The Birmingham age-herald., 1922-01-02
Failure Of Italian Bank
 Has Little Effect Upon
 Finances Of United States
Holiday Sales Are Larger Than Had Been Expected. Reports From Steel Industry Are Distinctly Op-
 tmistic-Cotton Shows Rising Tendency

to contemplate the cheerfulness which appears to be felt on this side of the Atlantic. The holiday sales are said to have been even larger than was expected last week, but no precise figures are as yet available. Railroad net earnings for November are also better than had been anticipated. Il Is estimated that they will be at the rate of per cent upon the valuation of StS.900 100000 that the interstate commerce commission has put upon the roads, whose market value as in- dicated by the prices at which therr | securities are selling is less than s12,- 900, 00O 900.
 Logically. these figures would indi- cate an advance in railway securities were it not that the gain in net rev enue is mainly due to a reduction in operating expenses. Gross earnings are still poor. They are not likely to improve until rates are reduced and the traffic movement is thereby stim- ulated. The public Is meantime pro- testing, the motor trucks are captur- ing much of the short haul freight the railroads formerly carried. and Mir. Walker D. Hines, formerly diree- tor general of the United States rail- road administration, has made a speech predicting compulsory unifi- cation of the railroads because the public will be unwilling to pay the cost of maintaining so many different systems.
 In the ommodity markets the only important change in value is a de- cline in sugar. Refined granulated has sold at 4.so cents. and Cuban raw at 1.75 cents, cost and freight New York. These prices, which are the result of Cuban liquidation. are near ly the lowest on record. and will no doubt lead to an early distribution of the we'll advertised surplus They should and probably will attract in vestment buying.
 Boston report says that "in all the markets of the world the price of wool is rising" The reason seems to be that the British Australian Wool Realization association has the mar ket we'll in hand and that there is a possibility of under production in the future.
 Cotton Stendy
 Cotton has been very steady with a rising tendency as the time for planting next years crop approaches. If the world should conclude that we are not likely to make more than S,5o0.o00 bales in 1922, extreme prices might be seen. Henry Hentz & Co. we'll known authorities on the sub 1ect, estimate the production of re- fined cotton oil for the current sea- son at 2050,s07 barrels It is to be inferred that they regard present prices as reasonable. considering the reduced supply.
 The reports from the steel industry are distinctly optimistic. but they ap- pear to reflect a hope of future busi- ness rather than present activity. Copper is steady at 14 cents for Jan- uary delivery. Coffee has maintained most of the recent advance and those who think they have knowledge of the plans of the Brazilian government expect much higher prices after the new year.
 The reserve ratio of the federal re- serve system has risen from TOT to Ill per cent during the week The gold held shows loss of sl, l,400, ,000 The money market is unchanged, but in some quarters further reduction in the rediscount rate is expected, yet prices are not quotably lower, The stock market has been dull, but the stolidity shown In the face of the Italian news has been very impress sive and there are many who predict activity and rising prices early in the new year.
 The steadiness of foreign exchange Is also impressive for there is but lit- tie change in quotations. Italian lire declined to 4.19% on the bank sus- pension, but quickly recovered most of the drop.
 Summarizing the situation, 1t may be said that the barometer seems set for fair weather in the United States unless the European area of low pres- sure shall extend itself westward across the Atlantic. and that the most reassuring development of the week has been our apparent insensibiiity to the economic unsettlement abroad