The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-05-03
GOLD HOLDINGS
Banks of the State Make a Handsome
Showing with Five Millions.
Talk with State Bank Examiner Teters-Why
the Trust Companies Are At.
tractive to investors.

State Bank Examiner letters was found
in the Statehouse yesterday and asked
about the amount of gold in the purely
said. land the bankers are taking great in
terest in the financial movements Of the
government in regard to the foreign ship
ments."
How much gold do the State banks
carryW was asked.
There is about 90. 600. 900 in gold in these
banks. have talked with all of them more
or less, and i have been pleased to learn
that the bank officials have without excep-
ton said that they are ready whenever
called upon to offer it to the government Ia
order to maintain the public credit. They
do not think il wise to issue bonds, be-
cause they think it will tend to with
drawal of deposits for the new form of in
vestment, and will increase the stringenoy
of the local money market. There are
ninety three State banks in the State"
lis il true. then, that there Is a stringen-
cy In money affairs In this States"
There Is no doubt that money matters
are close just now. The cause Is found,
principally, In the export OF gold, but there
are other causes. incident TO the season. 1t
demand tor gold, the gency Is not worse
than il ia at this time of the year, when
farmers are seeking money TO put In crops
and when manufacturers OF farming I'M
plements must begin to make payments
and yet have not begun largely to realize
on their sales. Ii the State can stand the
situation for about four months longer, l
think there will be little Inconvenience
felt from the present closenes5 Of affairs In
the money market"
haf Ia ut in ha r,a
trust company law to enable two COM
panies to organize with each u capital
stock of Sl.0OO.O00
lit permits not only the highest legal
rate upon money borrowed, but also a CON-
mission upon the business done. Such
companies in other States have been very
profitable. They have many advantages
over national and State banks in that they
are able TO loan up to the limit of their re-
sources. 1upon mortgage security. for long
time. They have NO business friends. as
banks have in their deposltors. and are not
bound to loan to any one who does not
have giit-edge security. Consequently.
they have no business entanglements that
become embarrassing. The court trust
business of such companies has been profit
able to the companies and beneficial to the
wards. In dealing In such trusts the COM
panIes stand. however, just as individuals.
lt often happens that under the
ordinary run Ois trust funds, under the
courts, the estates. guardianships. etc., are
neglected, but with the trust companies
these trusts will be their business. and
everything will be done exactly according
to law under the orders OF the courts.
Their capital is their security for the prop
er and honest transaction of business. 1
have favored law of this kind for many
years, butt had hoped when il passed it
would contain some OF the features of the
Illinois law on the subject. That requires
deposit OK soc. 900. in first mortgages upon
real estate. the loans NOT to exceed half the
value of the property. The companies must
also keep a ratio of one-tenth of q dollar
for every dollar deposited. A good feature
of the Indiana Inv, however. IL tat requir-
ing at least per cent. interest TO be paid
upon deposits OF more than 500. when such
deposit remains year or over"
Mr.. letters IS subscriber to the Union
Trust Com pany. which includes Messrs. Ma
lott the DePauws, General Harrison. X. III.
Nixon, and many others well known in the
State. He says he favors making the capital
stock 81 GOO. 900, the full limit of the stetu to-