The farmer and mechanic. [volume], November 17, 1914, Page 7, Image 7

About The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??

Image provided by: University of North Carolina at Chapel Hill Library, Chapel Hill, NC

                
THE FARMER AND MECHANIC
i
PERIOD OF GREAT
BUSINESS ACTIVITY IS
NEAR AT HAND
(("uiitinueri from Page Six.)
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dollars of capital may ostab
!. ranches abroad, in order that we
more readily respond to our
rig foreign trade, foster and ex
.1 it. It appeared from the testi
fy adduced at Washington that
i . r j and Paris and Berlin collected
r, year hundreds of thousands,
.."millions of dollars, in cocchange
I culbition charges on American
that ought to have been col-
i ,y American banks established
id. It appeared from the testi
v that American business was
(i, nanipcrca anu circum.
. ,j. because me nusiness of the
-rur had ready access to the
, ts of South America, because it
i.,idiT banking facilities. Under
!".dral Heserve Hank act it is
, t. d that there will be establish-
all oi the Houth American IU-
!,,. in fact in all of the nations
i.. .id. American banks to transact
;;. for American tradespeople.
more has no inconsiderate share vet
cotton has just begun to move and
prre 1S S''noUi restrictions as to eop-
shnw nlh tf our foreign trade is
?w ; t,v,,tl When U is remembered
fn5 Avu'Uiil 3hw an apparent un
favorable trade balance of $20,000 000
agrunst us. This was changed to a
flmMnl? tTade1 balanct of. $16,000,000
duiinK September, and now durin
October it has grown to $60,000,000 "
The details of October foreign trade
are aR follows:
ed
its
from
In
Pavne
TKN SPLriFIED POUTS.
OcUlr. 1914 -I.
2 and 3..
4-lD
11-17
1 24
2531
Total
Imports.
JU.001.(Mj0
24.770.W)
2S.95ft.0ftO
-44.640.000
Jlo.GuU.ftw)
3X.20,0O4)
4:,ioo ooo
Customs
$1. jOtJ.COO
?, 7-.n,ott)
2.970, 0t'
3.10.fMM)
2.000. UO'j
customs $29? nnn fmn h.
car. Wh rh e n.-.A n.m
- - - - - V r v v V V.' '
vv oi tne estimates. The
mi me last year of its operation
produced a revenue of J31S.000.000
trom customs.
Some SiKH ific Figures.
It was intended by the Underwood
bill to take the duties off certain ne
cessities of l;f? and lower the duties
on others. To make up the deficit
caused by th- loss of revenue from
customs so created, the income tax
ueiseu as a part of the Und
wooa measure.
It was estimated
tax and the
would yield
first fiscal
to be a determination to take creator
advantage of the South' trerm r. doiis
undeveloped r.o irre. and with th
energy displayed -t is hard to ceon-
Stop
few
ar-
great
;outh
y - a r.
be In if
'cure new
plans are
more e!H-
llT-
it
that the income
corporation tax together
$95,000,000 durinir the
year. There was onlv eo!-
ap-
CONDITIONS IMPROVING
Kriivr Throughout Carolinas Than
One Could Kxpeet.
(Th- ii iis K. Cooper, of Wilmington,
president of the North Carolina
Hankers Association.)
vnditions in the Carolinas are
slowly but gradually improving. On
in mint of the non-movement of the
lUimi nop, uuineas una uuen some-
wh.it stagnant, but with the reserve
l;.nks opening on November 16 and
up..;, ei.rnpletion of the Wade cotton
n.ol plan. I look for much better con
d.ti. ns throughout the entire Caro
lina, where cotton is king.
A a rule at this season of the year
l-iii in the Carolinas are in position
to liquidate their bills payable, but
this has been out of the question this
y.;tr since there has been almost no
i.ti'.n moving, which staple we de
pend upon moving in order to liqui
date bills payable and rediscounts.
SmitiM-m hanks have been, exceed
ingly fortunate in having the time of
.iinejits extended by their Northern
nrrepondents and I urn sure that the
Southern banks are very grateful for
the courtesies extended them by their
Northern correspondents. While the
Smith, rn banks have not called loans,
I t ike it that they have endeavored
ti make liquidations where they could
P"s il ly do so without inconvenience
t their customers. As a rule the
n-ndit'ons throughout the Carolinas
are much better than one could ex
pert. The attitude of the Treasury De
r.irtiiKnt I feel has been very grati
fy in ; to all banks throughout all sec
tions. a.s the Treasury Department has
(irt;unly shown a disposition to be of
it. much service to the national banks
a.s possible.
.$119,170,000 $1G2.C2.000 $14,040,000
"Estimate for first three days of October.
The 10 ports under considera
tion thus show an export balance
of about $43,000,000, while the
business at the remaining ports of
the country will probably bring
me total export balance to
proximately $60,000,000.
