The Birmingham age-herald., 1920-11-22
By THEODORE H. PRICE. Editor Commerce and Finance.

by IHEODOHE H. PRlCE,
 Editor Commerce and FinanceD
 'tCopyright. Theodore H. Price Publish
 fishing Corporation.)
 New York, November 2.-(Special )--In New York the feeling that pervades the stock exchange affects the whole com rnanity, and it is not unlikely that in a 1inancial and commercial sense the metropolis was the gloomiest place in the corntry last week.
 On Thursday the American Interna- tional corporation announced that it's usual quarterly dividend of th per cent would not be paid. and the stock, which lad previously declines to 4, after hav- ing sold at 1S214 last year, dropped nearly 39 points more to 3Sl4. As the corporation Mas cash capital of S50 000, 600, the decline represented depreciation of 80, 1000, ,0O0, and it is not surprising that it was some what depressing. Concurrently, many dis tlrping rumors were put in circulation about concerns in the export business, but none of them as far as ascertainable are entitled to credence. The Cuban and Paraguayan moratoriums and the depre- ciation in the currencies of Brazil, Ar Gentina, Chile and continental Europe has undoubtedly made it very difficult to GpllGCt LOT 1le1cHdnAlSe Siiippth io tllosS countries.
 As a result many .acceptances drawn against such shipments will have to be renewed, but the merchandise has not per- ished nor is it perishable, as has been alleged. In time it will pass into con sumption and be paid for in eXportabie commodities Some losses will no doubt be incurred, but those upon whom they will fall made large profits until recently and are ahln stand them,
 MONEY IS EASIER
 Most industrial stocks were carried low CT by the decline in American Interna- tional and the securities of the shipping companies in. which it is known to be largely interested, but on the whole the market showed remarkable resistance ana the railway shares in particular have been well bought at the comparatively slight declines established. Call money has been distinctly easier loans having been made az low as per cent on two days o1 the week and 90-day loans on stock exchansW collateral are now to be had at per cent
 The bankers and the federal reserve board apparently alarmed by the deStruc- live success of their deflationary policy have been issuing reassuring bulletins which remind one of the stable door that was locked too late but close analysls of the federal reserve bank statement or November 12 reveals an abundance or credit in some districts which II It pe- comes general may warrant and compei ia reduction in the rediscount rate. The Cleveland bank, for instance, would have had a reserve ratio of about I5 per cent if. the loans made by 1t to other Ieoerai reserve banks had been paid off, and sl.pon the same assumption the Bostoh atio would have been over 63 per cent The New York ratio was the lowest at hr,o F, Ja, Chicago. Minneapolis and Kansas city were all close to or slightly under Al per cent If the liquidation accompiisheu since these figures were made ooes not so improve the banking position that reduction in rates is ordered IL IS not un~ likely that Congress will be askeu 70 take a hand in shaping our financial policy for there are many influential business, Y.,en who feel keeniy and will protest vigorously against the unnecessary haru7 ship that has been caused by an efIort 10 undo the imitation of four years in SIX months.
 It's greatest injustice is that as re- Srlt of the precipitate decline III co'h modities it now takes nearly twice as mrch corn, wheat or cotton as it did q wear ago to pay $1 of taxes, and that those who hold our debt are getting tnef interest and some of their principal III money whose purchasing power is mucn greater than it was when they made the loan, while the producer. who is not money lender. suffers by the lower prices lhe is forced to accept
 MAY TAKE SEVERAL YEARS
 Meantime those who are so confidently r,edicting continued deflation and lower lprices will do we'll to remember that we have so4, ,0o9 N0D.0o0 in Liberty Bonds out standing They are in effect paper eur lercy circulating at a discount, ana uh,ii they are retired imitation will persist ex- ,cept as it may be from time to ysris rs- strained by the bludgeoning methods re- lcently resorted to- Fourteen years elapsed between the end of our Civil war and the of specie payment py tne United States in 1879, and much longer time will be required to absorb the losses iand pay the bills of the World war. The process must be gradual and because l believe that it will hereafter be retarded lby the force of public opinion, I am in lelined to expect a recovery from the de- nression through which we have Just nassed with possible boom as the cap ol recently disengaged finds employment lin the security markets.
 With the public seemingly avid Ter news of trouble, the reports or snort time in some industries and complete Ishutdown in others have been given es- ,pecial prominence, but except in the tex lf ,le districts there has been no general cessation of manufacturing activity or Iany widespread reduction in wages.
 Retailers who have made real ana radical reductions in their asking prices report large sales, A Newark. N. J.. de- ipartment store that offered 10000 pairs of good shoes at $S.5 pair sold the lot in one day, and the police had to be called out to maintain order among the lcrowd that were attracted to Brooklyn Iestablishment that had advertised to sell