The Birmingham age-herald., 1915-02-04

other very heavy financing transactions under way. The pecuiarity or distin- gushing feature of some at least of these transactions is the fact that they represented the sale of longtime bonds, whereas for two or three years railroads could not obtain imperatively needed funds by any other means than by mar keting short-time notes which bore high rate of interest
 UT course, it is explained that these favorable money market conditions are due to the lack of demand by the bus- ness interests Of the United States for funds That, however. does not explain the ability of the Pennsylvania railroad to market s49.0o0,000 of longtime bonds.
 There do come to this city reports which show that business conditions are Improving in some parts of the country. Very favyrable reports come from the state of Washington, and they are es- pecially gratifying because they show that business conditions are improving not suddenly, or in any way to suggest overstimulation or speculation, but grad ually and yet steadily. The entire Pa cihc coast is likely to set the example of the rest of the country which is to be found In the restoration of confidence and the stimulation of business.
 Some of the best judges in this city insist that whatever may be thought of
 
 conditions are now established which will make a restoration of business activity inevitable. Those who speak in this en- couraging way call attention, first of all, to the very high prices which farmers are receiving for their crops. The farmers know, if the politicians do not, that freight charges and other incidental costs of moving the crops to the markets do not come out of their pockets. What tbevlreceiVa fnr fheir rrons is
 In the second place, there is constant reference to the fact that the recent de- cision of the interstate commerce com mission which permits the eastern rail- roads, those running from Chicago, St. Louis and Cincinnti easterly, to increase rates is a proof that the entire country is now disposed to act with greater favor toward the railway corporations than it has been disposed to do for the past four or five years. That decision has done as much as any one thing to stimulate the return of confidence No summary of the reasons for believing that a res toration of business activity is inevitable is made without including the federal re- serve banking system. That law, which has been spoken of recently as the great est piece of constructive legislation Con- gress has enacted, certainly since the single gold standard was established is sure to furnish all the credit which is necessary for business interests of the United States
 The farmers are receiving from Sl.i0 to S1.50 per bushel for wheat, and this high price does not represent speculation or corners in wheat, but the worlds demand for it. Not the least of the evidences that healthful stimulus has been infused into our business life is the extraordinary rec ord which cotton mas recently made. Everybody remembers when the cotton trade was in the dumps in mid-autumn. It was almost impossible to sell any and the prevailing price for that which was sold was only and in some instances cents a pound. Now this has been sud- denly changed. The demand is active and the experts now estimate that that part of the raw cotton which has not yet been sold but speedily will be sold will fetch at least $l00, 100000 more than would have been obtained for it two months ago.
 There undoubtedly will be some pressure to secure from Congress certain modifica tions of the tariff law. Even those who gave their warm approval to the new tariff law admit that the extraordinary conditions created by the war in Europe have entailed such effect upon the gov ernment revenues as to make necessary certain revenue producing legislation, pos sibly temporary. We have lost all of the customs income which we heretofore received upon imports from Germany and Belgium and a considerable part of the income heretofore received upon imports fIom England. That was a condition not contemplated when the present tariff law was drafted. Some think that it may be deemed eXpedient to secure as great revenue from sugar as We did secure be- fore the new tariff law was passed. No- body can tell what revenue the govern ment will receive from the income tax for 1t is certain that many incomes have been heavily reduced in the past 12 months by reason of business depression and the passing of dividends