The Birmingham age-herald., 1921-12-12

ing charge of the reorganization of the Missouri, Kansas and Texas and the Chicago and Eastern Illinois rail roads would hardly have dared to an- nounce their plans The new capital necessary would not have been forth coming. Now 1t is easily obtainable and these congratulations are being consummated. The same feeling of confidence in the future is behind the extensive consultations in the steel and coal industries that are being ar ranged against the time when the new securities that will be created can be sold The New York Herald of December published An Bxhaus
 tive Survey of tho Architectural Of fiees of the United States" which showed that the cost of the new build ing construction HOW contemplated in the United States Is SALTS, ,665, 75Oss
 This revival of activity evidences faith In the recuperative powers of the country that will spread, for faith like doubt. is contagious. That conditions justify constructive op- timism has long been apparent to the close observer but 1t has also been plain that some striking concatena tion of events was required to revive enterprise and quicken the business imagination. This has been provided In the developments at the dlsarma- ment conference and the nearly con- current settlement of the Irish ques ton, which Is a triumph of compro- mise over coercion that does great credits to the statesmanship of Lloyd George. The result Is that men near ly everywhere have become con vinced that a resort to the surgery of war will be unnecessary for a long time to come and capital is now hur- rying to find employment in the work for which peace will afford oppor- tunity, We have an accumulation of gold in this country which assures an extended period of easy money and abundant credit Among the things that are definitely encouraging, there must also be included President Hard- l ings message to Congress, his recog- i milton of the farmers plight. the need | of further tax revision and the desir- | ability of a constitutional amendment | that will give the federal government | the right to tax incomes derived from 1 new issues of state and municipal se- curities. The President has also sug- gested that the right of labor to com biae should be formally recognized by the passage of laws which limit the power of such combinations just as the power of capital in combina- 1 ton is restricted. The proposal is not a novel one, but 1t Is the first time 1t has received presidential approval, and 1t contemplate an industrial dis armament that will greatly benefit both the wage earner and the em- ployer.
 Presidents Program
 Of course, 1t will take time to make the Presidents program a reality, but 1t is heartening to contemplate, and 1t is to be counted as helpful in it's psychological effect as is most of the routine news of the commercial and financial markets. There is here and there a bad spot, but in its en- tirety business seems to be on an even keel and moving toward the end of the year at an average, though not an unusual speed.
 new era in governmental finance has been ushered in with the submis- sion of budget by the President to Congress. The taxpayer will find some relief in sight; the total esti- mated expenditures for the fiscal year 1922 are s1,570, 1lS,323 less than in 1921, and the estimated expendi- lures for 1922 show a reduction of s2,0s2, 2s5, 900. Appropriations of s3b05, ,754,T27 are asked for the next fiscal year.
 Tn securities. and In some commodi- ties. speculation is becoming a bit more venturesome-anoth symptom of returning confidence Silk and rubber which were among the first to collapse in price, have scored sub stantial recoveries. Cables from pri- mary markets abroad report some ex- cited buying of raw silk. Coffee Is again higher and the inherent strength of the cotton market was demonstrated by an advance upon a ginners' report that indicates a crop of over S.000.oo0 bales. Trading In stocks and bonds has been active and new high quotations for the year were registered by number of sharea before 8 profit taking move- ment caused a temporary halt In an uninterrupted advance of several months duration. The Victory bonds crossed par for the first time since their Issuance.
 Gold Accumulates
 So much gold has accumulated in the vaults of American banks that it holds menacing possibilities of a sec- ondary period of inflation.J That the mere possession of gold is not an eco-
  must be put to work-utilized as a basis of credit-but as this is done the danger of imitation will be great. In fact. the whole problem of interna- tional exchanges and credits Is so compiler that the policy of bankers js evidently one of inaction. From Ger many, floundering in a sea of paper money come reports of prosperity and activity. while the United States. with It's large gold supply. still hesi- tates to use 1t.
 Improved sentiment alone has un- doubtedly played big part in the upturn in foreign exchange rates, several currencies. notably the Eng fish pound. reaching the highest level of the year this week. Swiss francs have climbed back to par for the first time in two years. Even marks are steadier on unofficial report from Paris that three-ysar mora torium on further reparation pay ments will be arranged for Germany. The number of paper marks out standing has meantime been in- creased by 4.75o, o,O0o. 900. and the total