The Birmingham age-herald., 1921-04-12
MARKETING BONDS .ON A LARGE SCALE . MAY SOON DEVELOP
Little Demand Made for "Bar' rels of Money" In Banks.
 Export and Imports Trade
 Improving In Europe
Ny HOLLAND

New Iork, April Ill., (SpeclaL )--A few weeks ago James S. Alexander. who is president of the National Bank of Commerce, ventured to predict that rates charged for the use of money would continue high for long period. Yet so wise and experienced man as Mr. Alexander, whose prediction for continued high money was accepted as worthy of serious consideration, ap pears to have been in some error when making this forecast. For of sud- den the charges for the use of money lent upon cai were reduced to Az and even 4 per cent. This may be a temporary fluctuation but it was one of the unexpected evidences that from one point of view, conditions are becoming considerably easier for the time being at least.
 One report quotes a broker whose business it is to find a market for call money as having said there are bar rels of moSey in the banks and yet there seems to be no demand for it. Customarify a reduction in money rates would tempt to speculation and it is a fact that a certain form of specula- ton, legitimate and honorable, might De or dVdll at tnlS tune III DFlHBlh5 about an appreciation in the quota ever, that many of them have been carrying on and are now carrying on "Woolworthv business. That is to say their principal dealings are in five and 10-share lots. In that way the name Woolworth is now colloquially employed to show how small the in dividual dealings in securities have been and now are. For that reason probably no defE>nd that was notice able was made for any part of these barrels of money.
 ONE STRIKING EFFECT
 There was however, one effect, pre- sumably due in part to those low charges for the use of money, and it was an effect that was observed in the bond market. For a. little while late in February there came a falling off in the marketing of bonds, as com pared with the sales aggregating 'sev- eral hundred millions which were made early in the year. Now, however, there are abundant evidences that bonds are to be marketed upon a large scale. This does not reflect speculative pur- pose but instead investment. The principal bond houses of New York would not be astonished If very great marketing of bonds took place in the remaining months of the spring.
 GREAT STORES OF
 WOOL AND HIDES
 Reports reached New York Sthat in the wool producing nations of South America large surplus stocks of wool and hides are accumulated. That wool surplus will be increased by the wool clip of this year. It is an extraordi- nary condition. The South American nations are anxious to buy American commodities and are also anxious to sell their own raw material, much Of which Is needed in the United States. But there is a deadlock. This foreign trade is upon dead center and 1t is almost without precedent, that na- tion which has ample supplies of raw material and is anxious to exchange them for American products finds 1t impossible to make this exchange. Un- questionably this difficulty will Dc solved by and by.
 Reports which come to New York from other nations, especially from those which were our allies during the war indicate that their trade is inn proving If only Russia were able fully and fairly to meet the conditions set forth by the Secretary of State, Charles F, Hughes, there might be established a trade with Russia which would ee
 
 storing normal economic conditions It has been said that the potential pro- duction of Russia Is an asset whica is of vital importance to the commer- cial world and especially to Europe. For Europe cannot secure economic stability until Russia's productivity is restored.
 And yet the >Secresary of Commerce. Mir. Hoover. has recently stated that the real blockade against trade has been the failure of Russia to produce anything excepting gold and platinum as a basis of trade. Russia now pos sesses in gold, platinum and jewelry not less than $60,00C.oUO and probably as much as $200. .000 900. Measured by dollars, large as this sum is, 1t would be almost instantly exhausted were trade with Russia to be resumed. A But the nations of Europe are grad ually gaining in their~export and 'm- port trade. This Is done in spite of the high rate of the dollar and in the case of one of the nations at least of the declinein the price of cotton. Dsn- mark, however, is now able t5 report