Newspaper Page Text
I
14 D
IIEARST’S SUNDAY AMERICAN, ATLANTA, 0A„ SUNDAY, DECEMBER 14, 1013.
News and Views by Experts of Finance, Industry Crops 'and Commerce
NEW ERA OF SPENDING
MAY EXPLAII LACK OF
Canadian Pacific Is
Ready for Big 'Melon
a Share
Automobiles Given as One Instance
of a Luxury Which Has Made
Families, Long Thrifty, Into
Spenders of Their Whole Income.
from
autoinobil-
NEW YORK. Dec. 13.—The United States used to sav
'.00,000,000 to $750,000,000 a year.
The United States now spends for automobile am
ing at least $750,000,000.
Does this throw any light on the unprece
dented lack of demand for investments and the
consequent grave shrinkage in the market
value of securities 1
Money, yon know, mnst be saved before
it can be invested. The individual who spends
all he earns can not buy one share of stock or
even a $100 bond.
How many persons, how many families do
yon know, or know of, who used to live econom
ically and hank a nice little sum every year,
who now support an automobile that costs any
where from $600 to $6,000. and entails an up
keep expense of several hundred or several
thousand dollars each year?
Obviously these people can not both spend their money and
save it. Reflect for a moment—or, better still, an hour—and sec
if you can not trace direct con
By Segregation Scheme $75
Will Be Allotted to
Investor!.
MONTREAL, Dec. 13. Director* will
announce their financial plans for 1014
within the next fortnight.
The various departments, such as
steamships, land hotels, sleeping, din
ing arid observation cars, will La segre
gated, It is learned, ami each separately
Incorporated.
Stock in each concern will be allotted
to shareholders, which will mean a
“melon" of about $75 per nhare.
Conductors Well
Paid as Professors
CHICAGO, Dec. IS.—A young man
may enter the service of a railroad as
a brakeman and get as much pay as
does the young graduate of a school of
engineering, and may look forward to
earning as much In th** road’s service
as does a full professor in many a col-
legt- according to an official of the Bal
timore and Ohio.
This is not a result ®f the award
mad; by the arbitration board; it was
true before that. With that condition
existing the trainmen were yet granted
an Increase.
It Is an interesting fact that a young
man who has had no preliminary train
ing may become a railroad brakeman
and get $85 a month, and that this
same man 6 ho begins as brakeman,
may look forward t-> making over $1,900
a. year as a conductor.
The Baltimore and Ohio has conduc
tors who ‘average $240 a month, which
is as much as a professor In college
makes. The dean of a certain engi
neering school makes only $2,000 a year.
$23,181,545,433 Is Total of
Banking Resources in U.S.
Average Dividend 11.4 Per cent in 1913, Com
pared to 11.01 in Previous Year.
II ADVERTISE
Ginning Report So Close to the
Expected That It Causes Lit
tle Market Fluctuations.
neetion between this new orgy of
expenditure and the absence of
buyers of bonds, stocks and
mortgages.
If wo hav« an entirely new expense
account of $750,000,000 annually, is It
not reasonable to figure that this
must cut Into the sum available for
Investment or for putting the savings
In the bank .’
Condition Worldwide.
Remember, also, that similar con
ditions have arisen all over the world.
My mind was drawn to this whole
subject by "an upstate farmer," to
use his own phrase, Winfield T. Sher
wood, of Sidney, N Y.
"We who live In villages and know
everybody and their antecedents,” he
►aid sagely, "get closer to one an
other than you New Yorkere. We
know about how much each family is
vverth, how much It earns, how much
it spends and how much it saves.
Sow. I find that most of our people
who used to save from $500 to $2,500
a year, and either buy a local mort
gage. deposit in a bank, or invest in
bonds or stocks, now own an automo
bile Most of what used to be invent
ed has gone into automohiling during
the last year or two. This change in
our local life set me thinking.’’
Interesting Deductions.
