The Birmingham age-herald., 1913-07-01
NO EVIDENCE FOUND
OF ANY PRESENT OR
PROSPECTIVE PANIC
Birmingham Trusts General
Letter on Trade COndi-
tiOns-Dullness Was Ex-
pected at This Season

The Birmingham Trust and Savings
tions, just issued, is in part, as follows:
'As Misrepresentation and misunder-
standings have been responsible for
nearly all of the troubles of the world
from family disputes to wars between
great nations, it is vitality important that
we base our business moves upon known
facts and conditions. In issuing these
brief reports on underlying trade condi-
tIons each month, it is our purpose to
place before the business men of our
community. in so far as is possible. an
accurate statement of conditions as they
really are.
sIt has been stated recently that we are
on the verge or are in the midst of a
business panic. Men of consequence in
the financial world have recently pub
licly referred to the present situation in
Wall street as a stock market panic
So far as the figures we have been able
to bring together on the situation are
concerned. we find no evidence of pres
mes or in the financial world. Business
men have been unable to get enough
/ money to finance enlargements or ex-
tensions except by paying interest rates
which are too high for such purposes.
Up to this time there has been sufficient
money for the regular needs of current
business and interest rates have risen
because we have been called upon to
export a considerable amount of gold to
European countries which needed 1t
worse than we did.
Trading on the stock exchange has
been slow, compared with former years
because money has been too scarce to
allow of a sufficient quantity being used
on the stock market. Our money short
age has been increased by the farmers
holding a large part of the 1912 crops and
awaiting higher market prices. These
farmers have been compelled to borrow
on the grain they are holding but their
loans are small when compared with the
actual value of the grain itself, so that
there is nothing unsound in such altua-
ton. The tight money market has forced
some of them to sell and before the nes'
crops are harvested many more must let
go of a portion of the old crops which
they are holding. This will provide some
additional money for the handling of the
new crop, although 1t is probable that
the 1918 crop moving will make money
| even scarcer than 1t is at present
asrhe number of concerns failing In busi-
ness during May totaled 1906 with liza
| u IA
\ failures was less than that of any prev
| ious month this year and the total lia-
bilities were also less. There have beer
few large failures but more than %
per cent of the failed concerns have beer
/ of small caliber. Failures have been
fewer so far this year than for the same
| period last year but the liabilities of the
/ failed concerns have been 10 per cent
| greater than last year and nearly % pei
cent greater than the previous year. Com
pared with the past. liabilities of failures
so far this year are the greatest since
1893. The decrease shown for May is
therefore, gratifying and it is hoped thu
later months of the year will show fewer
failures
"The production of pig iron for May, to.
! falling $500 thousand tons, set a new rec
ord for any months output. The rate oil
production for 1913 to date is on a basi,
| of 32.ss3 thousand tons per year which
would be decidedly new high record
The cost o. producing pig iron has in.
| creased and the price has decreased, leav
ing the market exceedingly duh. Some
| eurtailment OF iron production is taking
place.
"rhe. untitled tonnage of the Steel cor.
/ pora tion, reported at 1924 thousand tons OF
| NAV 81. shows a decline In untitled ton.
! mage compared to recent months bu
heavier orders on the books than a veal
ago by about 10 per cent. The corpora
| tion's resumption of work on the Corey
| plant and recent reports from the mill.
themselves show a better feeling and {
somewhat increased activity in specify
ing.
s',There are more than the usual number
| of crop scares at the present time. Th'
! governments last report would indicate
| a crop of 492,0O0,Oo0 bushels of winte
wheat, 252, 100000 of spring wheat ant
| .104 O00,0 coo of oats as well as very goo'
crops Of most of the other cereals. fruits
vegetables. etc. Last year we had. as
whole bumper crop. We cannot be1
IL this year or even come near IL. TIL
cold spring the hot and dry early sum
mer. the spring floods in the Ohio val
ley and the present activity of nearly al
of the crop pests in the form of rust, bug
or blight are all factors which mus
be considered and which are going to re
duce our farm output for 1913.
Business is much better than mos
people believe it to be as evidenced b
the figures given above for bank clear
ings, exports and imports, railroad carr
ings, coal shipments. etc.
Building Permit
The following building permit wa