Omaha daily bee., 1899-11-04

ment postal note and the express monev
order. 1t is useless and probably irrational
TO crtttctse the government postal note
but the express money order Is a Compeu-
tton that the banks should not be compelled
to meet II is a fragrant injustice to the
G for the 70 purpose pes, Of tr9nsporting commodi-
ties to assume the privilege. of dealing In
exchange which is clearly the prerogatiye
pirate in this field. 1t owes its success
largely to the fact that the banks reCog-
do this IT is useless for them TO ask relief,
for II is this fact more than any other that
makes the express money order "a convent
The accumulation of idle funds has ma
terially reduced the rates of interest paid
on deposits by the banks. yet no inconsid-
dissipated in this way. While believe the
payment Of Interest on deposits Is not
has been thoroughly established in the
west and will require time to eradicate it.
Se 1t pe9pe n had o S nt% to dS Se ws
uses of banks, but necessity is forcing an
elimination of the practice. Payment Of
interest on deposits is nothing more nor
less than borrowing money, and to borrow
money merely for the purpose of having
would hardly seem sufficient inducement
! to practical banker, and vet this Is what
the practice amounts to, to a large extent.
Rates Fail.
In greater portion of the state the rates
] at WnlCn money Is loaned mas fallen per-
ceptibly. This is due to several causes
which 1t is unnecessary to speak of here,
as the United States as whole is meeting
with the same experience. There is one
factor, however which IS operative in Ne
braska which is not general to the whole
| country and which is of much interest TO
the Nebraska banker. | refer to so-called
cattle paper. This has grown to be DIS
tinctiye security on the market ,n and ,,,s Is
I funds At certain seasons of the year no
inconsiderable amount Of the funds Of our our
TO the demand for it low rates prevail, The
low rates offered on this paper has GER
tainly had its effect on other forms Of in
dency of rates | do not believe that alb
normally low interest rates are benefit to
the state as whole. When rates fall be-
low what the productive capacity of the
people warrant commercial inactivity pre-
walls
From the foregoing. 1t will he seen that
new conditions confront the Nebraska
banker He must adapt himself to, the new
the same time orotect the stockholder II
his rights to fair profit for his inyest
ment and risk an adjustment Of the affair:
of his bank must be made. The expense
account must be made matter of ciost
scrutiny and. study. The department doe:
not believe the capable bank officer in thi!
state is overpaid now and 1t will be pool
economy to attack him. The incomoeten
bank official, however, must go, and Will
him the supernumerary help. The useles;
son of prominent stockholder must seel
other fields to exploit, Rigid economy alont
all INES ana tne STduudl elllIlIlldllon Oh VI
practice Of paying interest on deposits onl!
will insure dividends to the stockholder.
| These matters adjusted and with no fur
ther special privileges granted the nationa
banks. giving them an undue advantag
over banks operating under the stat
system, and the banks of Nebraska have
future of promise and usefulness.
party of civil engineers in the servic
of the Burlington has returned to Lincol
from months work and survey in tn
Black Hills region in and about Dumon
and Elmore, S. d. They have completed tn
. survey of line direct from Dumont to Ell
more, distance of eight and half miles
and in railroad circles it is understood tha
: this line will be built early in the spring