The Richmond Virginian. (Richmond, Va.) 1910-1920, 1915-05-02
TRADE BALANCE
IN EXCESS Of BILLION
Year 1915 WIN Prove Rsesra Dreakers
Aeeersfng - Present. EzDsrt
Movement.
RAILROAD SITUATION IMPROVES


i The American National Banks Gen
4 erai Letter on Trade Conditions and 9
4 Business Forecast for the Month Of
MAY is conseryatively optimistic. y
makes good reading for those who VIAL
4 business information conservativets
\ presented. The letter follows;
i Figures representing business totals
may now be presented with very little
Explanation. as present agures. COM
pared with those OF n feT weeks ego
speak plainly for themselves. Whfis
some lines Of trade are enjoying al
most unbounded prosperity. others are
doing just a normal business. ana stiil
tothers are barely existing. This con-
dition will probably continue AZ Ions
as the war. .1asts,safter which business
should even up and lines which are
now dormant. OF at best moderateiy
lactive. should then resume their nor
NAL state.
Bank cIearings for March were Ia
s4s million doaoiars, compared with
l1425s millions year ago, u decline OF
almost 3 per cent. THIS decline. how
operation of the Federal Reserve
banks, which reduces the total of bank
cIearings.
| The business mortality for March
included 1885 failures, compared with
1854 a year ago The total liabilities
of these failed concerns were ss.171
million dollars compared with 2a.sIs
million dollars for the concerns falling
In March. 1914. The total assets Of the
failed concerns this year were fully ~
per cent OF their liabilities, while the
concerns which failed in March. 1919
had assets of only so per cent Of their
liabilities. The actual loss to creditors
therefore from the increased number OF
! failures was no more this year than
on the smaller number of failures last
year.
| Financing In March by corporations
amounted to only IS million dollars.
| but almost 40 per cent OF this amount
was for new capital, while during re-
cent months about 80 per cent Of all
financing has been for refunding.
Nc Decrease In Disbarsemeats.
/ Dividend and interest disbursements
| for April will total 1874 million dollars.
which is exactly the same AZ In April
last year. Dividends win be IS mil
lion dollars. compared with SO millions
last year, and interest 70 millions. COM
pared with rs millions last yeaf. March
1 and April dividend payments evidence
the improved business of the nrst
! thtree months of the year.
or the 500 million dollars of secuFi-
ties maturing in 1915. more than one
half has already been provided for
leaving only $50 millions Of maturing
securities to be either paid or refunded
4 during the next nine months.
During March. building operations IN
leo cities totaled about rs million dol
Il lars. compared with So millions year
tago Good increases were shown In
Baltimore.., Detroit, Milwaukee. New
Havepx Newark, Syracuse and Toledo
the remainder of the principal cities
showing a decrease from last year. The
outlook for heavy building In the
prtncipxi cities Ii not promisinE. La
Isbof agitation. striksA and lock-outi
ihave halted operatinnss amounting, te
millions Of dollars already. and much
i of this work has been put over for an
other year.
,Creatinx Great Cs-aat balance.
with exports ranging from $50 to
400 million dollars each month and i'm
/ ports running between 100 and I55 mil
lion dollars per month. we are building
up an enormous credit balance abroad
There is no evidence that this balance
Is being, paid through the sale Of Amer
I ican securities held abroad, and In fact
those close to the situation believe that
foreigners are now buying practically
as many of our securities a. they are
selling, and that their holdings have
probably not been reduced since thu
war began by more than billion dol
lars. still leaving perhaps four billion
dollars Of dur securities owned IN othoi
countries. Only . small proportion 81
this foreign credit II being paid to y,
in money, as our imports Of gold II
amounted to only about six million
I dollars, and In February less than J;
rnilliona i. Our excsss 81 gold. sxrort'
last year amounted to 1eS million dol
liars Our silver exports In February
! were over three million dollars. with
imports over two millions. leaving Z
favorable balance of more than mil
lion dollars in silver.
Altogether for this year TO date w
! have surely created . favorable bal
ance still unpaid In excess Of 500 mil.
| Hon dollars Any estimAte Of What THU
balance will amount to by the end Of
the year would be merely a guess. but
/ well-known economists are estimating
/ the net favorable trade balance for
1915 at all the way from ono to two
| billion dollars Surely the Arse ng-
/ ure would be very conservative esti-
mate. This balance must come to vi
sooner or later either In the return "a
us Of our own securities. in increased
imports or in gold. In the natural
| course Of business 4. portion Of II will
l be paid In each Of these three ways.
n Il hailroa6 Report NaosufAs1nG.
II In the report /. OF thu. railroads fol
| February we shotld hnd real encour.
agement. Cross earnings were 31l
million dollars. compared with AZ Z
u year ago, q decline Of less than ] pei
cent. while net earnings were 81 mil.
lion dollars, COMPARED with 20 miiitDn'