The Birmingham age-herald., 1920-10-18
By THEODORE H. PRICE BAROME TRICS

New York, October 17.-(Speeial.)-
 The declaration of moratorium by the
 Cuban government has attracted wid. attention in this country and easil, takes first place in the weeks finan- clai news. Under it's provisions Cubar pAnk depositors may not withdraw
 more than 10 per cent of their deposits before December l, when the mora Atorium expires, and the collection ot
 febts by process of law is interdcted For the same period.
 The decree was issued to meet a crisis which is the direct result of the
 decline in sugar and the collapse of the
 speculation that had been engendered
 by the high prices previously ruling Except for its psychological effect it need not be feared in this country. for cuba owes but little money here and insofar as our people are concerned
 its chief result will be cheaper sugar for America.
 All the losses which Cubans have to
 bear probably do not equal those of
 American sugar holders. Two large re- liners have eased lthe distress of their customers by granting long term credit on the difference between pres ent prices and those at which their purchases were contracted for. This is in-effect a ptrial moratorium and its in = formal adoption in other trades would help relieve the present tension by snreading unavoidable losses over a longer period.
 In fact, as a generalization, it may be said that a moratorium marks the end rather than the beginning of panic, for it makes people stop and think, and when they do that a panic is at end. Therefore there is also some satsfac- tion to be found in the informal mora ! torium which the farmers of the United states seem to have Resolved upon in frefusing to sell their cotton, corn and wheat at present prices. As a conse- quence, many of them will have to de- fer payment of their debts. but some procrastination in meeting their oblga- tions is certainly to be preferred to the almost universal bankruptcy that would follow if every one tried to sell when the sentiment in regard to com medity prices is as universally bearish as it is at present.
 NEW KIND OF UNREST
 Fiery threats of farmers strike and of march of a farmers army on Washington. by men who normally are
 we'll balanced. economic thinkers, is evidence of new kind of labor unrest in the country, and while such talk is deplorable and such action as the hurn- ing of cotton gins is both foolish and criminal. it is plain that the agricul- tural mind is thoroughly aroused by the recent decline in the value of the great staples and in the past it has not been wise to disregard the protest of the po- litically powerful farmers when they were united.
 For one thing. it is to be noted that they are asking under what provision of the federal reserve act the federal reserve board is empowered to publish the bulletins and reports it now issues each month or oftener in regard to business conditions and the probable course of prices. These bulletins have been an important influence in pre- cipitating the decline that has recently occurred, but there does not appear to be any direct authority foH these publications in the law, and 1t would seem to be aflittle dangerous to permit those whose power to make and unmake values is almost omnipo- tent to play the role of prophets also The temptation to vindicate their gift of prophecy is too great.
 Even in the troublesome days of Au- gust, 1914, the directors of the Bank of England contented themselves with raising and lowering the discount rate They kept on saying nothing. and per- mitted people to form their own opin- ions, unaffected by official outgivings to which undue importance may be at tached. The example set is one which might well be followed in this country
 IDEAL FOR CROPS
 Weather conditions have been almost ideal Tor the crops, and it is probable that the final harvests will exceed the estimates of October l, which indica ted new record yield of corn, close to record crops of other foodstuffs. and the largest cotton crop since 1914. Com paratively slow movement of the grains and the good export buying customary at this season have strengthened those markets slightly. but the decline in cotton has been checked only by occa- slonal rallies and reached new low levels last week. Consumption during September was 2sO00 bales less than in August, and further curtailment has been reported from the New England textile centers. In the wave of whole sale price cutting there has been a no- tlceable slowing down. for it has stim- ulated buying but little, and business does not seem likely to reach the vol ume warranted by the present purchas- Ing power until retailers empty their shelves which the Dry Goods Econo- mist says are stocked 20 per cent higher than last year. Another era of go per cent" sales is not improbable unless those who deal directly with the public make reductions which will stabilize business at lower prices and make for steady volume of buying instead of the fluctuations which recent expert ence has taught us all to dread.
 The shrinking business turnover em- phasizes market quietness. Bank clear ings for the week as reported to Brad streets showed a decrease of n per cent from last year, and failures were l IS against 161 the previous week. and S5 last year. The iron and steel mar kets deservt watching, for though be- lief in lower prices is general the pos sibility that advances may take place in certain lines indicates more strength in the price situation than is usually conceded, for steel prices influence many others and increases in opposition to the general trend of commodities could be expected to exert steadying influ- erce. Copper has dropped sharply to 16% cents Fur sales to convert the heavy stocks on hand into dollars have begun with considerable degree of success.
 REDUCTION IN TRAFFIC
 -Close observers in the west and south report a noticeable reduction in the railway traffic, both freight and pas- senger. No official confirma ton of these reports has been published. but with the crops being held back and the prevailing feeling of depression be- cause of the decline in their values. it is not to be expected that there will be as much tonnage hauled or as many people travelling as last year. The fear of this may be partly responsible for the retardation fin the advance of rail stocks which occurred last week. but