And I venture to say that his think
ing and his deduction will interest
you. „
“The world has been prosperous,
he said, "beyond ordinary Business
everywhere has been good Yet se
curities everywhere have been declin
ing French Government bonds fell
to the lowest price ever recorded. Puz
zled security holders have thought of
the Balkan war, the political change,
the tariff, the currency bill. Mexico,
and the governmental attitude toward
large corporations. But havt* any of
the causes named seemed sufficient to
explain why last year’s great crops
faded from sight, without giving a
few davs’ stimulus to the investment
markets? That such an addition off
wealth disappeared and left no trace
of Itself behind is a new experience
in the financial world. Evidently a
leak—and a leak of no mean propor
tions—has sprung in our commercial
system. Can we trace it?
‘ "Carefully compiled figures show'
that In 1911 approximately $800,000,-
900 of the nation’s earnings were di
verted into a new channel, the pleas-
ui e automobile. In 1912 about ?6<>0,- I
000,000 was diverted in like manner,
while in 1913 practically $1,100,000,000 |
s being consumed In this same chan
nel
Nation’s Surplus.
"Now, the annual surplus earning
-apacity of the United State* Is va
riously estimated at from five hun- I
died ‘millions to one billion dollars ■
This surplus wealth is the fund from >
which our new buildings, our new-
enterprises, our railroad extensions |
aud our municipal improvements are
financed. And It is from this same sur
plus fund that the $300,000,000, $600.-
900,000 and $1,000,000,000 have been
taken during these last three years
“But the money goes directly back
• o the manufacturer, and is by him
iietributed for labor ami supplies, so
it is not lost,” is retorted.
Upon first thought this reply seems
conclusive. But when it is remem
bered that an automobile neither
feeds, clothes nor houses its owner,
and that, with the exception of
comparatively small number <
wealthy people, they axe largely ow n
ed by person® who did not previously
own horses—or if they did, still r*
rain them—It appears that the aim
mobile is, in the main, an entirvh
new’ and unusual expense.
A Comparison.
This being the case, the results t
the country financially are the earn-
as though all the men employed in
building, selling, repairing and run
i4ng automobiles had been set asidr-
and been told to bujld a mountain,
meanwhile taking their sustenano?
from the common earnings of the bal
ance of the nation. The comparison
may seem fantastic, but it is, never
theless, true, except that the mouV
rain, when once built and paid for
would not require further outlay in
repairs and fuel.
What the ultimate result of this
shifting of “the river of gold” will be,
each should decipher for himself. Bui
so far the visible signs, in addition u
the selling price of securities, appear
most clearly in the stopping of all in
dependent building operations and
the abandonment on the part of rail-
reads of any expenditure® In the way
of new’ development.
These forced changes In policy have
reduced the steel trade to the pre
carious position that is at present at
tracting the attention of the nation.
Mongolian Produce
Diverted to America
Special Cable to The American.
ST. PETERSBURG, Dec. 13 — Great
concern Is expressed in the Moscow
business world over the diversion of
the bulk of the Mongolian and Man
churian produce from the markets of
European Russia, in favor of the
American market. Both the new
American tariff and the coming open
ing of the Panama Canal have In
duced Americans to make future bar
gain® for great consignments of beans
and wool from Manchuria and Mon
golia, where such produce Is extraor
dinarily cheap, and their import into
the United States by the new route
The Kharbln Vlestnlk, the chlel
bu®iness organ of the Russo-Chlnese
Orient, describes this transfer of trade
ns the most notable economic phe
nomenon in the world to-day.
Indiana Bank Robbed:
Dakota Alarm Rings
HUDSON, S. DAK.. I>ec. 13 —-Hud
son people claim the most sensitive
piece of machinery in South Dakota
18 the burglar alarm at the Bank of
Hudson. A bank at ShelbyviUe, lnd.,
was robbed the other night, and at
that very minute the alarm in the
Bank of Hudson started an alarm.
The whole town assembled at *h«s
bank. The door was opened and a
thorough search of the premises
made, but no burglar could be found
Finally a machinist was sent for and
he managed to stop the alarm.
The next day it was discovered thai
the burglary really occurred at Shel-
byvllle, lnd.
