The Birmingham age-herald., 1921-01-03

mates are being cut down. There seems to be little prospect that the farmers tariff bill" will pass the Senate and Sec- soldiers bonus bill upon the ground that the country ought not to be asked to furnish the s2,30o, 1000, 900 that it would probably appropriate. Most tax payers will agree with him.
 The November sales of the leading chain store systems of the country show increases over last year that average well over 10 per cent, but the two lead ing mail order houses report decreases for both November and December, the figures for the latter month being par tially estimated. Incomplete returns of department store sales as reported to the federal reserve banks show a substantial increase for November Complete returns will not be available until next week. Close observers insist that the Christmas trade has teen sur prisingly good, but the facts are not yet known.
 M'FADDEN CAUSES SENSATION
 Quite a sensation has been created by Representative McFadden's resolu- ton submitting an amendment to the constitution that would give Congress the power to tax incomes derived from state and municipal securities issued after the proposed amendment had been ratified Such an amendment if rati- fled would, of course, freatly increase the value of the tax exempt securities previously issued. While it's adoption now seems remote, there is no doubt that it would be popular with a large element who resent the immunity from income taxes that the very rich can secure by putting their capital in state ov f-; Il IL has been unduly stimulated by the com paratively high prices at which they can be sold.
 MT. McFadden estimates that there are some $15,o00, 900, 900 of these securi- ties now outstanding in addition to $25,- O00,00O,000 of federal securities that are wholly or partially exempt
 Bank clearings last week, as reported to Bradstreets, were IS per cent less than last year, and failures climbed to the high record of 1920 with a total of 47o compared to S37 the previous week and S2 a year ago.
 The news from abroad is not quite as cheerful as that of our own affairs. Dispatches from Havana suggest that the Cuban moratorium expiring at the end of the year is likely to be extended until March 1. The Bank of England reports further fall in its reserve ra- tio to 7.30 per cent, which is new low record since 1866. Great Britain has apparently ceased to feel that there is any relation between her credit and her bank reserves for the arrangements for refunding the loans made to her by our government during the war are said to have been practically completed. It IS said that the arrangement contem- plated funding the demand notes for approximately $5,000 100000 now held by the United States treasury into long term obligations of the British govern ment Whether these securities will be publicly offered is not clear. If through their sale $5.000, 100000 should be paid into the treasury the financial problems confronting the next administration would be greatly simplified.
 z SPAIN DEPRESSED
 The failure of the Bank of Barcelona with deposits of $1o0 100000 has caused a depression in Spain. and some un- easiness in London. Exchange on conti- mental Europe is generally lower, and Italian lire have touched new low rec ord now that the demand for Christmas remittances from America has been sat 1sfied. Japanese exchange has also shown marked weakness. American paper money is said to be at premium on American gold in France. because sAS PoPCl DiilS CdH DC exported, while the French government will not allow gold to be taken out of the country.
 The Malthusian theory is being vim dicated in China, where 45,000, 900 peo- pie are said to be starving and Is, 000,- 900 doomed to die because food is not to be had for the dense population. Western civilization stands aghast at its impotence to avert the impending harvest of death.
 But against this gloomy summary of the cable dispatches there is to be nut the order issued by Lloyd George, in structing the army and navy depart ments or Great Britain to cut their ex- pendltures for the current year in half The remarkable opportunist who is the premier of the British empire has evil gently come to see that it is only by disarmament that the world can be saved from bankruptcy and the peril of another war averted. Not until we have the courage to follow his exam pie will we know the ways of pleas