The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1893-10-20
Mr.. EDGERToN'S PAPER.
Read by Him Before tho National
Congress of Bankers
At Chicago.
Relating to Montana and tho Silver
States During the Re-
cont Panic.

c9nt Panic.
Able PYsssntatlos of the Views Of the |
People Of the swsst--Stsbiiity Of
Miaing osninusittss.
CHICAGO. Oot. 19.--Ths national bsnkevs'
convention continued its session to-day and
listened TO large sumbsv OF papers on
hnsnoial questions. Among those who
road papers were: Horace White. Of New
York; Il. y. Lssoh. sx-diEsctOs Of the
mint; Joseph g. Hendrix. Of New York;
Sidney { he: wood. Of Johns Ho. kins uni-
versity; George =. LsiRhtos, of 81. Louis;
Jamea H. 7. .ipp. Of MaratAon. N. "; Joseph
johnson, Of Birmingham. Ala; 4. d. Ed
asrtos. of Helena. Mont. and Frank @.
billiard, Of Sherman. Texas. On various
phases Of tho monetary question tho pre-
ponds sting opinion expressed IN the pa
pers was in favor Of the gold standard.
Rssolutisns were unanimously passed con
dem ming tho United States ssnste for not
passing . bill repeating ths Sherman silver
purchase Law.
Mr.. EdRsEton's paper was entitled:
''Nontana and the silver States During the
Recent Panic" After briefly suggesting
the Importance Of changes that have taken
place In financial methods and transactions,
M. EdRerton continued:
AZ the com ptroller's call In May thirty.
six national banks responded for Montana.
Between that time and the hrst OF ssptem-
Der thirteen OF these banks had suspended
pay ment. This would be 36 Per cent in
numosr. representing . capitalization. in
sludinR surplus, of about &4,147. 900. out Of
. total of a little over $8.000 00O. At Hell
ems there were ak national banks. two Of
which suspen dsd. representing 50 per cent
Of capital and surplus of the total of that
city.
Eontapa's ,thirty-six banks represented
in rsuAd. Aumbers over i've millions Of
over sixteen millions of deposits. 1hts 10
referring to national banks alone. 1t IL
safs to say that there were over twenty
state and private baakinG institutions rep
rsssnting Z life Of deposits Of from i've to
seven million dallars. This would show
banks in Montana. including national,
state ana p, ivats. with capital. sur plus and
deposits. would BE- bat little over thirty
millions.
When " consider that the population Of
the entire state is little. above = skaall cast
| 1890. ~ only 10000. we can readily under
stas that their banking resources were far
shove tho average OF any other similar sized
community. if not in the world, certainly
In tho United States. The amount was
larger than that represented BY any one OF
twenty different states that might be named,
and shall also take occasion to call alton
| ton later ON to the fact that IL is larger
than any other so-csllsd silver state except
| Colorado.
Previous to those failures Montana had
moro banking capital per capita than any
csntags of failures 10 startling. the real
facts present quite a different aspect, and a
careful analysis Of the situation disoloses
NO alarming features.
OF the thirteen banks that suspended only
three should have done so. OF these three
one represented criminal action of commits
sion, which resulted from a defraudine
cashier. while tho other two rsprssensed
| cases Of criminal com emissions or neglect
rather than anv dircot malfensancs.
There was NO excitement, NO run. but
considerable money was quietly Withdrawn
| In Helena il was estimated that million
and a half was taken out of possible eight
millions of deposits within thirty days
This lnrge sum, while furnishing ample re-
serve for all ordinary purposes. could not
be inct eased by contributions from other
portions OF the country, as New York, Chi,
oago and other 10 90 eastern oities declined
to ship currency; hence the result.
Montana 10 . vast empire, nearly six
hundred miles long by four hundred miles
wide, which has been COMMONLY considered
as a large mining district. with very listls
az icultusal interests. But stasistios show
when the number Of population is tnker
into confederation, is far from inconsiasE
able.
To illustrate: We have a. assessed rsa
estate s. 737. .841 acvss of land. rep ssentinl
a total assessed valuation OF $40, l79. AT
we have assessed 702. 2l0 head Of cattle. n
u valuation of $40. T56. 0b2; We have assesset
as sheep l. 164. .OS6. at valuation Of b.O9S
93l; we have assessed a. horses 166. 416 at
valuation Of 81. 4S9. 112; making tota
assessed valuation for tho state OF $l29.
4G6. .O49.
While our state makes this very credit
able showing from an AZ, ioultural stand
point. on tho subject of mine al we do evs
,, better, as We produced (. ON quartz mill
$l9, 72O. 957. and from reduction furnace
$40 S99. 478. which. with placer gold lnnin
and incidental results not enumerated y
the foroC DING. swella tho total mineral out
put for '92 to $45. 565, ,626.
Our state and county indsbtsdness 10 les
} than two millians. and our state audito
reports ouly about four millions Of dollar
Of mortgages. The foregoing 6gnres AM
ply Justify our asserted claim that wo sx
/ ort from the state a valuation in miner
ais, cnttls. sheep and wool Of over fifty mil
. lions Of dollars annually. and this has bsol
tho case for quito number OF years. Al
, of this 4stu 10 made In nonsy. OF. II
other words. II is a cash rroduet.
: Tho question then naturally arises. vha
part in this panic. SO far a. Montana an
, tho silver states are con :ernsd. was piaye'
by tho silver agitation, anu my reply woul'
be that IL was Ia Gely sentimental; quite
Z much 90 on the part Of sns west ~ u wa
8 In the east; that the same results were pro
du ed by like causes; that the general dis
OF the country M the other; an
each with equal lack Of cause, OK
o.pt general lack of, cenfdsns
aud withdrawal of deposits from banks
: And while. in the main. We shall spsa
y mo . particularly OF Montana and tn
northwest. our discussion OF general prin
:. ciples 10 intended 10 cover tho silver PFC
= ducinR section Of the Rocky mountains i
Thsss silvs, producing states may b
= : named NJ Montana. Colorado. Utah, NeN
Mexico. Idaho. Wyoming. Arizon" an
Nevada.
9 Their population and banking capita
including surplus are 40 follows tof cours
:. We only refer to the national banksl:
According to Rand Il McNally for Jul,
1893.
Popuis- No. of
. don. banks Capital Surpiu,
a Montana. ixa 100 :! s!,I,aoSS ssssa,o w q
Utah: :........ 297.vOa l2 2..s9N0 MOM
: New Mexico. lha.aa9 10 sO0on lt0.o