The Birmingham age-herald., 1915-02-28
First National Review Urges Less Impatience and More
 Quiet Confidence
IMPROVEMENT IN
 STEEL INDUSTRY
Now Operting at D Per Cent of Ca pacity Against B Per Cent Capacity Six or Eight
 Months Ago

The monthly financial and commercial
 review of the First National bank of Bir-
 mingham. issued last night. is as follows:
 This letter is written subject to the
 discount of developments. To what ex-
 tent our exports will he affected by the
 blockades now operated against each
 other by the allies and Germany is still
 a matter of conjecture. Inasmuch. how
 ever, as the belligerents are dependent
 upon us for supplies and our friendship
 is regarded as indispensable by both sides
 it is reasonable to assume that the ex-
 port situation will adjust itself.
 Anyone who has seen the tide crawl
 up on the beach will agree with us that
 it is a good figure of speech to apply to
 our domestic industrial and commercial
 situation While a portion of the beach
 yet remains to be covered, the tide is
 coming in. inch by inch. In few lines
 of business and industry little or no inn
 provement is to be noted but this does
 not alter the fact that things are get
 ting better here in the south as in other
 portions of the country. in spite of the
 failure of some anticipations and some
 recessions in the line of the general move
 ment. Hence we should look forward confidence.
 Gain in Steel Industry
 "'rhe rise of the tide is best shown,
 perhaps, in the steel industry, which has
 advanced from an operation of about 3o
 per cent capacity six months ago to ap- proximately 55 per cent This is a good
 way from normal but 1t indicates a sub stantial gain in an industry which is properly regarded as the barometer of trade.
 Cotton is experiencing temporary setback on account of uncertainties in the export situation. but this could not have come at better time, as 1t will have salutary effect on acreage, where as an advance in price on the eve of spring might have tempted farmers to disregard the necessity for keeping the
 next crop within safe bounds. "On the other hand. the prospect for an increased domestic consumption of cotton is quite encouraging. Southern mills are operating on practically full time, and reports from New England are to the effect that a large percentage of | spindles is now in motion. A more ex- tensive use of cotton goods manufactured | in the United States is. confidently ex- l pected. and there is a feeling In the trade which will help to sustain the price of | the staple.
 '"rhe monetary situation continues 10 be satisfactory. Our position financially 1 is now so firmly established it should | meet automatically any strain put upon l it by complications which may arise in international relations. Emergency cur rency has been retired to large extent | There is an abundance of money in the reserve centers and commercial users should have no apprehension to ability and willingness to supply their proper needs.
 | Conditions Improve in Birmingham | industrial conditions in the Birming- 1 ham district are somewhat improved. It 1 is stated that operations at the steel 1 mill last month were on a larger scale than they have been since last fall. "The pig iron market is in a healthier state. Sales for February include 6O,000 tons by one company. Stocks continue to decrease. With broadening inquiry it is believed the market will show mote strength during March. There is an en- couraging tone in cast-iron pipe, fore tcasting a larger local consumption of pig iron.
 '"rhe repeal of the solvent credits act by tpe legislature or AiapdHld is d ineds- ure of relief which will have a stimu- Iating influence on business f. all kinds and will also place the state in better position in the eyes of the commercial world.
 with the increased cheerfulness and larger activity which usually character ize the coming of spring we can look for a better record In March. There is a safe middle ground betweenN Nsenseless op- timism and chronic pessmism. and we should stand on it. There may be un- favorable developments hereafter, but they will be of a. minor kind compared i with those which have been dealt with successfully during the past seven
 months The toughest part of the road is behind us. even if we have not reached the high level. We can keep on climbing with courage and a cool head. THE FIRST NATIONAL. BANK OF BIRMINGHAM.