Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1915-05-02
AMERICAN BANK SEES
BETTER TIMES AHEAD
Trade Letter for May Makes Careful
Analysis OF Con-
ditiOns.
RAILROADS MAKE NET GAIN
Overcome Slight Decrease in Earn
ings by Sharp Cut in Equipment
and Supply Orders-Review of
Crop Situation.

The monthly trade letter Of TN.
American National Bank on general
trade conditions for the month of Nav.
which has just been Issued. is optlmis-
us IN tone and says that while some
lines Of trade are enjoying almost un-
bounded prosperity. others are doing
Just a normal business and still Others
are barely existing. This condition,
says the letter. will probably continue
az long as the war lasts, after which
business should even up and tho lines
that are now dormant. or at best only
moderately active, should then resume
their normal state.
The number Of business failures dur
Ing the month OF March in the United
states was slightly larger than for the
same month last year. but the total as
sets Of the failed concerns was fully
90 per cent of their liabilities. which
was an increase over last year, so that
the actual loss to creditors was not
as great as last year. Bank clearinea
showed slight decrease, but this is
fully accounted for by the oDeration of
the Federal reserve bank. March and
April dividend payments evidenced the
improved business OF the first three
months Of this year.
EXPECT RECORD CROP
OF WHEAT AND RYE
Continuing. the letter says, in part:
The condition OF winter wheat and
rye IL reported by the government as
somewhat below the condition n wear
ago. but as acreage was greatly in
creased the Indications are still for
practically record crop OF both these
grains. The planting season Is under
way throughout the country. and
broadly speaking soil and planting con-
ditions are good. although perhaps 20
per cent Of the agricultural area of the
country has had too much moisture re-
Gently and another area Of equal size
needs considerable precipitation About
the only spring sown crop which Is far
enough along TO be judged Is oats. and
the crop so far as inspected and re-
ported looks good
In the reports of the railroads for
February We should find real encour-
agcment Gross earnings were SoI1
100000. compared with S2I2.O00.O00 a
year ago, decline of less than / per
cent, while net earnings were ssh 600, :
oOO compared with S39.000,0O0 n ycar
ago. gain OF nearly $4,000, 900 or
more than 80 per cent. While this
February comparison is with very
poor February in 1914. yet the reduc-
tion in operating expenses for Febru-
airy this year of, nearly per cent. or
more than Sl3,000,O00. indicates that
railroad managements are making a
real enort, and an effective one, to
carry over to tho better season which
must come TO them very soon They
are now enjoying some Increased
freight rates and will probably be
allowed still further advances during
tho year. These helps. together with
reasonably good crops this year ought
20 put the railroads into normal condi-
ZION again and bring abou, an active
demand for their securities The econ
om!es In operation shown In the Feb
tuary statements were made UP large
~ OF the postponement OF the purchase
VI the usual amount OF equipment. For
the first three months of the year
equipment purchases included 5000
cars and 206 locomotives. compared
with nearly $4,000 cars and $40 locomo-
tives for the same period last year.
The Rock Island receivershIp Is due
no more TO depressed railroad condi-
tons than to differences between those
in control and the minority on oues-
tons Of management. This receiver
ship had been expected for many
months. and IL will benefit rather than
hinder the Improvement of the Rock
Island system. The road is not over
ca pitalized.