The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1921-05-30
BY THEODORE Ii. PRICE.
Editor Commerce and Finance,
New York

Copyright, Theodore II. Price Publish
Ing Corp, 10 Exchange Place,
New York
New York. May 29.--(SpeciaL)--
There are signs in the business at
mosphere that important constructive
developments are impending. Pres
ident Harding, in series of confer
ences in Washington, is asking the
advice of the financial and industrial
leaders of the country in formulating
plans to hasten business revival, and
tho problems they discuss are of the
future rather than the present
Throughout the country the same
tendency to look ahead constructiveiy
predominates. Though there are some
dating for a long time there is more
disposition to regard the unfavorable
developments which are still coming
Up as tho wreckage after the storm
and more Willingness to begin the
work of rebuilding and expansion
President Harding's intention evil
IDENTIFY is to bring to bear on this work
some of the collective intelligence de-
veloped during the war, ard from
the willing cooperation proftered the
expectation of more financial aid for
our foreign trade, by further extern
sion of European credits and invest
ment of American capital abroad is
probably not i'll founded.
Evidently the administration is not
yet working on settled policy. 1t
is obtaining advice, and for one thing
1t probably has learned that it is un-
necessary to require that the proceeds
of foreign loans be spent in this coun-
try, for as long as we are the creditor
of the world they eventually must be
spent here anyway.
Hoover's Estimate
Secretary Hoover estimates thai APP
proximately 100000 workers are idle
in Europe, exclusive of Russia and
the Balkan states. He has also an
nounced the analysis of our April ex-
ports according to stage of manufac-
ture which shows relatively heavier
declines from last year in materials
for use in manufacturing than in any
other classification. The connection
between these facts is obvious. To
stimulate our production, facilities
for exchange" as the President said
recently, must be improved, and, boiled
down to essentials, this phrase, as
long as Europe cannot pay as sne
goes. means long term credits Even
tually 1t will also mean OPENING our
markets to European goods. The men
whom Mr. Harding is consulting see
that clearly and it is not likely that
his tariff programme received much
support from them. At last the long
stagnant Foreign Trade Financing cor
poration seems nearly ready to func-
ton, though with only about $685.
600 of capital instead of the 100000
coo aimed at
One of the most definite ideas In
the Presidents mind relates to the
transfer to the American pennle of
the allied debts to our government
His proposal is that foreign govern
ment bonds covering these debts, bear
ing a sufficiently high rate of yield
to attract the American investor, shall
be issued when Liberty bonds become
| due, on the assumption that the hold
ers of liberty bonds would be willing
to accept the new Issues in exchange.
AS an Ideal the proposal Is almost
above criticism and in the absence of
specific details it, is Impossible to
discuss it definitely, but the practical
difficulties in the way of such an
exchange are enormous. Foreign
bonds rightly are not yet placed by
citizens of this country in the same
| Investment class with our own gov
eminent bonds and, rather than con-
stitute mere exchange, in effect,
the scheme would involve the market
,ngSof nearly $4,000, 900, 900 in new So
curities. This could only be done over
long period, at an excessive rate of
interest or ruinously low prices, or
with the bonds protected by our gov
ernment's guarantee. AS long as tine
worlds demand for capital continues
ON it's present scale the vision seems
Utopian. but at least it is a basis for
discussion and its presentation is en-
blematic OF the new and constructive
frame of mind with which the ma
tons leaders are approaching the
problems ahead of u.s.
Harding and Agriculture
OF domestic matters. President
Harding has agriculture in mind. at
has" he says, been laboring under
several handicaps, and is entitled to
have. facilities placed at it's disposal
which will remove these" In line
with his ideas the emergency tariff
bill has been reported out of confer
ence and passed by the House and
Senate. Grain prices had an astonish-
ing advance. May wheat at s1.S5 last
week showed gain of SO cents, or so
per cent above the years low. Crop
reports have been only fair, but are
altogether too good to Justify the ex-
traordinary advance in the earlier
fluence of America from such an ar
rangement the collapse came and
American agrjcu1fura aud cap,,,, ono q