The Birmingham age-herald., 1921-08-08

New York, August 7.-(Special)- That the soviet government has agreed to release the Americans it i held in prison in order to obtain re- | lief for the famine stricken people of Russia Is by far the most impor- means that communism has confessed failure and in it's economic aspect II is no less suspicious, for through the door that has been opened from with in the forces of western civilization will no doubt be able to make their way and ultimately effect the com mercial and industrial regeneration of the 170,00o, 900 who compose the Russian population. In recently 1 published and very interesting book upon "The Ecmonomics of Commun ism" written by Leo Pasvolsky, edi- tor of the Russian Review, the col lapse of the Lenine regime is pre- dicted upon the ground that Com rnunism is impossible without the application of compulsion in the eco homie life of the country; but eco homie production Is impossible with | the application of such compulsion. 1 It is of the highest significance | that under the compulsion of events 1 the truth of this syllogism is being made evident to the Russian people, 1 for 1t argues the early establish ment of sane and orderly govern ment that will foster and stimulate their economic development.
 News From Russia
 Second in importance to the news | from Russia is the announcement that the Sim Fein army in Ireland is l being demobilzed. This is construed as meaning that a solution of the Irish problem has been found and that another irritating sore in the worlds body polite Is healing. The stage is thus being cleared and set for the disarmament congress to be held In November and if at that gathering a concordat that will in sure peace shall be secured world wide revival of enterprise and ac- tivity will no doubt follow.
 To rouse our business men from their unwarranted lethargy 1t would seem to be necessary that the facts which connote improvement should be marshalled with dramatic effect, | for as we turn our eyes from over seas to survey of the AS states which comprise the Union, the view | is far from discouraging though many refuse to be comforted and per sist in a melancholic interpretation of the record as they call attention to the decline in copper and the poor 1 demand for iron steel and coal which are almost the only unfavor- able features in an otherwise normal ! outlook But while 1t is true that July production of pig iron was only | S64555 tons, the lowest since 1903, it Is also true that at each decline in the price of steel there is more buy ing and the Iron Age reports that the volume of orders is increasing 1 although the railroads who are the | largest buyers of steel are still wait | ing to get the $500 000,000 for which President Harding has encouraged them to hope before entering the mar ket. Of copper. it is said that the present off-take is twice the current | output. although prices are lower because the large producers are wise | in stimulating consumption by selling cheaply.
 Metal Shortage
 | The prospect Is that we shall go l into the winter facing a shortage oi both steel and copper, as result oi 1 which belated buyers may have to pay | dearly and the same statement ap- l plies to coal, for the predicament into which consumers are drifting througf indifference or pessimism is alarm | ing thoughtful students of the facts At the present rate the indicated sof coal production for the year will bt a.. .4,. fot ha, low the consumption even thougl there be no revival In the industria 1 demand
 But the admitted depression il these three mineral products is more than offset by cheerfulness that per | vades most other markets. Brad streets index number reflec'T an nd vance of BOT per cent in wholesal' commodity prices during July. on tol of rise of 1.O5 per cent in June.
 The improvement is greatest il textiles. which have continued to har den during the week. refiecting thu advance in the cotton market wher'
 broad speculation Is developing
 following the governments alarm ingly low condition report and th' sensational statement made with re gard to the ravages of the ooi WeeV1l. MuCn nlSncI pTiCes dic Qu's' possible. as 1t Is doubtful wne.aer th' I public or trade yet appreciate wha a crop that some think may not b. over s,000.000 bales would n.ean. l would be the smallest since 1895 since when the worlds spindfes ant
 normal consumption have almos doubled
 Sugar, coffee, tea hides and canned goods continue firm with an upwart | tendency, and even Irish an1 swee potatoes are described as excited ans higher In the grain markets GU riously confident belief III highe prices seems to be gaining ground though it has not yet found exprss sion in higher prices for wheat.
 Speculative Sentiment
 In all these commodities the re versal of speculative sentiment prob
 ably reflects subconscious sppre
 citation of the gold imitation to which I have so often alluded. This in
 fluence is more directly apparent 1T the London price of silver. wAich has advanced to SSnd per ounce from 6
 low of 30Ssd touched last March Probably because it fluctuates more directly than commodities in inverse relation to the value of goli and 1. still the currency preferred oy more than onehalf the worlds popula lion
 many shrewd observers regard 1t & the most reliable indicator oi com
 mercial and financial conditions e
 which we have knowledge. At al events the record shows that an ad-
 vance in silver generally coincidei with an improvement in the world.
 trade. and as gold piles up in tn, United tSates 1t seems unreasonabl, ip hn |.
 metal.
 At the risk of seeming academic
 stress these somewhat recondiate as poets of the situation, because gol