The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1884-05-15

this city has not speculated in these things. We
have no specializing banks here now. Where
they do have them there is apt to be trouble.
The sllrinkage in railroad stocks has burst the
bubble-that is ALL indianapolis banks are eau
tious, particularly since the trouble last An
gust, and are keeping shore. The financial
interests here are in better shape now. believe,
than ever before. Our correspondent in New
York city is Winslow, Lanier & Co. The corre-
spondent of the Indianapolis National Bank, is
the Third National, of New York, and the
Fourth National Here is something in the
New York Financial Chronicle, of May TO- an
authority among bankers, on the failure Of the
Marine Bank. which should be given wider cir-
culation.
The reporter copied an extract from the article,
which reads:
Closely allied to this is the impoey of bank officer
being connected with firm Of W all street brokers'
That policy hardly needs to be stated to be condemned
The acceptance of an important trust of the kind
bank president holds has generally been considered
foreclosure from all speculative pursuits There
so many and obvious reasons for the opinion that the
continued existence of certain prominent exceptions
shouId not weaken general public sentiment on the
subject. We believe in leaving bank management as
free from statutory interference possible A GER
tain frame work of law is necessary but that being
granted the control should be in the directors and
officers influenced by its customers and by intelligent
public sentiment The chief difficulty lies in keeping
the public alert for in prosperous times the bank runs
itself and public sentiment sleeps. Still it is well to
recall the fact now that almost always when bank
fails it turns out that its officers openly or Sc
cretly specializing.
One of our most successful moneyed men, who
objects to his name being given, said: II do not
think there is any condition existing in the bust
ness of the country to warrant or create gen
eral panic. Such would be an effect of debt
of everybody being in debt That condition
does not exist in this country now, certainly not
in indianapolis. In 1873 in this city everybody
was in debt The late Temple C. Harrison
asked at that time if he did not owe great
deal Yes he said, Il owe peck of paper,
but I've got a bushel of notes to pay it with
There was then general distrust and fear of
our neighbors; we did not know whom to trust.
No such condition exists now, and there is no
fear Of panic This is a spectators panic and
not business panic. The effect will not be
great outside Of New York few distrustful
people here will draw their money out of the
banks, but not many. 1t will not begin to have
the effect ON this community in the way of ere
ating run upon the banks that was caused by
the failure of the Indiana Banking Company,
and the brief suspension of the First National
Bank"
V. T. Malott, president of the Indiana Ma
tional Bank apprehend there will be little
alarm here. Cur business men have been pur-
suing very conservative policy for years, and
we are in very good condition Our people have
invested but little in railroad stocks and bonds,
and will not be affected by shortages in those Sc
eurities. The money that has been lost in spec
ulation in marginal operations in Chicago was
generally the surplus money of operators, and
affected other interest very little. There is no
other city of the size of this in the country
where there has been so little speculation in
railroad stocks as here. do not think the Met
ropolitan Bank is the correspondent of any bank
here. / cannot see that we will be affected We
went through the severe strain last August
with serious result to general business. l con
sider indianapolis and Indianapolis banks con-
sefvative and safe. Our New York correspond
ent is the Importers and Traders National Bank,
a substantial old fashioned institution.
e. F. Claypool, vice-president of the reorgan-
lied First National Bank-My opinion is that
the New York furry is caused by an overSpecu-
lation in stocks and now comes shrinking in
REIMBURSEMENT and settling up. 1t has been com
ing for some time, and the failure of Grant g.
Ward merely precipitated it. 1t was bound to
come. The call of bonds that will be made by
the Secretary of the Treasury will be ample and
sufficient to relieve the wants of the banking in
terests of New York L not anything
in the state of affairs that is calculated to
seriously disturb the business interests of this
city or State The banks throughout this State
generally are in most excellent condition ] am
talking about national banks. ! know nothing
about individual banks. Our New York cor
resp ondents are the First National the Chemi-
cal National and the United States National.
Here gentleman iIterposed: something
should be done TO prevent the overcertfcaton of
checks, which enables brokers to do large
business where there is in reality only shell,
and no tangible values. This loose method of
check certifcation helps the business of the
broker, but there is nothing in it to banks ex-
cept that it places them in jeopardy. 1t is a
criminal otfense for cashier to do it, and when
a few of them are sent to the penitentiary, as
they shoald be- perhaps it will stop
Mr.. Claypeol continued Il think it would be
desirable, as n part of the national banking law,
that an amendment be made to the effect that no
officer employee of bank should be permitted
to borrow, directly or indirectly from his bank
any money whatever and have severe penalty
attached for the violation of this provision.
Many men go into banks for the express purpose
of getting depostors' money to speculate with
George h. Yandes, president of the Citizens
National Bank-I do not anticipate any great
amount of excitement here or any place else, ex-
cept, perhaps, in Chicago. Generally panics
occur when there is a large amount of indebted
ness. There is no such condition existing in
indianapolis now There is better class of pa
per in the banks of this city now than have
ever known. There is very little speculation
here and none by banks or bankers Deposits are
not large and resources are ample Our cor
respondents in New York are the Ninth Ma
tonal and the Bank of America.
AIohn C.. S Harrison-It will have no effect on
Indianapolis The country is in a healthy state
financially. People are out of debt and the crop
outlook is excellent. There is general prosperity
ssyerywhere in all legitimate enterprises and it
is only spectators that will suffer. great
amount of building has been going on in this
city, and it has been in houses, residence proper
ty, showing that our people were prospering
paying their debts ana accommodating wealth.
Not like the building boom we had here ten
years ago
A Cashier want panic think it will be
a good thing. 1t will let out some of the
money that is tied up in those 5000 600
checks that those New York thieves are
passing to each other 1t takes about
ten years for these sharks in New York to get
all the money there is in the country, and then
things are ripe for a smash, after which the
money is dispersed over the country to be again
gobbled up by another lot of New York sharks
hope indianapolis will get her share when the
dispersion takes place.
A. w Ritzinger of Citizens Bank do not
think it will have any effect here OF course,
there are always some people who are easily
scared, but it cannot amount to o run on the
banks in this city. Orr hanks hero and our