Municipal Bonds
Show Great Growth
CHICAGO, Dec. 18.—The Bond Buyer
reports a total of $32,125,369 permanent
municipal bonds brought out In this
country during the month of November,
as compared with $12,494,414 in the same
month last year. The total for the
eleven months of the year is $274,108.-09,
against $290,798,503 for the correspond
ing period last year. . .
In addition to the above-mentioned
figures, eleven municipalities made tem
porary loans aggregating $64,969,465. oi
which $64,489,455 was borrowed by the
city of New York.
Ill view of ihe inactivity in the mar
ket for all kimls of stocks an.1 bonds
that was marked during the month jusl
passed The Bond Buyer considers that
the showing made by municipals Is es-
ceptlonally strong.
1,236,150 Factory
Hands in New York
MEMPHIS, Dec. 13.—Speculative
stagnation made the past week a
rather commonplace one, despite Hie
fact that two reports came from the
departments at Washington. The
division of sentiment was so even and
the absence of the unexpected in
news developments contributed to the
dullness, while the widespread ab
sence of disposition to speculate in
anything merely served to accentuate
it and to make the market narrow.
The Census Department’s report on
ginniui to December 1, its figures be
ing 12,081,100 bales, compared with
11,854,000 to even date a year ago,
was so nearly in line with expecta
tions that it failed to influence prices
either way to any important extent.
It showed that during the latter half
of November ginning had been heavy,
the amount having been 1,647,000
bales, compared with 1,555,000 for the
same period last year, but this was
reported due to unusual conditions
and the bulls argued that it repre
sented an abnormally large propor
tion of the total crop. Bears offered
against this the improbability of suf
ficient falling off in ginning after
December 1 to bring about final fig
ures in line with bullish ideas. The
Inability to agree on this and the
uncertainty as to what the Govern
ment estimate would be, encouraged
the waiting attitude and helped ex
plain the refusal of prices to show
much change
Crop Movement Reduced.
The movement of the crop has
shown some reduction compared with
the previous week, but has been due
to some extent to the flood condi
tions in the Southwest, transportation
facilities having been demoralized in
the greater part of Texas. In the
Memphis territory,, how’ever, It has
not subsided much from the recent
heavy volume and receipt® have been
running well above a year ago. Stock
in this center ton Wednesday went
above the largest amount on record,
amounting to 235.555 bales, whereas
the record was 234 299 bales, touched
January 4, 1911. The crest Is usually
reached the last week of December,
or the first in January, so it is be
lieved the high mark this season will
be 250,000 or more bales. The sta«
tistlcal record shows that during the
period of moderate buying and the
WASHINGTON, Dec. 18-—The
banking resources of the United
I States total $23,181,545,433.
Of this enormous figure the na
tional banks contribute $10,876,852,344.
National banking was a trifle more
profitable last year than in 1912, the
average dividend J>eing il.4 per cent,
as compared with 11.01 per cent tho
year previous.
The total amount of savings depos
its in the United States has reached
the huge sum of $4,727,403,950.
The number of national banks ’n-
creased from 7,420 to 7,488 during the
year.
These facts are taken from the an
nual report of the Acting Comptroller
of the Currency. Thomas P. Kane. It
contains an enormous mass of statis
tics, most of which, however, are to
be found In the regular statements
showing the condition of the banks,
Issued five times a year.
The Acting Comptroller does rot
discuss currency reform.
Based on capital anu surplus, the
gross earnings of national banks dur
ing the year were greater by over 2
per cent than In 1912. The capital of
national and other banking institu
tions amounts to $2,096,800,000, of
which slightly more than one-half is
the capital of national banks. Of in
dividual deposits aggregating $17,-
475,700,000 national banks held ap
proximately one-third.
The distribution and proportion of
loans as of June 4, 1913, in the bank*
of New York, in all central reserve
cities, other reserve cities and in
country bank® are:
P »r
Amount. Cent.
New York $886,966,804 14.4
Chicago 1,315,735,177 21.4
Other reserve cities 1,640,317,698 26.7
Continued Improvement Raises
Hopes of Another Discount
Rate Reduction Soon.
Continuous Work Only Counts,
Says Publicity Man of Big
Institution.
