The Birmingham age-herald., 1920-11-08
Bank clearings (Bradstreets) in thou sands

.....,.... $500 55.oo 3s.5O 1 61o the Italian lire 800 to S5s and the German mark from 2.95 to 1.27. Austrian crowns. which were worth about cent each twelve months ago will now bring only one-third of cent The paper money of the Argentine which was at par year ago is now worth only S2 per cent of it's face value and the discount on Brazilian currency is 47
 per cent, against about 20 per cent in l November, 1919.
 It is the world wideness of this de- cline in the value of paper money that impressive. but it's exact significance IS hard to determine unles it presages q confession of bankruptcy by some of l -he practically bankrupt nations whose money is selling for less than 10 per cent Df it's par value.
 Except as it might be conducted by barter we could not hope to maintain our foreign trade with any of the peo- ples who were thus deprived of a cir culating medium, and this is contin- seney that should be kept clearly In view by those who deal in our export able products. EXPORT CORPORATIONS
 The corporations already formed and
 now being formed under the Edge law, for extending long-term credit to for
 
 in sight for maintaining our export trade until the rest of the world recovers it's ability to pay. Support of these corpora tions by investment in their securities is as essential to solution of our domestic problems as to our foreign. Increase Of our trade would halt the course of busi- ness around the vicious circle starting 1 from surplus stocks, through industrial curtailment, reduced wages, decreased purchasing power. and back to surplus stocks again. On that vicious circle reversal of the wartime whirlwind-we seem to be fairly well embarked. It is possible to avoid the full journey only by selling the accumulated goods before further reduction in the purchasing power is caused.
 In this country the unwillingness of the retailer to accept his losses con- tinues the chief obstacle to movement Of goods Therefore it is important in the weeks news that from some sections of the country reports of mark-down sales are increasing. Buying of cheap goods continues in astonishing volume and sales of the 10 and 20 cent stores for October are estimated at least 20 per cent above their large totals last year. Throughout the Cleveland and Pittsburs districts the business turnover is holding it's level excellently. Reports of the trade of Chicago mail order houses and New York department stores counterbalance these favorable items. The former during October showed declines of 3S and 40 per cent from last years business, and while figues from the latter are not so recent, they indicate slightly decreased sales and heavily increased stocks. Bank clearings reported to BradstreetS show further progress around the circle of de- flation, registering a decline of 13 per (o and October's failures, according to Dun's. were double in number over last year and six times as great in liabilities.
 SLUMP IN PRICES
 It is thus evident that business must find consolation in it's profits of the past and hope in the knowledge that stocks even now are being consumed faster than they are being added to and that deferred buying seems to be waiting only for stable price levels. Yet if the stor- page of industrial machinery becomes much greater 1t appears likely that buy ing will be abandoned instead of merely postponed. Curtailment in textile mills has never been so drastic for though price readjustment has improved the goods markets, orders are not finding their way back to the factories. Woolen mills have reduced operations, iron and steel production, which reached record totals in October, is on the downturn. | Coal and coke prices have slunped sharply, accelerating the decline in steel 1 quotations. Tire prices have been cut | Sugar is weaker. but the bearish possi- bilities in the grains, cotton and cofree | markets seem almost exhausted, ana though the deadweight of the continuing | credit ,stringency and business dullness is holding them down, their decline ap- ! parently has ended.
 Leaders of the clothing market are pre- dieting that the next fortnight will De marked by "sensationar' retail sales Visitors may spend their evenings III New York somewhat more cheaply, TOT one theatre manager has cut his scaia of prices 50 cents to dollar and hotels are asking less for their meals
 LABOR'S ATTITUDE
 The inevitable wage reductions are re- ported in the wake of price declines. Though not yet of serious extent they have been sufficient to bring 10TH declarations from labor unions that any | attempt at reduction will be fought Dit terly even at the expense of an unparai- Ieled industrial war. Such declarations align labor with recalcitrant retailers and farmers as obstructors of recon struction.
 The economic landscape, like all others, differs in appearance according to the position from which it is viewed. Organized labor looks at both as con sumer and producer. During imitation it considered itself consumer, demand ing and receiving wage increases com n,ensurate with the cost of livinS. f During deflation it can no more resist the reversal of that process than can merchants or farmers, and 1t will sui .er from it less than they will because prices are coming down first.
 The securities markets. insensible to the election have been narrow and ir- regular under the restrictive influence of high call money. and without feature except that the average of representa- tive rail stocks has risen above that of for the first time in many years. Bankers continue to express the
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