Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-03-25
BALKAN PEACE To
BETTERF|NANCE5
Millions of HoaTded Gold Will
Be Released at End of the
War, Says Expert.
BY q. C. FORBES.

-.r smile when everything goes dead
Pin that invigorating motto on your
5ass right in front of your eyes. If
.,i-r= Tow along like a song, 1t will do
ma harm. If discord arise, If troubles
come n your worries multiply, read the
u,,..- bite your under lip. resolve to
move Yourself a man worth while, and
rssyme The struggle with a stout heart,
win confidence in yourself and solaced
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 finan-
c,sr community everywhere has been
meeting trouble more than half way.
some Eastern bankers have actually
becsoned 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.
3Iy advice would be this:
Bankers and other men of finance: Be
calm outrageous and optimistic
Business men: Be cautious, slow to as
sumo fresh Indebtedness. prudent in lay
ig 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,
hut 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 DO
utoaI 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
70 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financial Europe, have withdrawn their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,
600 Oo0l This sum in ordinary times
would form the basis of some two billion
dollars Ds2 900, 900 .0OO) 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
en- have sent huge masses Of American
securities to New York for sale. and al
though we have a trade balance of near
~ $500 900 900 in our favor for the cur
rent fiscal year. we have been called
'Gpon TO export almost $50 000, 900 gold
since New Year. Business here has been
60 active, and so many Industrial, mer-
camille and public utility enterprises had
been coated with huge capitalizations,
that our bankers were in none too strong
position In the matter OF reserves-the
than $500 900, 900 in excess of a year ago,
Notwithstanding that they held a smaller
amount Of cash than they did then.
NEEDS OF RAILWAYS
ALSO TO BE NET.
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 well as for indus
trial and miscellaneous concerns, not to
mention states and municipalities, whose
borrowings are rapidly assuming alarm
ing proportions.
However, April should bring marked
relief abroad Let the Balkan war be
settled and see how quickly the hundreds
Of millions Of hidden gold would rush
back to banking and investment chan
nels complete transformation could
be wrought in one week. And that such
transformation will be wrought IS en-
urey probable.
This would have substantial effect here
although capital will not fall TO low
price. Credit has been extended over
loo much to permit of that and more
over. the overhanging demands are OF
"a Unprecedented volume
Business men should not count upon
unlimited assistance from their bankers
Purse strings are already being frightened
and weak concerns will in some cases be
allowed to 60 to the wall.
But bankers will deserve severe cen
sure If they act as despondently as some
81 Of them now talk. They have response
6ihues Their duty does not stop al TAX
Ing In money; they must pay money out
and pay it ungrudgingly when by so do
ing they can tide a solvent customer over
a temporary difficulty.
FALL OF INDUsTRIALs
POINTS A WARNING.
] have repeatedly warned investors
against buying at fancy prices the shares
Of new and grossly overcapitalized manu-
featuring and mercantile ventures.
Good WILL patents" leases and
suchiite items have been placed on some
balance sheets at wicked figures-as high
as $4,000 900. The inevitable is happen
ing 81 the first mild blast Of adversely
me market quotations of these shares
nave umbled demoralizingly.
The promoters apparently accept no re-
sfo7s1olity in the way Of providing a
market for the questionable wares they
PaImed off on the public. And now that
intrinsic values are being closely scru-
.m1ea by banks. such stocks are being
'"roWn out of collateral envelopes: that
's i' say banks will not lend on them.
Look how certain OF the newer indus
'Ta' stocks have fallen:
High. Low Fail.
la.tnrris Petroleum. z as 70
General Motors ............ 81 80 y
goodrich B. F. Co... 81 so 81
Nesge IS. s. Co......... IS So 1SI
Loose Wiles Biscuit Co... A. 30 l7i
NAY Dept Stores. ....... SIS Sc %
teAIean Petroleum. ....... 30 81 %
l.1n=ly CM.) Co............1O1 45 50
sears Roebuck & Co.......221 17s 45|
r.. '''St .....-....... ~ 20 10