All reserve cities. . $2,956,052,785
Country 3,186,975,348
48.1
51.9
Total
.L . .$6,143,028,133 100.0
liberal movement, although receipts
are running behind a year ago, there
has been some accumulation at in
terior towns. They show an excess
of nearly 150.000 hales over last
year, but are offset by the fact that
at ports there is a shortage of over
300,000.
Prices May Soar.
As to how much the producer is
Carrying at points not counted, no
body can tell, but the bulls argue
that in view of the marketing policy
all the season and the ease with
which sales have been made, it is
reasonable to assume that the propor
tion is not large. Whether it be
large or small, there is no denying
that the producer as a rule Is ad
hering to his attitude of independ
ence and there is general confidence
in prices holding where they are or
going higher. There seems reason
for thinking that subsequent ginning
reports will confirm qlalms that the
rrop has been picked, ginned and
marketed very rapidly. The man who
has not sold his cotton appears to
be Influenced by that more than he
is by the claims that the state of
business is such as to assure reduced
requirements on the part of spinners.
Business in spots has been re
stricted, though it has not resulted
In offerings being pressed for sale at
concessions. All the news from man
ufacturing circles has not been bad.
The statement of export business in
cotton goods and yarns by Great
Britain for the month of November,
Issued by the London Board of Trade,
was much better than expected, show
ing last year’s record figures to have
been almost equaled.
Conditions in this country are re
garded as more hopeful, there hav
ing been an improvement in the tone
of recent expressions, while the eas
ier money situation abroad, as re
flected by reduced discount rates at
Berlin, is expected to help dissipate
some of the pessimistic advices com
ing from that direction. The statistics
on cotton are admittedly favorable to
the bull side, and it only remains
to be proven whether they have been
discounted by the height of prices
and the prospects of supply meeting
the world’s requirements.
Pennsy Head Attacks
Legislative Evils
PITTSBURG, Dec 13.—Ivy L. Lee,
executive assistant to the president of
the Pennsylvania Railroad, before the
Traffic Club of Pittsburg, said:
“The railroads find extraordinary
difficulties in meeting the situation by
reason of numerous and anomalous fac
tors, such as:
“(1) Different tribunals arbitrate the
wage questions from those which settle
what the railroads shall charge.
“(2) States may impose expenses,
and yet through the Inter-relationship
between States anl interstate rates, the
national Government, in effect, if not
in ^ct. prevents the increase of State
rates tc meet the increased expenses
“(SI We are compelled by the Sher
man act to compete, yet under the Hep
burn law in effect forbidden to com
pete with other railroads "
Special Cable to The American.
BERLIN, Dec. 13.—The Reichs-
bank’s continued improvement raises
hopes for another discount rate re
duction.
The bank's status is $124,000,000
stronger than In '1912, while deposits
are being attracted in unusual
amounts.
Lively discussion began In the
Boerse of the chances of a bank rate
reduction upon a rumor that the cen
tral committee was called for Mon
day.
Weighty financial authorities are
urging the reduction; nevertheless
the Relchsbank management denied
the rumor, and action in December
can be regarded as improbable, the
managers preferring to wait until
January and then make a full 1 per
cent cut.
The open market discount advanced
considerably the first half of the
week, with discouners showing
marked hesitancy, but later call mon
ey relax<*j sharply upon abundant of
fering. This finally caused a decline
in discounts.
The Boerse had a fairly good w’eek,
although the Zabern debtae caused
some depression on Thursday, raising
the fear that the Chancellor would
resign.
NEW YORK, Dec. 13.—"You must
do some kind of advertising that will
keep you in the minds of possible
users of your bank, so that they may
think of you when the time comes
when they want a bank, be that tinje
one month from now, one year from
now or ten years from now.
“In my opinion, the standard daily
newspapers are the best mediums 4o
accomplish this result."
This was the opinion expressed by
Horace Anderson, advertising man
ager of the Title Guarantee and Trust
Company.
In a recent talk before the Bank
Publicity Association, Mr. Anderson
advocated the use of newspapers as
the best medium through which to
accomplish advertising results desired
by banks.
