The Birmingham age-herald., 1924-08-05


 eign conditions. confidence that the ex- traordinary building boom (which has meant so much) will continue, and an assurance of good crops all over the country. But, as the old lady remarked There's always a something"
 There is nothing mysterious about the transformation which has occurred in business sentiment. Such develop ments as the following could not well have failed to dispel most of the too great pessimism which ruled during the first half of the year:
 First and most important, the week est pillar in our business structure has been tremendously strengthened. Where as our 35,000,000 agricultural popula- tion were suffering keenly from made quate prices for their products, they are now broadly speaking, well circum- stanced. The prices they are receiving for all grains give them tremendously increased purchasing power and the threatened scarcity of wheat through out the world is accepted a. insuring high prices for the coming year.
 The phenomenal rise in corn means, of course, that all growers will not be able to reap satisfactory haryests; but it also means prosperity for those who can produce normal amounts. Further more, dear corn cannot fail to send up the market value of hogs. Indeed, hogs have already touched new high price for the year and may easily advance much more. Other food animals are likely to be affected.
 Then the south has been cheered by the advance in cotton to profitable fig AAo promises to call for all the cotton ed for during the season we are now en- tering.
 Next to agriculture cheap money probably has been the strongest force in bringing about the bullishness now exhibited, particularly on the stock and commodity exchanges. Bankers are hu- man. They are just as keen as any other class of business men to earn req sonable profits. Idle money on their hands spells losses. Therefore the pres sure to find use for funds is likely to be reflected by expanding enterprises in many directions.
 Even so, however, nothing has oc- cured to indicate that unhealthy in- flatiOn is about to set in. So far the advance in securities and in commodi- ties has. been tolebarbly well founded.
 The weekend cables raised hopes that the European premiers will over come the serious and intricate difficult ties which have stood in the way of reaching a basis for putting the Dawes plan into operation. While optimism would appear to be werranted that the II s,, taining its main object, it must be re- membered that the legislaturs in differ ent countries affected will have to pass on the premiers decisions and that this must necessarily mean delay at the least.
 How easy has been the transforma- tion in the price trend is forcefully dem onstrated by the contrast between last weeks fluctuations in commodities and the changes which were occurring weekly only month or two ago. Then the declines were far outnumbering the advances. Last week there were six advances for every decline, a record not matched since the war boom collapse.
 Dun's review, which furnishes these figures, also says July closed with more activity in steel, copper, textiles and hides and feathers, among other commodities and the month brought distinct turn for the better in senti- ment.'' It is astonishing in view of the foregoing, that the average quota tions for shares listed on the New York stock exchange should have reached the highest level since 1916.
 Bonds are not only at the highest point of the current year but are above the peak attained in any recent year, with the exception of 1922, and the prospect is that the high mark reached in August of that year will be passed during the current month
 It will be we'll if Wall streets daily exhibition of million shcr. days" does