The Birmingham age-herald., 1914-01-03

1907, many new records of trade volutoe
and industrial output We're set up The
backlog of untitled orders on hand which
were at their maximum at the opening oe
the year. tended to decline as the spring
advanced. Money scarcity was in evil
dence from early in the year onward to
It's close, seeking the form of close scrut-
ny OF credits rather than that of acute
high rates, which indeed were rather con-
spicuously absent Much needed support
to trade iand finance was given at crit
ical time. early in June by the Secre-
tary of the Treasury's announcement as
to the possible use of emergency currency
and the placing of government money
In the banks in the surplus crop-producing
areas. The then good crop outlook was
of course helpful but with the realiza-
tion of the drouth's damage in the west
and southwest In August and September,
business in large lines quieted down. Tar
iff changes, agitated or realized, were a
brake on new production in the autumn,
and the scarcity of money conspired to
make new enterprise cautious. Indus
trial output. while large early, showed
repression later and sagged though the
impetus given production early made in
many cases for record production
Failures
The years failure record was a fun one.
exceeding. that for 1912 by 40 per cent.
and that for 1908 by per cent, while
liabilities increased SO per cent over 1912
though falling per cent below 1908. Half
of the excess in liabilities over 1912 was
explained by unsafe banking, a good part
or the balance being contributed by large
dealers in rubber, in automobile. iron and
lumber manufacturing and coal mining
Failures in the first half of the year were
below those of 1912, and the liabilities were
only slightly larger, but the third quar-
ter saw the balance tip against the cur
rent year, especially in liabilities, which
were swelled by the banking troubles
mentioned. and the last quarters failures
and liabilities were the largest for two
years.
Throughout the entire year 1913, as
in 1912, the large sumber of small
failures called attention anew to the
fact that the business community has
been greatly diluted of late years. In
the 10 years from 1904 to 1918, in-
elusive, the number in business in
creased by $4,000 per year, or by %
per cent. whereas the increase in popu-
lation was not at much over half this
rate. This caused rise in the per.
centage failing each year, and raised
anew the question whether the heavy
increase in the number of traders was
justified by the volume of business done
and the known fact that profits over
that time were compained of.
Looking Forward
The liquidation in the stock market
| in 1913 was apparently through with
out being panicky. Trade and industry
in turn showed symptoms of an or
derby retreat rather than of a pre-
elpitate flight, and since the improved
feeling noted in the latter weeks of
1913 set in, less is heard of rumors of
business troubles in this and other
cities. The complete history of the 1902
0304 collapse and quick revival some
of whose earlier happenings were close
ly paralelled in 1913, will repay perusal
because halding some lessons and in
deed some encouragements. 1t is gen
orally conceded that while the entry
of industry into the stock market in
capitalized form has made 1t more SEN
sitive to unfavorable happenings, it has
also made it quicker to respond later
to improving influences. The best judg
ment seems to support the view that
money, the great desideratum in finance
and trade, will be both cheaper and
easier to obtain In 1914 than in 1913
The passage of the currency bill is ex-
pected to be aid in this respect,
whatever may be thought of ultimate
effects of the possible imitation feature
of the new measure, which has sup
planted seriously defective system.
OF course, any ill-considered rise like
that of 1895, with its aftermath of deep
depression, is to be avoided, and the
possibilities of Europe endeavoring to
further liquidate its burdens in Amerl-
can markets are to be considered in
this connection, though our immense
credit balance may help us in this re-
spect Money, however should be plen-
ty for legitimate trade and industry
in 1914, and the absence of burdensome
stocks, owing to long continued hand
to-mouth buying, should be helpful 1t
will not be forgotten that many crops
were short in 1913. and. prices, particu-
larly of food, were high, which may
have helped agriculture as a whole,
though no country ever made much
money out of its own crop shortages.
AS to 1914 crop conditions, it may be
said that said conditions are favorable
and winter wheat is in excellent shape.
The matter of possible railway rate ad-
vances presses for early solution. All
of the advances asked for in past years
would have been insufficient to save
some badly managed enterprises from
the effects of their own sins but the
justice, indeed the absolute necessity,