The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-11-16
BUSINESS CLOUDS
LIFT; 1921 NOW
LOOMING UP BIG
Gradual Liquidation Of Loans
/ of HeaIthfuI Significance in
Financial Conditions-Big
Trade Expected.

Signs are not lacking that the
worst of deflation lis over and that
the business world is looking for a
slow betterrhent in conditions that
will result in big year fF 1921.
Recent biA sales of hardwood lumber
abroad, with expectations of lumber
men that the market will begin TO
take on life in earnest within the
next 60 days: report of the big order
from the soviet. government in Rus
sia secured by w. E. Vanderlip, with
its prospects Rf big trade in l92l
and report Of Ngradually liquidating
loans on the part of the banks are
aniung the tangible signs on whlcn
. the note of optimism for the future
is based.
Report of gradual liquidation of
loans isl of particularly healthy sig
nif;cance. Reduction in loans Is
made gradual because of the fact
that new or different lines are con-
stantly demanding funds released py
other borrow. ers. There are some
borrowers whose greatest need Tor
/ funds occur at this season ana these
must be cared for, but despite these
requirements loans are gradually pe-
ing lowered.
John ]. Heflin, manager Of the To-
cal branch of the federal reserve
bank, stated Tuesday that the local
branch haj liquidated loans TO the
! snso77}t of about $3,000,00O within me
weeks. Other Memphis
bankers report a gradual liquidation
Ayyifh most. borrowers showing no ols-
Position to re- enter the money mar
ket. The statement from the state
and national bankers is borne OUT
by the reduced, loans at the federal
reserve bank. 49,,
The cotton situation still finds
clouds upon it's horizon, but the near
future is not without its ray of sun
thine. In the cotton market the
trouble seems to be that too many
offers Il sell ut price recessions have
been made lately. The idea>of pest
informci cotton men is that until q
halt can be called on these efforts 10
sell buyers will not be in any hurry
about accommodating cotton. is q
well known characteristic of the mills
that they will not buy on declining
market. Recently buyers through
out the belt have been overrun with
offers to sell, and from day to day
these offers iFhve been made at price
recessions.
Hysterlas Is Fast.
Naturally, much of this offering Is
necessary, as many obligations are
now due, ana some cotton must be
sold, However; best informed tOp-
servers OF the cotton situation take
the position that, this distress cotton
will soon be out OF the way and be-
fore many days there will be ma
tcr,al reduction in the number OF OF
fer, to sSfMfrom holders OF cotton.
There is Oue phase of the situation
upon which all observers or the cot
Ton situation are agreed: the Phase
IL hysteI,n which gripped the south
when.the big decline in prices came
has passed. In its stead has come
calm determination to fight the Dat
lie to finish, to take malleIs as
thew ara make the most OF the sltuav
tion The formation of trading COM
panies and the federal international
banking corporation is having q
gtcadying influence on the morale oil
the community.
Despite demoralized market condl-
tlons some firms report falrly sooc
sales. Joseph Newburger,> president
. "a the Newburger Cotton company
sfatedeTuesday that his firms daily
sales for the season to date mac
averaged higher than Tor the same
period last year. In fairness y
should be stated, however, that
whereas last year Mr.. Newburgef
was.not as anxious to sell every time
he received an offer, this year he has
been pushing the sale of cotton from
day 10 day. Mr.. Newburger Is
strongly ofNthe opinion that offer
ings of cotton in the South are toe
heavy for the good of the market
Ills firm has at the moment orders
y. for over $4,000 bales of cotton which
FAUST be covered within a short time
other firms report a fair volume OF
business for deferred delivery. one
broker reported sales for customers
of some 1900 bales for November and
december delivery. The same broker
sent out inquiry Monday for 1,OOC
TALES of Liverpool good middling, but
was unable 10 land the order because
it was stated, they country was re-
fusing to sell it's high grade cottor
on account of unfavorable weather
conditions. The price offered was
Il about in line with present market
values, but sellers asked higher prices
for this grade of cotton. u
Reports are current of other sales
some of them in fairly large guam
titles, for January and fater deliver