The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1914-07-03
Talk Brings Depression.


Talk Brings Depression.
We have recently had a demonstra-
ton of the idea thai sufficient pessi-
mistiC talk will bring about depressed
business conditions. In these reports
"A year ago we referred to the then
general complaint about business and
called attention to the unusually large
bank clearings, high record for eX-
ports, the small number Of business
failures of any consequence. the small
number of idle freight cars. the in
crease in railroad gross earnings and
many other factors which showed that
he month of May. 1913, was, in real
ity, remarkably good month of bus
mess. Complaints were general at
that time and without real rea son. A
y ear of this kind Of complaining has
continued to increase the business de-
preston and now. when. we cOmpar re
the past month with May of last year.
we realize that business has, in real
lty. been smaller in volume than for
some time past.
II is hopeful to note that we gradu-
ally lapsed into this business quietude
and hat more recently We have begun
70 ut ourselves out of it. There are
many indications of an improved sit
uati"I, among them being decreasing
Immigration, decreasing business fail
ureS and the generally reported fine
condition of crops
Most business men have noticed
that the last few weeks of a congress
sional session usually witness a per-
iod of unsatisfactory business and that
the pickup almost Immediately fol-
lows the adjournment of congress,
even though such adjournment comes
in midsummer. This year, the bust
ness Improvement cannot be strong
until the early fall. The winter wheat
harvest will start things moving and
this, followed by other crops which
promise to be good, will put large
amount of money into the hands of
the farmers and they as a rule know
where to spend it to the best advan-
tage. With ample money to move the
crops and with ample cars in which
to haul them. it is expected that this
snip but pleasure and a business
booster.
During May, the clearings Of banks
In the principal cities were about one
billion dollars less than for May. 1913,
a decline of per cent. Three -fourths
of this decline was shown in New
York City, the falling off for the coun-
try outside of New York City being less
than 4 per cent. Nearly all of the
principal cities showed a decrease in
clearings for the month.
Dividend and interest payments for
July will total 26S millions compared
with 259 millions a year ago. Divi-
dends will probably be million dol
lars less and interest payments about
1919 - R'ii'0n dollars more than IN July
While business failures in May
were larger than in any previous May
the total number of failures were less
than for any earlier month in 1914.
Failures We're larger on the average
! and the total liabilities, therefore,
were "a million dollars compared with
II millions year ago. The failure
situation has improved steadily since
the first OF the year.
Merchandise exports for April
amounted to 162 million dollars COM
pared with 200 million dollars a year
ago. Imports were 173 million dollars
compared with 146 millions g. year
ago, leaving our excess of imports or
unfavorable balance of trade at about
10 million dollars for the month. Gold
movement was in our favor to the
amount of about million dollars in
spite of the fact that we have shipped
abroad more than SIS million dollars so
far this year For the first four
months of 1914, the gold movement
was in our favor to the amount of
million dollars The heavy exports of
gold have not disturbed our situation
in the least nor have they affected our
markets. Our principal domestic ex-
ports for May amounted to 81 million
dollars against 81 million dollars a
year ago. the principal decline being
In cattle and meat.
Although wool imports have in
creased materially since the removal
of the tariff and for the first three
months of this year exceeded the
same period of last year by 50 per
cent, the price of wool has not been
affected adversely. Wool prices, both
Tat home and abroad, have continued
to increase. Here we have a clear
example of an average supply. the
tariff removed and the price increased,
which indicates that a reduced tariff
does not always mean reduced price.