The Birmingham age-herald., 1921-02-26
Daily Financial Gossip
By HOLLAND

{ New York, February 25.-(Special)- )-
 James s. Alexander, who is president of 1 the National Bank of Commerce, has
 ventured to predict that there is to De
 no permanent easing of money rates lie does think that money may be somewhat
 easier from this time on until March l 15, but after that the rates will remain relatively high. When he uses the term permanently he means in all probability ] indefinitely. For it cannot be his view | that the permanent rate for money will be substantially similar to the high rate which has prevailed with occasional ex- ! captions for year or two.
 But if money is to remain high, due to 1 peculiar conditions, nevertheless those who are in a position to judge present conditions and to make forecast of the future are confident that fundamental factors are now being so well demon- strated that they must cause favorable impression upon financial opinion. There are still some weak points in our indus trial and commercial situation, but these will be gradually eliminated.
 One of the ablest authorities in the financial district said this morning that much progress has been made since the first of the year. This is in part due to the certainty that the American banking situation can be regarded as sound from every point of view. The reserve ratio of the federal reserve banks has risen to l nearly 50.
 The embarrassment which the condi- ton if the banks of North Dakota is causing is not spoken of as being serious so far as it relates to the the banking situation of the entire country. In fact, in North Dakota the suspensions have ben made by small banks. So also some embarrassment has been observed in cer- tain parts of the south. These southern .l,<.r~ I.o froc co1 fr n It is a temporary embarrassment. ap- parently, in some parts of the south, and will soon be ended.
 Another factor to which reference is frequently made when the reasons are given for believing that considerable prog ress towards restoration to normal con- ditions has been made is the certainty that there are to be retrenchments in government expenditures and also re- vision of our tax laws. Apparently sen timent throughout the country is in favor of repeating the law which has estab- lished the excess profit tax. For if that tax be repealed there is no doubt that it would be followed by a substantial reduc- tion in living costs It would certainly put stop to profiteering of the kind which the excess profit tax has stimulated and probably would increase the net earnings of corporations engaged in in dustries.
 THE DEMAND FOR CAPITAL
 Probably Mir. Alexander and those who are of his opinion respecting the contin- uation of high money rates are convinced that the demand for fresh capital will be so great and persistent that this will tend to keep money rates upon high general level. A great amount of funds is to be released through the liquidation of commodities and by the accumulation of savings. But there will be instant demand for these funds, both on con- structive enterprises and also to aid in establishing foreign credits.
 Governor Harding of the federal reserve board in recent statement asserted that great deal will depend upon the willing ness of the American public to invest in issues which are to provide credit fa-