The courier-index., 1920-11-19
Business Clouds
 Lift; 1921 N0IU
 Looming Up Big
(Memphis News-Scimitar.-

Signs are not lacking that the worst of deflation is over and that the business world is looking for slow betterment in conditions that will result in big year for l92l- Recent big sales of hardwood lum- Der abroad, with expectations of lumbermen that the market will begin to take on life in earnest within the next 60 days; reports of the big order from the soviet government in Russia secured by w. E. Vanderlip. with it's prospects of big trade in 1921 and report of gradually liquidating loans on the part of the banks are among the tangible signs on which the note of optimism for the future is based
 Report of gradual liquidation of loans is of particularly healthy sig nificance. Reduction in loans IS made gradual because of the fact that new or different lines are con- stantly demanding funds released by other borrowers. There are some borrowers whose greatest need for 1 funds occur at this season and this must be cared for, but despite these requirements loans are gradually being lowered.
 1 John J. Heflin, manager of the local branch of the federal reserve bank stated Tuesday that the local
 branch had liquidated loans to the extent of about $3,000,000 within the last two weeks. Other Mem phis bankers report gradual liq- | I,,.J Ja{ ct kof ing no disposition to re-enter the money market The statement from the state and national bankers is borne out by the reduced loans at | the federal reserve bank.
 | The cotton situation still finds clouds upon it's horizon, but the near future is not without its ray of sunshine. In the cotton market I the trouble seems to be that too many offers to sell at price re- sessions have been made lately. The | idea of best informed cotton men is that until halt can be called on these efforts to sell buyers will not be in any hurry about accumu- 1 lating cotton, 1t is a we'll known characteristic of the mi!!g that they will not buy on declining market. | Recently buyers throughout the belt have been overrun with offers to sell, and from day to day these offers have been made at price recessions.
 Naturally, much of this offering is necessary, as many obligations are now due, and some cotton must be sold. However, best informed observers of the cotton situation take the position that this distress cotton will soon be out of the way and before many days there will be material reduction in the num- Der of offers to sell from holders of cotton.
 There is one phase of the situa- tion upon which all observers of the cotton situation are agreed: the phase of hysteria which gripped the south when the big decline in prices came has passed. It its stead has come a calm determination to fight the battle to a finish; to take mat ters as they are and make most of the situation. The formation of trading companies and the federal international banking corporation is having a steady influence on the morale of the community.
 Despite demoralized market con- ditions some firms report fairly good sales. Joseph Newberger, pres ident of the Newberger Cotton Co.,, stated Tuesday that his firms daily sales for the season to date had averaged higher than for the same period last year. In fairness it should be stated however, that whereas last year Mir. Newberger was not as anxious to sell every time he received an offer, this year he has been pushing the sale of cotton from day to day. Mir. Newburger is strongly of the opin- ion that offerings of cotton in the south are too heavy for the good of the market. His firm at the moment has orders for over 14,000 bales of cotton which must be covered within short time.
 Other firms report fair volume of business for deferred delivery. One broker reported sales for cus- toners of some 1,500 bales for November and December delivery. The same broker sent out inquiry pool good middling, but was unable to land the order because, it was stated, the country was refusing to sell it's high-grade cotton on account of the unfavorable weather condi- tions. The price offered was about in line with the present market val ues, but sellers asked higher prices for this grade of cotton.
 Reports are current of other sales, some of them in fairly large quan- titles. for January and later de- liveries.