The Birmingham age-herald., 1913-07-01
FIRST NATIONAL
MONTHLY REVIEW
Situation About the Same
as in June, 1912
CONDITIONS soUND
Lumber Trade Dull And Buying Move
ment in Pig ron Still Awaited.
Crop reports Are Very
Favorable


TIE First National banks financial
afd commercial review as of July l,
1913. is as follows:
According to a nursery Jingle there
was once a king OF France. who with
10000 men, marched up hill, and then
marched down again. A year ago under
the stimulus of brilliant crop prospects,
general business conditions began to
improve and in spite of the political
campaign, the upward movement was
sustained for six months; then the crest
was reached, and recession began,
which has continued so that at this
time the average status of all lines of
| trade and industry appears to be about
the same as at the corresponding date
in 1912.
lowing to the liquidation that has
been going on for several months. un
derlying conditions are undoubtedly
sound and probably better than a year
ago, while the fiscal year just closed
has to its credit an enormous volume
of business. one OF the greatest on rec
ord. The staple food crops last year
were most bountiful, and the cotton
crop was the second largest ever grown,
ranking next to that of 1911, while it's
money value proved greater than that
of any crop except that of 1910.
Railroad Earnings
1.-THE gross earnings of railroads were
impressively large, but owing to i.gh-
er cost of labor and material and great
er interest charges. the net returns
were disappointing and inadequate The
same conditions were experienced in
most commercial and Industrial lines.
"Reverting to present conditions it
may be remarked that complaints of
dullness and unsatisfactory prices are
heard in the lumber trade, and in pig
iron the hoped for buying movement is
sti1 being awaited. A few furnace
stacks have been blown out for repairs
and production has been somewhat cur
tailed during the month. Trade journals
report recent sale here of No. foun-
dry at So but minimum quotations to-
day are said to be Sill The steel mills
generally are running full but new or
ders for some months past have been
far below capacity
lives III the cOdTSeT grdQeS OIL tex
tile goods have been fairly maintained
and cotton still brings better than IL
cents a pound. During the month there
has been some talk in the northwest Of
deterioration in wheat, but a large CROP
seems assured
Cotton and Corn
In the south reports as to both cot
ton and corn are favorable. Timely
showers have fallen in this state al
laying apprehension of drought, the
fields generally are well cultivated and
free from grass, and while it is Of
course too early TO predict the out
come. there is nothing so far to in
dicate that the cotton crop In this state
Will not be greater than last years
The boil weevil is being closely
watched in Alabama and while no
damage is yet reported from this source
this pest will undoubtedly be a factor
during the next 60 days.
The decision of the supreme court
In the Minnesota rate case was not we'll
received in high financial circles, nor
was enthusiasm created by the refusal
of the interstate commerce commission
TO allow the per cent increase in rates
asked for by the railroads. and a few
weeks ago some apprehension was felt
as to the monetary situation this fall
1t has recently been announced how
ever that the question of railroad rates
will be considered later on, and a closer
analysis of the Minnesota rate decision
has developed the fact.t that the supreme
court Will not allow a rate, proved to
be inadequate or confiscatory to stand
so that there is now more cheerful
feeling as to the railroad situation,
especially since President Wilson has
approved the plan for the Union South
ern Pacific separation.
Happy Effect
'The announcement by Secretary Nc
Adoo that there is available, under the
Aldrich Vreeland act, the sum of $500,000,
600 additional currency, had a happy ef-
feet, and has relieved all fears of finan-
| cia stringency during the crop moving
| period this fall. The banks in the re-
serve cities are strong in cash, the New
York banks alone reporting ON Saturday
last more than s35,00OOO0 above legal re-
| quirements an unusually large surplus for
| this season of the year. Within the last
| few days call money In New York has
| been loaned at per cent and it would
not be surprising If time rates should
become easier, particularly as the stua-
ton abroad has materially improved.
| First class bonds and stocks are now
| quoted a prices lflat SnOuld be attractive Q
to investors, and the enormous disburse-
ments to be made today for interest and
| dividends will release much money for
| reinvestment.
THE Underwood tariff bill will prob
| ably become a law by August l. and 1t is
thought that most of the Senate amend
ments which add to the free list and make
! further reductions in tariff rates, will
i be concurred in by the House. What
ever may be the ultimate effect of tariff
reduction, it seems reasonable to assume
that the immediate result will be stimu-
lating to general trade. for in anticipa-
| ton CT lower prices, merchants have
been slow TO replenish their stocks, and
consumers have been curtailing purchases
as much as possible. Imports for some
time have been light and exports very
large; the balance OF exports over i'm
ports in May was the greatest in our his
tory, and authorities estimate a trade
balance for the current year In favor oi
this country of over $6,000.000. The OPP
posite effect is noted when the tariff re-
y yision is upward instead of downward.