Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-03-25
BALKAN PEACE To
BETTERFINANCES
Millions of Hoarded Gold viii
Be Released at End of the
War, Says Expert.
By 9. c, FORBES.

,sr smile when everything goes dead
wrong
Pin that invigorating motto on your
desk right in front of your eyes. II
-rfrgs flow along like q song. II will do
mn harm If discord arise, if troubles
come. il your worries multiply, read the
motto. bite your under lip. resolve to
rrave Yourself a man worth while, and
resume the struggle with a stout heart
ul-h confidence in yourself and soIaced
NV the reflection that, while you may not
command success, you will deserve It.
This is not a prelude to a recital of
woes. financial or commercial. The fnan-
cal community everywhere has been
meeting trouble more than half way.
Some Eastern bankers have actually
heckoned it to come along. They have
worked themselves into a weakening
state Of nervousness over things that may
never happen-our worst troubles are the
ones that have never befallen us, you
know.
My advice would be this:
Bankers and other men of finance: Be
calm. coura geous and optimistic.
Business men: Be cautious, slow to as
sumo fresh Indebtedness. prudent in lay
ing plans for the near future and frank
IN your interviews with your bankers.
Take them into your confidence and learn
definitely and explicitly how far you can
depend upon them for facilities.
Financial pessimism is being overdone.
Business optimism has been overdone
but that is no reason for excitedly flying
10 the other extreme.
MONEY SCARCITY DUE
TO WAR IN THE BALKANS.
Scarcity Of money, Of liquid capital, is
the present bugbear of financing and po-
utcal hostility the prospective bugbear.
Well what are the facts? April is al
ways a critical date on the financial cal
endar, for enormous payments have then
IN he met, both abroad and at home. This
year the conditions have been agra
waited by the costly and unsettling wars,
for small investors. the backbone Of
financial Europe, have withdrawn their
cash from the banks and have boarded
not less than half billion dollars $780,
900 O00) This sum in ordinary times
would form the basis Of some two billion
dollars ts2. 900, 900 ,0O0) of credit You can
zee how serious the effect of this hoard
ing has been, can't you?
In their efforts to raise funds foreign
ers have sent huge masses OF American
securities to New York for sale, and al
though we have a trade balance of near
10y $500 900, 900 in our favor for the cur
rent fiscal year, we have been called
upon TO export almost s50, 900. 900 gold
since New Year Business here has been
80 active, and so many Industrial, mer-
camille and public utility enterprises had
been aoated with huge capitalizations,
that our bankers were in none too strong
position in the matter Of reserves-the
loans of national banks alone are more
than $500. 900, 900 in excess of year ago,
Notwithstanding that they held smaller
amount Of cash than they did then.
NEEDS OF RAILWAYS
ALSO TO BE MET.
The monetary tightness Is also intensi-
fed by the tremendous sums that must
shortly be provided for the New York
City subway schemes, for the Pennsyl-
vania, New York Central, the Hartman
and other railroads, as we'll as for indus
tral and miscellaneous concerns, not to
mention states and municipalities, whose
borrowings are rapidly assuming alarm
Ing proportions
However, April should bring marked
fellef abroad. Let the Balkan war be
Settled and see how quickly the hundreds
cf millions Of hidden gold would rush
back to banking and investment chan
hels. complete transformation could
pc wrought in one week And that such
transformation will be wrought is en-
tirely probable.
This would have substantial effect here
although capital will not fall to a low
price Credit has been extended over
too much to permit of that, and, more
over the overhanging demands are OF
pnprecedented volume.
Business men should not count upon
Unlimited assistance from their bankers
Purse-strings are already being frightened
Rnd weak concerns will in some cases be
allowed to go to the wall.
But bankers will deserve severe CEN
pure If they act as despondently as some
~ them now talk. They have response
bilues. Their duty does not stop at tax
ng in money; they must pay money out
pa pay it ungrudgfngly when by so do
'ng hey can tide a solvent customer over
temporary difficulty.
FALL OF INDUsTRIALs
POINTS A WARNING.
have repeatedly warned investors
eganst buying at fancy prices the shares
q new and grossly overcapitalized manu-
ecturing and mercantile ventures.
Good will" patents, leases ana
nchlike items have been placed on some
balance sheets at wicked figures-as high
Rs ;50OOO0 600 The inevitable Is happen
'ng at the first mild blast Of adversely
pave tumbIed demoralzingly.
The promoters apparently accept no re-
Possibility in the way Of providing
market for the questionable wares they
pamed off on the public. And now that
Intrinsic values are being closely scru-
'h'zed by banks. such stocks are oeIns
thrown out of collateral envelopes; that
TO say banks will not lend on them.
Look how certain of the newer indus
trlal stocks have fallen:
High. Low. Fall;
'aAfornia Petroleum. u 46 70
General Motors ............ 50 30 u
Goodrich tB F. Co... 81 80 OIL
5Gesge IS. s. Cocoon. SO So -
Loose Wiles Biscuit Co... Al 80 u
MAY Dept. Stores .......... IS Sc Y
-1eXlcan Petroleum. ....... 30 81 "
l,-iaely CM) Co............1O1 As Sc
sears. Roebuck & Co.......221 17S 43
.1aebaker ................ 40 26 43
Norwood Typewriter ..116 81 %