The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1884-05-15
Views of the Business Men.

Views of the Business Men.
James C. Yohl-The Metropolitan Bank, which
suspended, understand, did railroad business
principally, and suppose the failure was due to
speculation in bonds. / think there is no reason
for any feeling of insecurity in Indianapolis.
Our banks are all in good condition and the
prospects for the crops and for business are ex-
eellent can see no cause for alarm.
John c. Wright have not read the dis
patches from New York, and am not familiar
with the situation there / received a telegram
early this morning stating that the Metropolitan
Bank about to suspend, but kept it
to myself as thought there might be a mistake
about the matter. 1t has correspondent in
this city so far as / know. but the First National
business was principally with railroads, dealing
i'll securities and negotiating loans and bonds
Its failure, therefore, was not the result, as l
understand it, of a general business depression,
but of the fight between the bulls and bears in
New York. The Gould, Vanderbilt and other
bull interests have been trying to force stocks
up, and the bear movement, headed by
some members of the late Northern
Pacific syndicate, have been very forInd
able and aggressive. Under the peculiar
circumstances under which the fight was made
the result was necessarily disastrous Much
money was lost in the Western Construction
COHlpdlly, WHOSE purpose III was TO Dultu q rail-
road in opposition to the New York Central. ]
do not apprehend a general financial depression
by any means for l think that the country,
taken through and through, is in a good condi-
ton. The nat ional banks, in fact all the banks,
are generally doing sound business, and so
far as my observation extends there is not any
unusual amount of Indebtedness among business
men and farmers. The railroads are certainly
in better condition than they have been for
years If you will look up the record you will
find that railroad stocks are now forty
| to eighty per cent. lower than they
were in 1881, which is certainly a good
indication. So far as that is concerned,
stocks, if they have any value at all, are worth
fully as much now as they were sixty days ago.
This trouble in New York has extended to Chi
cago, and been carried on there. The Grant &
Ward failure was simply another big Nancy
Glen affair. Their system of doing business
must necessarily have resulted in ruin. They Dor
rowed large sums of money for unknown pur
poses paying eXorbitant interest, and betteIing
their credit by short loans and prompt payment
Then they would borrow still larger amounts
and finally stopped payment, leaving their cred
itors in the lurch. 1t was simply huge conf
dence game another blind pool, in fact. l am
very confident there will be no panic and l can
| see no possible reason for alarm.
j. W. Murphy, of the firm of Murphy, Hibben
& Co.-"Of course, such a failure will have an
effect, but do not think it will be anything
serious. Anything of the kind happening in a
large center like New York will bring business
dianapolis. Did the Metropolitan Bank have
any correspondent in this city,"
| NO"
well" continued Mr. Murphy, s'there can
be no danger here. The bad effect will be more
in imagination than in reality. There
are some people on such occasions
who look wise and shake their
heads without reasoning. They never have much
at risk, but they are ready to encourage any bad
prospect. l can see no occasion for any great
alarm, and especially not here in indianapolis"
r. S. Mckee, of the firms of Mckee & Bran
ham and Jones & McKee-There is no one, so
far as know, that could be directly affected by
the failure. 1t has no bearing on the mercantile
trade whatever, indianapolis has never been in
better condition financially to withstand
thing of this kind than now. The city
cially, as now. I attribute this condition
largely to the conservative course that has been
pursued for many months. There are some
concerns in the city that know have been dis
counting this very thing for long while
| Governor Porter do not think the bank
failures in New York can have any serious effect
upon business here, because they do not indicate
that the general condition of the country is bad,
but only that the officers of certain banks have
! been using the money for speculative PURPOSES
1t will lead to close inquiry into the habits of
bank officers and in that way will be a real serv-
| ice to the people. So long as the agricultural
class are out of debt and not engaged in specula-
| tive operations no general financial calamity is
| possible"
John c. New-There is nothing in the recent
bank failures in New York that need affect either
indianapolis or Indiana banks or any other le-
Ultimate business in this State or in the country
at large so far as l see or understand the situa-
ton 1t is manifest that the recent failures in
New York are the result of speculation andstock
gambling. The banking business, when legiti-
mately carried on, is as safe and sure of good re-
turns as complaining; but when farmer leaves
his pillow and mortgages his land to buy wheat"
III Chicago or railroad stocks in New York he
may be sure that the sheriff will sell his farm,
and that his children will go barefoot in winter
So too, the banker may know that his depositors
will call for cash at the counter when his only as
sets are locked up in a grain or stock pool and
not available to pay checks.
| There are no banks or bankers in Indianapol dis
at this time that are engaged in this sort of
| operations, but all Of them are prudently and
well managed and the depositors are sure of
trouble that need be apprehended by the public
or by private individuals will be that they have no
| balances in our banks to check on. But that is
not the fault of the banks.
Simon Yandes--I do not see that it will have
any material effect. indianapolis is prosperous
! financially, and gives promise of still greater
| prosperity.
! W. P. Gallup don't think it ought to have
any effect on business here. indianapolis is in
excellent financial condition. Business here is
| extremely conservative. There is absolutely no
| wind in it.
John G. Blake, secretary of the Board of
Trade-It will unsettle bushes and finances,
but the only effect | can see that it will have
here will be to make bankers more cautious
| The trouble is all the result of speculation.
Nothing but. the influence of speculation could
| be the cause Of wheat ranging in price from
two to three cents day. There is nothing in
the condition of the crop to cause such changes.
| A