Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1884-01-14

Some of these heads of departments were
his own kin and connections. Given
freedom and prospects, these departments
have been SO we'll managed that when Mr..
Flower recently returned from Europe he
found that there was hardly any place in
the banking house for himself, the system
having perfectly vindicated itself. Two
years ago he resolved to
60 out of business or to stay
10 the business merely for the advantage of
his associates. Chiefly through his ca pac
ity and foresight Mrs. Keeps fortune has
been doubled, while her method has been
to give away not TO letter writers, but to
such things as she understands, fixed
proportion OF her income. The larger
portion of Mr. Keeps fortune when he
died was in the Nortnsessern stock.
Some time ago Mr.. Flower apprehended
that conditions had come which might
| affect that stock very much. He was in
vited by Mr.. Tracy into pool to run the
stock up, but declined, and he sold the
stock for about S85 a share in an i'm
mense block, and it continued
to go down until it reached $14. At that
point ne began to buy in again, and it
again went far beyond par. He next in
vested the money in such securities, as he
expressed it, ''as woman ought to have
| fixed and not fuctusting securities"
| Every year, once if not twice, Mr.
Flower goes over the whole system of
northwestern railroads, carefully looking
into the business and the condition Of the
| farmers. He is one of the organizers of
the Omaha system, which the Vanderbilts
recently took a lrge hand
in. His theory has always been to
fight discomfort and the germs of social
ism by ma7nanimity and CONCESSIONS
Soine time ago the LaCroix railroad, a
I land grant system, was doing poorly be-
cause the farmers had two bad crops.
There was due to the road about $4,000
in interest on the lands the farmers had
purchased out of the land grant. Mr..
Flower said: ''Let these men up in the
interest on the remainder Of their pay
ments, and furnish them with seed wheat
to put in.'' His advice prevailed, and from
that day to this no granger influence has
availed to attack that railroad in the legis-
lature of Wisconsin. The farmers on the
line nem Der that the railroad took some
interest in their misfortunes.
I asked Mr.. Flower in q recent talk with
him what he thought of the present finan-
ciel condition Said he: s'There is not
much sense in the general methods OF men
buying and selling securities. The time
to buy is when things have got low At
the present time see few Hollanders in
this country buying stock at the low rates.
That is always their policy, and that is
why this market is steadied to some ex-
tent. The great mass of men
buy as things are rising TO the
highest notch, and hasten to sell
when they get below their values. have
never been q speculstor. believed when
took to the street that not manipulation
but knowledge would, in tho long run, tri-
umph. Therefore | have always bought or
sold according to the results Of my obser-
vation."
Il maintain and advocate" said Mr.
Fioger, "tha5 the nat anal bank currency
is altogether better f6l the poor man tlan
the legal tenders. The legal tenders can
not be taxed by the state, while the nation-
al bank notes can be taxed, and arc lgxed
10 the extent Of the interest these banks
receive on their bonds which
they have deposited at Washington.
Consequently the real estate OF the
average man and the poor man has to pay
the deficiency in taxation represented by
not taxing the legal tenders. AS far as the
future legal currency is concerned, I will
call your attention to former condition
of things in this state by which three
fifths of the real value of farms could be
lent by the state and by insurance and
other funds. There never was g case dur
ing that period of default in that class of
property. Now, think that it
would be possible to extend that
system through the states to the
public treasury at Washington of mixing
the national bonds with mortgages en-
dowed by the state governments and de-
posted at Washington, 80 that the people
on the exterior could get the money which
keeps lowering around New York like the
blood gushing back to the heart and clog
ging it What we want fscallyiis that this
money shall be lent with more equality Of
interest over the width of the country. At
Vicksburg, Miss, for instance, the rate for
money is eighteen per cent. But the
money will not so to Vicksburg, but
keeps around New York, whore it is
only worth two per cent. see no reason
why the old New York system should not
be Introduced into the southern states Of
lettiog the states lend in say three -fftbs
of the real value of property and putting
th9 mortgages at Washington as the basis
! OF the national banks. There is an in
equality" continued he, "in the rate of
interest which is just as injurious to us
IL New York as TO those distant people
who cannot borrow money et fair rates.
What do We want with money here in huge
| l,o+
cent for? IF the security were sound ii
might just as well go to Mississippi
as stay here"
A gentleman pressat who seemed to
want to make point against the national
banks said that he did Kot think it right
that in times of panic the banks should
lock up the money belonging to their de.
positors while they continued to draw in.
terest on their bonds at Washington.
"Now," said Mr.. Flower, "thst provision,
my friend, is not to help the banks
at all, but to help the people the banks
have lent the money to. You, for instance
have $4,000 in Cincinnati bank. Along
comes whirlwind and the bank gives
notice that for a certain time it will no
let you lift your money out. Why is tina
done? Merely because the bank has no
got the money to pay you, that money be
ing ont among the grocers. tradesmen ant
persons doing business. For their pro
T.