The Birmingham age-herald., 1921-01-03
By THEODORE H. PRICE. fEditor Commerce and Finance.

tEditor Commerce and FinanceO
 Copyright, Theodore H. Price Publish
 ing Corporation.)
 New York, January 2.-(Special)- During the last three days of the year a subtle change seemed to come over the spirit of the business world in New York city. Whether it is country wide I do not know. but in the metropolis the fear of trouble has been succeeded by serenity and the feeling seems to be that the worst has happened. that it was not as bad as 1t might have been, and that for a while at least things will do better.
 Just why the change came when it did no one can say. It was certainly duo and probably overdue. for Christi mas was hardly past before some news ! papers began to predict what they called "a period of secondary inflation," while the stock market grew firmer, the commodity markets perked up and a re- served cheerfulness became generally noticeable.
 There are many who doubt the per- manence of the improvement, for mel ancholia is a stubborn disorder, but it is fact nevertheless that the iquida- tion which has taken place in both the financial and the commercial markets has been very thorough and that the many who have been waiting to buy until the bottom was reached are now a little less complacent in their procrasti- nation.
 Pending a more definite indication of the trend it may be noted that while the Pennsylvania railroad announces a further reduction in its working force the Association of Railway Executives publishes statement in which it is claimed that the railroad efficiency is higher than ever before, and that the gross tonnage moved during the last nine months is the largest on record
 From these two reports it is to be in- ferred that the railroad managers are probably getting more work out of fewer men. Incidentally the National Live Stock Shippers league has applied to the interstate commerce commission for reduction in freight rates.
 GREATER EFFICIENCY
 From Detroit it is reported that the Ford factory, which was closed at Christmas will not reopen until Febru- ary l. although the daily production in December was the highest on record Here again greater efficiency is to be inferred. as the working force in De- cember was smaller than previously
 In the movie industry or art, which ever it may be called similar develop ament is indicated. for dispatch from 'Mos Angeles says that a fewer and better pictures policy" is being adopted by every producing company, and that as a result 50,000 actors are out of work. It is asserted that the funda- mental trouble is that the attendance at the moving picture houses throughout the country has fallen off as the price of admission has been raised.
 Pittsburg dispatches report that the steel mills in Pennsylvania and Ohio are dscharging many operatives, but that majority of them are finding other employment, as the newspapers are still carrying advertisements for laborers and some skilled men," The works of the United States Steel cor poration are said to be running at 85 to 90 per cent of their capacity.
 In North Dakota 27 banks in all have failed since the election, when the hold of the Non-Partisan league upon the states finances was broken, but in Kan sas and Nebraska the farmers are re- ported to be holding their wheat more stubbornly than ever
 EFFECTS OF REDUCTIONS
 Paterson, N. J., is the chief silk man. ufacturing town of the country, and as such was the first to feel the indus trial reaction which commenced last summer, but it is reported that the saw ings deposits in every bank in the town show an increase for the year 1920 de- 4 spite the fact that wages have been generally reduced and that over 12,500 operatives have been laid off for six months. The conclusion is that the dis charged operatives have found other employment and that the people gener ally are spending less and saving more.
 More wage reductions in the New England textile industry are reported, but they seem to have been accepted by the operatives and there appears to be a general willingness to give more work for less money throughout the coun try. This is the most encouraging sign of the times. The better feeling notice able may be due to it's recognition
 The need of economy and thrift is also dawning upon Washington. Esti-