The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1921-11-14
By THEoDoKE u. PRICE,

~
Last week was unusual in that it in
Guided two legal holidays and the in
itial session OF the congress for the
reduction of armament, of which so
much is hoped.
With the converting of this congress
the enthusiasm of the people here
and abroad for some agreement that
will be a guarantee of peace has be-
come so evident and is so fervently
expressed that it is possible that the
lower of public opinion will compel
miilenial meeting of minds between
the great nations that are represent
ed at Washington.
If so, the effect upon commercial
and financial sentiment will be cleo
trical, but II is well not to take 100
much for granted, for when self the
wavering balance shakes, it's rarely
right adjusted" and it is almost too
much to hope that the flare of ideal
ism now apparent will entirely oblit-
crate the racial and national an
tagonisms that have made Europe an
armed camp since the days of the
Caesars. This 1 say because 1 fear
the reaction that would follow If the
conference shall fail in what has now
come to be so confidently expected
of II.
Senate and the election are the only
other political facts in the weeks
record that have any direct bearing
upon business. Disappointm over
the former is possibly responsible for
the defeat of the republican nominees
in not few localities and the effect
viii be salutary if the House shall be
made more considerate of business
when 1t comes to deal with the Senate
Ia etr.W. pI
ord Senator Frelinghuysen is quoted
as saying: Il believe this is politi-
cal taxation bill, not scientific tax
alton bill, and / believe that the bur-
den which 1t imposes upon business
is so great that it means a continue
ton of business paralysis"
Most men of affairs agree with him,
for the only relief that the Senate bill
provides is the elimination of the ex-
cess profits tax and graduated re-
duction in the surtax which leaves
the maximum at so per cent. The
details of the bill are fully set forth
in the newspapers and need not be
further discussed here.
One gratifying feature of the cleo
tion returns is the general reduction
in the socialist vote. Last year the
New York assembly contained four
socialists, but none was elected this
year.
In the security markets the area of
buoyancy is extending itself in ac-
cordance with precedent. The boom
in bonds which has advanced Liberty
Bonds still further and made 1t pos
sible to sell high grade industrial and
railroad bonds on q per cent basis
has induced some buying of the pre-
ferred and common stocks whose div
idends are assured. Unless history
shall fail to repeat itself. 1t is only
q question of time when the low
priced securities will join in the up
ward movement, for in the past II
has always been true that when loans
could be easily and cheapiy obtained
people would borrow and buy.
That we are entering upon period
of easy money seems to be indubita-
bly, indicated by the federal reserve
statement. The reserve ratio is TIA
per cent as against II per cent at the
end of the previous week, and the
gold reserves have gained another
s1s.0o0,000. The gold held by the
banks now exceeds the $4,000, 900, 900
of federal reserve notes and bank
notes outstanding by $4,000, 900. and
In these circumstances cheaper money
seems to be inevitable. The fact that
new bond issues aggregating over
<20,0oo,oo0 on several days have been
absorbed without causing even a rip
gle In the money market is conclu-
sive evidence of a plethora of invest
ment capital that will sooner or later
find speculative employment.
In the commodity markets the
sensation of the week has been
sharp drop in the price of cotton
following the issuance of a ginning
report which showed that the gov
ernment's earlier crop estimate of
6,537, 900 bales Is likely TO be largely
exceeded. But even IL this seasons
crop shall reach 100000 bales, as
some now expect. the supply at the
end of the season will not be excess
sive. and the decline in prices will
probably give impetus to the move
ment for crop diversifcation in the
south and a still further reduction
in cotton acreage next year
Meantime, with wheat bringing
only 75 or so cents on the farm,
while corn Is. being used for fuel
because 1t cannot be sold. and hogs,
cattle and cotton selling at less than
the cost OF production. the farmers
predioament is one that calls for the
attention OF thoughtful men every
where.
In the cities there are numberless
organizations whose purpose II is
to make urban and Industrial life
more attractive. A hotel bootblack
now makes more money and lives
with less toll and in greater comfort
than the man who owns and culti-
Yates 160 acres of land. Unless some
way 10 speedily found to correct this
inequality agriculture will become a
lost art, for 1t will be abandoned to
the ignorant and unenterprising resi-
dunn of the population who haven't
the wit or the energy to detach
themselves from the land.
! proffer these observations in lieu
of my usual review of the CONNER
cial movements of the week which
have not been otherwise important.
Generalizing, 1t may be said that dis
tributive trade is now normal. A re-
markable increase in building opera
tons is noted in nearly all the COM
mercial reports. There is a striking
decrease in the number of unem--
ployed, and business men throughout
the country seem to be more cheerful
than at any time this year.
II 1t were not for the threatened
agricultural depression 1t would be
unnecessary to qualify ones optim-
ism, and it is to be hoped that some
way may soon be found to make the
farmer a participant in the prosper