The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-02-02
LITTLE MONEY TOLEND
1T is sCARCER THAN USUAL At THIS
SEASON OF THE YEAR.
Local Bankers Think the Stringency
Due tn Short Crops and Pend
ing Bond Allotment.


scarce and cannot be had. even upon the
best OF paper Country banks say that the
farmers are slow in paying money borrowed
last spring-in many instances asking for
more time Merchants in the rural districts
depend largely upon the farmers and are.
consequently. suffering, 10 a certain extent,
from dull trade. A number OF local bankers
were asked about reported hard times yes
terday and all seemed to agree that money
is scarcer than is usually the case at this
time of the year. Two reasons are assigned
for the trouble. In the first place, the wheat
crop was short last year and then the corn
crop has not been put upon the market. ow-
ing to the low prices prevailing. Another
thing that is said to partially account for
the scarcity OF money is the approaching
bond sale. Small banks all over the state
are anxious to invest in bonds and have
made bids. The money necessary TO cover
the bids is held In check. 1t is reported that
the demand for bonds is larger than the sup
ply and that many out Of town banks Will
have money to invest in some other way,
after the allotment, which is to be made
next Wednesday,. The general impression
among local bankers seems to be, however,
that this Will not relieve the situation to
any great extent and that financial condi-
wheat harvest. although it has been sug-
gested that corn IS going up and will likely
be put upon the market before that. time,
when the stringency may be renewed con-
sluerably.
Mr.. George B. Yandes, vice president Of
the Indiana National Bank, said yesterday
that, while money was tighter than is usu-
ally the case at this time of the year, the
own customers. I'VE have loaned more
money than we have taken in to-day, SAID
he. "Of course, If customers OF other banks
come to US Tor money they DO not get II.
l will say, however that none OF the banks
are running about trying TO make loans.
TO what do you attribute the stringen-
In the first place, the crops were short
in this State last year-sometning like S3O,-
OCO,0CO Banks depend upon the ground for
money. When the farmers are cut on from
ordinary resources they have nothing TO
offer security for loans and cannot pay
what they owe. The shortness OF crops
money has been Withdrawn from circulation
in anticipation of the bond sale next week"
Mr.. Yandes thought the stringency would
be relieved somewhat after the bond sale.
Mr.. Nj. Ii. Wilson, OF the Capital National,
said that it was true. that the money market
was close. The shortness of the hay and
wheat crops last year, he said, made CO..
lections bad in the rural districts. A great
deal of money tied up in country banks
of them have made bids for bonds. AS there
would not be enough bonds to supply the
demand, he though there would be consid-
erabel money for investment in other direc-
tons after the bond allotment.
the main cause of the ughtnesS or the
market, not only here but all over the
wheat and hay crops were virtually
failure last year, and the farmers ara left
without any resource other than the corn.
Corn is down and farmers who can do so
are holdi az on to 1t. Those who are COM
PEELED to sell have to do so at a low fig
ure; This, of course, makes collections
bad
How soon do x'p anticipate better
mot until after harvest. When the
wheat gets on the market money Will be
Mr. Otto n Frenzel thought the condi-
tons in this State were not much worse
bankers in the statement that the short
crops and anticipated bond sale had much
to do with the closeness OF money Farm
ers are holding their corn where they can,
and those who are compelled to sell have
to do so at price 10 cents lower than
heretofore. This condition works towards
a tight condition Of the money market in
both directions. Those who hold their grain
have no money for circulation and those
I suppose .he amount of money tied up
for purchasing bonds doubtless has some
thing to do with the trouble"
'sDo YOU think conditions will not improve
until after harvest. as has been suggested
in some qUarters?"
''I think likely that is correct"
will money be easier after the bond
sale?
AZ would not undertake to answer that
question You will have to wait until after
the allotment. That is a question that will
answer ITSELF"
81 am not inclined to be SO pessimistic as
some bankers" said the president Of an
other large bank .It seems to me there is
enough money to be had for legitimate pur-
poses" 49,
"po you think conditions will not improve
until after harvest?'
II differ with others on that question. Be-
fore harvest there are several other crops
to be reaped. In short time there is the
pension crop to get on the market. Some
thing like 2,700,000 will be in circulation
from that source alone in few days. About
S12OOOO00 year comes into the State from
the pension crop. Then the farmers who
are holding corn will begin to sell, as the
tendency OF the corn market is upwards. /
have not observed that there Is much strin-
gency. OF course, money is a little scarce
Just now, but take a hopeful view. 1 ad-
nit that collections are bad, but after the
farmers begin selling the corr that is stored
away money will be more plentiful"
You think, do you, that the corn will be
on the market before harvest?"