The Birmingham age-herald., 1915-10-26
Certain Sections Will Re-
 main Quiet Until Big Demand Comes
CLAIM UNCERTAINTY
 ABOUT THE TARIFF
Developers Are Said to Be Undecided Regarding Its Effect On Business After the War Comes to
 Close
Fly HOLLAND

| Fly HOLLAND
 New York, October 25-(Special.)-Som.
 weeks ago, the Secretary of the Treasury MT. McAdoo, received reports from tw,
 or three of the federal reserve district.
 Tn the west in which it was said that tn.
 banks in those districts, or, in othel
 words, the farmers whose deposits in tn,
 banks have for d year or more beer
 heavy, are in a position to finance-tha | Is, to pay for-the movement of the crop,
 from the harvest field to the market
 From other sections of the country wher, also the larger grain harvests are gar nered there have come intimations tha- the grain growing sections will this veal
 be able with their own money to move the | crops from the fields to the markets This is the first time that American agricultufe upon large scale-largt enough to create surpluses of grain and other food products that could be ex- | ported-have been able to take care oi their own harvests without borrowing money from New York and other east. ern cities. Fifteen years ago. two or three of the leaders in the financial district in this city thought they detected evidence that gradually the west was gaining financial resources so that within 15 or 20 yeas these resources would be sufficient to meet crop moving demands without borrowing money in the east
 Whether the gaining of this position Is to be traced solely, or even chiefly. to the effect of orders which have come from nations across the sea for food products Is a question which no one here seems to care to answer. The great harvest of last year, in any event, would have brought large funds to the farmers.
 Now there is authoritative proof tha f not only are the agricultural sections in position to take care of crop movements put their resources are so great that the banks of those sections have actually sent to New York within the past ten weeks s1Sc, OOo,G COG, in round numbers.
 curious feature of this situation is the iact that in many parts of the west, espe- cialiy the country west of the Missouri river, there does not seem to be the business activity which would be expected rom such prosperity as the farmers have earned. Reports come to this city that in the remoter west-Utah, Montana, Cobra do-business is now and has been slack Yet Montana is producing copper in epor- nous amounts, and when that great mas ter of the copper industry, Mir Jackling. arrives in New York, as he is expected to do in the course of a few days. he will De In position to tell a really wonderful story or copper production in Utah Nevertheless. general business is far from satisfactory and in certain lines is re- ported to be stagnant
 Yet the situation there is not unlike. in some features, at least, the situation in Mott t.rtt t...@.
 writing of loan of $500, ,Oo0 GOO from 70 to 75 per cent, of which was undoubtedly underWritten by New York banks, men or capita! and some industries which coy- cred their subscriptions through the em- ployment of brokers there is vast vol ume of funds in New York for which there appears to be only small demand
 The fact is that outside of the mighty impulses to industrial activity and the consequent great financing there is as yet no demand for funds upon a larger scale for the purpose of investment in undertakings which have the develop ment of natural resources in view.
 situation of this kind seems almost paradoxical. With funds in ample amount for which reasonable rates of interest would be asked, there is, latively speak ing, no large demand for these funds Not until a demand of that kind comes will it be possible to report far-reach- ing undertakings entailng investment of large amounts of capital
 The reason given for this situation may be divided into two parts One is the uncertainty respecting the adequacy of our present tariff schedules. There is no doubt that some who would make in- vestments in large amounts are restrained from doing because the wonder is whether after the war is ended t1e tariff schedules now in operation, if maintained may not be harmful. There appears to be a lack of confidence. an obstacle which may be removed should Congress in it's wisdom at the coming session modify or amend certain sections of the tariff law
 Another reason why capital in large amounts is not seeking investment at this time having the development of resources or the expansion and improvement of rail- way systems in view is the still lurking uncertainty respecting the attitude of the federal government and some state gov ernments toward business activity. Ac- tion in the courts taken within a few days by the government authorities illustrates this feeling of doubt which is spoken of as explaining the reluctance to make large investments in development of re- sources or expansion of trade or the im- proyenent of railroads. The government at Washington some months ago brought action against a large combination whose headquarters are at Boston, alleging that the combination violated the Sherman law The government was defeated in the court, but instead of accepting that defeat as final it has seen fit to bring 8 new action under another statute than the sherman law.
 Justly or unjustly, this action has made men of capital timid. They do not know where they stand or where they would stand in case they perfected large combinations. If it should happen that