Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-03-21
AMERICAN CREDIT
BADLY STRAINED.
Business Depression Coming
Very Shortly, Says Noted
Financial Writer.
BY 9. C. FORBES.

very great
Dent forget that Inspiring tact during
Oh. next six months. There will be need
.,r -s-embering It. The breakers that
months ago, we were warning people to
,r.sars for, are rolling towards the
,bors. That there will be a good deal of
,y-sskaae can not unfortunately be
.oybted. Those deep In debt should
strive 70 extrlcate themselves without
delay Credit has been strained until
now Il is creaking cautiously.
Wall Streets pessimlsm has not been
without basis. LatterIy It has been over
done. BY the time manufacturers, I'm
,ortsrs, merchants and the like are wal.
rouIna In dependency Wall Street will
be rsgsining its courage.
We are a great commercial nation, it
has lust been emphasized. Glance at
these figures; In eight months we have
exported merchandise valued at almost
one and three quarter billions, a record
never before approached. And our I'm
ports total a billion and quarter, also
new high water mark-two hundred
millions above the previous maximum
in 1912.
OUR BALANCE OF EXPORTS OVER
IMPORTS IN EIGHT MONTHS HAS
AGGREGATED SAYS, 900, 600. Make note
Of that fact-and recall It to mind when
the breakers hit the shore.
February's total foreign trade was the
heaviest for the second month Of any
year in our history. Exports were $685.
100000 and imports $3.50, 900 900. That Is
equal to a million dollars an hour for
twelve hours every day Of the MONTH
Nothing depressing in that? Each day
we sold S15oo,ooo more than we bought
That's not fagsot for the slumberIns
fires Of Industrial pesslmIsm, Is It?
would faln stop and not write another
word It Is not pleasant TO have TO re-
cord facts Of another hue. But the
picture must be fs rly drawn and truth
fully colored. "ForeWarned is forearm
cd" II we are prepared for commercial
setonstIons they will Brighten US less
That We must look for series Of retorts
II don't IKE to use the term "eNpIo-
sonsr-- can not be denied.
over. expansion OF credit Hes at the
root Of the trouble. Wall Street has been
lleudatIna. Now trade must face sim
bar ordeal. Wall Street has done It's
shsre with a wonderful, an amazing
freedom from casualties. Let us hope
that the Industrial and mercantile worlds
w bear themselves with equal forth
kude and with like absence Of casualties
The country's national banks last
nonth reported upwards Of $500, 100000
lore loans than a year ago, but no In
esease In cash to Justify this enormous
expanson-Instesd, a loss Of fully S17,
10000. The ration Of reserves TO depos-
b IS the lowest for this season In
eesde-NVorse even than In 1907. The
ew York Clearing House banks re-
Srves have fallen to the lowest point
pee the panic. The most influential In
tutlons arc refusing TO look up the r
1nds In time loans. Country banks have
een the principal lenders In recent
seks. A total Of s43 1000. 900 gold has
"a the country during the last two
|bnths-s2, 600, 900 goes to-day despite
fact that call money costs twice as
Lei as II did year ago, and time money
post twice as much
abroad monetary conditions are worse.
Ns Bank of England, the axis OF the
pie financial world is weaker than II
vs. been at this time of the year In more
ID twenty years. Its discount rate has
been so high early In March for a
ade. The Bank Of France has Vlrtu-
stopped paying out gold and Is Of
be- a premium to attract supplies
m AmerIca-it has taken s1e,ooo,ooo
ks the opening Of January. The I'M
tsal Bank of Germany has been in even
4ker straits. II is bidding panic rates
pans here and Is drawing gold from
4ekM London and New York. The big
jan Government loan was failure
t first incident Of the kind ever ex-
need Austria is In a bad way.
w Turkey, the Balkan States, China,
Nr and other countries are also run
financially and must have money
utter what the cost. And small in
efs are boarding every penny they
~ their hands on.
make matters worse, the mad,
fuptcy race for cost err ornaments
developed breakneck speed. Then,