The Birmingham age-herald., 1920-07-27


 against the extravagant use of the | word cancellation" in the press re-
 ports of the dry goods trade at a time
 when the number of cancellations in
 most lines are not abnormal"
 | In the leather trade the depression is ] attributed to the feminine reaction against freak shoes for women, for which all men ought to be thankful; 1;
 the re-selling of army shoes for men bought from the government, and the l use of substitutes for leather in up-
 holstering furniture and d itomobiles. l The decline in rubber is said to be due to the much talked of reduction in the sale and use of automobiles. As 1 the automobile business is now the third or fourth industry in the coun- try, special effort to ascertain the facts has been made. Almost without exception, the larger companies report demand in excess of their production
 and their published statements sustain this report There is, however, some basis for the rumors that a few of the
 smaller companies are hard pressed, be-
 cause they can no longer rediscount the | obligations accepted for cars sold on time. While banks are reported to be
 willing to assist in the purchase of mo- for trucks and tractors bought on credit, they put passenger cars in the
 non essential class and refuse loans against them. The scarcity of gasoline . and the high prices charged for it are also adduced as reasons for the prob- i ably exaggerated reduction in the de- mand for automobiles. It is reported that in Los Angeles gas Is being ra- toned out and that but five gallons daily are allowed a purchaser. display advertisement announcing rPdnnfinn of at one of the largest and best know> hotels in Texas has been seized upon as indicating "a downward tendency in everything, and a commercial slacken- Ing of activity which if it comes will be largely due to the tightness of money, which so many believe to be unneces-
 sary and fictitious.
 |SCRUTINIZE LOANS CAREFULLY
 The federal reserve ratios show a slight improvement, but high rates con- tinue obe charged and all loans are carefully scrutinized. Some banks are reported to be practicing usury by in- dlrectlon through the imposition of a service charge" on the accounts of bor- rowers. who are already paying the maximum rates of interest on their loans. A specific case. in which the borrower, in addition to paying per cent interest on a loan of s144 900, has been asked to pay Service charge" or S200, per month, has been brought to the writer's attention
 Whether the advance of S626,000. 900 in wages granted to 18942S7 railway employees will intensity or relieve the feeilng of depression that seems to have been unnecessarily engendered is de- batable. Obviously, it will increase the spending power of those amongst whom o1a l an increase in freight and passenger rates that will augment income of the railways by a still larger sum, much of which will be used to huy new equip ment and make improvements A qulckenfng of commercial and indus- trial activity all along the line would, therefore, seem to be indicated A dis cussion of the wage boards decision is not possible within the limit of this article
 RAILROAD WAGE ADVANCE
 Briefly, the advance allowed averages Fl per cent on the wages presently paid It IS retroactive to May 1. The most highly paid men get the smallest per- centage of increase. Taking the pre- vious advances into consideration, the railway employees will have had an in- crease of approximately 105 per cent on the 1915 basis. The department of 1 labor says that in the interval the cost | c1 necessaries of life has increased by l an average of 95 per cent. Dun's Tn 1 dex Number" which was 12i on Jan uary 1, 1915, had risen to 260 on July | l, 1920. This is about 110 per cent so | that mathematically considered, the ad- | Justment would seem to be fair It is l to De hoped that 1t will be final. The 1 increase in railway revenue necessary 1 i,ev ; coo,000 in operating expenses. plus al previous, deficit of $1,017, GOO, ,00O. mak- ing total of $1,643. .000, 900, is estimated l at 4b per cent. The railway Executives 1 are therefore applying for an increase o1 per cent in passenger fares; 50 per cent in Pullman fares; 20 pc. cent in excess baggage rates; special increase In milk rates and a general advance in freight rates averaging about S7 per cent If the interstate commerce com mission allows these advances or an approximation to them, the railroads will be in a very favora5.e position if the traffic holds. up. Ta;s proviso- isl important. for it is to be admitted that tight money and costly transportation are brakes that will caeck tn. fastest train if they are applied long enough.
 In the east there is iess app ehension of a coal famine next win.cr The President has telegraphed the gover- nors of the New England States that l as result of conferences between the various departments of the government 'coai in sufficient quantities for the leeds of that community ; will be deliv- sied to New England" The Attorney ieneral is after the atleged profiteers n coal The railroad presidents are lustling to move the cars, and Mr James J.. Storrow of Boston has urged ne re-establishment O. the fuel admin stration to circumveEf the speculatorI ma effectively restrict exports until iomestic requirements are provided for. vigilance and agitation would, however. seem to be still neces- ary to completely avert the threatened hortage. In the Illinois coal fields he mines are reported to be closed town as the result of an unauthorized trike. which is said to involve 25,OOO miners. President Wilson has been ap ealed to by the producers in the hope hat he may induce the men to return 0 work.
 MORE MEN AVAILABLE
 The immigration from Europe con- inues to increase. The Pennsylvania ailroad has discharged 12,O0O men. those services were not required. and as released other thousands. who are ow looking for work elsewheres One esult is that building operations are eing undertaken on a larger scale and 'ith more confidence Another, &C., ording to a report of the Merchants ssociaton. is an increase of labor ef- ciency. This is confirmed by Judge