The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-08-03
SUMMER DULlNESS
AFFECTS BUSINESS
USUAL QUIETING THAT COMES
TENED BY NO APPREHENSION
MONEY STILL TIGHT
NO REAL PINCH YET, HOWEVER,
JUNE BANK CLEARINGS SHOW
INCREASE AND FAILURES
SHOW A DECREASE n

The usual mid summer dullness
has laid its hold upon business gen.
orally and things have quieted down
considerably. The decline in business
which has taken place during the past
three weeks. is not, however, the same
sort of decline which was in evidence
during the several weeks previous. For
a time. uncertainty about tariff and
+ currency legislation, the upset condi-
ton of Europe and the threatening
labor situations in this country, cou-
pied with an abnormally tight money
market. caused a nervousness and I'M
settlement in business which had a
threatening aspect. Business continued
to decline through this period. That
the more recent falling off in business
is the usual mid summer Qufettng Is
evidenced by tn improvement in eenti-
ment, the slight upturn in both stock
exchange and hoard of trade circles
and the somewha increasing activity
in financial dealings.
Money remains tight. but there 10
no real pinch and the quieting in
f1uences now affecting business viii
proba bly, continue in measure until
the early fall,
Europe has begun quietly annex
ing few OF our securities as she
is usually wise enough TO do when
they have Just about touched the low
mark She will have them to sell
back to us later on when prices are
what they should he. She bought
them from us at low prices in 1898
; and sold them back to lis at high
prices later, repeated the operation In
1896 and again in 1903 and in 1907.
\ Favorable Balance.
During the past fiscal year, we nave
created tremendous favorable bal
ance with Europe through both ex-
cess exports of merchandise and gold.
II is not possible tn say Just what por-
tion OF this balance still remains to
our credit on the other side, but that
j portion must soon he paid tn us in
gold as II is not probable that Euro
pean holders will dump any more or
their American securities at present
r. urices They will rather be on the
2 buvine side and in this way Increase
! their debt to us which should send
= gold shipments this way in the near
{ future.
One Of the causes Of the recent
: tight money market which hasrecefved
but little consideration Is the very
large marketing of last years grain
crops A good percentage of the en-
tire crop was held for better prices
and nearly all of this has been mar
keted within two months, AS the old
grain has now been sold and the
money returned to circulation, II will
} ii comes. Money will probably be
close, however. until the late fall
or early winter. In the meantime,
sufficient money will he available for
} the legitimate needs of business and
to take care of some increase In stock
exchange transactions.
June bank clearings exceeded those
of June. 1912. hut exchanges for the
first half of July dropped below last
years figures.
The number of business failures
during the month of june was l. 1916,
which is q less number than has heen
shown by any previous month TINS
. year The liabilities were nearly
twentv-one million dollars however,
as twenty eight of the failures were
for more than one hundred thousand
dollars and account for eleven million
dollars of the total liabilities Fall
, .ures are decreasing.
Final figures for the month OF
May show that the gain in gross earn
lings of all railroads has continued.
the May report showing an increase OF
nearly thirty-one million dollars over
last year or over thirteen per cent.
At the same time, net earnings made
, a gain of seven million dollars or
nearly eleven per cent. This contin-
iued improvement in the railroad sit
: uation is gratifying, especially as 1t
covers the entire country. The roads
: in all sections of the country made
! a May increase in gross earnings, but
. the New England group. the Southern
group and the Pacific group showed
a decline in net income. Recent wage
: advances and the demand now made
by the employees of Eastern roads are
, two handicaps to railroad prosperity
: Wage demands and unusual expenses
, are more than keeping pace with the
growth in earnings
: Too Many Idle Cars.
The number of idle cars has been
> increasing recently, there being at the
present time about sixty-fi Ave thou
sand disable cars which are without
loads. A year ago. the number idle
! was one hundred and twenty four
II shousa utf two years ago Fens hundred
and sixty-eight thousand, three years
ago one hundred and fifteen thou
sand and four years ago three hum
l dred and eighty-two thousand. The
present number of idle cars Is not
sufficient 10 insure the prompt hand
ling of the crops and an annoying
: car shortage Is expected during the
early fail, although the roads have
added materially this year to their
| car equipment.
Our enormous foreign trade for
the fiscal year, 1928 just ended
has created one OF our best assets.
-+o4iF- merchandise exports amounted
to 2,a66 million dollars while our inn
ports were only 1913 millions. leaving
a favorable balance of trade of SIS
millions compared with 55l millions
the previous year. Our net exports
/ of silver totaled 80 million dollars
and OF gold nearly 3 millions, so that
the favorable credit balance created
by the years movement was 6s2 mill
lion dollars compared with SIT mil-
Hons the previous year The year
la07-0S. when our imports were un-
usually low on account Of bad BUSH
ness conditions In this country. IL this
only fiscal year which has shown
better net balance. The favorable bal.s
ance that year was $50 millions Oue