The Birmingham age-herald., 1915-01-20
All Legitimate Pressure Pos sible Being Exerted to Improve Industrial
 Conditions
REGENT OFFICIAL ACTION TAKEN IS
 NOW BEING FELT
Seems Certain That Discount Rates of the Federal Reserve Banks Will be Materially Re- duced in the Near
 Future

Washington. January Ie.-(SpeciaI. , The November elections showed that the party lies in the south, and that the maintenance of an nnbroken front in that section is essential to the continu- -pce of the party In power.
 $> demonstration of this fact as we'll fuller appreciation of the unsat tis- .ctory business conditions that have prevailed throughout the south for tho past IF months has brought about a keen desire and determination on the part of those high in administration circles to stimulate southern trade.
 All possible legitimate pressure is being exerted to encourage activities on the part of railroads and industrial enter prises, and the desire for better condi- tions in cotton. tobacco, naval stores. lumber, coal and iron and steel products is no keener in New Orleans, Louisville, Savannah and Birmingham than it is in official circles in Washington.
 War Risk Insurance Successful
 The governments experiment in war risk insurance has been highly successful and has restored normal conditions. as far as volume is concerned. in the ex- ports of cotton.
 The influence of the administration was undoubtedly factor in the decision, last month. of the interstate commerce com mission to grant the application of the eastern railroads for an increase in freight rates. and the referepce by the Presi' dent. in his Indianapolis speech to tht authority of the federal trade commission to act as tariff board. is taken by some to mean that he would not be averse. un- der present conditions, to moderate re- vision upward of some of the schedules of the Underwood Simmons tariff act.
 Discount Rates Too High
 It seems certain, also, that the President regards the discount rates of the federal reserve banks in the south as too high. and 1t Is good guess that these rates will in the near future be materially re- duced by the federal reserve board.
 It is stated on good authority that while the cotton loan fund is regarded by the administration as having been an important factor in fixing and stabilizng cotton values. and in aiding the advance of $io per hale that has taken place since the plan was adopted, there is some dis appointment that it has not been more generally utilized.
 Formal announcement has been made that no efforts will be made to continue the plan in operation after February l, but that 1t will be permitted to lapse after also that the Secretary of the Treasury Is willing to deposit large amount of government funds in the four federal re- serve banks in the south, provided assur- ances are given that these funds would be loaned at moderate rates to member banks, who in turn would be expected to give accommodations to deserving, cus- toners at low rates.
 Foreign Exchange Rights Itself
 The foreign exchange situation has lighted itself. not only Is there no longer danger or &Ol0 eXpOrte, DuL Ine tTaOe pal ance Is heavily in favor of this country, and there would be large imports of gold If the metal could be profitably employed.
 Southern banks still have outstanding about $50. .000000 of emergency currency, and are still carrying large rediscounts with their correspondents in New York and other financial centers. at rates rang ing from A to per cent. It is under stood that the federal reserve board has agreed upon. and will soon publish. . more liberal and less technical regula- ton regarding commercial paper elibible for discount. Sope members of the board are said to favor establishing discount rates in the south. based upon treasury deposits of 3. 4 and 4h per cent, according to length of time the paper offered has tn run. It is not certain that these fig- ures represent the views Cat present) of a majority of the board, but 1t Is argued that they are justified by general money market conditions. and that southern farmers. merchants and manufacturers are as much entitled to low rates upon paper security, as are Chicago shippers or New York and Boston importers.
 Would Heighaen Burden
 It is felt that very low interest rates would tighten the burden now carried by tEe south, and would stimulate the re- establishment of stead markets for its