The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-05-11
STRENGTH OF LOCAL BANKS.

STRENGTH OF LOCAL BANKS.
Tn reports OF the four national banks,
the Meridian, the Indiana, the Merchants
and the Capital. and OF Fletchers'. published
yesterday, present a financial condition, so
far as stability and ability to meet bust
ness demands are concerned, that is most
remarkable. The amount of assets convert
ible into cash, in the aggregate. must sat
place is money so safe as in one of these
banks. The most remarkable feature is
the amount OF ready money and loanable
funds which these banks, in the aggregate,
could easily be converted into cash, the bal
ances due from other banks and in the
hands OF approved reserve agents. The ag-
gregate of such ready money in the five
banks Is 100000. Add to this amount the
$4,000 Of such money held by the Indiana
State bank, and the aggregate of funds
which are practically on hand is g. 2S4, 900.
1t is safe to say that the banks of Indian
dPOhS never were 50 Strung OF ever Carried
so large In amount Of money which their
managers are anxious to loan at lower
rates, on approved security. than have ever
been known.
This fact goes TO show that 1t is not a
lack of attainable money which is the
cause of business and industrial
stagnation. The money has found its way
into the banks because its owners have no
use for it. and it remains in the banks
because men who usually borrow money to
invest in manufacturing and traffic dare
not invest at the present time. It is said
by a few persons. who render themselves
liable to be classed as idiots by saying 1t.
that banks combine to hoard money and
keep 1t away from the people. Possibly
a limited number Of people believe this
statement, but they are to be pitied for
such ignorance. Why should a bank hoard
a million dollars Of ready money and keep
it idle, when at the lowest rates of inter-
est it would earn $50. 100 a year? What
grudge have the stockholders of banks
against their ~neighbors that they Will re-
fuse 10 loan them money. and by refusing
lose all that the money will earn? The fact
is, the more money banks can loan the
larger their dividends and also the rates
Of interest. AS a matter Of fact, the men
who hold money in banks have just the
same interest in loaning it that other men
who have idle workshops have In such a
change Of conditions as will start them up.
Another point is worth mentioning. and
that is that the circulation Of the national
banks Of indianapolis is only $4O5, 600. The
Indiana National Bank, with much over a
millions dollars OF available funds, has only
$45, 200 Of circulation. Fletchers' bank car
ries ss4aEoo Of United States bonds. which.
10 it were a national bank, would, If turned
to circulation, furnish the required security
for an issue Of over $3.50, 600 of bank notes.
If national bank circulation were a money
making monopoly such banks would be in
it. They are out of it because it is not
profitable.
Heretofore, when the country has suf-
fered from an industrial paralysis, the
banks have either contributed to or helped
prolong it. Now the banks of indianapolis.
and probably of other cities. are so strong
and so we'll able to help business and in
dustry when confidence in the future shall
come that recovery, because Of their as
sistance. will be rapid. 1t is a great boon
to a people to have banks In which depos-
itors can repose the utmost confidence.
and it may be added that all candid and
intelligent people appreciate such institu-
tons.