Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-05-19
Bankers Extend Plan
to DefIate Credits,
New York Announces

BIZ the Associated Press.
NEW YORK. May 19.-Pursuant to
their pledge to the Federal Reserve
Board. leading banking interests of
this city today extended their cam
commodity prices.
In the financial district this policy
already has been effective in reducing
speculative loans against securities to
the extent of hundreds of millions Of
dollars in the last fortnight. 9<one
instance, that of a prominent trust
company. it is said that credits of
this character had been reduced by
800. 900, 600 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 oy
~ responsible for the wave of price
cutting in many lines of retail trade.
especially by the large department
stores.
Downtown banks. which in a large
measure control operations OF uptown
banks. are reported to have advised
drastic curtailment Of loans to mer-
chants who for any reason fail TO
comply with the governments defia-
tion program.
AecOmmOdatfOns Moderate.
Importers and other dealers in the
more luxurious articles of apparel as
we'll as manufacturers of jewelry, Sill
verware and other so-called non-es-
sentials are said to have received word
from their banks that only the most
moderate financial accommodations
may be expected at this time.
The president of a bank in the
wholesale shoe district is authority
for the statement that loans to deal
ers in leather and rubber goods are
smaller now than at any period in the
last eighteen months.
Prices slashed I'm New York.
The price-slashing movement ap-
peared to have struck New York to-
day.
Afternoon newspapers carried ad-
vertisements inserted by many Of the
leading department stores. reading:
Reductions of $3.50 to $40 in wom-
ems high-class capes. cape wraps and
wrap coats"
Fifty per cent on on our entire
stock Of children's and misses hats"
Special clearance sale of boys
ANY suit. coat or dress at hall
price"
AT less than cost-remaining stock
of spring dresses"
Deduct 90 per cent right OF the
price TICKET on HI sporting SOOOS.
Meanwhile the city hall became the
scene Of public hearing on high
prices. The joint legislative commit.
tee which investigated radicalism ir
this state and which has held two
closed sessions on the subject Of prof.
teering as a cause Of social unrest 10.
day flung open its doors to the public
A number Of prominent sugar broker.
were examined.
Reports From Coast to Coast.
CHICAGO. May 19.-Reports Of price.
cutting in wearing apparel and miscel.
laneous merchandise continued TO he re.
Ceiyed from various regions oe the coup.
in cities from New England 20 the Pa.
cI.ic coast and the Mexican border an,
nounced reductions rangin@ from 20 Il
so per cent. The price Of shoes was -.
ported in some quarters to nave beer
cut one-tffth.
Dispatches from twenty-four cities il
the far west tell Of promised reductions.
in these necessities ranging ircm 10 pei
cent to minus profit.
Financial authorities hc.e said tina
the indications were mat the pric.
decline would be limited 80 ready-to
wear clothing. principally women.
garments and silks. Shoes were il
the list affected
Tight money and inadequate trans
portation facilities were cited anon
the prime reasons for the mercantii,
movement. Delays in delivery o
goods. in which much money had beer
tied up. together with inability o
farmers 10 get grain and livestock I.
market. were said in many instance.
10 have worked a hardship on n1er
chants.
4 financial authority here said tha
IL reports of price cutting were de
pendable they indicated a tendenc.
toward a reduction in inventories
Though this might be temporary, III
said, IT was undoubtedly good. in tina
II suggested that merchants were go
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