The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1920-05-20
Food Prices Next.
By United Press.J


Washington, May 20. - Food
prices soon will feel the effects of
the great buyers strike" it was
predicted today.
Reductions were forecast in
meats, dairy products and poultry
if consumers hold back on pur-
chases as they are now doing with
clothes and merchandise.
Senator Kenyon today in an in
terview called for organization of
anti-profiteering societies to carry
on the strike against unreasonable
prices.
, Senator Walsh, Massachu sets,
announced he would seek action to-
day on his resolution for appoint
ment of a senate committee to as
certain the relations between hign
prices and the concentration of
wealth IN the hands of a few.
The railroad congestion is the
only retarding movement in sight,
in the opinion of most officials.
Congestion of traffic is likely 10
create artificial shortage of COM
modities in some districts, it is
feared.
Banks Shorten Loans.
Chicago, May 20.-Banks in the
middle west began shortening loans
in hopes of easing the financial sit
uation, several weeks ago, it was
stated in banking circles here to-
day.
Loans for speculation are being
turned down 1atly and merchants
are notified to pare their needs TO
the bone. Borrowers are not being
pressed to the point of disaster but
they are urged to limit further
loans and to get along on what
they have.
Federal reserve officials here to-
day said the credit situation was
not critical but people must use
care.
Eastern Banks Cautious.
New York, May 20-New York
banking and financial circles were
bending every effort today to read
Just the loan and credit situation
on a lower basis without too vio-
lent disturbance of the financial
structure.
The liquidation of loans ordered
by the federal reserve board was in
progress. Just how sweeping t
will be no one will say, bankers
trying to protect their customers
credit. 1t is regarded as certain
that the merchants carrying large
luxury stocks on bank credit have
been ordered to reduce their bank
obligation. The result has been to
compel the merchants to offer in
ducements to break the buyers
strike" Therefore the flood OF
sales" all over the nation.
So far food has been little affect
ed. 1t was understood, however
today that some of the banks have
been carrying paper for vast quan.
ties Of food in cold storage and tha1
they have called in part of thess
loans. 1t was expected this would
compel holders of the stored foot
to market it and prices will decline
X. Z. Cash Tight.
Kansas City, Mo-, May 20.-Fed
eral progressive discount rates
placed in effect in this federal re
serve district on April II, alread!
have greatly curtailed credits. espc
cially bank loans, according to in
formation obtained at the fedora
reserve board headquarters hers
today.
The Tenth district was the only
federal reserve district placing
progressive discount rates in effec
at that, time. it was stated. Nc
other immediate steps to deflatt
credit are contemplated here. II
was said.
Springfield Reduces.
Springfield. ILL.,. May 2o.-The
price cutting movement. now preva-
lent throughout the country. was
erovinx here today. Additional
stores announced price reductions
On mems and wome0's clothing ap-
proximating 50 per cent. SILK
shirts received the worst ssashing
SIS values selling at 81.
Dig Bargains In New York.
New York. May 20.-Broadway