The Bridgeport times and evening farmer., 1920-05-27

tice supposed to result in advancing prices. What seems to have been a to1erably cIear-cut agreement on the part of the bankers present to bring about the actual enforcement of the ideas thus set forth as the outcome of the conference appears to have been arrived at, and there are al- ready some indications of a shorten ing of credit in consequence. Among thes is the apparent introduction of the graded or progressive discount rate plan in sundry of the Southern and Western Federal Reserve dis tricts though it is not true, as assert ed by some, that that method has been adopted or applied in the East ern and Northern districts. Another application of the conclusions ar rived at is seen in the announcement of decision to discriminate against automobile and other classes of paper in some districts it being sup posed that these kinds of paper have been drawn or created for unneces- sary or unessential purposes. Still other steps are in progress and the result may be a considerable restric- tion of accommodation at banks
 Call and Other Rates.
 The new trend in banking policy has not however as yet exerted any direct effect upon call or other rates for money. During the past week call rates have been unusually reas- enable with renewal rates sometimes as low as per cent. There has been no material change in the time money situation but rates have been about the same as heretofore with a considerable scarcity of funds. De- mand for call funds has, however, been low owing to the severe liquid alton of stocks and other securities which has taken place. This ac- counts for the failure of call funds to go above the moderate figures that have been established. In the investment field there has, more over, been a continuation of the high rate conditions that have prevailed for some time past, and if anything a tendency toward still more marked advances in the return required to call forth funds from the hands of in vestors. The prevailing high rates and difficulty in getting funds have been primarily responsible for large sales of Liberty bonds of. all issues, which have driven those securities to unprecedentedly low levels and have made the return on them correspond ingfy attractive Naturally the course of other first class securities has been sympath eticaI1y downward produc- ing conditions which were we not so strongly and we'll organized from the banking standpoint as we are today, might have led to what used to be called a money panic These money conditions have undoubtedly been somewhat influenced by the fact that the reserve ratio of the Federal Re- serve system, at last reports, showed a further shrinkage carrying it down to record low figures. Of course a continuation of this downward tend ency would necessarily mean either suspension of reserve requirements or else reduction of credit-unless indeed there should be large accre- tions of new gold. Even those which had been expected during the month from Great Britain however, have not arrived. The fact that the h. terstate Commerce Commission un- dertook to assist the railroads in raising the freight blockade created a more hopeful feeling that the much talked of frozen credit'' will soon give way to better conditions There can be no doubt that if ship ments of merchandise could be de- hvered promptly the present money strain would be relieved to some ex- tent. It is calculated, however, that at least sixty days will pass before much progress in this direction can be made consequently the present unsatisfa ctory conditions are likely to continue for some time longer. It is idle therefore to expect easier money, and without this few people will care to get more deeply into debt
 Prices and Industry.
 The past few days have seen some spasms of price cutting in different parts of the country which however, apnear fo indicate no real md change in conditions but which are partly advertising and partly an eff fort to reassure consumers Tighten ed by high prices, the most positive development being a lower price resolution by the National Associa- ton of Manufacturers Industria11y the reports from all parts of the country are to the effect that there is a continuation in most lines of the