Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1900-04-03
MORE MONEY PROVIDED.

So far under the new financial law.
there have been over 400 applicants for
charters for national banks. most of
them from the Mississippi val ley. From.
Texas. Tennessee, Missouri and the
larger middle and western states the
applications are numerous, but as yet
there have not been 50 many from the
south generally as was expected. A
considerable proportion Of the applica-
tons are for banks with capital of
$4,000. which the Law provides may be
organized in any place where the OPP
ulation does not exceed 1000
This feature of the new law promises
to become lis greatest merit. as The
need of more money in the sparsely
4 settled agricultural regions of the Nest
and south has long been felt. Under
the old national banking law all COM
munities not large enough to support
national bank of $4,000 capital We're
banks of small capital could furnish a
deposit rrency-personal cfecks-but
in such communities business was gem
orally. on such a crude basis that
checks On deposits We're of little use.
What was needed, and greatly needed.
turnout the agricultural regions Of all
the southern and western states was
actual money currency This could be
supplied only by banks possessing note
4 issuing privileges. 1t is, therefore, a
very encouraging sign to see these nu-
merous applications for bank charters
from the regions that have needed such
financial assistance and whose people
installing the causes of their ills have
created so much trouble by their de-
nland for cheaper money.
Just at present there is a marked
Y tendency on the part of the large
banks in popuious centers to take out
an increased amount of bank note cir
culation and some have expressed the
4 fear that the new law would lead to q
disastrous Initiation of the currency.
The actual addition to the bank cir
culation is not vet very large, but it Il
reasonably to be expected that within
the year it will be materially increased
not, however, to the extent tina. some
have predicted. In a recent statemenl
81 Mr.. Brosius, chairman Of the house
banking and currency committee
pointed out the checks provided in the
s new law against excessive mutations
and expressed the opinion that there
was no reason for apprehending such
imitation. Mr.. vanderlip. assistant
8 secretary Of the treasury, thinks the
new bonds are likely to remain above
par. He says. 1T seems probable thai
4 the price of the new bonds will be 81
7 far advanced that the incentive to take
out circulation will In the end be about
Y the same as it has been with the ole
3 outstanding bonds and that an equilib.
rum will be reached where the price Of
the bond is 30 high as just about t.
balance the incentive to take out cir.
culation; and the total circulation will
after that. show little change. Unit
that point Is reached. however, there i.
y Likely to be q steady increase in thu
8 amount Of circulation.'' Is
The 2Eper cent refunding bonds were
quoted on Saturday at 1o4stzs, which /,
less than quotations for them befor.
the law authorizing their issue wa,
@ which would seem to indicate J.
SIS ftys Tendency IL regard q
3 81 ! y ~ prsssit price there wot,lt