The morning call., 1893-06-18
LIMITING LOANS.
Little Money Advanced
on Fruit.
CONSERVATISM OF BANKERS.
They Refuse in Several Instances to
Help Gamers to Purchase the
Ripening Crops.

The stringency of the Eastern money
market is having a. reflex action on this
coast in one channel at least. Local banks
are not as ready as in former years to ad-
vance funds to some Gamers for the pur-
chase Of fruit, fearing that on its ship
meut TO the Atlantic States it will not
meet with ready sale aud that they would
be sufferers thereby. AS a consequence it
is thought that the canneres will not
start up. and this condition of affairs is
having depressing effect on the California
fruit market Cherries have already felt
its effects and apricots are threatened In
the same way.
A member of the King & Morse Canning
Company. who was questioned on the mat
ter yesterday, confirmed the rumor that
money had been refused some firms aud
limited to others.
Il blame the newspapers somewhat for
the situation" he said. THE Chicago
correspondents tell about the tine market
offered fruit-sellers in the East; how fruit
can be taken there, exhibited and after
ward sold at tor prices The amount that
could be sold in this manner must be CON-
paratlvely small, but the effect of the arti-
cles has been to make the fruit-grOWers
hold on to their crops for higher prices
until they are compelled to sell at great
reduction. For instance. they held on to
the cherry crop when the c2nnerieS were
Offering cents, and they are now selling
Tor :. But that is only one of the causes
oi the present situation.
Another cause is the many failures in
the East. Bankers dare not loan money on
the present outlook for markets in the
East. Money is nervous and the least
thing effects If. II is only move toward
conservative protection on their part, but
the coast will suffer- We made arrange
mept with our banker early in the spring
and will operate a full force all summer
We are employing now $50 in our cannery
and will employ many more in July and
August. our heaviest month"
ID. 4. Allison of Allison, Gray & Co.
was quite Gutspoken on the subject He
said: ut has been the custom in the past
for bankers TO advance funds to canneries
TO within 90 per cent of the full market
value of the fruit when packed in cases.
For instance. If a case of fruit be worth So
when packed. canning firm could count
on about 81 loan, and so on for the whole
crop on that basis. Now, owing to the
Eastern strngencv, the bankers refuse to
advance money and the canning industry
is left in this condition: tie firms have not
enough money TO buy the fruit, pay for its
packing aud meet the warehouse expense
until market can be found. There Is a
feeling that the market will he limited in
the East, for when money is tight people
do n OF indulge in fruit so much as when it
is in freer circulation. sThe canning indus
try is hampered and, of course, the fruit
growers in general will feel this when they
bring in their crops.
Il have heard rumors that money was
absolutely refused two firms, but one of
them, which is across the bay, think has
good financial backing. The rumor may
be true as 10 the other. Anyhow | do
know that bankers will not advance money
so freely as they have in the past to nearly
every canner and the fruit business must
suffer"
Mr.. Dalton, of Dalton & Co, 3OS Davis
street, commission merchants. declined to
say anything on the subject, either TO deny
or confirm the rumors.
Il have considerable dealings with the
ranneries," he said. land it would not be
right Tor me to say anything about whether
they can get money or not. / know that
Fontana & Co. and John T. Cutting & Co.
are doing some heavy buying, but as To the
general fruit outlook or whether the can
ming Industry can command as much
money as usual, have nothing to saw"
The heads OF the two firms named by
Mr.. Dalton could not be seen and their
views on the subject ascertained.
From various small merchants 1t was
learned that there will be a limit to the
fruit canned this summer, small price
paid and general feeling of depres-
sion is expected by them. They say the
growers hold on to the croIs S until they
must be sold to be saved. and that gluts
the market so much that only small
price Is paid them.