The Birmingham age-herald., 1921-05-02
By THEODORE H. PRICE Editor Commerce and Finance Copyright, Theodore H. Price Publish
 ing Corp.

ing Corp.
 New York, May 1.-(Special. )-It really begins to look as if we should soon have nothing serious to worry about except past losses that will soon be forgotten when the legitimate profits that are to be made out of normal busi- Il ess at normal prices commence to ac- crue. Upon the theory that where there is much chaffering there is some trade" an early settlement of the veXa- tious reparation question is generally Respected on this side the Atlantic de- spite the fact that as this is written the French are apparently more anxious t0 occupy the Ruhrs region than to come u terms with Germany The sub ject is so fully discussed in the daily press that it is unnecessary to amplify upon it. M
 Meantime the Bank of England rate has been reduced to 6h per cent and exchange on London and Paris is at the highest figure touched in months, from which it is to be inferred that the for eign bankers who are generally wel1 in formed are not much disturbed over the outlook. Incidentally, it is to be noted that the British budget for the year ending March 31, 1921, shows a surplus of f230,000,000. and that it has been an- nounced in the House of Commons that the estimates for 1922 included a pay ment of f40,000,000 for interest on the debt due the United States government. During the past year the British na- tional debt has been reduced by f11,- 154,000. Japan, Argentina, Uruguay and Holland have been paid off in full and 100000 has been paid on account of the loans publicly issued in America. This is truly remarkable record.
 Coming closer home, the financial H. rI,N statement of the federal reserve sys- | tenn, which is now compiled as of Wednesday evening and published on Friday morning, shows a further gain | in the reserve ratio, which is now 30 per cent as compared withs54.1.s on April 22. The ratio of the New York bank is now 55.5. against 53.9 on the previous Friday evening. The Dallas bank has reduced it's 'interbank" borrowings to $6, 500, 900 as compared with $7,4O0,00O on April 22.
 As the period covered by these com parisons includes one Sunday and Sat- urday half holiday the showing is al- most sensational. It is very largely due to an increase of s19.0O0,000 in the gold supply, the gold reserve of the New York bank, separately considered, having gained $22,000.000, which sum is about equal to the gold arrivals at this
  viously pointed out this inundation of gold which is now clogging the New York assay office, cannot, if continued, fail to result in a general reddction of interest rates and higher prices for coS1Eaod:ties as measured in terms of gold A reduction of the rediscount rate of 5 per cent at those federal re- serve banks at which more than that rate is now demanded would. seem to be question of only short time.
 Reflecting this expectation the going rate on prime commercial paper in the New York market has fallen to 6H. per cent and the rate. for call money out side the stock exchange is now 5 per cent. The stock exchange rate is, how ever still held at from 61s to per cent for reasons which, as previously stated, are beyond my ken. It is. how ever to be noted that the call money rate is rapidly becoming less impor- tant factor in its influence upon se- curity values, as many stock brokers have learned how to finance their re- quirements by the use of bankers ac- ceptances and other credit instruments with which the American public has Ionly recently become familiar.
 On the stock exchange sentiment was Slightly chilled on Wednesday when the Pennsylvania railroad announced that the dividend on it's stock would be at the rate of per cent annually instead of the per cent that had been former ly paid. This reduction was not. how ever unexpected. It's effect was short lived and the%upward tendency of the market soon reasserted itself. Bonds which are perhaps more directly re- sponsive to interest rates than stocks, have been distinctly steady and prices are upon the whole higher
 BONDS RAPIDLY DISTRIBUTED
 The $230, 100000 Northern Pacific and
 Freat Northern 15-year 6h per cent Convertible bonds offered on Thursday are being rapidly distributed. As the issue is practically refundings opera ton and $210,o00,000 of it's proceeds are to be used in paying off per cent