The Birmingham age-herald., 1913-10-01
CROP MOVEMENT
IS MUCH HEAVIER
Advance in Cotton Direct
Benefit to Producer
FINANCIAL REVIEW
REVIEW
FINANCIAL
Pending Legislation Is Still Having
Somewhat Disturbing Effect, Ac-
cording to First Nationals
Monthly Statement

The First National Banks financial and
commercial rNiew for the month just
closed is as follows:
October 1, 1913.
"The crop movement in the south is
now under full headway, and in Ala
bama 1t has been much heavier than it
| was up to this date last year. During
the past six weeks the price of cotton
has advanced about 800 points, or more
than SIS bale. This advance SO early
| in the season has been direct benefit
| to the producer. There has been little
inclination to hold cotton at present
prices, and the free movement has great
! ly stimulated business, besides making
| collections possible at an earlier date than
usual. The special deposits of the United
States treasury with southern banks to
aid the marketing of crops now amount
| to more than $20,0O0,0O0, and as amounts
| collected by the banks are being re-
| turned freely to trade channels, the enor-
nous movement has been financed with
| out the least disturbance. Our own cur
rency shipments to country banks since
| September / have been three times as
Most Valuable Crop
serhe present cotton crop promises to
| be the most valuable ever grown and
will most probably bring into the south
more than 81, 900, 100000. Late reports ap-
pear to confirm our estimate of 1,350,0Oo
bales for Alabama, and indicate corn
crop of at least 65OOO.OOO bushels, the
largest ever grown in this state. Should
present prices hold, the money value ot
the farm products of Alabama this year
cotton, cotton seed, corn, hay, oats and
minor crops-will approximate $19O000,OOO
| about $24 for each acre of land under
cultivation. Trade in all mercantile lines
| is showing seasonable activity and pros
poets for close collections are better than
for several years.
1.-The pig iron market at the moment
Is fairly strong on a basis of s11.50
for No 2 foundry, but a Disappointing
lull is reported in the steel trade. Rail
road buying is light and many mills
now running on full capacity are eX-
pected to be down to a so per cent basis
within a short time.
The Tariff Bill
1T is to be regretted that the new
tariff bill now agreed upon by both
houses of Congress and about to be-
come a law has made such drastic cuts
in the metal schedules. The Senate
lappears to have been victor in the con-
| ference, for out of 675 amendments
proposed by that body, 427 have been
retained in the bill, 81 were compro-
missed and only 81 We're receded from.
In our opinion the original Underwood
bill was preferable, but political ext
1aa1 f,111fa
and concessions. Pig iron, which car
| ried q duty of per cent ad valorem
in the House bill--equivalent to $1.20
per ton on "a valuation of $15-is now
placed on the free list. Many important
steel products have been free listed also
and in view of the existing dullness
of the steel trade in England and Ger
many, 1t is thought that manufacturers
in those countries viii at once turn
| their attention to American markets.
which would force a hard fight upon
domestic furnaces and mills for the
control of markets along the seaboard.
Many predict that the Pacific coast will
hereafter get its iron from India and
China, in which countries an incon-
ceivably low wage scale obtains The
partial failure of the corn crop in the
west will reduce the supply of cattle
and increase the price of beef. The
price of cotton Is now higher than for
three years past, and the income tax
will probably be resented by many of
those affected by it, SO that unless
there should be a sharp reduction in
the cost of living, which under present
conditions hardly seems likely, the new
tariff law will from the beginning Sc
verely test the popularity of the politi-
cal party responsible for it.
The Currency Bill
The banking and currency bill as
passed by the House contains many
admirable features, but in the opinion OF
leading practical finapciers, it is un-
sound in some important particulars.
The proposed system to be workable
should be attractive to the state banks,
but it is significant that no important
banks operating under state charters
have yet Indicated an intention of taxi
ing part in the proposed new system,
while many national banks have inti-
mated that they would surrender their
charters shauld the bill as 1t now stands
become law. The mobilization OF
bank reserves is highly desirable but
this result could best be obtained, not
by creating lareg number of regional
banks, but by having three or at the
most, five. Another feature of the bill
that has been subject to much criti-
cism. is the provision for an issue of
$4,000 900 of treasury notes, without
out adequate safeguards for the protec-
ton of existing reserves. Just now Eu-
rope needs gold and is paying a pre-
MUM for it,
MANY experts claim that the cur
rency feature of the bill as II stands
would afford foreign countries an easy
means of replenishing their gold re-
serves at our expense and would in
vite return to the endless chain and
bond issuing conditions OF 1894 and
1895 : 1t is worthy of note that some
OF the most ardent defenders of this
feature of the bill were champions OF
the free silver coinage dogma of 20
years ago.
| THE Senate is proceeding slowly and
cautiously in its consideration Of the
bill and hopes are expressed that when
finally enacted it will be shorn of its
| Objectionable features.
Steel Corporation Suit
"a short time ago bin was intro
duced in the House instructiug the de-
partment of justice TO withdraw its suit
to dissolve the United states Steel cor
poration 1t is claimed by some that
this suit was brought by the taft adj
ministration as political expedicnt to
offset the prestige gained for the op-
posite political party by the Stanley 3
| fipyasfieatiuy comIuittce "a nd VT n 4, a =,