The Birmingham age-herald., 1920-12-19
CAR DEMAND WILL REVIVE

is the fastest thinking the fastest act Ing, the snappiest nation in the world today and it demands every facility that will result in the best accomplish ment in the shortest possible time That is the Fundamental reason why the desire to own a motor car is in- bred in the heart of every American and that desire has not been abated one 1ot by present conditions. The longer demand is repressed the greater the buying reaction when it comes--and that will be soon
 Just now demand is slow in all lines. Home building has fallen off. people are doing without shoes. coats. hats, gloves and many other things ordinarily regarded as necessities just as long as possible
 The result of this attitude has been
 what?' asked Mir. Metzger
 Liquidation everywhere and ia al
 most everything to answer my own
 question.
 "On every stock market we have seen impressive fall in the prices of shares put without the panic that usually comes
 Wltn such condition. Wheat corn
 oats and other grains, cattle, hogs live stock-all have fallen in price, Cotton is at the lowest figure it has been in wears
 We all know what happened to sugar
 Copper is down to record low prices
 
 Silk tumbled. heather and hides are way down. Coal, clothing and food arc on the toboggan. You can go through the smallest towns in the country today and find the merchants there advertising sales at price reductions. Bread and milk are going down. Lauidation is the order of the day, but the very best judges
 of the situation are agreed that ill many
 essential commodities it has about run it's course.
 'I cite these facts because it is Just from such conditions as we are now eX- periencing that a boom in business springs Keep that statement in mind The world must buy. When it has made up it's mind that it must have things and that the prices at which 1t can get them are right it will buy again and more than ever before.'f3
 1 In the opinion of MT. Metzser, the next two or three months will. be breathing spell following the period of liquidation 1 which is now about over, In those two or three mouths confidence in the future will be reborn. And when confidence is | once more restored. the revival of bus- ness follows naturally.
 AS l said before, signs are now at hand that the turn has come for the bet ter" continued Mr. Metzger. We have
 passed through 6 period of high money rates and have just witnessed the firsc | material break i'll call and time money 1 in New York. Call money has fallen 1 from about 9 to per cent and time from about Sia to and 71s per cent. It will not be long before lower money in New 1 York will be reflected in lower rates all over the country.
 "Another very favorable sign is that which comes from our federal reserve system For month after month it had ! to grapple with the problem of continued | note expansion. Only recently came the | first break with a reduction in demand 1 for new loans or the continuation of old | ones Now. for the first time. the syA- | tenn shows a progressive reduction in 1 outstanding loans The New York clear 1 ing house has shown the sixth success l sive decrease m loans since October lG. I total contraction since that date aggre- I gating s2S3,0D0lD. A slow upbuildtng or | the reserve system strength is noted | throughout the country.
 : CREDIT PEAK PASSED 1 "Practically all the great banks in I the country are agreed that the peak | of the credit situation has passed. One | of the foremost economists three weeks | ago forecasted that 1921 would be q 1 wear of easy money. His prediction is l making good The greatest bank IT 1 the country has issued statement l saying that better business is on the ! way A great Chicago banker looks l for a business boom in the early spring 1 Men and concerns such as these dc not make predictions just because they l like to make predictions. but because | they know what they are talking about.
 'Now. getting Lack to the automo- ! bile business for q moment, production | has been curtaiIed for several months. | 1axr af ed production. production that merely keeps pace with present sales, means scarcity of au- itomobiles when the demand revives, which I feel sure it will do in the spring and perhaps sooner. II feel sure thai the automobile shows will strike an emphatic note of better business, and it should be the duty, of every one in the trade from office boy up to get such an outpouring Of people to the shows this winter AS we have never seen before. Just as the reserve stock of automobiles is being wiped out by ! underproduction, the same is true in ! many other lines of manufacture.. 1 EVERY ONE WILL BENEFIT | "When conditions get just a little ] bit better and the climb towards nor l mai begins, manufacturers in all lines | will have to supply merchandisers not 1 only with immediate requirements but | build up surplus stocks for the future 1 .Improved conditions are here. Bet | ter. times are very near. As business picks up. there will be more sales for
 merchants and more work for work 1 inemen And when business gets bo to nearly normal. there will be pients of sales and plenty of work but there will be no room for shirl.ers for lont time 10 come. Next year will be truly happy one for all of us."