St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1889-03-11
AS VIEWED BY BANKERS.
The General Outlook Poor---SmaIl
Chance of General Frightening
Until the New CrOD Moves,

until the New crop Moves.
William r.. Merriam, governor of Min
nesota and president of tie Merchants
National Bank of st. Paul, expressed
himself as follows:
Il look for aquiet business year. The
great decrease in building railroads has
cut off a tremendous amount of bust
ness all over the country. There has
not only been reduced traffic on rail-
roads, but with it decreased amount
Of general business. With decreased
earnings comes the discharge of en-
ployes, and the large number of labor
ing men out of employment naturally
affects the community at large. In adj
ditiOn to this, in Minnesota we were
very unfortunate in losing large pOr-
ton of the wheat crop, and the state is
poorer by $20,000000 than year ago at
this time. The effect of SO large loss
is necessarily felt liz all commercial
sources; and it is specially felt among
the farming communities. City jobbers
will undoubtedly have to carry over until
fall large portion of the trade in the
Northwest, pending new crop.
Money will likely be very easy in
the East. inaSmuch as the uncertainty
of railroad investments will cause
capitalists to turn their money into
other channels. 1t Is not unlikely in
some localities there may be excessive
real estate SpeculatiOns, but outside of
some special instances all indications
point to a quiet and unevcntful year.
When may change be anticipated?
Well, undoubtedly a large crop of high
grades of wheat will have tendency TO
bring about better condition of affairs
in Minnesota, but do not look for any
permanent improvement until the rail
roads have been completed in these new
territories, thus increasing the popula-
ton and wealth of the country. 1t will
be gradual and slow process
FROM THE MINSEApOLIS STANDPOINT
j. f.. Il. FosS, Cashier Nicollet Ma
tional Bank-Busiuess in banking cir
cles is very dull, in sympathy with the
depression i'll other business, which il is
affected by. Of course, there are some
special causes for this depression, and
some local causes, which it is unneces-
Sary for me to enter into. In a general
way, the causes of the depression are
the same as have affected other bust
nesses. When general commerce and
business is good, the banking business
is good. and the same principle applies
when business in other branches is dull.
tt general causes for the present de-
preston are several. First, there are
great many more banks than there
Is business for. Then the Indifferent
wheat crop of last year, coupled
with the mild weather of
the. winter just past, has so
seriously affected the general
business of Minneapolis and the entire
Northwest that the merchants have
been obliged to Withdraw from the
banks very large amount of their de-
pOSitS. The absence of trade, the dull
ness Of collections and the unreasonable
weather have caused the merchants to
use upmore closely what surplus money
they formerly kept in their business,
This has had the effect of gripping the
power of the banks to just that extent.
Then the winter just gone was hard
one, as all the merchants had stock of
heavy goods on hand which they were
dizziness which follows, the banks have
TO participate. presume the situation
Is much the same all over
the country. Business has not
been in satisfactory condition
and on real good basis since 1878.
There has been great boom in some
sections, which has led to too big trad
Ing. too much running into debt for the
future, and to extending time too much
III the present depression is the result
OF imitation and boom, and the results
are inevitable. As to when change
may be anticipated. it would take very
wise man to say, and the causes which
will lead to this change are still harder
TO define. In genesai way there must
be liquidation of all fictitious indebt-
edness, based on Imaginary values; that
quality known as water must be shrunk
out and general values established on
the basis Of what they can be realized
before any Improvement can take place.
There are many Things in the local as
pect which are not so formidable as they
appear. In reference to the local bank
ing business there are number OF
remedies which the banks are inter
ested in which will 90 far toward max
ing 4 change for the hettnr here