The Birmingham age-herald., 1921-09-26
PROSPERITY RETURN APPEARS GENERAL
 THROUGH NATION
All Sections Report Better BuSiness-0ptimism Now UnanimouS-StiIl Dark
 In Europe
By THEODORE II. rRICH


 (C2pSright, Theodore II. Price Publishing
 Evaporation. Id Exchange Place, New
 Yorl0,
 New York, September ss,--Were it not that the recovery in business that have so long and SO confidently predicted Is still in its inoipiency, I should be suspicious of its perma- nancy because its arrival is now so generally recognized and acclaimed, The West Cheerfully Faces the Win ter" Trade Revives in the Lower south '"rhe Steel Trade Makes Further Gains" The Iron Trade Turns the Corner" Business Gains Roadway" Even Pessimists Are Be- coming Hopeful" Survey shows Business Is lmproving," "Buoyancy in Many Trades" Dry Goods Sales Big" Trade Is Picking Up," Trade Improvement Noted in the South" Trade Revives," Business Speeding Up, Says Chicago" Industrial Gains Real, Says Bank" Prosperity at Hand, Says Secretary Davis" are some of the headings that appear over the stories of better business that the newspapers published last week.
 The detail of the weeks record seems to justify the almost unani- nous optimism that now seems to be felt. Except in the cotton market, which continues to hang around 20 cents, there has been no speculative outburst to make the situation dan gerous and in neither stocks nor com modities is the buying as yet beyond the legitimate investment or con sumptive demand.
 The weekly statement of the fed ersl reserve banks shows a further in- crease of $26,000, 900 in the gold on hand as result of which the re- serve ratio is up to 6s. per cent. The New York bank in particular has added s106, 100000 to its gold holdings and it's reserve ratio has risen from TOT to s4.1 per cent during the week.
 It is not surprising, therefore, that the New York and Boston banks have reduced their rediscount rates to per cent or that there Is a general ex- pectation that the other ten banks will soon follow suit. The growing ease of money has made the best commercial paper easily salable at 51s per cent and good bankers accep- tances have found buyers at A per cent. Reflecting this decline in the rental value of credit, investment bonds are active and higher under the leadership of "Libertys," which have been bought with confidence. The stock market has been quiescent but the better class of railway and industrial securities have been in fairly good demand at slightly higher prices.
 Government Sells Notes
 The government has thus far sue oeeded in selling about s63,oOo, 900 of the railway equipment trust notes mat 1t held upon per cent basis These are being resold to the public to yield 57.6 to 5.S5 per cent, and if enough can be marketed it may be that the war finance corporation will find itself able to give the railways the assistance needed without the / legislation so eagerly hoped for month ago.
 The United States Steel corporation has advanced it's principal products $b ton or more and the independ- ents are expected to follow suit The cotton goods market is steady, but those merchants who are frank ad- init that the advance has to some ex- tent checked buying. Silver, long re- garded as a barometer of the worlds trade by English merchants, is up to 41h pence per ounce in the London market. This is the top of the pres ent movement and compares with a low of 30ssd touched last March. An increasing demand for diamonds, which is nearly always accepted as an indicator of prosperity, is reported by the dealers in jewels. An advance of 20 yen per pioul in silk in Japan is another straw which indicates Quickening in the demand for lux uries. ~ similar inference is to be drawn from <the success of large fur auction heldl in New York last week.
 At coNpention of the tea and cof- fee trade held in Indianapolis, figures were presented showing that the con sumption of coffee in the United States had increased from S.9 pounds per capita in 1919 to 12. pounds per capita in 1920. It was claimed that 1921 will show a still further in- crease. and a shortage with much higher prices when the European de- mand Is normal was predicted. In various other commodities, particu- larly canned goods, and coal the probability of a serious shortage this winter is becoming more definite.
 An attempt to bring about an agreement to reduce the production of plantation grown rubber is re- ported from London. Its success seems probable, in which case higher prices would be the natural result. The experts of the grain trade are in disagreement to the probable course of prices. Many of them pre- dict an advance upon the theory that more than half our exportable sur plus of wheat has already been sold As yet, however the expected ad- vance has not occurred, but some usually well informed people are buy ing both wheat and corn with confi- dence.
 Railroad Traffic Gains
 A further gain In railway traffic is reported and the August earnings thus far published show a striking increase in the net despite reduc- tion in the gross. The r. W. Dodge company reports that the building contracts awarded in 2 northern states during the week ending Sep tember Is amount to S69,505,700, which is a record for the year.
 But 1t Is unnecessary to go into further detail. Almost without ex- ception the indicia of our domestic trade are encouraging and the prob- ability is that Secretary Davis is right in announcing that Prosperity is at Hand" There was never any occasion for the propaganda of pes simism in which so many joined six