The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-05-19
BANKERS PLAN TO !
REDUCE CREDITS
WELL UNDER WAY
Action of Monied Interests Be-
Iieved Responsible for Wave
of Price Cutting by Retail
Dealers.

NEW YORK, May l9.-Pursuant to
their pledge to the federal reserve
ooard pea, leading banking interests Of this
deflation of credits and high commodity
prices.
In the financial district this policy
already has been effective in reduc-
ing speculative loans against securities
to the extent of hundreds of millions
OF dollars in the last fortnight. In
one instance, that of prominent trust
company, IL is said. that credits of this
character had been. reduced by $780,
000, 300 in the last three weeks.
Banks in the wholesale dry goods
and general merchandise districts have
been proceeding along the same lines,
and the pressure exerted by those in
stitutions Is, said to be directly respon-
sible for the wave of price cutting in
many lines of retail trade especially
by the large department stores.
Downtown banks, which in large
measure control operations of uptown
banks, are reported to have advised
chants who for any reason fail to COM
ply with the government deflation
program.
Importers and other dealers in the
more luxurious articles of apparel, as
we'll as manufacturers of jewelry, sill
verware and other so-called nonessen-
tials, are said to have received word
from their, banks that only the most
moderate financial accommodations may
be- expected at this time.
The president of bank in the whole-
sale shoe district is authority for the
statement that loans to dealers in
leather and rubber goods are smaller
now than at any period in the last IS
months.
YOUNGSTOWN, Ohio, May ia re-
duction of 20 per cent in prices of
nearly all goods was announced today
by one OF the large downtown depart
ment stores.
BOSTON, May 19--Price reductions
advertised today by various retail
stores.
FRESNO, Cal, May 19,-General re-
auctions on silk goods of 20 to 25 per
cent were announced by retailers in
advertisements published today.
CHEYENNE, Wyo., May 19.--Reduc,
ton of Is per cent on the prices CT all
dry goods and clothing, effective today,
was announced by one merchant here.
CHATTANOOGA. Tenn, May 19.---
Practically all the leading stores OF
Chattanooga are advertising 20 per
cent discount on all goods sold except
toilet articles and contract goods.
ST. LOUIS, May 19.--Reductions in
prices of clothing of from IS to S5 per
cent were announced by three of the
larger department stores here today.
Several mems clothing stores announced
a 80 1-3 per cent reduction in the
price OF suits.
INDIANAPOLIS, May 19.-SGk shirts
and suits for men are the first ar
ticles of clothing to suffer radical price
reductions in Indiana and several OF
the leading merchants of this city are
offering mems furnishings today at
from 20 to 80 per cent below former
prices, One reliable establishment IL
offering silk shirts for men at $t.95, or
almost half their former price.
OMAHA, Neb., May 19--Dealers in
automobiles and dentists today an
nounced material reductions in their
prices, while among the larger depart
ment stores all but one had placed on
sale their entire or 2 greater portion
Of their stocks at discounts ranging
from 90 to so per cent. Several shoe
dealers also announced discounts.