The estimated foreign trade
during October, calculated on the
assumption that the 10 ports
above named handled in that
month 85 per cent of the im
ports and 80 per cent of the ex
ports as was the case in the first
eight months of 1914, was ap
proximately as follows: Imports.
$15,000,000; exports, $200,000.
000. The record of foreign trade
during the last three months,
during which time the trade bal
ance shifted to the export side,
is as follows:
Trade I.alanc.
ctea, however, from these smir,.
for the year ending June 30. 1'j14.
the sum of $7i...sr. i.t i tv,
on individual incomes amounted to
$28,306,336.69 and the tax on corpo
rations amounted to $43, 7,S 19.44.
That the Underwood bill not only
justified its estimates, but as a whole
produced, during its first year, even
more than the revenue, whieh it super
seded, is shown by the revenue figures.
The Underwood bill
produced through
customs for the year
ending June 30, 1914 $292,128,527.63
And through internal
revenue collections . 380.003.8S3.96
durinir
eannot fail
importance to
total of
Payne bill produc
$672,137,421.59
A
The
ed through customs
in the last year of its
operation $318,891,396.00
And through internal
revenue collections.. 344,424,453.85
1914. Imports.
Kxports.
I mports
ICrports.
Auk.
Sept.
Oct.
while it was
$iaoiioo.ooo $110,000 ooo $2o,ooo,m;o the success
A total of $663,315,849.85
The collections for the months
i:fi,oo;j,ooo
200,000.000
$16,))00
00,000.000
140.000.000
140.000.000
There is no room for pessimism
rrom every point of view the outlook
improves. Kxchange is easier; interest
rates are lower; reserves show a sur
imus; ciearing-nouse certincates are
being cancelled; the West is prosper
ous with bounteous crops, selling at
high prices; the sea is open to our
growing commerce, and cotton
again begun to move.
in operation demonstrate
of the
has
It ia time to stop whining and at
tend to business.
WAR PANIC AVERTED
System of Credits Scarcely Disturbed
by World Conflict.
(Andrew J. Peters. First Assistant
Secretary of the Treasury)
The greatest achievement of the
Treasury Department during the pre
sent administration was the mainten
ance of the Government's credit and
the avoidance of anything approach
ing a financial crisis or panic when
the European war broke out. With
the whole of Europe plunged into a
war almost in a day, with nearly all
European, governments declaring a
moratorium, or an extension of time
tf V r nnvmAnlo r4 Vif cj on1 Tiri Vt
A f III tttflft a . . m . I ltu vilv aj illVllbJ UVMIC U11U VVXIA
UUI I WHINIlMa ntUrlLLU all of our stock exchanges closed, the
stage was set for the greatest financial
Time Now to Attend to Business, Says
Secretary of Commerce.
(William C. I led field. Secretary of
Commerce.)
There could hardly be a better
statement of prospects open to Ameri
can business men that is contained in
the following transcription of a cable
cram, dated October 31st, from the
Minister of Foreign Affairs of Ar
gentina to the Argentine Ambassador
at Washington, which, through the
rourtesy of the Argentine govern
ment, is permitted to be published for
the benefit of the American business
Interests. The trinscription is as fol
lows: "There is at present no congestion
ff merchandise, in our ports. Wheat
arid Hour are not exported at present
because of the embargo established
' the executive power on those
rrr.ducts. Corn, meat, and wool are
exported without great difficulty, but
fear the scarcity of the means of
transportation for our production in
tne near future. A very effective out-
ri would
Danic in history, and yet, so well has
the situation been handled, so closely
has the government co-operated with
business concerns, that our system of
credits has scarcely been disturbed.
For 16 years the opposition when in
nower has been setting up a straw
man and proceeding to demolish it
For 16 years they have been winning
elections upon exploitation of this
straw man. His head was made up
of a statement that the Democratic
Darty was incapable of conducting the
government's business. I think events
have proven that it has conducted the
government's business much better
than it has ever been heretofore con
ducted. His body was made up of a
ctn foment that Democratic success
rhpant financial panic; and yet there
has been no panic notwithstanding the
fof tVinh conditions were such that a
Republican administration would have
considered the avoidance of a panic
miraculous. His arms were made up
of a statement that Democratic success
monnt the rlosfng of American mius
-tir v.o-,-a n i morfi t nan one v ecu ujl
m,v n 11U.W j '
'ro.n the United States with usual the Underwood tariff
e;.p........ . x . i- I irk3& Tn fact, many oi mem
..., lIiat 1S XQ say- impure napu- ----- rny.ia atmv
tha. wood, iron, agricultural machines are running over time This strav
and Implements, netroleum. furniture, man can no longer be used as a buga
Underwood bill.
