The Birmingham age-herald., 1921-06-06
By THEODORE H. PRICE, Editor Commerce and Finance,
 New York
Copyright, Theodore HI, Price Pubiish- Ing Corp, Ia Exchange Place,
 New York

New York
 Copyright. Theodore HI, Price Pubiish-
 ing Corp, Ia Exchange Place,
 New York
 New York, June 5.-(Special) )-It is said that watched pot never boils, but like most proverbs this one states but half the truth. It is fact that 1t seems long time before watched pot boils, but if it is kept over a hot fire 1t will boil in due course, and it is only to those who are impatient that the boiling point seems slow in ar irving.
 This observation is peculiarly appro- priate just now, for there Is to be dis cerned throughout the country a feel ing of disappointment that the hectic activity and large profits to which we became accustomed in war times have not yet reappeared. It is therefore in order to point out that they are not to be expected either immediately or in the future unless we should unhappiIy be again called upon to take up arms, which is a possibility which every right-minded man must contemplate with abhorrence.
 The people of the United States and or the world are meantime getting back to sanity and practicing economy, which is the surest way to wealth and prosperity that will ever be devised. All classes are trying to spend less. The rich because the income super taxes leave them with less to spend and those who must work to live be- cause lower wages and more discrim- mating and less eager demand for thclr services are teaching them afresh the virtue of saving. Since my return to New York no less than II men of large wealth have told me that they could not afford to open their country places or put their yachts in commits sion this summer, and the fact that the small savers of New York put into the savings banks 41,357,396 more than they withdrew during the first three months of 1921, indicates that those who are generally regarded as impecunious are becoming thrifty.
 Exaggerated Idea
 I am therefore disposed to conclude that the disappointment that so many express is due rather to an exagger- atcd idea of what is normal than to any real abnormality in present con ditions Certainly most of the statis- tical indicia sustains the belief that the business turnover measured in tons, yards or gallons is as large as it was last year, for the percentage of decline in dollars is in hardly any case less than the decline in the price at which most goods are selling. Thus, despite the fact that the index numbers com piled by Duns, Bradstreet and Babson show composite average decline of 43 per cent in wholesale commodity prices. bank clearings for the week are about 18.S per cent below last year and the net sales of the leading department stores for April. as report ed by the federal reserve banks throughout the country had a money value that averaged only 5.3 per cent less than the totals of the same month in 1920. It is, however, true that the figures are still subnormal in some lines where the business presently passing reflects commitments made months ago. Contracts for building material, structural steel and many manufactured goods for which there is seasonal demand, are made long time ahead. and during the paralysis by which we were afflicted in Decem- Der and January last there were but few who had the cash. credit or cour- - avoidable.
 The slump in railway gross earnings recently recorded and the present duIi- ness in the steel and lumber industries are therefore traceable to depression that has passed and a revival of con structive activity is shown by the gradual increase in freight revenues that is now being recorded as we'll as by a somewhat better demand for iron and copper. As to lumber, a prominent southern lumberman writes me that T believe I am speaking the truth in saying that the long period of dullness Is about to be broken, and feel that there is today a slight m- provement in the lumber business in so far as both demand and prices are concerned"
 Thanks Correspondents
 This statement is quoted from one of the many letters written in response to my recent invitation For them l thank the numerous correspondents who are thus helping me to get a closer view of the nations business It is, however. worth remarking that d larger number of these letters voice the general protest against the high railroad rates and the disproportion- ately high retail prices that are stiil being demanded in the shops.
 Thus correspondent at Middletown, O., writes: "The retailer is the stum- bling block in this section of the coun- try. Almost every line of retail trade has an association for price fixing. 1T we are to have an open shop for labor. why not have some open competition among the retailers. One shoe store was recently opened here by mar! who was not a member of the retai shoe dealers association and the high est price that he asked for mems shoes was s6 pair. The others are. how ever, trying to boycott him in every way possibler There are many other letters in the same strain. and they force one to the conclusion that the buyers strike is not likely to end the retailer yields.
 As to railroad rates it is evident from President Harding's unusual call upon the interstate commerce commis- sion that the public is being heard from in Washington, and that while