The Birmingham age-herald., 1914-05-28
VANDERBILT FINDS SEVERAL FACTORS
 AFFECTING TRADE Certain Influences Must be Overcome Before Pros
 perity Will Arrive CURRENCY LAW AND
 TARIFF MENTIONED Tells Cotton Men About Conditions Which Have Tended to Hold
 Back Resumption of
 a. Activity Ai
BY HOLLAND

New York, May 27.-(Specal)-In an address delivered in this city in April by
 Frank A. vanderlip. president of the National City bank of New York, he told a great company, most of whom are inter- ested in cotton manufacturing or cotton growing. that he could not see much promise of improvement in business and in industrial conditions in the near fu- ture, although he admitted that the har- vesting of very large crops would tend to stimulate business to some extent.
 There are various influences at work in the country, the effects Of which must be overcome, in MT. vanderlip's view, before we have that revival of prosperity which, when 1t comes is sure to be both abso- lutely and relatively greater than the country has ever known
 MT. Vanderlip did not tell his hearers what these influences are, but 1t was not difficult to surmise that in his view one of the influences has been created by the change from the old banking system of the United States to the new. Uulti- mately this change should work for good. But the time of adjustment from the old to the new will inevitably cause some con- fusion. That was not the case after the national banking law which was enacted during the administration of President Lincoln went into effect. The change at that time was very gradual, and for year after the banking law was put upon
 the statute book was not observable ex- cepting through the announcement that
 here and there national banks had been
 chartered and opened for business or in some isolated cases state-chartered banks
 had surrendered their charters and had
 reorganized as national banks.
 Therefore the process of readjustment
 was very slow. Now the change Is in-
 stantaneous, although so far 1t affects practically none but national banks. The state banks all over the country seem re-
 uctant oaprticipate in the new organ- zation.
 Another Influence
 Another influence which MT. Vanderlip undoubtedly had in mind was one created by the enactment of the new low tariff law No one can predict what the per- manent effect has been greatly to impair our expectations and greatly to increase OuI lIlpOitdtlobS, Whiic de thS Seii'S t''fS no one has observed any material de- which consumers buy.
 If the statistics which report the effect of the tariff for the first seven months of it's operation are to pc accepted as in- dicative of permanent results, then 1t Is certain that there must be a radical read iustment of our industrial and business conditions
 Another unfavorabe influence of which much was said informally and in per- sonal conversation at the recent conven- ton of the American Manufacturers as- sociation in this city is the strong disposi- ton on the part of the administration at
 Washington and of the lower house or congress to enact legislation with intent
 to perfect the Sherman antitrust law.
 This influence is far-reaching If the
 statement of the manufacturers is to be
 believed. It was the opinion of the rep resentatives of 10000 American manutae- turers who recently met in this city that it would be the wiser part to delay iegis- I1ative action of this kind until after there has been opportunity to readjust business ana DanklnS OpcTdtiOhS tO t'iC INV law, and to the new banking law. MT. Vanderlip is in daily touch with con- ditions which now prevail in Europe ana l in Great Britain, some of which the public is ignorant of. There are influences ere ated across the seas which are not con ducive to the early re-establishment or prosperity in the United States.
 So far as is known, the United States is borrowing little or no money of men oi capital across the sea. There Is no oc-
 casion to borrow, for in the first place
 money is very plentiful in the large finan- cial centers, and in the second place there are no great undertakings now under way which would offer opportunities for the investment of foreign capital. few mii- lions of foreign capital has recently come | to this country. France has invested some money in hydraulics, in water power and electric plants in the south and in the man. ufacture of aluminium, but this investment is exceptional. If Great Britain is invest | ing much money in the United States al this time no one but those who are in- terested know of it.
 Yet we are sending gold to Europe. MT. Vanderlip must know the details of some | of the heavy withdrawals of European l capital from American securities. When he addressed the cotton men he could have given them some very interesting details - ~@sc,h aSACcRA eau llQuiodtlOu Ol AIucEiCal securities which has been in progress for sometime in Great Britain. and upon the continent of Europe.
 Therefore, in addition to very heavy im- portati0n, we are face to face with a con- stant and large withdrawal of capital and credit by Europe from the United States. Business men confess that they cannot see very far into the future and for that reason do not look for speedy general revival of American prosperity. although admitting that in some lines of industry, as, for instance, that of manufacture of electrical apparatus and the copper mar ket conditions prevail which, were they general. would make 1t evident that the country Is enjoying great business pros perfty, conditions which are ,colloquially known as ''boom.'
 The situation in Europe Is not entirely satisfactory. although some of the facts respecting it have been, in the interest of prudence. well concealed. Until~there be 8 change in Europe we are likely to feel lunfavorably some of the effects of the il,- fiuences which prevail there now. MT. vanderlip doubtless had them in mind when he spoke cautiously, not too despon- dently, to the cotton men. It 10 observed. however, that the men who are leaders In financial affairs and those who are urom- inent in business are confident that. how ever drastic may be the immediate effect of the new tariff law, nevertheless In due time wa shall learn the var by which