The Birmingham age-herald., 1913-11-30
TRADE COMPLAINTS
PROVE UNFOUNDED
Birmingham Trust Monthly
Review of Business Con-
ditiOns Over Country

OFN1 y
The monthly business and financial re-
view of the Birmingham Trust and Say
ings company says in part:
"A careful analysis of the business sit
uation at this time shows clearly that
the majority of complaints heard about
business operations during the past two
years have been without real foundation
or reason. Taking the totals of all big
things in business for the past "a months,
we find that new records have been set
Tor the two-year period by nearly every
one of them, and the sum total of them
all sets decidedly new record In trans
actions. Bank elearings, foreign trade
production of gold, coal and the base
metals, earnings of railroads and crop
production have all during this period
exceeded any similar period in the his
tory of the country.
These great activities have caused a
tight money market because we have not
enough of the circulating medium and
scarce money in turn has caused busi-
ness failure to increase materially both
In number of failed concerns and in total
liabilities
THE trouble has not been lack of busi-
ness but lack of money with which to
carry it on and the continued dullness on
the stock exchanges is another natural
result of scarce money. The banks have
peen busy taking care of the absolute
needs of their big customers in manufac-
turing and merchandising line in helping
importers and exporters to finance their
tremendous exports and imports and in
assisting, through the country banks, the
moving and marketing of the crops, the
total OF which for the two year period.
as just stated is the largest ever known,
1T has been period of enormous trans
acuons tight money, uncertainty as to
the future and, as a natural result 1t
has been period of small profits Hand
to mouth business, even though In large
volume, is less profitable than the pur-
chase and sale of goods in larger indi-
vidual items and at less frequent inter-
vals.
While readjusting ourselves to the
operations of a new political admins
tration. while repricing our lines to meet
the necessities of the new tariff bill.
Wpile scheduling our income in accord.
ance with the requirements of the income
tax law, while adjusting ourselves to the
operations of a new currency system in
Whatever form it may be finally fixed by
Congress, and while going through the
tremendous business readjustment which
may become necessary because of pro-
posed antitrust legislation and antitrust
action-while all these things are going
on, the volume of business as a whole
must necessarily shrink to some extent.
The care, however, with which business
will be operated during the coming two
l'year period will mean much in the in.
crease of actual net profits
Tke last complete figures available
on railroad gross and net earnings are
for September and show total gross
earnings of 2S5 millions compared
with 275 millions last year. and net
earnings of only SO millions compared
with SO last year. The gain of 10
million dollars in gross earnings and
decline of five million dollars in net
earnings makes disparagement be-
tween the two of 10 million dollars
and is another evidence that the
greater the volume of railroad busi-
ness, the worse the railroads posi-
| ton. ruling has not yet been made
| by the commission on the proposed
freight rate increase by the principal
| eastern lines. A number of wage in
creases are already effective and ii
looks as though nothing would clear
the situation except some increases in
freight rates and a readjustment OF
the amount paid the railroads by the
government for carrying the mails
which will offset the loss burden
which has been laid upon the mail
carrying roads by the parcel post.
"The car shortage is not severe but
Is still with us, and not enough cars
are as yet available to handle the
loads awaiting them. The net short
age on the first of the month was 184a
cars.
with the exception of cotton, the crops
are harvested and the story is told.
Wheat production increased, while corn,
oats, barley, buckwheat, flaxseed, white
potatoes and tobacco shows a decrease as
| compared with the previous year. Rice
ard rye held their own. The average
price of farm products is enough higher,
however. to offset the difference in the
crop and farmers as a whole, are not
the sufferers this time.
From the ginning figures at hand, in
dications are that the cotton crop will
almost reach last years figures, the price
| is enough higher to insure much greater
| total value for the crop than last yeaI
and the value in dollars for the smaller
crop may almost, If not quite, equal the
| price brought by the 1911 bumper crop
| 1.-The best business conditions are still
| found in the states bordering the Great
Lakes and the poorest conditions in the
| middle south and south, exclusive OF
Texas, where business is just about nor
NAL. There is almost boom area cover
| ing Michigan, Wisconsin, Minnesota and
northern Iowa, Illinois and Ohio. Montana
| and Wyoming are above normal and the
| unmentioned portion of the country just
about average.
1T is unnecessary to comment on the
Mexican situation which continues to have
| its daily effect upon trade and financial
| operations in this and other countries A
peaceful settlement would mean much tc
| our general business conditions"
FOREST FIRES RACE