The Birmingham age-herald., 1921-05-28

has been n general complaint that the producer, whether of farm products or manufactured goods, does not receive price commen- surate with the price the ultimate consumer has to pay.
 Tt Is evident the manuftcurer has | reduced his prices and Is doing all he
 can to reduce operative costs. Whole salers and jobbers have reduced prices and are selling goods not so much
 with reference to the cost of the stock, but more with the idea of replacement value.
 Many retailers no doubt are pursu ing the same policy, while others are content to do a slower business in working off their stocks. A year or
 more ago the markets were sellers | markets. Buyers found difficulty in getting quick delivery in the volume
 desired and manufacturers and jobber s were not anxious to accept large or.
 ders, believing there would be further advances in prices from time tontime. Change Seen
 "As wages advanced with prices manufacturers naturally were averse
 to having large unified orders which could be filled only at advancing
 costs. Now it is entirely changed. It became evident year ago that senti- ment throughout the country as well
 as In this country was against further price advances. People refrained from buying until goods could be purchased more reasonably.
 What might be termed the buyers strike begin a year ago. There does not appear to have been an over
 production, for according to old stan
 dards of consumption, there would have been a shortage. The consumer
 has reduced his demands until there is relatively surplus.
 "The falling off of exports dur- ing the Inst three or four months | Is an evidence of inability or fn- disposition of foreigners to pur- chase our goods, and if our, export
 trade is to he revived, which would | give new impetus to domestic trade, 1t would appear necessary | to make n decided effort to set foreign business.
 AS retail stocks become depleted orders for replacement will be giveY, | to the jobber and manufacturer anl there will undoubtedly be a revival ot
 business. It should be borne in mind
 that there has been considerable llQ- | uidation, particularly in the past four
 months, and many so-called frozen | credits, although undoubtedly solvent credits, can best be thawed- out by
 business revival.
 The position of the federal reserve
 banks has greatly improved and their reserve position is now stronger thar 1t has been since early in 1918. Indefinite Corner
 After a period of depression it is difficult to say when the corner has been turned Certainly no longer is there any apprehension of any general financial trouble. and we may have perhaps turned the corner already without knowing just when we did tt.
 IT,. It, <1 kxv~ rience and work toward a business revival along safe and conservative lines in order that our next period of
 prosperity may be solid and more per nanent.
 Hardest Hit
 "The farmers were hit harder than
 any other class. They produced their crops at very high cost, and the slump
 came either before they had an oppor- prices declined while they were hold ing their crops. The welfare, of the farmer Is a most important considera- ton. He Is not only a great producer,
 but is . great consumer. Anything
 that affects his buying power is felt In all commercial circles throughou. the country.
 While federal reserve banks can not make loans direct to the public but can discount only to member | banks, they have. been liberal in the | treatment of farm paper. April 30 | 1921. the St. Louis federal reserv. bank held for rediscount four times as | much farm paper assit held the cores bonding date on 1920, and IS times the | amount it held the corresponding date
 in 1919. ,4s
 Large Amount
 "It is impossible to state how much paper discounted by federal reserve banks is farmers paper, but it Is cer- | tain that all paper held by the federal reserve banks which has maturity. of
 more than three months. Is agricul- tural or live stock paper.
 April 80, 1921, all federal reserve l banks held agricultural and live stock papers of maturity of from three to six months, a total of $230, ,40S.000. The
 same date In 1920 the total was $106,-
 3S2.000, and the same date In 1919 the
 total was $6s,Ss1,0o0 The amount O.
 agricultural and live stock paper. dis counted in 1920 was three times the
 amount discounted in 1919." VI | The Community club was in charge l of the luncheon and President Edmund
 Armes introduced the speaker. All
 other luncheon clubs of the city me,
 with this organization on this occasion
 in order to hear Governor Harding
 Seated at the speakers table in additio,
 to, the speaker and President Armes
 we're W. H. Kettig. member of the
 board of governors of the Atlanta fed
 eral reserve district; Edward W. Lane
 president of the Atlanta National banf
 ard member of the advisory council
 of the federal reserve bank; Osca, Wells. president of the Rotary club W. J. Adams, president of the Kiwani.
 club; Jelks Cabiniss, president of ths | Civitan club; Judge Hugh A. Locke president of the Exchange club.
 Prior to the address MT. Harding wal
 entertained at dinner by the joint df'
 rectorate of the Senior and Junior Chamber of Commerce..