Evening star., 1921-05-11
suited in a lowering Of rates to the
public.
No Cut Rates in Money.

Local bankers do not anticipate any
material reduction in interest rates
because Of the large amount of aGri-
cultural paper which they are carry
ing, and the necessity for putting out
more money for crop making purposes.
Agricultural interests We're unable
to reduce their loans Of last year to
any extent. because of the low price
received for crops. but commercial
loans have been repaid to such an eX-
tent that the banks of this city and
immediate vicinity have reduced their
borrowing at the reserve bank from
SeVenty-four to twenty-fOur millions.
Because of this liquidation. which was
mostly voluntary. the banking stua-
ton is in very healthy condition.
Ihe unse2sonably cool weather and
excessive rains of the past few weeks
nave seriously injured the cotton
crop. Those who are most vitally
interested in this industry do not ap-
pear to realize the extent of the dam
age. because their minds are focused
on European political and labor dis
turhances: Present indications are
that the June government report will
prove quite shock to many.
For the third week in succession
orders for lumbe have exceeded pro-
duction by % to 80 per cent.
NOTES.
NEW YORK, May 1.-THE dire
prediction that a linen famine is
threatened for 1929 is made by w.
Fl. Webb, president Of the Irish Linen
Society. now in this country. Detia-
ton carried the price of flax to such
a low point, he says, that growers
in France. Belgium and Holland
have sown only about one-Ihird the
usual arreage this year. An abnor
mally small crop in Ireland is ex-
pected. the sale of haxsee-lS having
been the smallest in years. Russian
flax will not be produced at all SO,
taking all these fcAtors together.
Mr.. webb feels that an acute short
age of linens next year is inescap-
able.
NEW YORK, May 11.-A new rug and
carpet auction sale by Smith & Sons
now in progress. has been marked by
strong competitive bidding and prices
are holding to the levels Of a month
ago. although recessions had been
expected. One explanation of the
good buying is that the goods pur-
chased a month ago already have
been moved through retail channels
and a new demand has been created.
The low prices of the sale a month
ago attracted buyers who had been
holding off for three or four years
In the IGlrChaSe OF moor coverings.
Administer rugs 9x12, have sold at
an advance over the prices realized
in April.
CHICAGO, May 1.-Marshall Field
&, Co. are convinced that the new
prices established in the wholesale
markets are very close to stable. and
are proceeding on that theory. 1t
seems certain, they say, that if any
further price receSsionS occur. they
will be very slight The great defla
tion drops already have occurred in
the wholesale markets.
Nearly all important lines for fall
delivery" says this big concern. ARE
now in the hands Of our statesmen on
the road. The satisfactory business
which has been received in these
lines indicates that retail merchants
have confidence in today's level OF
prices and that they anticipate con-
tinuance Of excellent retail busi-
ness There are many more custo-
mers in the market and many more
mail orders received than during this
period last year."