The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1902-09-21
WICHITA BANKS
+ FULL OF MONEY
While New York Has Heavy
Shortage.
REASON OF THIS CONDITION
Is That Kansas Is Selling
More Than She Buys.
REASON OF THIS CONDITION

The condition Of this city and that OF
New York today in very forcible man
ner represents the new order of things
that have come to the west in general
during the last ten or fifteen years.
An over abundance of money in this
city and scarcity in the city of New
York is a condition that many nnanciers
of today never expected to live TO see.
The fun force Of these conditions will be
understood when it is stated that the re-
serve fund of the banks of New York
City have been reduced TO 211a per cent
OF their deposits. while the national banks
OF this city hold a reserve of BIZ per cent.
Reserve cities like New York are re-
quired by the provisions of the national
banking law to have on hand a reserve
equal TO % per cent Of their deposits and
the banks are now 81 per cent below
that mark. That means that under the
national banking law they are not per-
mitted to loan another cent of money
while they are in their present condition.
The banks of Wichita, this not being
a reserve city, may legally reduce their
reserve to 10 per cent of their deposits
This shows that the banks Of this city
hold a reserve of 22i1 per cent more than
the law requires. and it shows that there
is surplus of money in hs section, while
New York is short
There are a goodly number of people
now asking what has brought about this
condition favorable to the west That is
very easily explained. Everybody under
stands that when one country is selling
more than il is buying it is accommodating
money. because the balances of trade are
paid in cash. The same is true of the
different sections Of the same country.
The west for the past several years has
been raising big crops. and pork and beef
have been high. and the west has been
getting a good deal more money for what
it has sold than it has paid for what it
has bought. This condition has caused
the money to move from the east to the
west. That is the reason that money
loans in this city on call for fat per
cent while in New York it is now bring
ing as high as per cent.
Bankers and financiers do not see any
thing alarming in this condition. 1t is
not going to cause financial wreck, be-
cause the money is coming west instead
OF staying in the east The best finan-
ciers in the world are predicting that the
City Of New York will in the very near
future become the clearing house OF the
world. The great banks of New York
have learned how to tide over these tenn
pOrary stTingencies in the money market
They put their millions of securities in
one common pot, which is the clearing
house, and they issue certificates against
them which passes for money among the |
banks until such time as they can be re-
deemed.
Some Of the bankers now claim that the |
financial interests of the country have be- !
come so strong that there VIII never be !
another panic What was formerly a !
panic. under the present system viii be |
only temporary stringency that will |
soon be relieved. The solid financial rock |
on which Kansas stands today ought 10 |
be a source Of congratulation to every /
man and woman in the state. These con, |
1itions are not referred TO in a boasting |
manner. but simply TO show the true stu /
alton in the west and Wichita in particu- /
ar