The Birmingham age-herald., 1920-10-11
By THEODORE H. PRICE, Editor Commerc iaI and Finnncier
 BAROMETRICS

Wool Ohio common n....
 Iron, No. g. Philadelphia ............
 Steel billets. Pittsburg .............
 New York, October 10.--( -(Special)- This is written as I return from a trip to the northwest that has carried me as Ear as Duluth and Minneapolis. As one gets away from the great centers the htmopshere of business is less depress- ing, but it is undeniable that the decline sn wheat and corn is already having a restraining influence upon trade and that the merchants who serve the great grain producing states expect falling off in their sales until the markets, shall have reached level that is regarded as stable. The published figures show Feduction of 26 per cent and Il per cent respectively in the September business of the two great mail order houses, in Icomparison with last year, and most distributors now admit 8 falling off in fheir trade that is somewhere between rhese two figures.
 There are, however, some exceptions Bto this generalization. In Duluth, where !s large portion of the money, spent is derived from the iron mines, there is sno perceptible slackening of commercial activity and one of the largest hard Iware dealers in the northwest told me sHhat the railway buying fully offsets 7he falling off noticeable in other di- srections.
 SUSPENDED BUYING
 It is nevertheless to be admitted that since the grain producers are getting hess for their crops, they are generally insisting upon getting more for their anoney and that we are now passing Through period of suspended buying, Ii n the course of which consumers sup fplies and merchants stocks are likely Yto become very small. It is also to be kadmitted that retailers have not yet re- lsluced their prices to parity with the wholesale markets and that they are tstill demanding last years prices on tgoods that can now be bought for much D ess. This is largely responsible for the production in sales and when those who Ideal directly with the public realize sthat it is mistaken policy we shall probably witness a revival of activity.
 Some heavy losses will no doubt have Ito be written off and there may be some failures, though it is really surprising that the decline of from 25 to 90 per cent that has already occurred has not caused more distress.
 That no serious trouble has as yet de- veloped, despite the uunecessaTy rap- idity with whieh defiatt0n hos been forced in esnvip pefas evidence ef the financial strength qf the country out it is nine s.ss lass important trat nor- ma1 conditions sae@L ROW be re estah- lIished for even es serft gsst bank cans 4 not be liquidated in day, and the only tsafe way to descend from great height ! is to come down step by step.
 Scared by the high rates of money and the pessimistic outgivings of the federal reserve board, good many peo- pie lately have been trying to jump down, and it is to be hoped that those who control the flow of credit will soon see that persistence in the attempt to undo the imitation of five years in six Enonths will eprostrate the country. AL ready it is provoking great resentment against those who are mistakenly sup lposed to represent what the ignorant call the money powers. Governor Allen of Kansas is charging the Chicago Board of Trade with responsibility for the de- cline in grain and the Non-Partisan League, whose strength in Minnesota and the DAkotas is not appreciated in the east, has been greatly aided in it's endeavors to array the farmers against | the commercial classes by the weeks developments.
 CLASS FEELING DEVELOPS
 It is the development of this class, feeling by which was most impressed on my trip. If by continued abruptness in increasing the value of money and reducing the value of what labor pro- duces the present antagonism is in- lflamed. the consesuences may be seri- ous. The advices which reach me from the south indicate a similarly disturbed bcondition of the agricultural mind in Ithat section because of the continued l decline in cotton 1t may be that the intrinsic value of wheat corn and cot. ton is now no greater than it was be- fore the war, but no one really knows what the intrinsic value of these great | staples is. The point is that this years crops were produced at cost for labor and supplies which justifies the expec tation of prices above those now cur l rent, that the decline which has oc- ! cured is in part due to the high in- 1 terest rates and that since it was possi- ble to Keep interest rates down during l~the war when the government was bor- l rowing largely. there are many who think they should not have been ad- vanced until people had been given an ! opportunity to adjust themselves grad l ually to the changed conditions.
 | The tide of price cutting seems to be | slightly retarded. but there is yet no | sign of it's turning and though many l realize that the country's purchasing | power is large enough to move excess ! stocks into consumption as soon as the 1 collective hesitance of buyers can be overcome, nevertheless attention is cen- tered on the lOSSS of the present and the hopes of the future are left to take care of themselves. Sugar has declined again throughout the country and Chicago l grocers have set a record by cutting the | retail price to 11h cents More auto | mobile price reductions are announced ! The various iron and steel lines show contradictory weakness and strength, depending on the state of the indus tries which they supply, but copper and other metals are lower.
 Likelihood that wool will not soon re- reevs- is emphasized by sharp declines k fzl- @Lhns fig 1t Australian auctions since fhe sr. 5nd other news from abroad indicates. at falling prices are almost world -Uf&@ \ for the available foreign index Eun+ oers show varying declines, and FroncA and British motor manufae- tare.G arc equalling American cuts in ~rFer 10 meet our competition. If price ashing becomes general throughout Hurope. cur own distress will be accen-
 our aH1lie5.to undersel her I lines is the only factor which
 overoomine the d~rreciation of ex- llsaarFs and maintaining our exports essn zt their present unsatisfactory I leseI
 OVER-SOLD COTTON MARKET Tn, cssrscid condition of the cotton ns~x4et which had declned to new low IS s*vslA Tor khe year, became evil aFnt 5n fts recovery at the end of ShS Hess< Reports that night riderss lLl.-<- ---- ttf+A