The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1921-11-21
Ry THEopOkE H. PRICE

ment Congress thus far should be re-
Garded as encouraging for nearly all
the speculative markets showed an
improving tendency and had a better
tone last week
While the rise in prices actually
established is but small and is in
most cases related to some particu-
lar trade factor previously unnoticed
1t is plain that speculative readi-
ness to take account of the hopeful
has been greatly increased by the
happenings at Washington.
As far as one can trace the process
of the collective mind this Is due to
the fact that 1t has become plain that
public opinion throughout a war
weary world Will compel the accept
ance of the proposals made by Secre-
tary Hughes in fact as well as in
principleY and that despite diplomatic
maneuverng over the difficulties Of
the eastern question n reduction in
naval armament sufficient to permit
of a substantial reduction in taxes
will be agreed upon.
AS to whether war will thereby be
really made more remote seems to be
rather a question of the sentiment ex-
pressed than of the vessels that are
to be scrapped or abandoned, for
rendered there is doubt whether the
aggregate tonnage of the capital
war ships" of Great Britain, Japan
and the United States will be much
smaller than ii wa sin 1914, just be-
fore the outbreak of the recent strug-
gle.
Opposed to War
The important thing Is that civil
lization has declared itself as opposed
to war for the present at least. and
is determined to devote Its activities
to the constructive arts of peace.
What this implies in the possible in
crease of wealth and purcl Q ing
power can be partially glimpsed &lm
the recently published statement mat
through the invention of power pro-
ducing and labor saving machinery
the effective physical energy of the
American people is now multiplied
by 81 and that one-half of this in
crease is attributable to the develop
ment of the present century.
This calculation is based upon the
assumption that one 'horse power"
is equal to the energy of seven and.
two-thirds men. Put another way for
the sake of clarity, 1t means that
with the aid of water power, cleo
tricity, steam, gasoline and kerosene
the machines and machinery now
available in this country can do the
work that would otherwise have re-
CURED the unaided strength and la
Dor of over 3,000.000,000 men. In
other parts of the world the use of
power and labor-saving machinery in
multiplying the efficiency of the in
dividual has not advanced as rapidly
"a In AnaF{ra hpf ~ ha
achieved here can be Appropriated
elsewhere and the figures will give
an idea of how much more renowned
than the victories of war the victories
of peace may be IL the world is left
free TO fight for them.
1t Is subconscious appreciation of
these possibilities which have not
previously, as far as ! know. been
so Enthusiastically set forth. that is
responsible for the ground swell of
optimism that Is now noticeable
everywhere.
Sterling Exchange
Sterling exchange has advanced to
81 upon the belief that the economies
that will follow disarmament will ul-
timateIy' enable Great Britain to re-
cover her financial equipoise. Cotton.
wheat and our other exportable COM
modities including copper, have ad-
vanced slightly in the expectation of
an improved export demand. Bonds
are higher and a $50. 100000 issue Of
fered by the New York Telephone
company was enormously oversub-
scribed because the prospect of lower
taxes, remote as 1t seems to be, as
sures an ultimate abundance of capt.
tai for private enterprise. Money is,
meantime. still lower. The weekly
statement of the federal reserve sys-
tenn shows a reserve ratio of Ills per
cent as against ia per cent a week
previous, and a further gain of ST.
900. 900 in gold. The best commercial
paper can be sold at per cent and
the call rate has fallen to per cent.
The same conditions exist in Lon
don The reserve ratio of the Bank
Of England is rising and the market
rate for short time bills has fallen to
az pc rcent.
The ease of money and the renas-
cence of hope are, as l expected,
gradually inducing the purchase OF
other securities than bonds. A
prominent New York banking firm is
now advertising the attractiveness of
preferred stocks and shrewd specula-
tors are in quiet way buying the
low priced common stocks that are to
be picked up on the stock exchange
that pay no dividends, are, however,
still neglected and it is in this quar-
ter that the greatest opportunity of
profit Is probably to be found, for 1t
is plain that the position of the
American transportation industry is
rapidly improving now that the man
ayers are tardily coming to realize
that high rates work reduction of
both traffic and profits. Their recog-
IL
the reduction of 10 per cent in tho
rates on farm products outside of
New England and while the perma-
hence of this reduction for more than
six months is made contingent upon
an order from the labor board that
will permit of an equal reduction in
wages within the same period II is a
safe bet that the old rate will not be
| re-established. The next step ought
to be a reduction in passenger and
Pullman rates. There are intima
tons that IL is being considered.
There are many other indications
that commerce and industry are once
more upon an even keel. Bank clear
ings for October were $30.263. 200. 600,
as against s3S.76s, 000, 900 last year,
the difference being more than ac-
counted for by the decline in prices.
Distributtve Trade
Distributive trade is normal though
not booming. There is every pros
pect of a good Christmas business
1t is said that the winter residents
are already on their way to Florida
in large numbers, and that over l0,-'
900 people have already arrived at
| st. Petersburg. Bradstreet reports
that building permits issued in Isl
cities during October call for-an ex-
penditure OF s167.0d0. 900. This COM
rares with sl52.000.000 for 1913 cities
in September and s92.000.o00 year
ago These figures afford a partial