The Big Stone post. (Big Stone Gap, Va.) 1890-1892, 1890-10-10
a BIG BANKING SCHEME.
Banking Syndicate Proposes to Get
Money from Europe Direct for Nov
ing Western and Southern Crops.
New York Journal OF Pinancc.)

Last week Il story was tclegraphed from
Chicago to this city outlining a plan for
the establishment in Chicago of branch
of al English bank. According to the
dispatch, the bauk is the Lancashire Trust
and Mortgage Insurance Corporation,
limited of Manchester, England. The OBJ
;cct of the branch bank is the CARRYING
on of Il promoting and guaranteeing bust
ness in the purchase of bonds and the
floating of American enterprises in the
English market. This plan is somewhat
similar to those of several corporations
already established in this city, and has
no particularly new features. The Jour-
nal of Finance, however, has learned Of
another scheme, originating i'll Chicago,
which will be far more widespread in its
effect, and which, to a certain extent,
will have considerable influence upon the
money market of the metropolis The
plan referred to is the establishment
abroad of branch of a syndicate of Chi
cago banks, which is just the reverse of
the plan tccgraphcd
The object Of this project is to have
headquarters in England, whence not only
the West, but the South and Southwest,
can arrange for funds necessary to move
the crops to market and for the purpose
of circulation in that section of the c0un
try, which il growing so rapidly that the
money ccntcrs of the United States arc
taxed TO the utmost to supply funds for
the yearly increasing demands. This SYM
dictate is composed of about fifty banks in
Chicago and its vicinity, with headquar-
tiers in that city, and the plan is probably
as vast one as ever WAS conceived. The
principal headquarters abroad will proba-
bly, lie in Paris, AS the people of France
have undoubtedly smaller amount of
money invested in American securities
than the people of England or Germany.
The plan also contcmplatcs the opening
of bank in New York, and it is expected
now that all detail! will he arranged so
thar these banks and their branches can
he opened by the lSt of next January. a
representative of the Chicago syndicate is
now in this CITY, He has been in GORE
spomdcncc with members of the syndicate
abroad, and he considers the basis for this
plan 70 have been settled. Until last year
the money which was drawn each season
by the West from the East, gradually
worked its way back here in the course of
business. The demand generally began
in August when the crops matured, and
continued along through the autumn until
such time as the bulk of the crops were
stored in vast warehouses; of the west and
lake fronts, or had been shipped to the
scaboard for rcshipmcnt to Europe.
Last year. however. not only was the
amount Of money drawn from this section
larger than ever before in the history Of
the country; but, instead of coming back
here, the bulk of il remained in the West
and the demand continued long beyond
the usual time when, ordinarily, such de-
mands cease. From August 1889, until
January |, 1890, in round numbers about
ST., 0O0, 900 was drawn from this city alone
through the subtreasury. But the lst of
January did not by any means witness the
cessation Of the demand 1t kept up for a
long lime after that, although not in such
large amounts as during the Autumn, but
still in sufficiently large amounts to puzzle
the officials and bankers here.
Up to this time about 1900, 900 have
been drawn from the sub-treasury, or
within about $S,000,0O0 of the amount
drawn last year from the middle of August
to January !, and the indications are that
this larger proportionate demand will con-
tinue for several months vet to come.
Business in the West is extremely ac-
tive, the crops are generally good, manu-
featuring industries are increasing, and so
far as can he determined, this demand is
perfectly legitimate and not demand
caused by speculation. We have very
lately witnessed here what was almost
genuine money panic, and although hap
PLY the fear of any further trouble on this
score has been eliminated, yet there is
very little doubt that owing TO the causes
in the West there will continue to be a
great deal of activity in money for several
months to come. BY next year this syndi-
cate expects to have its plan in full opera
ton; so that these vast sums of money,
which probably will be yaster next year,
will come from European centers direct to
the financial centers of the West. through
Chicago, and the crops will be garnered
and moved with the money of foreigners.
1t is the intention Of the syndicate to
extend this plan to the South and South
west for the purpose of supplying funds
direct from Europe for the moving Of the
cotton crops as we'll as the grain. The
plan seems to be feasible enough, but it
will probably work q revolution in the
financial situation.
1t is hard to foreshadow what the i'm
mediate effect will be here, except that it
will allow money to be kept more freely
in circulation in the Eastern centers. As
to whether it will lessen the power of New
York city as the financial metropolis of
the Western hemisphere is question
which time alone can answer.