Sturgis advertiser. (Sturgis, Dakota [S.D.]) 1887-1???, 1889-06-01
THE LUcRE LOCATED.

THE LUCRE LOCATED.
The st. Paul Globe has been investi-
eating the causes leading up TO the pres
ent stringency or closeness OF the money
market in Minnesota and published its
conclusions last Sunday. Inasmuch as
the same conditions exist in this section
and, in fact, the entire northwest, as in
Minnesota, the findings of the inquiry
may be OF interest to our readers.
1t is universally acknowledged and
everywhere apparent that there is un-
usual paucity Of money in this section
of the country and, furthermore, it is by
the same means evident that there is an
unusual plethora of money in the East.
The causes for the unequal distribution
of the circulating medium may be
summed up in a very few words.
A series of bad or Indifferent crops in
the western states and territories have
caused the farmers to experience atight-
ness in their financial condition, while
all the time the money has been going
east for the purchase Of the necessaries
of life. For the past two years there has
been little to bring money into this sec
tion and everything to take it out.
Again, railroad construction has almost
if not quite ceased. Several reasons can
be assigned for the sudden ending of all
this construction. The prime cause,
however, has been adverse and oppress-
i've Legislation. The natural effect has,
consequently, been the cutting off of q
large supply Of money, all Of which was
formerly spent in the country. The
shutting down of all building also had
the effect Of soaring capitalists into sell
ing out their railroad securities and
looking for other and safer investments
While they have been casting about
them for channels of investments theil
money has been lying idle in the banks
Mortgage loans have been easily OBJ
tanned and the rate Of interest has been
appreciably lowered. In short, quiet
times have caused the present financial
situation.
Regarding the outlook for the future
The Globe representative interviewed the
leading fnanciers and bankers Of st
Paul and without exception they pre-
dicted good times by next fall. Still
they all admit that this is contingent
upon good crop. Should this years
crops belle present indications and prove
a failure, none of them suggest the re-
suit, which can be but disastrous. Sc
far as the finite eye can see or the hu
man mind judge, the prospects indicate
magnificent crop. This will walker
things up, bring money into the country
enable the farmers to pay off their in
debtedness to the country storekeeperl
and loan agents, allow the country deal
er to meet his obligations to the cit,
merchant, who in turn will be able t.
settle with the bank. That there is NJ
cause for alarm is apparent from th'
sanguine view taken by the gentlemen
interviewed by the Globe.
William Dawson, president of the Banl
Of Minnesota, ST. Paul, says:
When we have good crops we continue
prosperous, and when crops are poo
dull times and tightness OF money pre-
vail in the agricultural parts Of the coun
try. One reason why money is so tigh
now is that there is no activity in rea
estate. This indicates that while ther
is no money for speculation there i
abundance for improvements. You vii
always notice that men are free witt
their money in the face Of rising mar
ket, but that they close their pocket
strings IN q falling market. Deprecia
tion IN the value Of railroad stocks ha
caused wave Of prudence to strike th
capitalists. The depreciation in railroa
securities has not been much less thaI
| 33a per cent, while the bonds were in
creased. This has made those In th
habit of investing in railroads afraid, an
has in this way permitted d large sui
plus to accumulate in ihe east. ! see D
cause for alarm however, as good GRO
will bring back the sunshine to th
money market.
The president Of the Seven Cornei
Bank, ST Paul, says:
The eastern banks have good deal /
unemployed capital, whick Is an index
ton Of dull times. There has been
cessation of railroad building all oys
the country, and manufacturing induI
tries have been qniet This has cause
q plethora Of money ii the cas-
! aAe Inv u supply ana demand
lEt3 st s