The Birmingham age-herald., 1918-11-11
THE TIME OF DEFLATION

able readjustment in the industrial and commercial life of the nation takes place.
 THE TIME OF DEFLATION
 No one ventures to predict how speedi- ly the tendency toward deflation will De observed. Everyone who speaks With authority, however, says that 1t IS ln- eyitable. The result will be the release of vast sums of money now tled up III loans warehouse receipts, bills of ladins and other negotiable securities The re. lease of this money will De speeaiiy Ieie in the money and in the securlties mar ket There is no doubt that the tlnan- cial district in this city and also in the larger cities of the country will wltnin a few months after deflation has set m he flooded with money much of Whlch VIII be available for loaning upon call.
 | One of the best authorities in the imam cial district said this morning lnat hs | expected to see millions upon millions or released money flowing into the great | financial centers. That money VIII seeh as profitable use as can be found. Much | of if will be utilized in purchase Tor In vest,oent of good securities. But a great daal of if will be employed in dealing ir stocks upon margin, This statement apparently suggests that some oi the l Heading men are persuaded thai when ue- flation begins and while it is in progress Itharn | is often called a bull market In other words the American public will be tempt | al not only to make heavy investments in securities, but also to try to discount 1 inc inward trend of the securities mar Lat Ky transactions which involve the l use of call money.
 | This deflation will not begin uhtil considerable period has elapsed aIter
 t,a,tias of neace have been ratified. For the United States wih pc ophseu ioI VI vear or more to continue it's unparai- lieled utilization of ofJindustrial, mining and | a apricultural activities. In the wal
 straat district some of the leaders are satisfied that our government VIII leei | ob1ieated after peace Is secured 10 send enormous amounts of food, not only 10 our allies across the sea, but also 10 Germany, Austria, bulgaria ana iur lrar, For the evidence is plentiful that
 4ba rIain peoDle In these countries will t l.; ir,y,,saiate need of food. Our gov
 arnroant will do precisely what General Grant did upon small scale after ten
 a,.ai T aa surrendered the Confederate
 army at Appomattox For when Gen
 eral Grant was informed by General Lee that the Confederate soldiers were q,
 Y,ost starving, many of them having llved
 fn,. days upon parched corn and not much
 rf that General Grant immediately ls'
 s,,ad . n order that ample rations be dis
 
 tributed to these soldiers as measure
 Jt will cost great deal of money to feed. probably for months, the hungry
 neonle with whom we have been at war
 hnt the United States is going to do it
 Therefore, so long as these industrial
 conmercial and agricultural activities are
 maintained by the government prices fol
 commodities of all kinds will undoubted
 1v continue to be high. But the day fl
 coming when these activities will cease
 When readjustment is under way, this
 in the view of those who are best in
 formed there will inevitably follow de
 flation in prices for commodities
 In addition there is no doubt that al
 enormous volume of money will be sen
 to inc United States by merchants am
 manufacturers of other nations since will be advisable for them to maintain , satisfactory balances in this country i order to facilitate their purchases. The will do precisely what manufacturer and merchants for many years have bee accustomed to do in London, where tn . aggregate of balances in the banks rer resenting deposits by merchants, import : CTS and manufacturers in other land' ! was many millions of pounds sterling.