Wauwatosa news. [volume] (Wauwatosa, Wis.) 1900-1948, 1920-05-21
NEW MOVE ON THE
HIGH COST LIVING
Call Loans on Hoarded Foods to
Cut Prices.
TAKE RESERVE BOaR3's TIP
Bankers Take Action in an Effort to
Drive Vast Supplies Of Foodstusfs
From Observation-Disclosures
tails Under Ban.

Washington, May 20.-Adoption by
American bankers Of the recommends
ton Of Governor Harding of the fed
erai reserve board ito 1iquify frozen
loans was expected by board officials
to alleviate the financial situation and
70 go far coward bringing down prices.
Governor Harding applied the term
frozen loans 10 credit extension
which was permitting large stocks of
merchandise to be held in storage for
speculative purposes Additional ac-
cunulation Of goods in storage. he in
dicated. could be prevented by strict
supervision of credit.
Cites Evil in Financing.
Representative King of Illinois, re-
Gently charged In the house that pres
ent methods of financing were permit
ting commodities to be kept off the
market with resultant increase in
prices. The Illinois representative
said he had been informed that in New
York city alone more than 70,000000
pounds of condensed and evaporated
milk were being held in storage. in
comparison with slightly more than s.
000,o00 pounds year ago.
Although legislation designed to
drive foodstuffs from storage is now
pending in congress. 1t was said that
careful withdrawal Of credit from
spectators in food products might &C
cOmplish more than statutory regula-
tion 1t was emphasized, however,
that discrimination should be exer-
cisei by bankers, inasmnch as in many
lines the summer months see an ac-
cumulatisn of commodities for the fol-
lowing winter
Speculative Loans Cut.
New York, May 20.-Iursnant to
their pledge to the federal reserve
board leading banking interests of
this city extended their campaign of
defiation Of credits and high commod-
IT'S prices.
In tie financial district this policy
aiready has been effective in reducing
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, 1t is said that credits Of this
character had been reduced by $780,
100000 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
situations is said to be directly respen-
eihle for the wave Of price-cutting in
many lines of retail trade, especially
By the large department stores.
Urge Ban on Merchants
Downtown banks, which IN large
measure control operations of uptown
banks are reported 10 have advised
drastic curtailment Of loans to mer
chants who for any reason fail 70 com
ply with the governments dehatior
program
Importers and other dealers in The
more luxurious articles of apparel al
Wen as manufacturers Of iewelry, sill
verware and other so-cailed nunessen
tails, are said TO have received wort
from their banks that only the mos
moderate financial accommodation.
may be expected AT this time.
The president Of bank In tn,
wholesale shoe district is authorit,
for the statement that loans to dealer.
in leather and rubber goods are smaller
now than at any period in the last Il
months.