The Birmingham age-herald., 1914-12-19
Rate Increase Sure to Make Marked Improvement in
 Industrial Lines
COTTON LOAN FUND
 DOING MUCH GOOD
South's Prosperity Next Year De- pends Entirely on Sincerity of Planters in Curtailing the
 Cotton Crop

Washington. December 1s.-(Specal) The new discount rates made effective for the sixth district (Atlanta) on Monday, have been adopted by most of the other districts, although New York has not yet announced its desire for lower rate. So we now have an unusual situa- tion of lower official rates in the south than exist in New York. The impression prevails that the reduced rates will be beneficial at this time, and in view of im- proved conditions there seems to be no doubt that no risk is being taken in put ting them into effect. It is thought that they will not tend to expansion of cred it's, nor promote speculation, but that they will be helpful in liquidating indebt- edness of southern banks to eastern fnan- cial institutions, and will also be of service in retiring emergency currency.
 Normal in Some Sections
 The federal advisory council, composed of F members representing each of the federal reserve districts, met here
 Wednesday, and in all cases improved credit conditions were reported. Condi- tions appear to be normal in the great grain producing districts, but the indus trial situation is still unsatisfactory in most of the other districts. However, the granting by the interstate commerce commission today of the application of the railroads for increased rates means that there will be a marked improvement in the market for coal pig iron, steel preauets and lumber, owing to the re- sufnption of purchases by railroads which will undoubtedly follow increased reve- nues for them.
 Use of Cotton Fund
 Press reports now point to a fairly llb- eral use of the cotton loan fund in some
 sections, notably Arkansas, Oklahoma and Texas, and it is thought that pro- ducers, merchants and bankers in all of the states will decide to avail themselves of the benefits provided by the fund. The formation of this cotton loan fund. however, has already done a vast amount of good When the movement was first begun there was absolutely no market for cotton at any price. The southern mills were buying from hand to mouth. and spinners in the north and in Great Britain were holding back waiting 10 see what the bottom would be. None of the cotton exchanges were open, and there was absolute paralysis in the cotton trade As soon as the fund became an assured fact, the mills began to buy and the export business in cotton has in- r Yao cad 1oot export business in cotton is beginning to assume almost normal proportions. ex- cept so far as Austria and Germany are concerned. Not only have the cotton ex- changes been opened, but the New York stock exchange is again doing business without restrictions. and the advance in prices of leading securities augurs well for the future.
 Wall Street as Barometer
 Wall street is a proverbial barometer and it always discounts the future. so that an improvement in conditions there means better things several months he nee in other sections of the country It is felt that we have passed safely through the terrible crisis into which we were plunged last August by the declaration of war on the part of most of the great powers of the world, and while our ex- port business will necessarily be con- ducted under difficulties as long as the war continues, it is expanding in most gratifying way. The trade balance for the first 10 days in December was s42,- Oo0ooO in our favor. and it is estimated that our trade balance for the entire month of December will be between ESQ., 000000 and $90000.00O.
 The foreign exchange situation seems to have settled itself. Sir George Paish came over early in October for the pur- pose, according to reports which seem well founded of making arrangements to secure the indebtedness due by citi- zens of this country to Great Britain Negotiations were pending for several weeks, and before he returned to Lon- (C0ntinued on Page Eight)