The Birmingham age-herald., 1921-03-21
By THEODORE II. PRICE

Feb. l5Zl Feb. lSZU. \ Exports .... s4S9. .S11,e42 s645, 145, ,225 T Imports ............ 2l4.525.1d 467, 4O2,S2o Excess exports. .s274.7ss,SO5 s17I72,so6 Our net imports of gold for February were s4S,ss7.71s. making a total of s254.- oocoo0 since June so 1920. while the mer- chandise balance of trade lin our favor" during the same eight months is s2.S67,- Sss, ,00o
 These figures, which are very remark able when the market for foreign ex- change is considered, are in measure explanatory of the recent and constant gain in our gold supplies The gold re- serves of the federal reserve banks in- creased 900 during the week ending March Il, and our net importations of the yellow metal for the week ending March IS will be about $2O.OooOOo more.
 Gold is coming here from India, Canada, Sweden, Holland. South America and many other unexpected quarters, and its continued accumulation, which some have called the gold cure" has raised the reserve ratio of the fed- eral reserve system to the highest figures since September, 1919, and promises to lift it still higher.
 This is to me the most important fea- tLre of the situation for it foreshadows a relaxation of interest rates that must ultimately quicken trade activity. The sudden reversal of form which the stock market has shown reflects this anticipa- ton, and the lower rates for call money. which is now to be had at 5 per cent by borrowers of unquestioned standing, while commercial paper of the highest grade can be sold at per cent With the single exception of coffee, which has declined to the lowest prices since l9Vf as result of the strained financial con- d:tions in Brazil, the more important commodity markets all steadier ana higher and the volume of trade appears ! to be gradually increasing.
 This view is confirmed by the reports of railroad traffic which for the week ending March show an increase of 54,Voo over the previous week in the number or cars loaded with revenue-producing freight.
 LARGEST SHIPMENTS
 The total of cars loaded was H2S22,' which is the largest for any week tnie year, and while it is nearly 100000 iess than for the corresponding week of l92O, it is larger by ,o0o than in the same pe- riod of 1919. The railway wage question is however, still unsolved, and waits upon the decision of the labor board ai- trough the managers continue in thelr efforts to reduce operating expenses by laying off men and the employees brother hoods are insisting that Sucn acelol IS on warrantable.
 Senator Cumnins is meanwhile arrang ing for a thorough investigation Of the whole subject. Just what the result Will be no one can foresee, though the ioea of a governmental subsidy for the trans pcrtation companies is now more serl- ously discussed than at any time pre- yiously That the public shares my con fidence that some rational and equitable solution of the problem will be found IS indicated by the market for railway St, curities, which are from 2 to per cent above the lowest figures touched early in the week. despite the fact that Jan uary gross earnings were more than ao- scYbed by operating expenses.
 There are some who entertain the nope that the employees will voluntarily assent to a reduction in wages, but tnls seems exceedingly doubtful, although some en- couragement for this belief is to be found in the attitude of the wage-earners in other industries where labor costs have been successfully reduced without strikes: ? The most impressive single instance or the business recovery that seems 10 pc in progress is the experience of the Ford Motor company, which reports that II will shin 9o.06o cars during March, as com pared with a normal output of looon cars a month.
 u is said that the consequent improve nent in the financial condition of the Ford company has made the much talked of loan entirely unnecessary. The Dodge Motor Car company, idle since last De- cember, has also started up. Incidentally it is reported that at the close of last year there were in the United States g. q z95 registered automobiles of one kind and another. These figures are construed by the automobile manufacturers an in dcating that the motor has become m dIspensable, while there are others who insist that it means the "saturation" that has been prophesied ever since automo- piles first began to be generally used.
 STEEL AND IRON
 Opinions differ as to conditions in the steel and iron industry Pig iron is lower, . but some of the independents" in the rSmddle west have advanced their prices on steel plates, although it is stated that the industry as a whole is working at less than 35 per cent of capacity, which V goes to confirm Andrew Carnegies state- .inent that ''steel is either prince or a pauper." One can only guess at the facts, but my guess is that the demand for steel will improve concurrently with railroad earnings for the railroads are the largest -susers of steel and they are undoubtedly ir need of much of it at present.
 The copper producers have withdrawn their offerings of that metal at l2 cents, as the expected demand naS not ueVei- ored In the textile trade the distribution of both cotton and woolen goods is in- creasing. The American consumption C cotton during February amounted to 80, 5Ss bales as compared with 515,599 in the same month year ago. The consumption for March is expected to be reiatiVeiy larger as the number of mills at worK is constantly increasing.
 Acute depression in the cotton manu- ' facturing industry is, however. reported from Great. Britain and the continent, because of the falling off in the export demand. Reports from the south con tirue to insist that the acreage planted Tn cotton will be reduced by an average of B per cent, and that the amount of fer tllizer used will be negligible. Upon tnis theory there has been some investment buying of cotton futures.
 Cotton exporters are counting heavily upon help from the War Finance cor poration now that Eugene Meyer Jr., has been put at it's head. The Savings Bank association of the state of New York has issued a statement showing that the deposits of 6S5 mutual savings banks situated in every part of the United States increased over 10 per cent during the year 1920 The highest rau, of increase was in Wisconsin.
 The bank clearings for the week. as reported by Bradstreets show decrease of 207 per cent as compared with last year. which indicate an increase in the volume of goods changing hands when