The Topeka state journal., 1899-12-19
NO EFFECT HERE.
Topeka Capitalists Say the
West Is Safe From FL
nancial Disturbance.

Topeka bankers arenOt at all alarmed
at the reports from New York that call
money is being loaned at 125 per cent
or that the war in South Africa viii
cause the stringency in the money mar
ket to grow worse.
Wall street must now suffer while
the west looks on and smiles. But a few
years ago the western money markets
cried to the Wall street fnanciers for
aid. Now the bulls and bears would
gladly receive the assistance that the
west is able to give. During the last
summer, and for the first time in the
history of the west, Kansas City
bank had 100000 loaned in New York
subject to call. A Wichita bank also
had a smaller amount loaned and Ia
coma and other banks have entered
Wall street, under the very noses of
the men who are supposed to control
the finances of the country, and loaned
western money.
When asked what effect the monetary
stringency would have on the west,
Mr.. 2. I. Bonebrake. president of the
Central National bank said: I don't
think it will have any particular effect
on the west except, perhaps. to make
men more careful in business matters.
The west was supplied with money
last year better than ever in its his
tory one cause of the Stringency in
New York and the east generally is
Occasioned by the fact that the west
is keeping it's money in western money
centerS. As an illustration Chicago, St.
Louis. Kansas City and Denver have
One-third more money on deposit today
than a year ago Up to a short time
ago almost all the banks Of the coun-
Try kept their reserve in New York.
They have kept the larger portion in
the banks of the cities just named
Stringency in New York is a good thing
for the country The trusts have grown
wild in placing their capital among the
people and banks have taken their
stock as collateral Now banks refuse
them and call for more margin from
the Spectators. 1t is the first chapter
in the histories of these trusts anGA if
we only get it in broken doses it viii
be good for the country. The west is all
right"
Mr. F. G. Willard. cashier of the
Merchants National, in speaking of the
present stringency, said: TT will not
have any effect upon the west because
the west has gotten to the point where
happenings in the east do not effect the
west The west and south stand on
their own bottom to an extent that puts
them out of the question. In years
gone by at this time of the year. at tax
times. western banks rediscOunted in
New York Now not one out of a hun
dred asks for assistance from New
York. So true is this that during the
last summer I know of several eastern
banks that took advantage of the high
Oo0 GOO in New York. The west and
south have the money that New York
is shy of just now"
Mr.. John r. Mulvane, president of
the Bank of Topeka. said: This strin-
gency will have no effect on the west.
1t is a gamble among stock Spectators
and banks are lending money at five
and a half and six per cent. There is
no alarm among level headed business
men and banks. This is all brought
about by stock speculation on fictitious
values Take big steel company, for
instance, with $25.00O, 600 capital. They
Teorganize and float bonds to the ex-
tent of S75,0O0,000 and increase the stock
to $75,0 600 1t is like watering milk.
When through watering the milk there
is no more milk than there was at
first and the milk that was started with
At first is SpOiIed. %