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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