The Birmingham age-herald., 1921-01-24
By THEODORE II. PRICE, tcditOr Commerce md Finnnce.)


 Copyright, Theodore H. Price Publish
 ing Corporation.)
 New York, January 23.--tSpecial.)- A business observer in whom l place much confidence remarked to me last W eek that he had feared the busin ess revival which we were discussing would be merely temporary.
 But" he said, fin the cotton goods district purchasers are humming around like swarms of bees. In all the city's wholesale markets the hum OCT of buyers arriving is believed to De larger than last year, when wholesale business was at it's height. A cotton goods merchant of long experience tells me that at no time in his recol- lection has the number of orders re- ceived by his firm in a single day been exceeded, though, of course, there have been times in recent years when larger volumes of sales al much greater values were recorded. Many retailers undoubtedly have reached the point where replenishment of stocks is absolutely necessary"
 Early in the week, one of the most successful distributing organizations in the southern trade advertised hat heavy selling had made tremendous fnroads upon their stocks and that . S5,0O0,0 ,000 worth of merchandise for cash. Other large companies are in a similar position. The conservative buying which they have done in the past three months has left their shelves bare and they are now Sind ing it necessary to purchase more staple goods for quick delivery.
 TRADE IMPROVING
 Under the circumstances, it is rot surprising to find that their over lures are not met by offers to sell at any price" and that in some lines prices have already turned upward. It has been evident that lack of buying eventually would result in the rush to fill depleted stocks which seems to have begun, and the period of "sec~ ondary inflation," of which l have previously written, seems each Jay to become more probable.
 Trade improvement is rapidly find- ing its way back to the primary rlar- kets. In Fall River last week, sales were the largest and production the greatest since midsummer. The out put will be even larger this week, for several mills which have been shut down for two or three months will re- open. and others will increase their working hours. Rhode Island mills have increased operations 25 per cent since the end of December. The Amer ican WooIen company has made fur> ther reductions in several of it's stand- ard fabrics, which offer hope of moro active markets and greater mill ac- tivity, about ali that is needed to re- store New Englands industry to sood health after its infection with the un- employment virus during the- past several months.
 The tone of reports emanating from the automobile districts is nota> bly, more cheerful, despite talk of some d4stTeas among unemployed in Toleac- The number there without week, however, is decreasing, and the r51 automobile plants located around Detroat are nearly all taking on more men. while at least 75,000, it is esti- mated have left the city and found employment elsewhere. In Akron rub ber factories conditions are similar The plants are operating on a small scale. but there are no soup kitchens, and In tho minds of business leaders no doubt exists that manufacturing win be revived before distress can set tn- The improvement noted re- centay in the raw material markets which led the decline continues; rub Der prices are still going up. silk is firmex. the feeling in the leather and shoe trades Is very much better, larger quantities of wool are chang ing hands, and good-sized lots of furs were sold at auction in New York ls st week without prices dropping below the open market level though they are 50 DOT cent below the last auction in April, 1920. December sales by low price chain stores were in nearly every case larger in dollars than in the same month of 1919.
 REACTION PASSES
 These are all indications that the bottom of reaction is passed. and that the purchasing power connoted by the huge money circulation of the coun, try, which amounted to $59.12 per capita on January l, Is to some degree having it's effect now that the re- strictive influence of mental depres- sion and consequent over caution is being removed. The improvement is still far from universal for 1t could not be expected that readjustmen' would occure synchronously in all the industries of the country. Steel buy. ing Is not increasing, and prices ere still weakening. Railroad traffic con tinues to fall off and President Res of the Pennsylvania, discovering tha' he has 5s.00o idle cars on his lines has found it necessary to ask eacl employe to take one day off weel in lieu of discharging 20 per cent O. his working force. Grain prices, fac ing the competition of large Argen tine and Australian crops, are weak CT, and cotton has reacted from it recent gains, though in view ot the Tn crease in domestic manufacturing an, the improvement in sterling exchange which last week reached $3.7SH, tn highest since last July, it appears that it's upward course should be re stunned.
 The stock market has done littl more than mark time while public buy ing is centered in bonds. Long tern issues of high yields have been espe cially favored, but Liberty Bonds ar still climbing upward. Other continen 5 tai exchanges have participated in tn improvement of sterling. and anothe item of good omen for our foreigl trade is the details of the organization of the s1Oo o,0Oo,o00 foreign trade financ ing corporation may be announces within . week. w. P. G. Harding, gov ernor of the federal reserve board. ha been offered the presidency. much t the satisfaction of bankers, for as on of them pointed out recently, the sue cess of the corporation will depen largely on the selection of mal whose judgment will be trusted oy tn banks in the management of thei funds.
 Money is not quotaply easier tha last week. and interest rates will b stubborn as long as present reserv X bank rediscount rates are maintained < Nevertheless a growing demand fo