The Birmingham age-herald., 1914-04-01
BUSINESS REPORTS
 SHOW RECESSION First National Bank Issues
 Financial Review EARNINGS DECREASE
Railroads Injured by Parcel Post. Pig Iron Business Small-Dull Period May Soon Be
 Enlivened

The Financial and Commercial Review of the First National bank for the month just ended is as follows:
 April 1. 1914
 Reports from all sections indicate a decideds recession in business since Janu- ary, and banking statistics show that there is a slack legitimate demand for money, with the corallary of low rates and accumulation of funds at centers.
 "The policy of the government toward large corporations has not yet been clearly def1ed, as the proposed antitrust bills are not yet out of the committees hands, and the railroads, whose earnings are showing a marked falling off, are still ap- pealng to the interstate commerce com mission for authority to raise freight rates. A number of eastern roads, among which are the Pennsylvania and New York Central, have recently been obliged to curtail their train service, and thou- sands of men have thereby been thrown out of employment. New building is light; bank clearings. railroad earnings and inn migration are smallest since 1912. Idle car figures point to a continued reduction in railroad earnings. Fortunately for us, conditions in the south are somewhat better than those prevailing in other sec tions, but we are in a position to be af- fected by any long continued general de- precision.
 Pig Iron and Lumber
 Business in pig iron is very small and all the furnaces are said to be accumulat- ing stocks on their yards at about the same rate that foreign iron is being brought into the Atlantic seaboard and gulf ports The market for coal and coke is dull, and foundries and machine shops are complaining of lack of business. Some coal mines that are dependent upon rail- road orders are being operated only three days in the week.
 "The lumber trade is disappointing, and while the rail mill at Ensley is said to be running up to it's normal capacity, it is believed that it has orders ahead for only few months. so that the industrial interests of this district are keenly feel ing the lack of strong buying on the part of the railroads
 Railroads and Their Obligations
 ''The present ease in the money market would under ordinary circumstances make 1t practicable for railroads to fund their floating obligations, and to finance them- selves for long period of years by sale of bonds, but unfortunately neither the railroads earnings nor public senti- ment toward them are such as to make their securities attractive to investors. Merchandise exports for February, 1914, amounted to S17S, ,46s, against $193 ,996, ,942 for the same month in 1913, a decrease of l SEQ 1SS,44 Merchandise imports for the same month amounted to $149, ,9S7, ,0l1, against s149, ,91S in 1913. an increase of 1 $23 0s3. The month, however, showed a tyn1 1art, t,, C., g-f As to Gold Exports Gold exports for February amounted to S9,0 ITS and imports tu 8, POS, ,S53 showing a net efflux for the month of S5, ,S69. .925
 These recent heavy gold shipments have attracted some attention, but no concern because of the very light demand for money. A further outward movement of gold Is predicted owing to the tendency of the tariff to reduce the export bal ance and the probable operation of the new currency law to reduce money rates. Financial authorities are also discussing the marked decline in gold production which took place last year, which nas not yet had any influence in lowering commodity prices, but which will prob ably become important factor if the decreased production continues for the next year or two.
 The Parcel Post
 "Another potent factor, and one that will tend further to decrease the earnings of the railroads, Is the government par eel post system. At it's inception, the sys- tenn received very little attention from the railroads in relation to their earn ings, but when last August the maxi mum weight was raised to 20 pounds, and a material reduction in rates was made, eXpIess companies began to feel the loss of business This loss of course, then became felt by the railroads, as 50 per cent of the gross revenue received by the express companies for the handling of shipments Is paid to the railroads. l Later the weight limit of parcel post | packages in the first and second zones was increased to 50 pounds and rates in the third, fourth, fifth and sixth zones were reduced
 Under a recent order of the postof- flee department the use of crates and boxes for butter, eggs, poultry, vege- tables and fruit shipped by parcel post is permitted. Large shipments formerly sent by freight are now broken up into small shipments and handled through parcel post. Not only do the railroads 1 lose the 50 per cent gross revenue paid to them by the express companies, but they are compelled to handle the same shipments for the government in more expensive way, and will have to be con- tent with whatever compensation Con- gross sees fit to allow them.
 Dragging Through Dull Period "So We are dragging along through a dull period which may be enlivened in ] the early summer, provided the crop out | look is good was the case in 1912 | Indications point to a large crop of winter wheat, and in this section very satisfactory progress has been made in | farming operations. As rule the ground 1 is better prepared than usual, and for 1 several days planting has been general | in the southern part of the state. We are having an abundance of rain, and the 1 outlook for a favorable start for the new cror Is promising.
 gro sum LID the situation. if seems to