There was collected during the first
nine months of th Underwood bill,
from October 3. 1913, to June 30.
114. the sum of $206,500,000, or an
average of $22,900,000 per month.
For the last year of the Payne bill
there wa:; collected an average of
$26,600,000 per month.
Sources of Revenue.
There was enacted, as a part of the
Underwood bill, the new income tax
measure, wnich is as mucosa part of
the Underwood bill as an v "other fea
ture of it. There accrued through
the income tax provisions the sum of
$31. 344, 539. As this income tax was
in rorce tor but 10 months it produc
ed a monthly revenue of $3,134,453.00.
The corporation tax. which was
changed and re-enacted bv the terms
of the Underwood, bill, produced an
accrued income for the 12 months of
$45, ,851 ,028, an average monthly
revenue of $3,804,269.
The monthly revenue, therefore
produced by the income tax and the
corporation tax provisions of the Un
derwood bill together, is $6,938,722.90,
which, added to the monthly returns
from customs of the Underwood bill
gives an average monthly return
from the whole Underwood bill, in
cluding customs, internal revenue
and corporation tax of $29,838,722.90.
The Payne bill produced, in the last
year of its existence, an average
monthly return of $26,600,000.
The excise tax on corporations de
rived by the Treasury under the
Payne law for the calendar year 1912
was $35,006,299, which gives a month
ly return of $2,917,191.58. This shows
an average monthly return of revenue
under the whole Payne bill from cus
toms and the corporation tax of $29,-
517.191.58.
Therefore, during the nine months
available under the Underwood bill,
as compared with the last year of the
Payne bill, the Underwood bill pro
duced an average monthly revenue of
$321,531.32 greater than that of the
Pavne bill.
This would show an average yearly
increase under tne t naerwooa Din or.
$3,858,275.84.
Where Increase Is Likely.
This revenue received may be fair
ly added to, in estimating the revenue
production of the underwood bill. The
income tax law provides that the
penalty for nonpayment of taxes shall
not accrue until 10 days after the
close of the fiscal year. There was
due July 1, 1914, the sum of $5,240,
108.83 in taxes which had been as-
reive of an thins that c.u.n
progress and prosperity in
ern States during the n-xt
ii ...
i.ener organized rts
made than ever bef..re to
immigration, arid broader
under way for promoting
cient agriculture and aiding progres
sive farmers. In the cit:s one find
imp..rta?n work b'-ing d.,ne to estab
lish industries which may s.ireevsf ally
develop the South, and greater em-
o-iMK wiiu (n ftiiirauon gen
erally, particularly on trainimr of tho
young men for commerce and busi
ness. The universities are establish
inu a school of commerce, rnai.y of
the cities are teaching Spanish and
Portuguese jn their schools, and com
mereial education g nerallv receiv
ing eclose attention.
All of these- elements are making
ior an evolution of the South
tne next live years which
to oe oi the greatest
me nation, tor there is a wealth of
opportunity in this section which the
country as a whole hardly under
stands or appreciates. Out of the
hundreds of business men we met we
found but five who believed that the
United States Government should ar
range for a bond issue to place cotton
in storage and cacrry it. They were
also opposed to State aid for such
schemes, and were confident that '
with the cotton pool completed and
the general financial resources avail
able no such schemes should given
serious attention.
Southern business men almost with
out exception are enthusiastically in
terested in plans for the upbuilding of
our merchant marine and the broader
development of our commercial
policies in every direction. They are.
anxious to co -operate with the busi
ness men in all other sections of the
country in the most hearty way in
every sound project for the develop
ment of the country as a whole. They
are not seeking sectional advantage,
but are ready to do their share of
the work and make generous contri
butions of thought and energy to th
progress of the nation a.s a whole.
PROSPERITY INEVITABLE
Trade
ui-ncating oils, etc. These boats
w"uid return with our products that
l to say, meat, wool, hides, quebra
yio. live stock, etc. American manu
rirturers can occupy the place left
J'ii'ant by European industry in all
branches that have been served
y n. The present movement offers to
Arnericiin manufacturers very appre
ciable advantages for occupying posi
tmns. profiting by the present Euro
inability. In order to get these
idvantages they must take the initia
themselves, sending at least small
rygoeS and also agents, and especially
J i'Mding themselves to the custom of
"t 'lornanding cash paymetnts, as
nan been practiced by others with
Wl11 known success."
' ne above presents an open door, in
".ring which
1 o't urers
iH to be
our part
,' in
band.
'ti-ro ,s somer eason t0 think we
r" learning this important lesson. A
t'tnent of imports and exports fol-
tri . j ' J'l llll);ai tusiuuia v .-
l i'T the
- It shows over $21,000,000 trade
Yi . 1
;,"u in which progress Baltl
Kaduiimou At HoiiH' ami
Abrtmd a Certainty.
