The Birmingham age-herald., 1914-05-01
BIRMINGHAM TRUST MONTHLY LETTER CN
 TRADE CONDITIONS
Money Is Easy, But Credit Is N0t"- "-The Bright Side of the Mexican
 Situation

The Birmingham Trust and Savings
 company's monthly letter for May Is In
 part as fellews
 notwithstanding the fact that war is
 to be deplored at all times and under ali 1 conditions. if 1t must be thrust upon us. we can at least take comfort from the
 brighter slde of the situation War talk
 and war news will now take the place of the pessimistic discussion regarding pro-
 posed legislation at Washington and un- | satisfactory business conditions gener- ally. The unhappy effects of war are
 many, but here at least is one grain of | comfort and 1t is reasonable to expect that. having our attention for timo 1 diverted from Washington and having the attention of Congress directed toward
 something else than business regulation,
 will bring about healthier business tone and a better business condition.
 "A prominent financier recently summed up the situation in these words Money is easy but credit is not It could not be more effectively put Conditions have been such that it was necessary to scan credits with unusual care, and vet money has been quite easy in most parts of the country and too large an amount Of 1t has been wholly idle. War moves and operations will naturally serve to make money move and while it's increasing ac- tiyity will tighten up the market some what this kind of a tightening of the money market is beneficial to all alike .eThe increase in bank clearings for
 the month of March for the entire coun-
 tf.>..
 in business. The beginning is small. the increase in clearngs being somewhat less than 1 per cent for the entire country,
 although over per cent for the coun- try outside of New York. Even this much improvement is welcomed by business in-
 terests as indicative of a better tone.
 During March. pig iron production held
 at about 80 per cent of capacity, the total
 output being 2,34S000 tons compared with
 ,Ss9 000 tons the previous month and with
 9, 900 tons for March last year. Since
 the first of the month production has
 been reduced to about 6s rer cent of ca
 pacity The bookings of the merchant
 furnaces so far for the year easily
 double what they were a year ago. and
 at least 20 per cent more than for the
 same period of 1912. Orders during March
 were light but, taking the entire year to date, bookings by the merchant furnaces have been exceptionally good
 Railroad gross earnings for January show a decrease of sf7000.00O, operating expenses decreasing slightly over s4,000,- GOO and net earnings decreasing more than SIP, 100000 This decrease in net amounts to 10 per cent as compared with a year ago, and If this condition were to con- tinue for a few months. i, would be neces- sary for every road in the country to ask for. not per cent level increase in freight rates. but an increase of not less than 10 per cent on all tariffs. This unhappy January showing was imme- diately followed by a falling off of $20,- o,a,0u0 in net during February. the loss in gross being SPA 4.Oo0 900 for the same pe- riod as compared with February, 1913. The decline in net earnings for February 1914, as compared with a year ago was more than B per cent.
 'The lumber trade is not active, but the tone has improved and prices have frmed up Buying is largely in small lots and for immediate shipment The | southern pine regions report fairly sat- | isfactory business. while in the north and l northwest shipments are about normal. i with good prospects for improvement.
 'The crop situation needs little com | ment. The winter crops which are in | the ground are in the best of condition | everywhere, and seeding and planting con ditions except in few small spots, have | seldom been better It would surprise | no one if this year pi owed to be one of | the greatest crop years in our history.
 The firm stand talses. Tn the Mexican situation promises an early and decisive | settlement of our difficulties with some | of the people of that country and, fol- l lowing the adjournment of Congress, the l improvement in business should be | marked. although any considerable busi- 1 f,,at,t eh< for few weeks, at least Respectfully 
 BIRMINGHAM. TRUST & SAVINGS
 COMPANY"