The Birmingham age-herald., 1921-05-08
SPURT IN BUSINESS IMMEDIATE RESULT
 OF INTEREST GUT
Skies of Finance and Industry Are Fast Clearing Despite Wage Disputes in Some
 Lines
By HARDEN COLFAX Staff Correspondent of The AEe-Heraid Copyright, 1921, by The Age-HeralO

Washington, May 7.-(Speclal.)- The cut in federal reserve bank in- terest rate announced within the week at such widely separated centers as New York, Atlanta and Chicago, comes to American industry with all the cheer of burst of sunshine after a storm. A lively quickening of busi- ness, which even the most casual eff observers cannot have failed to note, has been the immediate result. The outlook today is the brightest since the armistice was signed.
 The skies of finance and industry are clearing fast. Wage disputes in building and other basic trades and in the railroad situation constitute the darkest clouds and they arc rolling away. May Day came and went with scarcely a ripple the surface of in dustria1 conditions.
 More than at any time within a year the banks, the railroads, the farmers, the manufacturers and the producers generally within the past week have zelt the improvement. The banks
 
 storm find the credit situation tre- mendously better than 1t was year ago and money easier than it had been at any time for months. That s one reason which the three federal re- serve banks cut their discount rates. Another reason is found in the ava lanche of gold which is sweeping down upon America. It comes from every- where and government strong boxes Ky o1r 1x- to burst from it's weight.
 MEANS MORE MONEY
 Easier money has como like a blood transmission to sick -abed industry. It means more money for legitimate en- terprise and consequently more of legitimate enterprise with resultant improvement in employment and mar ket conditions.
 The railroad~ taking stock of earn tngs and income, also have taken fresh heart for the future. A February def dcit of $7,000,000 has been followed by a. March net income of approximately 30,0O0, 900. Decisively the railroad situation has turned for the better.
 Two reasons which stand out promi- nently: First, traffic has picked up; second, reductions in operating ex- penses are developing. Still further increase in traffic and still further re-
 
 pected for succeeding months Here and there, too, freight rates are being low cred on volume traffic between speci- Tied points. cut of 3h cents per hundred pounds in export grain freight rates has helped stimulate business with the farmer. The petition of build ing material producers for freight rate cuts also shows the trend of business sbelief that the present charges are too high for full and free development of commerce.
 M Buyers from across the seas cana into the wheat market during the week an such force that the price of numher z red winter wheat has risen from Sl.47 on April IA to $1.71 at seaboard. Corn prices also went up with in creased export shipments. Better takably ahead.
 Optimistic, also, was the rovarn. ments showing of employment condi- uonss announced yesterday. Officials peileve tha April marked the turn and that the next survey will show a healthful and noticeable improve,nan+7 mere IS widespread belief that Wal street knows when better times are coming and reflects It's knowledra I the stocK market. However that may De, certain it is that a period oe increased industrial activity is alnnos. 1nvariably preceded by a revival ii, tha Voiume or trading in stocks and . X general rise in values.
 Doth symptoms are here After 1virr an travail for many months tba stoc,. marAet has picked itself.sup without any prenmlnar1es whatever and start u upward. The volume of sales has ger ever since and values have higher. oi piices IS