The Birmingham age-herald., 1924-11-23
Larger Production Looms
 As Confidence Increases
Railroads Plan Expan. siOn-Steel Mills Take
 On New Life
By JOHN T. FLYNN

NEW YORK, Nov. 22.-As the cleo ton recedes and the excitement about stocks becomes a familiar phenomenon, it is becoming apparent that the cleo tion has made no change in the condi- tions surrounding business save in the one element of confidence. The depres- sion which has been under way through out the year (and which by the way has been by no means so serious) was due to economic causes. These economic causes had been corrected or counter acted we'll before the election and the whole industrial machine was set to be speeded up. The one thing lacking, the thing that held it back, was a lack of confidence. The election has supplied that factor with the resulting speeding up of business The most important results now visible are the furious stim- ulation of speculation, general re- sumption of production. recovery of commodity prices, an improvement in the tone of the railroad situation. The outlook is for very marked stimula- tion of financing, large programs of ex- pansion by the railroads, slight ad- vance in commodity prices and strengthening of the money market with possible increase in the rediscount rate.
 The Farm
 Increased exports of wheat continue to feature the grain market. The fore cast now is for sales of wheat and flour abroad in excess of 20O,O00OOO bushels. Last year the total export of wheat was 1856, ,43O,O00 bushels. This estimate is based on exports of 11S,OO0,OO0 bushels from July to the end of October, com pared with 73,SOO,00O bushels in the same period in 1923. Notwithstanding this, there was a little disposition to weakness in the wheat market this week. But it was without significance, as it represented liquidation and adjustment by professional spectators.
 A major event of the week was the launching of the work of the agricul- tural commission appointed by the President This commission announced it would not be able to repo-t t any rec concentrations at the approaching ses- sion of Congress save in the matter of the cattle industry. Whatever relief to the farm may come from this commis- sion requiring legislation will therefore be postponed for a year.
 Iron and Steel
 Things are stirring among the steel mills. Prices are advancing, and for the first time in two years Pittsburgh describes the condition of the industry as "sellers' market The exceptional activities in the equipment industry more than anything else is responsible for this Many of the roads have re- leased large orders for cars, both pas senger and freight, rails, track supplies, etc. Even the locomotive equipment business, which has Jagged, promises to get back to work on larger scale. Samuel Vauclain, president of the Bald win Locomotive works, says his com pany has more inquiries than at any time in long period. He predicts that the railroads will soon be bidding against one another for equipment
 RailrOadi
 No department of industry has un dertaken to gather more satisfaction from the election than the railroads. The congressional elections, in particu- lar, are accepted as guarantee against hampering regulation for another two years at least. This fact, together with the generally bright trade outlook and the exceptional performance of the roads, recently has resulted in tre- mendous confidence in railway shares. This confidence seems sound. In in dustry there is an excess of plant ca pacity which tends to produce disSatis- faction and increase overhead. But the railroads have plant inadequate meas ured by demand, which tends to increase plant value. The roads claim to have broken many records this fall. They have loaded the greatest number of cars for any one wt in history. In an- other week they surpassed all records for grain shipments. And still another week they hit new high mark for shipments in less than carload lots.
 Finance
 No more important financial event has occurred in many months than one which was the outcome of the railroad situation just described. It was the sale of new issues of common stock of three railroad companies and preferred stock of another company. Since the begin ming of the European war, no railroad has felt strong enough to attempt to finance itself by selling new stock is sues. When the roads have wanted money they have sold bonds. The fact that situation has developed in which they can provide themselves with money by selling common stock is an achieve ment of ffrst-class importance. The quick success of these sales adds e-l- phasis to this. Common stock was of fered by Carolina, Clinchfield X Ohio leased line, the Bangor & Aroostook and the Vicksburg, Shreveport and Pacific Railroad company. The Bangor & AroostOok also offered preferred stock. The four issues totaled $21,- 100000, and they were oversubscribed in single day. This event undoubtedly marks the beginning of a new era in the public ownership of utility stocks.
 Money
 Money continues easy, but the pre- dictiOn is made in some quarters that we will see hardening of the rates be- fore very long. There is a noticeable growth in bank deposits as compared with this time last year. Nevertheless many observers insist that the heavy financing operations, both domestic and foreign, ahead of us and the reduction in gold imports, togetl-er with the gen. eral expansion If trade, will result in higher rates.
 Prices
 Prices have undoubtedly increased. Prof. Fisher of Yale reports q rise of nearly 3 per cent in the general level in one week. This is accounted for in part by the slump in commodity prices preceding the election. These prices have )w regained some of their lost