The Birmingham age-herald., 1913-06-29

Frederic G. Penfield, of New York
Ambassador to Vienna, it was learned fl
Pcnfield had conference with Preside
continent was arranged
sistent liquidation during every active pc
riod. There is buyer for every seller,
of course. but lodgment is not as yet
| substantial, APPARENTLY. AT least it is not
impressive, even at the moderate recov
cry from the extreme inside prices
reached a couple of weeks ago. Prices
are still low, but there is no certainty
that they capnot GO lower-that some-
thing calamitous might not happen that
is not yet discounted.
Railroad Earnings
Statisucians are coming numerously
forward with tables on railroad earnings.
The story is monotonously rectative OF
increased gross revenues and also of in
CT eased expenses of operation and mainte-
nance, leaving a pitifully small change
in net. The cost of living has more
than kept pace with the enlargement of
gross income and the railroads are un-
questionably undergoing physical and
financial impairment They have lost
ground in the facilities end of the prop
osition and they are suffering material
loss of credit. They are not fooling when
they say that if the interstate commerce
commission does not soon give them a
chance to earn more money by comforting
permission to raise freight rates, the pub
lie will be sensational sufferer, on ac-
count OF impaired efficiency. They are
in deadly earnest in making this plea,
and the lengthening list of terrible ac-
cidents is ironclaid proof tnat the trans
portation companies have more vital uses
for their earnings than to spend them on
Increased wages of thier employees, and
! in makeshift patching up run down cars
and locomotives fit only for the scrap
heap and soldering fractures in light
weight rails. What the railroads need for
their OWN betterment, and for the safe
ty of human passengers and efficiency OF
traffic machinery is more money. The
threatened starvation of railroads is 4
factor in the stock market situation
more potential than politicians seem able
to comprehend. 1t is present live issue
of public concern-to the protection OF
life as well as property, and 1t is also
a valid excuse for declining prices in Sc
curties. A more liberal government treat
ment of railroads would be bullish slim
ulsnt of highest value Nothing is more
clearly appreciated in Wall street than
the facts set forth in the foregoing para
graphs.
Attitude Toward Currency Bill
The effort to give the Wilson bank bill
news preference over tariff discussion
has ssained some headway in the financial
district. 1t tends to divert attention from
the vexatious and wearisome subjects
now before Congress and has the virtue
of being meat for newspapers and high
browed politicians The Wilson project
does not meet the unanimous approval
of bankers and financial specialists-not
by a long shot. Active opposition to the
Wilson plan is springing up and critic
icna dc accif in,
ment on the Presidents advisers. The
street has not yet gotten its bearings but
an elastic currency seems tc be the thing
for the moment. The news, features are
not thrilling, however at best. Dog days
are too imminent to arouse unnecessary
mental or physical activity.
A market historian and seer voices his
thoughts after this fashion: Following
the moderate recovery in prices just wit
messed, the market is scheduled for sew
oral weeks of dulness and slight price
changes. This part of summer is usually
a waiting period. Crop conditions and
estimates take tangible form in early
August, and stock market action Will be
influenced thereby. 1t is only on the crops
that the business movement later in the
year can be forecasted with any degree
of certainty. Important financial opera
tions will be largely dependent upon the
crops. The early prospect is for a fully
average soil production and a consequent
favorable movement in securities"
India's Appetite for Gold
1ndia's appetite for gold Is becoming
more eluttonous as time goes on. Exact
statistics are lacking in some particulars,
but specialists are in substantial agree
ment that the Oriental nation is absorb
ing the yellow metal at the rate of $780,
000,0O0 (; year, or about 80 per cent of the
worlds production. The percentage of
new gold that goes into international
commerce and the industries is less than
most people suppose, and less than finan-
ciers, merchants and manufacturers have
figured on in their plans of expansion.
The result has been development of re-
sources at rate too rapid for safety
rate that has strained credit and con-
tributed in no small degree to the present
monetary stringency and uncertainty
What use India is putting these vast ac-
cumulations of precious metal to Is one
or the great unsolved mysteries of the
hour 1t is swallowed up as it reaches
there, and a comparatively small per-
centage reappears. 1t passes into the
belly OF the whale and stays there. India
thinks in centuries and her wise men plan
ahead for generations. They are as pagan
as they were thousands of years ago, and
the secret accumulation of an inexhausti-
BILE reserve treasure might be one of the
and religious conquest.
st. Paul has been successfully expert
menting with the use of copper in steel
rails. SO Wall street hears. and it is try
ing to sensationalize the incident. A
dozen railroads have been try
ing the virtue of the admxture of other
metals in steel for many years Mr.
Charles NJ Schwab has been leader in
this line of scientific development, and
1t Is claimed that he is the best informed
man on the subject in the United States.
The discovery that at the date of ap-
poiBtment Of receiver for the Frisco rail-
road. b. F. Yoakum, it's dictator, only
held PIG shares. occasioned no surprise
1t Is the custom of ruling men in the
management of big corporations to have
light personal holdings. especially if they
are favorite trading issues on the ex-
changes. Deals, contracts on the side and
fancy salaries are the main attractions
for the live ones" They are willing the