The Birmingham age-herald., 1921-06-27
By THEODORE H. PRICE Usditor Commerce nnd Finance,

| thditor Commerce nnd Finance,
 New YOrk.)
 Copyright, Theodore H. Price Pub
 fishing Corporation. 16 Exchange
 Place, New York)
 | New York. June 26.--(Special.)- )-- Expressions of international amity by leaders in the world affairs, particu- larly the words of Mir. Lloyd George on the occasion of the opening of the conference of premiers when he said thGt the future of the British empire, liNo the future of the world depends on the friendly cooperation with the United States stand out in the events | ot the week as of more importance than the drab description of current industrial affairs a It is to be hoped that we have not reached that unfortunate psychologi- cal state which forbids us to take cognizance of other than the gloomy aspects of world trade, finance and politics. A great fall In security prices and a state of more or less de- pression in other financial markets are apt to pervert judgment unduly, | especially In the case of those who have suffered financial losses there | by. For that matter. the past 2 months have constituted a year of losses. reckoned in dollars and cents. l for nearly every business firm and in- dividual. Few have escaped the ef- fleets of worldwide readjustment or deflation or whatever you wish to call 1t. This doubtless is one reason for the prevalence of pessimism in so many commercial and financial quar- ters. precisely as the accumulation of
 profits. although largely fictitious was the cause of so much extrava- gant optimism brief year ago small cloud, because it is close to the observer, frequently obscures his vision so completely as to cause him l to suspect the approach of violent storm, although little way beyond the horizon is clear and the sun will soon be shining brilliantly in his To- cality.
 Trade Conditions
 | So much by way of prelude to a | brief reference to trade conditions of the moment as they are reported from various sources, Admittedly, they are discouraging in a great many re- spects but, judging from all previous ! instances of the kind, the very se- verity of financial or economic trou- ble, rather than indicating a contin- l uance of the disease, suggests an ear | ly breaking up of congestion. Stag nant industry, slow trade movements low commodity prices, even under production costs in some cases. and | liquidated speculative accounts in se- curities and goods, all of which now obtain to a greater or less degree, are to be regarded as preliminary to the forward surge of a new economic | cycle. This condition of industry means that bank resources year ago strained to their utmost, are again becoming liquid and available for an orderly extension of industry. Where | as in the final months of 1919 the | wheels of business were humming i and merchants and manufacturers | were over extending themselves for | new business and assuming new spec | ulative risks. while the banks groaned and warned against the folly l of 1t all, we now have the reverse sit uation. The credit and. money stfin- ] gency has passed and banking re- sources are becoming available for new enterprise as soon as the first | shock of an unexpected blow sub sides.
 As labor too. is getting a correct perspective, the excessive unemploy- ! ment of the moment is not without its compensating factors. Little more l is heard of a general railroad strike l to take effect with the commences | ment of lower wage schedules son practically all American railroads July 1. In Great Britain the striking coal miners are gradually returning to work afterA12 weeks of idleness, admitting defeat. Manufacturing concerns throughout this country have put into effect wage reductions ranging fromf10 to 30 per cent with out provoking the hostility Of the working man. At the same time, the efficiency and industry of the worker has increased many fold. These are accomplishments worth dwelling upon, especially when viewed in the light of looming foreign competition. In this respect reports from Ger many, although not reason for alarm. are of significance. The president or the Western Electric company, re- turning from visit to Central Eu- rope, declared that Germany is in a position today to undersedl the world on most manufactured articles. He finds Germany as efficient industri- ally as ever with workers competent and eager to produce. In passing, It is interesting to observe that specu- lation is rife on the Berlin bourse, while our own stock market and those in allied countries are deJected.
 New York Exchange
 On the New York stock exchange in the past week the average prlce or 20 railroad stocks fell to- the lowest ovfcs n a ". while industrial shares were quoted at the lowest figures since 1915, when war orders first stimulated excited speculation. It is not well to become over -awed by the lugubrious reports from Wall street which. after all, IS ancillary to the rest of the country however convenient are the facihties which it affords for legitimate in- vestment, but which are prone 10 abuse by speculators. It is perhaps worth reiteratfng that good secur- ties have suffered with the bad and that the real investor is conii onted with an opportunity for the profitable disposition of surplus funds T. bonds and preferred stocks which o1ier re- turns on the investment perhaps with out parallel on any previous occasiops Certainly such opportunities nave never endured for long.
 Cotton contracts calling TOT oeliF- erv in October, December and Jan nary fell below 12 cents. the lowest leve, reached since early in 1915. Ag1- tation at Washington for some sort or financial relief for the cotton plan ters has become intensified. oper- ations at textile mills. however are probably nearer normal than at any time this year. Cotton mill execu- tives are optimistic. .,
 No cheering news comes rom the steel centers. In fact, the desirapil- itv of complete suspension of opera