Show BANKS OF AMERICA ADOPT POLICY OF DEFLATION i i. i S Curtailment nt of Long Time TimeS i I S Loans arid and Check ori on S 'S B Borrowing Planned S NEW YORK May 19 Stringent 19 Stringent cedit conditions provoked further extensive extensive ex ex- ex selling of Liberty bonds and Victory notes note mostly at new low rec rec- on the stock exchange today By 1230 o'clock on sales approximating mating matin oar par value new points of discount were were established by Liberty Liberty Liberty Lib Lib- erty first and second the second arid foUrth 4 s and Victory Heavy liquidation ove over the counter or at private s sales les also was reported by y bank bankers rs and dealers in te the bonds W WASHINGTON May 19 Curt 19 Curtail 19 Curtailment Curtail Curtail- ment of ot longtime loans ans covering nonessential nonessential nonessential non- non essential op operations operation's rations and ancl disc discourage i m meat nt of f unnecessary b borrowings borrowings' of f fall nil all kidds will bo the foundation of ot ottha the tha federal reserve systems system's new polIcy policy pol pOI icy designed to deflate the national finances American bankers lankers have havO r pledged themselves s to cooperate with wilh the res reserve board in III the tho tho effort lo to carry out the plan LIQUIDATION REMEDY S Governor Harding of the board be believes be be- I leves hieves liquidation of superfluous loans lOan wilt go go far toward rectifying present tit I inflation of banking credit cred cred- 1 it ii due to w wt r requirements ho said am amounted to to 1 while money in circulation had Increased about during tho the war po- po The slowing do down n of or industrial ef effort of- of fort tort as indicated by decreased pro pro- I er-I In Important lines represented the tho most satisfactory element Ii in the tho country's economic problem ho he said SMALL INVESTOR PINCHED I NEW NEWYORK YORK May Ma- ID The The pinch of or I hard times for tor the tho small Email investor was dearly clearly visible in Tuesdays Tuesday's heavy beavy j stock exchange transactions In Liberty bonds and Victory notes all Issues issue of ot I which with one exception sold at ne new nev low records I Of the da days day's total tota I transactions in tn bon bonds amounting to almost government issues constituted an overwhelming proportion I The ThC great decline e in lii the selling I prices which amounted to from 5 56 6 L Lo to o points below low yesterday y closing figures was attributed by brokers broers tt to tov 1 v the fear tear of ot holders hOlder of ot new tax ie legislation legis- legis is- is lation a disposition by corporations corporation's ris and wealthy individuals to sell In iii big blocks and difficulty experienced by the Individual in n need ed of ot ready i-eady cash cashIn In obtaining loans from tho the banks DROP All the Lib Liberty rt- rt bonds except the which are tax exempt and the Victory H s which duplicated their recent mInimum suffered falls fans in price ranging from one tenth one tenth to ono bno Ono and one half per cent with te feeble ble rallies I at the close of the session Tuesdays Tuesday's losses represent the cul cul- natIon in of or a a. progressive e decline ex- ex ex extended tended over th the period since January ry 1 I during which tl the Value of tho thu government gov gov- securities has lias decrease I gOV in inam am amounts ranging from 5 to 1750 I on ach each I |