The Birmingham age-herald., 1914-02-09
MARKET SITUATION
IS VERY PUzzL|NG
Expansion Steady Since the
Overthrow of Silver
GOLD is REAL BASIS
Outside World at Last Beginning to
See Meaning of Developments in
Mexico-Railroad Rate
Gossip
ny w. G. NICHOLAS

by w. G. NICHOLAS
New York, February S.-(Special)
There has rarely been a time when finan-
ciers business men and financial writer's
have been more intensely puzzled over
a market situation than now. The cas-
ual student and transient operator does
not give the subject as deep thought
as he ought to and therefore when the
emergency arises he is usually at a loss
where to look for information and sound
judgment. Examination of the problem
reveals the existence of so MANY ele-
ments that the total of ignorance of the
meaning of vital features is a mystery
whose solution is necessary to a proper
understanding. Investments are as clear
ly understood by the average car driver,
as by the average banker. Until a bet
ter appreciation of elementary causes is
understood by the rank and file of busi-
ness men We are liable to run along in
blind sort of a way trying to be salts
fled that this is a move in the great tide
of affairs over which no control can
be exercised. and that the best thing
to do is to go ahead with the best judg-
ment you can muster. This is a general
understanding and is the reason why so
many people are waiting for something
to happen which will help in the making
up of a business verdict"
To reach business mans proper un-
derstanding of the problem it is neces-
sary to go back several years-the time
when the imitation of gold began to be
felt. That was at least Is years ago. 1t
was the time when unlimited expansion
of silver and greenbacks were popular
topics, Since the overthrow of free sill
yer occurred unuder the leadership of
substantial political agencies there has
been steady expansion in every quarter
expansion In the supply of gold in CEN
ters of concentration. movement that
carried with ii worldwide rise in prices
of commodities and in supplies of cur
rency, coin and credit. English con-
soils are the best barometer of none
tary and business conditions that we
know anything about, and the Importance
of that barometer is dimy understood
excepting by the brightest men in the
field of large affairs. The great masses
of the people have as yet only a very
hazy appreciation of the variety and
Importance of the business evolution
With every years production of gold
which has been running at the rate of
s4eo,oo0,coo to s50o,ooooo0, there has been
a development in the worlds industries
which has kept pace evenly with this
making of a great volume of raw ma
terial-gold. The pace has been very
evenly kept up. The maximum produc-
ton of gold from the mines seems to
have reached the top year or two ago,
and the quotations for English consols
reflect this development. AS this sub
ject is studied by the masses, as it Will
be, a better insight into real causes may
become clear Effects are more easily
dscernable. We see them in the prices
of commodities and everything that en-
ters into the bookkeeping of expenses.
1t is expressed concisely. but not always
clearly. in the words high cost of liv-
ing The cost of living Is a feature of
the situation that everybody can see and
feel. but they cannot understand the real
causes, and they can only grasp and ap-
preciate the deep-down Importance of
many of the current happenings until
they have reached a greater depth in
their search. We are only in the primary
stages of our inquiries and researches,
and it may be a generation before the
true lights are seen and the significance
appreciated. Gold being the basis of
the money of the world it may be neees-
sary to wait until its yearly produc-
ton and unmined as we'll as mine sup
plies cen be measured. Then there will
be a substantial basis that everybody can
kno-g the meaning Of and it's relation
ship to ali products that figure In our
affairs 1t is not improbable that it will
lac many years before the great elements
can be regulated with intelligence ana
TO the advantage of civilized people
Developments in Mexico
The lesurely developing changes in
Mexican conditions are at length con-
veying meaning to the outside world.
The whole fabric of Mexican news"
was plastered with the sun blackened
life fluid of thousands of dead men,
women and victims before the awful
truth was officially admitted The civ
ilized people of earth suffered in sym
pa thy, but could do nothing beyond i'm
potent cries that succor be extended-not
merely cries that might be dimly heard
out until a few days ago the outcry did
no good. Now. with the President alert
ly in the field desperate conditions in
Mexico are expected to brighten. So all
good people hope, and that hope, with
assurances from the White House, that
vital American interests will be pro-
tected hereafter, have already exerted
wkolcsome interest 1t shows hourly on
the tapes and commands respect and con-
tc w rhar tzad