Evening journal., 1913-12-23
SUMMARY
OF BUSINESS
CONDITIONS
Decline Should Not Be Taken
TsO Seriously, Says Della
ware Bank Statement
RAILROAD FREIGHT RATE
INCREASE WOULD HELP

nAlLkUAU FkElGHT KATE
INCREASE WOULD HELP
"Ihe decline in business should not be
taken too seriously" SAYS the business
digest of the National Bank of Della
ware, issued today 1t summarizes con
ditions up to the close of business last
week. In part it says:
As indicated in our report at the
close OF November the volume of busi-
ness has experienced q considerable
shrinkage in almost all basic lines. This
has perhaps been more definitely notice.
able in the heavy metals lines as iron
and steel.
The volume of retail business is quite
generally up to the same dates of last
year and considerably above the five
or ten year average, even if figured on
per capita of population. The holiday
business has been quite satisfactory and
cash business has been somewhat larger.
People generally are hesitating on the
incurring of obligations for the future
except when absolutely necessary.
1T is expected that the currency bill
will pass the Senate today or tomorrow
and that it will be signed by the Prcsi
dent before Christmas. While it is GER
tain that the readjustment of the entire
banking business, as made necessary by
this measure, will take some years and
cause much confusion, it is hardly pos
sible to forecast what the real and ulti-
mate effect of the new system will be
upon business. The recession in bust
ness which is now taking place is not
really large in its proportions, although
Il is altogether likely that it will con.
tinue for a considerable period. The
falling Off is most marked in the steel
business and is freely commented upon,
largely because it is easy to get definite
information on that business. At pres
ent. the steel and iron interests arc
holding their own and after a probable
shutdown of n week or two around tho
holidays. a resumption OF activity is ex
pccted January shipments should be
considerably heavier than December and
the same may be true of bookings. A
complete return 10 average business in
this line cannot be expected for several
weeks. although there is every promise
Of change for the better about Feb
ruarv.
"The decline in business should not be
taken too seriously and will not discour
age those concerns which are doing busi-
ness on a sound basis. The increasing
number of idle men must shortly affect
the retail business. which has suffered
little up TO this time. Should the prin
cipal railroads be allowed to make some
freight rate increases. the new activity
in railroad buying. which has been inI
evidence for a few days will increase
tremendously. This would bring about
a unemployment OF the idle labor I'M
railroad and heavy manufacturing lines.
Any considerable increase in the num-
her Of idle men will naturally bring
about wage reductions which, while tenn
porarilv beneficial to certain employers
ia surely not TO be desired in the inter
csts of the prosperity of the whole peo-
pie.
eDuring last month the clearings of
banks were nearly two billion dollars
less than the previous month and one
and one-half billions less than the cor
responding month of 1912. The decline
/ applied almost equally to New York
! City and the country outside New York
business failures. while not so NUM-
erous in November as in October. were
still greatly in excess OF November. 1912
| Failures numbered 304 for the month
with total liabilities of % million dol
| lars compared with ll4l failures in
! November, 1912, with liabilities Of -
million dollars. The liabilities of all
/ failures for the first eleven months Of
this year were nearly 40 per cent. great
or than for the same portion Of last
wear. but . per cent less than in 1905.
Failures since December first have been
numerous and some large failures have
been recorded.
$50 far as reported, tho gross earnings
of the railroads for November are q
shade above the earnings for the same
month last year. Figures on net earn
ings for November are not yet available
II is safe to assume that when all re.
ports are in. gross earnings will show y
fairly good increase over last year while
not earnings will be less than last year
This is the state Of affairs which has
frequently been referred to in these re
ports.
"Fcw people know that practically
every package sent by Parcel Post as :
Christmas present to a friend must b'
hauled by the railroad absolutely with
out compensation of any kind. Tn
mails are weighed and averaged for
period Of years. The principal weighing
took place shortly before the Parce
Post Law arrived and no arrangement
has as vet been made for compcnsatini
the railroads for hauling the additiona
tonnage, which is tremendous. Will
there is little doubt that this matte
will shortly be adjusted, the railroads j
the meantime are the losers directly an
the holders of their securities. whcthe
savings banks or individuals. indirectl,
The loss to the roads on carrying thi
matter has been variously estimated a
from Is to 25 million dollars. based o
the present tonnage, which is constant
increasing.