The Birmingham age-herald., 1920-10-11

not be widespread, nor will they be any more effectual in raising prices, than were the efforts of the ''proffteer chasers" last year to lower them. Use of lawlessness is itself a confession of weakness.
 The slow relief of the credit strn- gency in many of the larger centers does not appear to have spread to the country banks, but on the other hand extraordinary success is attending the Notation of new bond and note issues European Canadian and domestic, which are being widely distributed in the largest amounts in several months Both the bond and stock market aver ages have registered advances. In the latter few of the industrials have dis played striking weakness. but tbe strength i'll the dividend paying rails has more than offset them, and on the whole the recovery from the heavy sell ing Of the previous week came about as expected. Part of the new financing IS to De used by corporations to pay off oank loans on their heavy inventories and consequently will ease their losses ooth oy making precipitous liouidation unnecessary and by distributing them over longer period. Gold continues eo HOW Tn and it is reported that the outflow, which has been principally to Japan, will shortly be interrupted.
 Manufacturers losses naturally are causing increased failures which, ac- cordlng to Bradstreets. were 161 last week and 174 the week previous. against 104 and S6 last year. while the september total was 661, with liabilities or Sfo,5OO 900, both high records for the year Bank clearings, however, as re- ported to Bradstreets continue to indi- cate large business turnover. for they are 5.4 Der cent la st for tl,,o country as whole and 9.1 per cent outside of New York. The textile and motor factories continue the dullest spots in the industrial world; in the former, price cuts have resulted in but little increase of business, and curtail- ment is rearing it's head afresh. but some manufacturers are showing a dis position to make quotations at levels necessary to- keep mills going rather than on the base costs and with the approach of cooler wea ther the autumn preezes are blowing away some of the log or pessimism over the dry goods world
 several of the principal railroads of the west have reduced their forces by 10 to IS per cent and will rely on in creased efficiency to produce an equal amount of work. The federal reserve bank of New York in it's monthly re- view of business conditions presents an array of testimony to the improved ef- f'ciency of labor which agress with re- Pnrts from many other sections, but eSfheless seems to be accepted douotfully by many who claim that la- DOT shows neither greater willingness to work nor increased individual ont put. The two views are not so diver gent as they may seem, for probably much of the betterment is due to i'm proved organization and more highly developed labor saving machinery.
 Progress in this direction is highly significant. Adjustment of labor and wage relations is the most serious problem with which deflation confronts the business man. His Transportation troubles already have almost disap- peared, and continual improvement is reported. It is the general Banking sentiment that his credit needs will be met more and more fully as the weeks pass If the purchasing power is no further factitiously restricted his mer-
 chandising problems eventually will give him little trouble But in planning reduction of labor costs to alignment with lower selling prices both the man. ufacturer and the laborer will move wisely to accomplish it by~harder and more efficient work Else the laborer will suffer from decreased wages and the manufactures from the decreased purchasing power available to buy his goods.