Sturgis advertiser. (Sturgis, Dakota [S.D.]) 1887-1???, 1889-06-01
more forcibly felt perhaps in the money

more forcibly felt perhaps in the money
market than in any other.
| Capitalists who formerly relied upon
railroad bonds for investment, are be-
coming distrustful, finding that this
4 class Of securities constantly fiuctuates
and is precarious.
/ H we have good crop this year, as
there is every indication Of our having,
1 it will tend to give a strong tone to this
section Of the country. When the farm
ers prosper they pay their Indebtedness
to the retail merchants, who pay the
! money back to the wholesale merchants.
These then pay money borrowed from
/ the banks, spend more in every way, and
times become more prosperous. The
whole thing hinges upon the farmer,
who is capital producer, SO to speak.
He raises money from the ground, and
puts in circulation many millions OF cap
ital which did not exist before. There
fore, good crop will bring US prosper
i GUS times.
The president Of the Second National
/ of st. Paul says:
/ The only sources from which I see
cause to apprehend any special danger to
olr general financial and business inter
ests are the attacks which are constantly
being made upon the railroads of the
country by the way Of unfriendly legis-
lation. The effect of the attacks on
railroads by Legislatures has been to de-
ter them from any extensive building,
and has driven them down in value. 1t
has also caused those who have been in
the habit OF placing their money in such
securities to seek Investment elsewhere,
in the meantime allowing it to lie idle in
the east, rather than risk it in what they
consider unsafe Investments.
| Governor Merriam, OF Minnesota, pres
ident of the Merchants National OF st.
Paul, regarding the situation, says:
| The paucity of the crops and the stag
nation in railroad building are the causes
which have brought about the present
financial situation. As soon as revival
Of railroad building takes place there
viii be something to distribute the capi-
tai which is now lying idle in the east.
4 A good crop, which fortunately there is
every prospect of our having, will also
1 do much to bring about better times
| It will bring money into the west and
enable the farmers and country mer
chants to meet their obligations. The
bankers in many instances have had to
carry the wholesale merchants, owing to
i their having had to carry their country
kt7rr
compelled to carry the farmers. You
| see then. that after crop has been good
there is plenty of money in circulation
in an agricultural state like this, but
when we have had succession of poor
crops the money gradually tends east
ward, where the manufacturers Of the
necessaries of life are. A year or two of
this soon depletes section OF country
| of its money. and this has been the case
here. We cannot have really prosper
Gus times until we get a good crop, or
! something else starts up to bring money
into the west and put it in circulation.
4 The president Of the First National,
i says:
4 The surplus in the east is caused by
the almost entire cessation of railroad
building.
The cause for the lack of money in
!, the west is undoubtedly the poorness of
!, last years crop We are dependent up
on the crop now for our existence. A
short time ago, when the great roads
were spending large amounts times were
easy.
q The prospects are good, and good
crop will put us ii first class shape In
!, the meantime we shall feel a tightness in
financial circles which will probably last
through the summer
+ Hon. Albert shaeffer, president Of The
Commercial National, in discussing the
situation, says:
We have had poor crops for the past
!, three years, and there is nothing to draw
money into the state The eastern cap
italists have been Withdrawing theil
money from railroad securities, finding
-ii they are unstable IN value, and are seek
J ing for more profitable Investments,
Z It is only an indication that We have
had few poor seasons in the west, and
that eastern capitalists are tired OF rail
lroad bonds as Investments. It will righl
! itself when we get good crop.
s. Gustaye Willius, Of the National
. German- American bank, says
p1 II is gratifying TO be able to look for
9 ward to a good crop, which will help NJ
very materially. The railroads, fol
S many reasons, are not spending money
i 40 fhnv bave hapn doing for years f,psf