St. Paul daily globe., 1889-05-26

it should be succeeded by period OF
comparative business quiet. Ther0
has been a good demand for money
here so far during the entire season,
and although deposits in the st. Paul
banks are probably below the aggre-
gate amount held by them at the same
time last year, l do not think that the
leading banks have had any difficulty
thus far in affording all necessary
ers in the way of discounts.
The partial failure of the wheat crop OF
last season in some portions of the
country tributary to st. Paul has, Of
course, had some effect upon the finan-
cial situation here, but the indications
for the present seasons crop are now so
favorable that it is probable that ths
depression in these districts will be
only temporary. There are only two
sources from which see cause to ap-
prehend any special danger to our gen.
eral financial and business interests
one is the attacks which are constantly
being made upon the railroads of tha
country by the way of unfriendly legiS-
lation, and the otheris the apparent dis
position to excessive expenditures by the
city authorities, which. if not checked.
will eventually neceSsitat higher rate
of taxation than the business and prop
erty of the city can sustain. The effect
OF the attacks on railroads by legiSla-
lures has been to deter them from any
extensive building, and has driven their
stocks down in value. 1t has also
caused those who have been in tho
habit of placing their money in such Sc
curities to seek investment elsewhere.
in the meantime allowing it to lie idle
in the East, rather than risk it in what
thay nnnciIov f1,i inv fp,a
Hon. William K. Merriam, President
of the Merchants National Bank
Owing to the almost complete cessation
of railroad building the movement of
money has. to a great extent. ceased.
In the East. where the money is. it has
necessarily accumulated, there being
really nothing to bring it West. The
crops, the last few seasons, have been
so nearly failure that the farmers are
poor. This tightenS everything up in
this part of the country and causes s
lack of money in st. Paul. The rate of
interest has gone down in the East
owing to the glut of capital and the
small prospects for channels of invest
ment.' The paucity of the crops and
the stagnatiOn in railroad building are
the causes which have brought
about the present financial situation.
AS soon as revival of railroad
building takes place there will be
something to distribute the capital
which is now lying idle in the East. A
good crop, which fortunately there is
every prospect of our having, will also
do much to bring about better times. 1t
will bring money into the West and en-
able the farmers and country merchants
to meet their obligations. The bankers
in many instances have had to carry
the wholesale merchants, owing to their
having had to carry their country Gus
toners. who, in their turn, have been
compelled to carry the farmers. You
see then, that after crop has been
good there is plenty of money in circu-
latiOn III an agricultural state like this,
but when we have had succession of
poor crops the money gradually tends
eastward, 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
prosperous times until we get good
crop, or something else starts up to
bring money into the West and put it
in circulation.
Henry P. Upham, President of tho
First National Bank of st. Paul
4AClO 10 Slut VI III tlC LdSb
ern banks, but none too much in the
West. The surplus in the East is
caused by the almost entire cessation of
railroad building. Two years. or even
one year ago, when railroads were
spending money freely, the capital
found plenty of scope for investment,
and was distributed about all over the
country. To-day there is nothing doing
in railroad building. The cause for the
lack of money in the West is undoubt-
edly the pOornesS of last years crop.
We are dependent upon the crops now
for our existence. A short time ago,
large amounts in Minnesota, times were
easy, and many people got the
idea that we could do without
the crops for our prosperity, but we
have learned our mistake in the dull
times which prevail here to-day. For
there is no use in Disgusting the fact
that times are dull all over the country
and st. Paul is no exception. l am no
croaker. in fact l am just the reverse,
and expect to see times very good just
as soon as we get decent crop. But
there cannot he much improvement till
the fall. The prospects are good, and a
good crop will put us in first class
shape. In the meantime we shall feel
probably last through the summer.
Hon. Albert Scheffer, President of
the Commercial National Bank-The
Eastern banks are undoubtedly glutted
with money. but the same cannot be
said of the West. At this season of the
year, when spring purchases are being
made, the money naturally goes East in
larger amounts than it comes West.
Again, we have had poor crops for the
past three years. and there is nothing
Eastern capitalists have been with
drawing their money from railroad Sc
curities, finding they are unstable in
value, and are seeking for more protita-
bic investments. In the meantime the
money is lying idle in the banks. liz
is piling up in the East. whereas just
the reverse is taking place in the West,
and think this will continue until a
first-class crop draws money westward
again. The rate of interest cannot well
go lower in the face of the active West
ern demand. We can Use large
amount of the surplus money right
mand. 1t is only an indication that we
have had few poor seasons in the
West, and that Eastern capitalists are
tired of railroad bonds as investments.
1t will right itself when we get good
crop.
Gustav WilliuS. President of the Ma
tiOnal German-American Bank-While
the situation this year presents some
differences from that of former years.
there is really nothing unusual i'm the
tigatness of the money market. Every
spring this occurs through the country
banks drawing heavily on those in the
cities This has been the case this wear