Canada’s $20,000,000
Loan Is a Failure
LONDON, Dec. 13.—Eighty-three per
cent of the Canadian Government loan
of $20,000,000 at 4 per cent, issued at
97. was left on the hands of the un
derwriters.
The feeling prevails that Canadian
borrowing has been much overdone.
RIDLEY & JAMES
AUDITOR*
ATLANTA - GEORGIA
GEORGIA PRODUCTS DAY
EVERY DAY WHEN YOU WEAR
ARAGON
SHIRTS—PANTS—OVERALLS
MANUFACTURED BY
A. M. ROBINSON COMPANY
59 North Pryor St. Atlanta. Georgia
NEW YORK. Deo. 18 —The 48.8M fac
torles of thin Stale employ 1.236,150 per
sons. according to statistics of the State
Department of l6»h..r Issued yesterday.
Based on a population of 11.506,000, one
out of every eight persons Is employed |
In a factory and one male In every six
is a factory worker. ,
The progress of the movement for |
Shorter hours Is strikingly shown by
the fact that 20 per cent of the factory |
operatives are working less than nfty-
two hours per week and 46 per cent be
tween fifty-two and fifty-eight hours.
Clothing and millinery establishments
employ nearly one-half and textile mills
about 20 per cent of the women work
ers.
lOp.c.Rise in Exports
To South America
WASHINGTON. Dec. 13--Statistics
by the Bureau of Foreign and Domestic
Commerce, for the first ton months of
the calendar year, show that to five of
tho principal countries of South Ameri
ca Brazil, Argentina, Chile, Peru and
Uruguay American exports were 10 per
cent greater than in the first ten months
of 1912 $108,300,000 this year, against
$99,000.^00 last
Imports showed a large falling off.
be ing $129,600,000 this year, a> decrease
of almost Si per cent. ,.„
l^st year Brazil sent 616.000.000
pounds of coffee. against 441.000,000
pounds this year.
Exports to Argentina increased from
$42,000,000 to $46,000,900, while imports
from that country decreased from $28,
500.000 to $17,750,000.
Look for
the
DUNDEE
SIGN
75
PEACHTREE
"On the
Corner"
TO
WOOL L AI MILLS
5UIT
TO 0B DOT
PAIRS OF
TROUSERS
Made to Your Order
FREE7
E
SICK STOMACH—PAPE'S DlftPEPSIN
Digests Ali Food, Absorbs Gases
and Stops Fermentation
at Once.
Wonder what upset your stomach—
which portion or the food did the dam
age -do you° Well, don't bother If
your stomach is in a revolt; rf sour, gas-
and upset and what you Just ate
has fermented into stubborn lumps:
your head dizzy and aches: belch gases
and acids and eructate undigested food;
breath foul, tongue coated Just take
Pape's Diapepsln. and In five minutes
you will wonder
indigestion and
what became of the
distress. Millions of
men and women to-day know that it 1^
needless to have a bad stomach. A lit
tle Diapepsln occasionally keens the
stomach regulated and they eat their
favorite foods without fear.
If your stomach doesn’t take care of
your* liberal limit without rebellion; if
your food is a damage instead of a help,
remember the quickest, surest, most
harmless relief is Pape's Plapep.-in,
which costs only fifty cents for a If., ge
case at drug stores It's truly wonder
ful—it digests food and sets things
straight so gently and easy that it is
astonishing Please don’t go on and on
with a weak, disordered stomach; it’s so
unnecessary.—Advt.
Sale Positively Ends Saturday, Dec. 20th
Hundreds have profited by this wonderful offer and this great tailor
ing establishment has made hundreds of new friends—BECAUSE we
have carried out to the letter just what we advertised. Here’s the
offer that has set all Atlanta talking about the “Dundee”—-with
every suit to your order you get a pair of $7.00 Trousers also
made to your order ABSOLUTELY FREE!—No change in
prices and the same good “Dundee” service now and always.
JUST THINK OF IT, MEN! £T7 md
A REGULAR $25 AND $30
CfTf? Tailored to Your Measure
^ ond an Extra $7.00
FAIR OF PANTS FREE
Remember This Sale Positively Closes Saturday