Tohn Skelton Williams. Comptroller
of the Currency, and Member of the
Fe d e ra 1 He s e i ve Hoard.)
Reports have been received up to
November 1 by the Comptroller of
the Currency from national bank ex
aminers in every part of the country
upon the state of business in the ir
respective districts and a summary of
their impressions and observations ar
rived at by actual contact with the
commercial and industrial interests
gives us a most reassuring promise
for the future. Tiiese reports ;in;
now upon file for the month of Octo
ber and a feeling of substantial optim
ism runs through a vast majority of
them.
Moreover, these reports provide us
with a very accurate review of the
conditions as they obtain today. They
not merely point to great improve
ment in the business of the future,
but they furnish an index into pros
day affairs and into the causes for
any depression that may prevail local
ly or generally throughout the coun
try. They show whether or not busi
ness is steady, or improving or declin
ing. No Failures of Moment.
Perhaps as significant as any phas
of these investigations is the fact that
no failures or suspensions of moment
have been reported to the Treasury.
This does not apply merely to bank
ing institutions, but it applies to all
lines of business endeavor. Aside
from a New England cotton mill, a
Philadelphia department store, an
Illinois typewriter factory and a few
cases of minor importance, no busi
ness concern seems to have suffered
during the months of stress Just past
to the point of bankruptcy. This may
properly be regarded as of particular
significance in the light of repeated
declarations that failures have left
their wreckage scattered widely over
the country.
Of all the sections of the country
only the South appears at this time to
be seriously crippled. This is due. as
Is well known, to the over-production
of cotton," coupled with the breaking
bill.
dis
the American manu-
will be welcomed. It is not
on one side. We must do
and meet the customers half
sessed against corporations and indi-
goo to frighten the people. The ad- Tiduals under the terms of the Under
ministration can properly stand upon wood bill and which should have been
its record for achievement. paid before the close of the 1914 fiscal
"lYrvl rrr4 Tarill 15J11 a suivws year. x iua oiuuuui uiajr uui ij t
Th pxnerience of having taken part timated as having been under the Un- down of the export cotton market.
illC CACIHUVV ill I ji J kill 1 . ......
inriiL urn i uei wuuu uui.
The income tax provisions of the
Underwood bill also collected, in its
first year, an amount far above
WAR PANIC AVERTED TWO
normad. The large dividend periods
are January 1 and July 1. On these
two semi-annual dividend periods the
Underwood bill collected only income
on dividends accruing for four
months. The dividends accruing on
July 1; 1913, paid only an income tax
on four months, as the income rev
enue law had not commenced until
March 1, 1913.
This sum, added to the increase
actually produced by the bill, shows
that the Underwood bill produced a
revenue substantially in excess of that
of it5 predecessor.
Vk riIIU ImT II III I II L1IVJ VA - '
in me jji
i Houinc an oDDortunity to
illlU lilt" . , .
t from an administrative posi
tion in the Treasury Department, has
civen me an exceptional opportunity
for insight into the Underwood
mi nHnmnt hns been made to
credit the revenue legislation of the
present administration and give the
impression that the Underwood bill
has failed as a producer of revenue.
It is further intimated that the addi
tional revenue legislation just passed
has not been required solely through
the circumstances of war, but through
the failure of the Underwood bill to
Provide sufficient revenue to meet the
nt fho government.
vt. inr .-nul ha fart-her
nu meet tne customers nan rume, 7torr,or.t rrefullv
ox,ond!nc the welcomins truth ".an these statements. Caref-H
Underwood bill nas pruvtu u.
.a;dnir revenue, and has
SUCCESS ill ' - .
produced revenue in excess of the esti
mates which have been made.
week ended October wnen tne u -
Underwood piii n. firT wnr
our favor in this single duce iron urr
f 270,000,uuu. atiujuj
Nothing else has contributed mate
rially to the unfortunate state in
which the normally prosperous South
today finds itself. The lumber in
dustry of that section appears also to
be upon a reduced basis, but no oilier
interests appear to be in straits.
Improving In The South.
Even so, small loans are to a large
extent being piid throughout th
South as they fall de. Many exten
sions of time and renewals are being
asked for, but the issue of emergency
currency has proved a great help in
meeting the money tightness. The
release of reserves through the opera
tion of the Federal reserve act will
further relieve this section and en
able it to hold it cotton with less
discomfort.
All Southern crops are reported in
NOTHING CAN STOP SOUTH
a. sta.nl of th Snnthwpst has hwn
Trvr-ueadoas Natural Resources Will productive, as are the cereals where
Be Used to the Iiimit. tney have been raised to any extent.
( Jchn H. Fahey, president of the Na-1 Reports from Atlanta are to the effect
tional Chamber of Commerce.)
Mor. than ever before these seems (Continued cn Page Thirteen.)
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