Vilas County news. [volume] (Eagle River, Vilas County, Wis.) 1896-1927, 1920-05-26
NEW MOVE ON THE
HIGH COST LIVING
Cal Loans on Hoarded Foods 10
Cut Prices.
TAKE RESERVE BOARDS TIP
Bankers Take Action In an Effort &c
Drive Vast Supplies Of Foodstuffs
From Warehouses-Nones
tia,s Under Ban.

Washington. May 2O-AdontiOn by
American bankers Of the recommends
ton Of Governor Harding of the fed
eral reserve board 80 liquify frozen
loans" was expected by board officials
10 alleviate the financial situation and
to 90 far toward 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-
emulation 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 10 be kept OF the
market. with resultant increase I'm
prices The Illinois representative
said he had been informed that in New
York city alone more than 70.O00OO0
pounds Of condensed and evaporated
milk were being held I'm storage. in
comparison with slightly more than s.
OO0.OOO pounds year ago.
Although legislation designed 10
drive foodstuffs from storage is now
pending in congress, IL was said that
careful withdrawal of credit from
spectators in food products might ac-
complish more than statutory regula-
ton. IL was emphasized. however.
that discrimination should be exer-
cised by bankers. inasmuch as I'm many
lines the summer months see an ac-
cumulation Of commodities for the fol-
lowing winter.
Speculative Losns Cut.
New York, May 2O.-Pursuant 10
their pledge 10 the federal reserve
board, leading banking interests Of
fhis city extended their campaign Of
deflation OF credits and high commod-
lily prices.
In the financial district this policy
already has been effective in reducing
speculative loans against securities 10
the extent Of hundreds Of millions of
dollars IN the last fortnight. In one
instance. that of a prominent trust
company. Il 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
siituiious IS said 10 be directly respon-
sihle 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 n large
measure control operations of uptown
banks. are reported TO nave advised
drastic currnllment OF loans 10 mer-
chants who for any reason fail TO com
ply with the governments deflation
program.
Importers and other dealers In the
more luxurious articles of apparel, as
wen as manufacturers of jewelry. sill
Verware and other SO-called nOnessen-
tails. are said 10 have received word
from their banks that only the most
moderate financial accommodations
may be expected M this time.
The president Of a bank In the
wholesale shoe district is authority
FOR the statement that loans 10 dealers
IN leather and rubber goo6s are smaller
now than al any period in the last IS
months.