The Birmingham age-herald., 1915-05-02
MONTHLY REVIEW
 OF FIRST NATIONAL
Much Optimism Over Pres
 ent Conditions
IS VERY ENCOURAGING
Pig Iron Market Is Firm With Much Better Tone-Railway Traffic Re- fleets Marked Improvement.
 Mercantile Conditions Better

The review of business conditions by the First National bank was issued yes terday. Great optimism is expressed in the review. which suggests that the in- crease in the price of cotton, the fewer idle railroad cars, the increase in freight traffic and other causes. has considerably improved the situation in this district as well as in all parts of the country. There Is a reference to the federal reserve board in the letter which will cause intense in terest on account of the fact that Oscar Wells, president of the First National. is perhaps, as well informed on the op- erations of that system as any man in the south.
 The review follows:
 'The review issued last month closed with an expression of opinion that April would bring us more closely to normal conditions, and while the froth of optim- ism has no place in an analysis of the present situation, there is an encouraging note in the developments of the last sev- eral weeks. Bank clearings throughout the country, usually regarded as a barometer, show volume but slightly under that of one year ago, not including New York city.
 Railway Traffic Better
 Railway traffic, another underlying evidence of business conditions, reflects an improvement by showing a substantial decrease in the number of idle cars. The tonnage handled by the southern rail- ways has been considerably enhanced. with more in sight with the increa sing production of fruit and vegetables The disbursements of railways not only furn- ish volume of business to the dealers in many, lines of supplies and employment to much labor, but they exert reflex action upon the industrial situation to the advantage of the entire business and com mercial world. The recent announcement that one of the important railway sys- tems Is to expend large sum of money fin betterments in the very early future wilt have a eassuring effect upon the conditions of the whole country.
 ''The matter of favoraby increasing trade balance thus far during the present governmental fiscal year. and the inn portations of gold during the last few months, are, of course, significant fac tors in the return of, economic conditions of Fundamental soundness. The. clements in the federal reserve system engaged in the solution of the problems involved in the fitting of the interpretations of the law to. the transactions of members. are gradually developing the facilities of that system.- and are at this time about to put into operation the plan of check cearances upon which they have agreed, with view of giving not only to mem Der banks, but to trade and commerce. a Smore efficient scope of service. The plan of reducing the actual cost in both time and transportation charges by the utiliza- tion of the co-ordinated central agencies afforded by the transit departments of fada hl Q a r. ter of self growth, and is offered at this time as the beginning of more scientific method of handling exchanges.
 ''The fiuctuating volume and high rec ords of daily transactions fin stocks may be only the result of pent-up activities of spectators. but the recent sale of a seat on the New York stock exchange at figure almost double that of last fall must be accepted as an expression of q return to normal conditions. and the increased volume of transactions will contribute toward better feeling, even though the activity of the market should recede after the first spontaneity.
 Building operations continue to show some gain, though confined to small work In our own district, the announce ment of the construction. of two large benzol plants is of utmost importance, and the building of them will contribute toward a further reduction in the num- Der of unemployed in this immediate sec tion.
 Steel Industry of Alabama
 'The records of the operations of the steel industry show that they have reached about 75 per cent of their pro- ducing capacity. There has been a ma terial improvement in the production of pig iron, which. though increased by the ; extent of the manufacture of 1t, by the steel plants turning out export, orders. is Yespor sible for much better feeling