The Birmingham age-herald., 1921-10-17
REPEAL OF CANAL
 TOLLS HARMFUL
 10 ARMS MEETING
Scrapping of Hay-Poncetoote Treaty Kills Foreign Confi- dence In American h.
 tentionS, Says Price
By THEODORE H. PRICE Editor Commerce and Finance, New
 York

York
 tCopyrIEht. Theodore II. Price Pub
 fishing Corporation, 16 Exchange
 Place. New York;.
 New York, October l7.-In these letters l have more than lonce al luded to he economic importance of the coming disarmament congress and the increased confidence likely to follow an agreement that would re- duce the burden of the worlds taxa ton and expenditure for military preparedness. But the high hopes thus inspired have been dashed by The action of the Senate last Mon day In passing the bill which repu dates the Hay-Pauncefoote treaty and exempts coastwise American shipping from the payment Of Pan- anna canal tolls.
 For this the democrats are as much to blame as the republicans, for the bill could not have been passed if some democrats had not voted for it and while the opposl- tion of the President and Senator Lodge may mako the Senate action a legal nullity, 1t is generally felt that the willingness of our most i'm portant legislative body to disre- gard our treaty obligations renders 1t very unlikely that the foregn pow CTS will be disposed to take our dis armament proposals seriously.
 To this feeling the reactionary ten dsncy of the financial markets last week would seem to be directly due. The decline In Liberty bonds was the first and an entirely logical express sion of a lessened confidence in the future An undiminished expenditure for war means more bonds and more bonds mean lower prices for. those sl- ready issued. The total or Liberty bonds and Victory notes outstanding october 1 was $1S,9Ss,19e,050.
 The advance from the record low prices of 1920 to the high prices of saturday, October 8, was equal to an appreciation of S1,7t2, 100000 in the value of these securities. The decline in the four most active is~ sues that has occurred since october s, the last market day preceding the action of the Senate, averages 56 points, which is equal to nearly Sl00,- 100000 on the amount outstanding.
 Political Game Costly
 These figures will give a partial idea of what the game of politics as at present played is costing this na- ton, but they represent only frac- tion of the loss due to the pa~tial paralysis of enterprise that is being caused by congressional ineptitude and delay. President Harding is do- ing his best. but unless public senti- ment can be aroused and crystallized in his support there will be a strang ulation instead of revival of busi- ness.
 Therefore, I take advantage Of a comparatively newsless week to urge all the men of affairs who read these lines to write to their senators and representatives at once urging prompt and rational action upon the financial questions before Congress especially those which have to do with taxes and the tariff. Almost anything would be better than the present uncertainty which is to my personal knowledge holding up new enterprises that would put over fifty million dollars in constructive circu- lation.
 After the news from Washington and the sensational fluctations in the price of Liberty bonds probably the most important item in the weeks record is the foreign trade statement for the ponth of septem- per.
 Net imports of gold during Sep tember, 1921, were t62,0o0, ,0o0. Even allowing for the decline in prices, theso figures show somewhat greater decrease in exports than had been expected, but the balance of trade in our favor is surprisingly large when it is considered that we arc, practically exacting payment of 1t in gold.
 A surprising development of the week is that for the first time since the present tide of gold turned to- ward this country the amount of the metal held by the federal reserve banks shows decrease. The drop totals only $4,o00,0oO and possibly re- suits from use of gold in paying off obligations due to the member banks. If this assumption is correct the de- crease is only species of statistical camouflage without barometric sig nificance. It does not change my view that a period of steadily easing credit and stimulated industrial ac- tivity lies ahead of us, and though the softness of stocks, grain and cot ton seems a challenge to my opinion, the unwillingness of the public to buy in the speculative markets is only natural result of the feeling that Congress may put more sand n the driving mechanism of the busi- ness locomotive than it pours on the rails.
 Barometric Indications Optimistic
 Not in weeks have the barometrit indications in the news been so- uni formly favorable. The untitled ton mage of the United States Steel cor poration on September 30 showed an increase for the first time since July 1920. September automobile ship ments showed less than last years seasonal decline. Building last month was more active than in any previous September on record. and lumber or ders for the last week of the month exceeded the first week by 65, 900, 00O feet. Coal production steadily in creases. The bureau of labor statis- tics reports a slight gain in the num- Der of workers employed during the month. And the treasury statement M9 October 1 shows a gain in the money circulation per capita from $52.41 to $52.45. which, while toe small to be important, is significant because 1t Is tha first break in the decline which has been going on for nearly a year.
 Copper at l3 cents is 1ss cents above the August quotation. and sales are far ahead of production. Advances in crude and refined oil prices have followed rapidly on the general and apparently sudden perception that de-