The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-06-09
WITH A MILLION CAPITAL
Movement Among Manufacturers to
Establish Another Bank.
Why They Are Inclined to Co-0perate-Re-
organization of the Capital-Paris
10 Go TO Kokomo To-Day.
MANUFACTURERS BANK.

Project on Foot to Establish One with
Capital of Million.
There has been considerable talk among
n number of local manufacturers of organ
iziDg a manufacturers bank. and if the
present tightening of the money market
eases off shortly the project will take def
mite shape. The gentlemen who have been
considering the matter think there Is great
need in this city for a bank whichwould do
business largely or almost entirely among
manufacturers. The manufacturing enter
prises of the city form q nucleus of Its
material interests and yet the manufoct-
urer's claim that the men who are in these
enterprises are unable to get as much ac-
commodatiOn at times when they need IL
as people IN other businesses. The capital
dollars. the manufacturers believing that
an institution having smaller capital
would not afford the relief needed.
Az certain seasons of the year certain
manufacturers need accommodations and
at other times certain other manufacturers
need assistance. The season of the year
when a anufscturer makes his collections
depends on the line of his business. The
demands on the banks, therefore, do not
come from all manufacturers at the same
period of the year. 1t is claimed that the
manufacturers cannot borrow as much
money from the local banks as the security
which they offer would Justify. Although
q merchant who has q stock. of dry goods
or groceries can get sum that comes close
10 the cost or his stock, yet manu-
fact1rer is limited. The manufacturers
believe IL would be perfectly safe banking
to maze much larger advances TO the manu-
facturers. They cite the fact that for large
sums they have TO 60 to outside bankers.
IL these manufacturers organized q bank
of their own they wonld help each other
along and there would be no occasion for
going East for funds
The msnufacturers' bank would not en-
courage small deposits. and In time of O
fury the bank would not be subjected to
the panlcky runs that too often come to
banks that have a long list OF small de-
positors. A manufactures. in speaking or
the movement last night. said: Z
1t would not do to organize bank of
this kind with q capital stock of les8 than
o million dollars. The provision of the ma
tional banking law that forbIds n bank
from len0lng sum more than one-ten or
its capital stock to any one borrower
makes it difficult for manufacturers to get
the money they need at times. Perhaps he
will want big sum at one period of the
year. and he Will not ask for another loan
during the rest of the year. If ne gets 1t In
Indianapolis he will have to go to moro
than one bank. perhaps. Some borrowers
in this city want much S200. 900
$500, 0C0 at one time. and while they may
offer excellent collateral. yet they have
difficulty In being accommodated. Take,
for instance. man who Is en-
gagged in the manufacture of agricultural
implements. He has to make big outlay
for timber, and it requires many months.
by reason of seasoning and drying. before
his stock Is ready for the market and his
returns begin to come in. Money must be
tied up for considerable period, and he
finds that it is cheaper to borrow. Per-
haps his money comes in. cay In the win
ter, and he finds that he Will not have TO
use il until spring. Instead of letting 1t lie
idle he puts it in a manufacturers bank,
and some other manufacturer who needs
money will borrow IL. and by the time the
agricultural man is ready to buy timber
the borrower has paid the money back into
the bank and deposited more besides.
INDIANAPOLIS manufacturers do a great
deal of exporting and of course have to
wait some time for remittanoes They
need Accommodations more than a man w no
Is in mercantile pursuits. They do more
towards building up n city and giving it
prominence as q city. Some bankers think
il is much safer to make loans on stocks OF
dry goods than on q man u faoturlng plant,
but do not think it Is. The money OF the big
Wholesale hOuses in q large part goes away
from city but that of the manufactures
all stays home. He buys nearly all bis ma
terial in the neiGhborhood of his plant.
sell his products abroad and pays a large
sum of money every week TO his employees.
None or the money leaves the city. There
are no outside creditors to jump down on his
business and as his concern Is so thorough
IL local, aud his plant is valuable. do not
see why it would not be profitable TO lend
him money with his plant as security"