The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-01-01

in business and manufacturing. With each
gradual rise in the valuation, the holders of the
| stocks rushed into the markets bearing them
| down under the weight which has been kept
1 upon them. Then there has also been an over
/ production in all branches of manufacturing
| The losses caused primarily by the depreciation
/ in the value of stocks caused merchants 90 be
| cautious, and they made smaller purchases,
] leaving the manufacturers to hold the surplus
production AS a result necessarily there was
a suspension of work, and the depression became
general. 1t is all due, financially, to the over
production of stocks"
do you think that there is likely to be any
| change soonP
There will be disposition to hold money
| pretty close until there is more Of certainty
about the aspect of the future. The banks are
now all running with larger per centage OF
| money in their vaults than would ordinarily be
necessary. but they must be cautious to be safe
| The business men began early to reduce their
| stocks and to liqnidate their Indebtedness. In
consequence, they are now generally IN good
| shape. Prices nave reached the bottom, ana the
| future of business will be on the up grade. L
| regard the prospects as very bright and FAVOR
| able, and | believe that early in the new year
there will be marked improvement In ousl-
ness
A. W. RITZINGER.
Taking the whole year together" remarked
Mr. A. w Ritzinger the banker, when called
upon by the Journal reporter, ''the banking
the future regard as decidedly favorable. Inc
local misfortunes of last summer aheceeo 'A0
citv However the business men nave hep' uP
remarkably Well" &c AZ
what your views as TO .he o'uoo' " WV
general depression in busness' -
s.There has been a gradual shrlnkage IN all
yoI,ac e+ocks farm products and manufactured
goods There has, Ill consequence, been
y reduction in wages, and, as a result, there is
temporary depression The great trouble is that
h1av, I'd NJ,
prices for everything The farmers will not sell
their wheat for less than 81 bushel unless they
are forced to. Considering the shrnkage. the
cost of handling and the interest the money,
it would have been better for them to have sold
their wheat at seventy cents in the summer than
to have held it for the slight advance that they
are offered now; but you can't make them
understand their mistake. Where there
was $4,000, 600 in Indiana last year from
the movement of wheat there is not
3d. 600 600 this year. The money is all accumu-
lated in the East, while it ought to be coming
West In consequence, the banks there have
100000, 900 more on hand than they require"
what view do you take of the prospects FOR
the next Year,"
"After January, which is always dull month
in banking, / think that there will be an i'm
proyement There will be an increase in the
volume of business next year, but prices will
not rise materially. They have been too high
We have reached a condition Of affairs that re
quires more business for smaller per cent Of
profits. This reduction of profits must apply to
manufacturing as we'll as all other branches of
commerce. While business will be rather dull
III the beginning of the year. trust that 1T Will
be better at the close than it has been for some
time"
SUGGESTIONS FOR PROTECTION OF BANKS.
eff you refer" remarked Mr. John p. Frenzel,
president of the Merchants National Bank, in
reply to the reporters question. Ito our COM
mercial business l can give it as my opinion
that it has been unsatisfactory during the last
year. / predict that the profit and loss account
will find more subscribers on the debit
than on the credit side when the bal
ances are drawn up In the begnmng
of the new year Banking, all things consid
cred, has been profitable to those banks that
in condition to weather the storms of the
last year-somewhat on the principle that one
mans loss is another's gain. The effect of the
bank failures was very bad-not alone to the
unfortunate creditors, but also to our business
interests. Confidence almost entirely de-
stroyed; but what regard as worse still, it had
the effect to paralyze public energy and enter
prise-t took the sand out of our people. We
shall have to move slowly and cautiously in try
ing to regain the elevation we slipped from
There ought to be more protection against the
occurrence of bank failures. r,,t EAR
what kind of protection?'
"There ought to be good State banking law,
with proper prudent restrictions aud severe
penalties for Notwithstanding akin to the
national banking law. Do you know, sir, that
in the last ten years five private banks and two
savings banks have failed in this city? If we
had had good banking law, some of them, no
doubt, would be running to-day. A law pre-
scribing penalties would have the effect to deter
managers of banks from using the money of de-
postors for ilegitmate purposes. Among the
causes of these failures is extravaganza in liv-
ing; speculatons; ambition to do a big bust
ness; indulging avaricious desire to get fabu-
lous returns from investments, rather than
looking to the security of and the probability of
getting back the principal further
cause of these failures is the degeneration of a
sense Of commercial honor and integrity The
mistake of society is in treating alike miscon-
duct and misfortune Society is entirely too
generous in its sympathy for bankrupts."
''How do you regard the business prospects for
the future2'
1.-THE prospects for the future are fair My
opinion is that will have dull spring. the
fall will probably mark the advent of an inn
provement. Stocks have been reduced to low
point by actual consumption, and, with the ex-
ception of farm products, the prod lction during
the last year has been comparatively quite
small. The farmers, who are our larg-
est consumers, are out of debt and
crops. in expectation OF better prices. They will
sell before next summer whether prices improve
much or not and they will then become pur
chasers in our markets. Our greatest recuper-
alive force lies in the farmer When he gets
easy other branches Of our trade and industry
are certain to feel it. 1 think the agitation of
commercial tr1at rs with the countries lying ad-
jaeent to ours will also be beneficial 1t will
have the effect to bring us to proper reallza-
ton of our possibilities, and, no doubt, soon re
suit in opening new markets for our products.
Money is abundant There is now in the finan-
cal centers a plethora of money. This is always
the case when our industries are stagnant."
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