The Birmingham age-herald., 1914-11-29
RESTORATION OF CONFIDENCE GOES
 AHEAD STEADILY First National Review Says Confidence Not Inspired by Foolish Optimism GOOD TIMES WILL
 BE ON SOUND BASIS The Country Was Due to go Through a Period of Transition From Old
 to New Methods in Spite
 of the War

l The monthly review of business and in- dustrial conditions issued by the First l Nationa lbank yesterday is as follows: '"rhe most important thing to keep in mind at this time is that the restoration of confidence is proceeding steadily and evenly, and at this rate it will soon be- come nationwide. This confidence is not inspired by a foolish optimism which ig- nores the serious aspects of situation, but is based on an intelligent realization of conditions and of the influences which are at work to ameliorate them.
 Much has been done to clear the way for the general and substantial improves | ment so greatly desired, but the process is not yet completed. Some additional read- Justment and liquidation are required. This fact, however, should not discour- age the thoughtful business man or man. ufacturer. It is his incentive to careful preparation for the new and better order of things to come out of the situation | which this country is facing with admir- able fortitude and ability, all things con- sidered.
 We lack breadth of vision when we say that all the conditions which wdNhave to meet are chargeable to the war Long before war was declared we were in a period of transition from old to new | methods, caused by the change in the banking system and the new tariff. Prep | aration on a large scale for these changes l had begun and would have continued If peace haoprevaied. War has accelerated ! our house cleaning, and in that respect, at least, has been beneficial.
 | Looking back over the four months of 1 hostilities, we can see that most of the
 things which we had feared the war would
 bring, have not materialzed. Our credit l abroad has wthstood the shock, and today l stands higher than ever and on a more l stable basis. There has been no such com l plete paralysis of our foreign trade as
 was anticipated. On the contrary, as | shown by export statistics, 1t has made distinct, not to say amazing, gains. In l fact, the call from Europe upon the re-
 sources of this country has just begun.
 It will continue and widen until 1t in | cludes virtually everything we grow and l make. Sooner or later all sections of the | country and all lines of business and man.
 ufacturing will share, directly or indi
 rectly, in the benefits. It is case of
 waiting patiently and confidently.
 ''The fear that there would not be ships | With which to move this foreign com
 merce is also being dispelled. We have
 one great deal toward working out our
 own salvation along this line. It is stated that upward of so steamers and sailing
 craft have been admitted to American | registry since August 1 and that the
 American merchant marine Is larger to-
 day than it has been at any time subse- ftrIa fn -s,xt1 1nlf
 been accomplished without the blowing
 of horns, and Is an illustration of the
 quiet effectiveness which characterizes -Four latter-day methods.
 l If we define prosperity as a state of
 national and individual solvency, and that | is the only definition that will stand the | test, we are clearly on the road to it.
 There may be some backward steps yet, some stumbling, but the gain in that di-
 rection. will be continuous. Whether we
 would or not, our backs are turned
 against that spacious prosperity which is | expressed in over-extension and extrava- gance. Boom times are a thing of the past and that is why permanently "good
 times" are all the more certain.
 "The most notable events of November, | as related to business, were the opening l of the regional banks, the consummation | of the Wade plan for lending money to
 cotton owners, the opening of the cotton l exchange, the elections, and the opening | of the New York stock exchange on the | last Saturday of the month.
 While the banks in the federal reserve system are not yet discharging their full functions. they are making money easier l for legitimate transactions and facilitat- | ing business.
 Tt is yet too early to predict to what 1 extent owners of cotton will borrow under l the Wade plan, but the fact that these | loans are now available is unquestionably | beneficial to the cotton situation.
 ''The opening If the cotton exchange. as anticipated, has resulted in a stand- ardization of prices and encouraged the buying movement.
 "The fall elections, while resulting in a
 large reduction of the democratic ma- jority in Congress, continue the control l of the present administration in all branches of the government for two more
 years It is stated in newspaper reports | that the message of the President to Con-
 gress in December will advise against ad-
 ditional legislation affecting finance and business.
 "The opening of the New York stock exchange for dealing in bonds will be &C.,
 cepted as notice to the effect that the financial situation is rapidly approaching the normal.
 Industrial conditions in the Birming-
 ham district still leave much to be de-
 sired, but evidences of forthcoming im- provement are not lacking. Since the ad-
 5ournment of the recent meeting of the
 American Iron and Steel institute in this
 city. verbal and written expressions from
 industrial leaders of this country indi-
 cate how deeply they were impressed by
 the resources of the Birmingham dis
 trict, and create a reasonable expectation
 of results in the form of additional devel-
 opment.
 THE FIRST NATIONAL BANK OF