The Washington herald., 1921-08-21

fall, believing that there will be q
loosening Of purse strings. This.
however, applies only 70 household
necessities: such supplies as -inpie-
ments, building materials. etc, re-
main Slow One wholesale, furniture
house here received this week orders
for several CARROTS Of furniture for
the wheat belt--something that had
not happened In one week for eight
months. Naturally. IL was taken as
a straw showing a more favorable
wind.
R<taiI Prices an obstacle.
The complaint that retail prices
are too high continues TO be heard
and probably Is now the chief OBJ
stacle in the way of an early open
ing Of autumn trade on a liberal
scale. Normally there should be this
year the earliest fall activity in
1 merchandising in years. Last sea-
son Il was postponed and then never
came. This season, with early SELL
ing Of products, even at a low price,
there is in hand some buying power
already, and unquestionably most
households have low stocks on hand.
II is now a matter OF the customer
feeling confidence in prices which he
has not experienced for a year past.
How the banks will resdjust their
affairs is not yet. clear. They have
of course. been urging liquidation
on their borrowers, but while some
possibility in that direction exists
today, il is doubtful II IL is wise to
insist on too great strain on the in
come Of a year when the price lev
ell OF products Is low. The producer
must live until next harvest In the
case Of the wheat grower he has all
his income for the year except what
the by-products Of dairy and poultry
yard may bring. The corn raiser
has yet to gather his crop, and both
corn and wheat have suffered from
the heat of summer So bankers are
inclined to ask only that partial set
Elements be made. trying 70 keep
their houses in order that they may
be able to assist when winter brings
the pinch Of a demand for loans.
Those banks that have rediscounted
and borrowed heavily in order to &C
commodate their customers viii
force collections more strenuouSly.
On the whole, hanks have weathsred
the storm much better than seemed
possible and have done IL only by
! limiting loans to the largest possible
extent. For IL they have been crit
icised and the charge has been made
that they have bought commercial
paper, thus helping the East rather
than making further loans to their
home people. But the fact that
some have done so, thus securing
actually liquid investments rather
than slow loans. has made 1t possible
for them to care for their home
needs at all
Prospects for Easy Money.
ton that We shall have easier money
for at least the next ninety days.
Interest rates have held steady
through the summer. and whatever
may be the advantage of the in
coming harvest return every dollar
will be demanded. The difference
4 In the producers buying power is
being felt, az he figures more closely
on every purchase He has bought
very little new machinery during
the summer, and implement men
have had probably as serious = sea
son as ever in their history. Auto
mobile trade has not been stimu-
lated by the more favorable atti-
tude of some bankers toward auto
mobile paper, or cut prices. Outside
the "fiivyer" the country dealer has
seen scarcely enough business to
keep things going. Another indi-
cation of the economy is seen in
the motor repair shops, which have
been reducing their forces. Cars
have been repaired at home or al
lowed to rattle-the owners would
not, or felt that they could not,
spend the money to put them In
order. OF course. the time will
come when repairs must be made,
and the shops are hoRefully waiting.
Conscience Needed for Revival.
Just what will put energy into
business is eagerly canvassed- II
is felt that SO far as the producing
country is concerned there Is sum
j cient wealth available to start trade,
but the psychological attitude re-
mains aloof to a degree that while
perhaps less pronounced than last
winter and spring IL still sufficiently
present TO keep brakes partly set
Not much seems expected from
| Congress by the average farmer;
he has about given UP hope Of hav-
ing anything done for him from the
| outside and is CONVINCED Iuah ne
must work out his own salvation
which perhaps is the best thing
that could happen to him He de-
nounces public expenses and high
taxes, but the earlier threats to
start a political revolt are less
prominent. However, that may come
next year when the elections are
nearer. The promoter Of invest
ment and blue sky schemes Is out
Of business. The farmer has bought
all the oil, mining, elevator and
washing machine stock he Is in
clined to for some time. This, too,
will help. What is needed now is
confidence to advance, and the
| country bankers are trying to in
still this into their customers, point
ing to the solidity of the production
area and the faith that should be
held in the future.
If the country banks can retain
their present lead and their deposits
continue to grow, with some liqui-
dation of the long-held notes, they
will feel that the strain is over.
This will depend largely on main
tenance Of the present grain-selltng
tendency and a liberslizing influence
therefrom in the disposition Of the
producer. The next sixty days will