The Chattanooga news. [volume] (Chattanooga, Tenn.) 1891-1939, 1920-10-29
FREER LOANS TO
AID BUSINESS
Lower Rates viii Also Help to
Unlock Door Of Financial
Recovery.
SITUATION REALLY SOUND

\ iBY JOHN w. HILL, Financial Editor
Iron Trade Revlew.)
Two keys which eventually will IN
nx n sS nSSs ~ P 9oces now * yo
One Is level Of prices which vii
strike consumers as reasonable an,
stimulate buying. The other Ia i'm
proved financial conditions.
the financial situation has beef
proven fundamentally sound and abb
% bear up under the severe test o
commercial detlatlon now In progress
When the crop-moving strain IL re
moved fIom the banks, around the frs
" the year. the result should be re-
elected In freer loans and lower rates
kell, accompanied by slumping business
shrinking profits and earnings, and IN
creasing commercial failures. These de-
velopments are sowing pessifnlsn
among those who are suffering losses
corrective forces which alone can worl
the cure OF unhealthy imitation.
peflation Uneven.
some commodities, including hides,
rubber and copper, have been carried
10 prewar levels or below. Others are
still 100 per cent. or more above, and
cent n sbcSs 1913 81 Phe 's trend Is toward S
FORMAL relationships between values.
Until this Is restored no workable basis
ii possible. Deflation has invaded high-
price etrongholds, thought impregnable
and steel. white paper and petroleum
Election Influence.
The outcome OF the election next
Tuesday Is not likely to exert any Inn
portant influence on the Immediate
squeezing war imitation out OF prices is
guided BY economic. not political. con-
Coal Prices Lower.
Lower coal prices are promised BY the
meeting OF coal operators OF the coun-
ports show coal production is establish
ing new records for peace time. This
iasures an ample supply this winter. N
Aprrova, az 4 ptan 70 form 1 $780,
o0O.66O export financing corporation BY
bankers last week was an important
step 70 sustain American foreign trade.
September exports at s606.000.000 We're
$4,000, 900 mere than August. Imports
at 1896. 100000 showed a decline OF $780,
nea have formed si2000,000 corpora
ti0n 70 stimulate cotton exports.
Retail Trade.
Warm weather, price uncertainty and
diminiHhed purchasing power have COM
blned 70 hat the retail trade this fall.
Il IA estimated that retail stocks are
20 per cent more than one year ago.
Retailers nave reduced their buying 40
per cent. This situation forecasts fur
Their pronounced price concessions 70
the spublic. Additional declines In cot
ton goods have been announced, Cam
cellations are still causing curthiiment
and unemployment at textile mills.
Clothing.
with stock OF unsold wool In. the
world sufficient for two or three years
supply uncertainty In the clothing
trade u easy to understand. Some
ciothiera announce they Will be forced
To eell without profit this fall. large
mems wear manufacturing house has
placing It's spring and sum-
mer lines on the market and has ad-
vised It's trade not TO buy until prices
are more settled"
TO AID Cuba.
American bankers have agreed 70 aid
Cuba, which was caught In the COLLAPSE
81 the sugar market. No credit will be
extended TO maintain sugar prices. but
n finance the marketing OF the