The Birmingham age-herald., 1921-01-17
By THEODORE H. PRICE. (Editor Commerce and F'inancc.)


 Copyright, Theodore H. Price Publish
 ing Corporation.)
 New York, January 16-tSpecial.)-- The critical illness and rumored death of Lenine, head of the soviet govern ment in Russia, an extreme advance of nearly 20 cents per pound sterling on London, in which continental exchange participated to some extent, and Il de- cline to 6 per cent in the rate for call money on the New York stock exchange are the three most important items in the weeks news.
 Lenines illness is put first. because his death or retirement, followed as it would probably be by the collapse of the unnatural political regime of which he is the chief, would clear the Euro pean atmosphere and provide the mer- chants and manufacturers of the world with 160, 0,000000 additional customers who are now incommunicado as a result of the ban that has been put upon com- merce with Russia
 tv The advance in foreign exchange and 1the palpably easier money market are closely correlated because the former reflects the expectation of an increase in European credit here that the latter will make possible. Demand loans were made lover the counter in New York last week at 4 per cent 1o-day col1ater- al loans at 5h per cent and the rate on prime 90-day bankers acceptances has declined to 5% @5% per cent. against 6% @6A the week before. There are other evidences that the steady liquida- tion of business in recent months has produced an accumulation of funds in interior banks whose logical effect should be to hasten reduction in the rediscount rates of the federal reserve banks.
 'pf BUSINESS PICKS UP
 As the difficulty of borrowing has all along been the damper upon conner cial activity in the United States, it is not surprising that business showed signs of picking up the moment money grew easier.
 On the New York stock exchange prices are higher, but the recovery thus far is chiefly due to short covering. The outside public has not yet e-entered the speculative field, although there has been some good investment buying of bonds and preferred stocks and sound 8 per cent investments are getting Sscarce. An issue of S10,000,000 bonds ot the Steel and Tub ecompany of America was readily sold on TAO per cent basis. Toward the end of the week the low priced railway shares were in better demand upon estimates that the Decem- Der net revenue would be within. $17,- 100000 of the sS7,0o0,00O that is allowed as that months quota of an annual per cent on a tentative valuation of $18,900, ,0O0 900.
 In the cotton goods market better demand has shown itself and raw cot ton has advanced from to cents pound. The American Woolen company is starting it's mills again, but has re- duced wages 221a per cent. Several other wage reductions in the textile in- dustry are announced, and have been generally accepted. Crude rubber, on the advance in exchange, has main tained the recovery started last week rising another 3 cents. In it's annual report the American Exchange National bank of New York says "A shortage of goods may soon develop in several lines and those who cancelled their or ders may in consequence find cause for regret if they have not already done so."
 STEEL CONFLICT
 The news from the steel industry is conflicting. Reading between the lines, it would seem that the highly inte- grated concerns are well employed while those whose cost of production are higher find it somewhat difficult to get orders at figures they can ac- cept. The price paid for crude oil in Texas has been cut to s2.50 per barrel, as compared with s3.5o in November and the price of Pennsylvania oil has been reduced for the first time in many wears. The reason assigned is a slack ening demand"
 The usual lull after the holidays is reported in some retail stores, but wide- spread bargain sales of staple goods especially clothing, are being we'll pat renized. Whether retailers have theft