like a song, it will do
harm. II discord arise, II troubles
me if YOUR worries multiply, read the
alto. bite your under lip. resolve to
love Yourself a man worth while, and
sssrme the struggle with a stout heart,
Inn confidence in yourself and solaced
the reflection that while you may not
sonmand success, you will deserve it.
This is not a prelude to a recital OF
ross. financial or commercial The flnan-
aI community everywhere has been
hssting trouble more than half way.
Sone Eastern bankers have actually
ksckoned 1t to come along. They have
horked themselves into a weakening
hate Of nervousness over things that may
lever happen-our worst troubles are the
Ines that have never befallen us, you
know.
Nv advice would be this:
Bankers and other men of finance: Be
hahn. courag eous and optimistic.
Business men: Be cautious, slow to as
sDme fresh Indebtedness, prudent in lay
n YOUR interviews with your bankers
fake them into your confidence and learn
definitely and explicitly how far you can
fepend upon them for facilities
Financial pessimism is being overdone.
Business optimism has been overdone,
but that is no reason for excitedly flying
Il the other extreme.
MONEY SCARCITY DUE
10 WAR IN THE BALKANS.
Scarcity of money, of liquid capital is
he present bugbear Of financing and po-
Atcal hostility the prospective bugbear.
Well, what are the facts? April is al
Ways a critical date on the financial cal
fndar. for enormous payments have then
% he met, both abroad and at home. This
ear the conditions have been agra
Eated by the costly and unsettling wars,
Tor small investors. the backbone Of
financial Europe, have withdrawn their
lash from the banks and have boarded
lot less than half a billion dollars $780,
Boo 000J This sum in ordinary times
bould form the basis of some two billion
Dollars $4,000 900, O0O) Of credit. You can
pee how serious the effect of this hoard
ng has been, can't you?
In their efforts to raise funds foreign
securities to New York for sale, and al
though we have trade balance of near
h $500, 900 in our favor for the cur
tent fiscal year. we have been called
bpon to export almost $50 200, 900 gold
nce New Year. Business here has been
b active, and so many Industrial, mer-
tantle and public utility enterprises had
been loated with huge capitalizations,
"a n Of
position in the matter of reserves-the
cans Of national banks alone are more
han $500. 900 900 in excess of year ago,
Notwithstanding that they held a smaller
amount of cash than they did then.
NEEDS OF RAILWAYS
also TO BE MET.
The monetary tightness is also intensi-
Ped by the tremendous sums that must
Shortly be provided for the New York
pity subway schemes. for the Pennsyl-
rania, New York Central, the Hartman
snd other railroads, as we'll as for indus
tral and miscellaneous concerns, not to
mention states and municipalities, whose
borrowings are rapidly assuming alarm
ing proportions.
However, April should bring marked
PELLET abroad Let the Balkan war be
fettled and see how quickly the hundreds
pf millions OF hidden gold would rush
back to banking and investment chan
nels! a complete transformation could
b wrought in one week. And that such
transformation will be wrought is en-
tlrely probable.
This would have substantial effect here,
although capital will not fall to low
price. Credit has been extended over
POO much to permit of that, and, more
over, the overhanging demands are OF
Unprecedented volume.
Business men should not count upon
Unlimited assistance from their bankers
Purse-strlngs are already being frightened
Rnd weak concerns will in some cases be
allowed to go to the wall.
But bankers will deserve severe cen
pure If they act as despondently as some
pf them now talk They have response
blties. Their duty does not stop at TAX
lng IN money; they must pay money out
and pay it ungrudgingly when by so do
lng they can tide a solvent customer over
temporary difficulty.
FALL OF INDUsTRIALs
POINTS A WARNING.
have repeatedly warned investors
against buying at fancy prices the shares
rf new and grossly overcapitalized manu-
featuring and mercantile ventures,
Good will, patents" leases ana
suchlike items have been placed on some
balance sheets at wicked igures-as hlsh
aS $50 900 900. The inevitable is happen
ing at the first mild blast of adversely
the market quotations of these shares
have tumbled demoralizingly.
The promoters apparently accept no re-
sponsibilty in the way Of providing
market for the questionable wares they
palmed off on the public. And now thaI
Intrinsic values are being closely scru-
ilnized by banks, such stocks are beng
Thrown out Of collateral envelopes that
rs to say. banks will not lend on them.
Look how certain of the newer indus
'rial stocks have fallen:
High. Low Fall
california Petroleum. ..... 70 As 70
General Motors ........... 50 30 Y
Ioodrlch (B. F) Co... 81 80 o.
hresge IS. 81 Co.......... 50 90 10
loose Wiles Biscuit Co... AZ 80 II
Play Dept Stores ..... IS Sc p
Hexican Petroleum ....... 80 81 "
humely CM.) Co............101 As IS
pears, Roebuck & Co.......221 17S 4a
setudebaker 40 26 AZ