Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1899-03-11
INDUSTRIAL GENERALIZATION
has Somewhat Upset Normal Banking
Conditions.
LOCAL FINANCIAL INSTITUTIONS
DECLINE TO PAY INTEREST ON
TIME DEPOSITS, AS THE SUP
PLY OF MONEY IS IN EXCESS
OF THE DEMAND-AN OUTLINE
. OF AN ABNORMAL SITUATION.

A special telegram received last night
by the Register from New York said:
THE banks Of the country are al
ready beginning to feel the effects of
the trusts which are being formed. The
coalition of plants in widely scattered
sections proceeds the withdrawal OF To-
cal patronage. Bankers are viewing
with apprehension and alarm the I'M
mistakable tendency in this direction,
and this is particularly true OF the
smaller institutions. Those in the
larger cities, of course, benefit by COM
binations, to a certain extent, 1t is
pointed out by moneyed men, as nat
ural Capitalization result. 1t appears
to be case of the big fellows driving
out the little ones, as is the rule in
industrial combinations"
This state of facts applies to Wheel
ing as to other cities in industrial re-
gions. The loss of business to the
banks here, through combinations, &C
complished or prospective, will doubt
less be very considerable; and bankers
are not disposed to take very CHEEKY
view of the immediate future. How 70
loan surplus money in safe and busl-
ness-lke manner, at remuneratlve
rates, is question. The banks hold
abnormally large amounts OF cash, for
which there is no demand which can
be met upon legitimate banking prln-
ciples. One of the first natural results
is to discourage the deposit OF money
upon time certificates at the usual three
per cent. interest, or upon any interest
at all. One local bank refused, yes
terday, a deposit of $4,000 upon this
basis, and another a similar oifer Oh
$4,000 They did not want to pay
even nominal rates for money which
could not be re-loaned at the usual
market rate New York banks, 1t Is
understood, have also refused to pay
interest upon balances to the credit OF
what, in the Metropolis, are called
country banks" this applying to banks
in such cities as Wheeling. On the
other hand, the difficulties of loaning
are so great that borrowers with gilt
edged collateral or other adequate
backing are not disposed to pay over
five per cent, and business man IN
formed the Register yesterday he be-
lieved strictly first-class paper could be
negotiated in this city on basis OF
four per cent. This, of course, would
be exceptional, but illustrates, even IN
the telling, the existing conditions and
the tendency.
In discussing the matter yesterday
local banker said:
TOO much prosperity, if the term be
applicable to the present situation, is
Just as bad for the banks as times or
depression. In the latter instance we
have an abundance of money to loan,
for which there is no demand, and our
profit is much reduced; in the first IN
stance every one wants money at any
rate of interest, yet we dare not let
it go out Of our control, for there is
no telling when we may need it as a
reserve protection. Business is best
for the banks when conditions are nor
mal-they were abnormal in 1S93-4-5,
and they are so, in a reversed case, to-
day. Conditions may now be best de-
scribed by the term Chaotic and the
developments of the immediate future
will be awaited with decided interest
in banking circles. AS things are now,
we scarcely know where we are at y