Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-11-25
Farmers are Using Their Sur
plus Funds in the Purchase
of Cattle
EXTENSIVE FEEDING ENTERPRISE
Large Amounts of Cash Are Being Used
by the Farmers and Many Counties
Have Imported as High as $4,000
Head of Cattle to Consume the Big
Corn Crop.

Abilene, Kas., Nov. 25.-Not in years
! has there been SO general a use of mon
ey in Kansas as at the present time.
Compared with one year ago, the condi-
4 lions seem abnormal and are the cause
I of much speculation among those who
4 have not considered the situation. For
| instance, the banks have practically no
larger deposits than last August, while
! they have a stronger demand for loans.
[ Last year at this time their deposits
We're at high water mark, the largest
! in the states history, but the demand
for loans was light. The farmers were
paying off their Indebtedness and were
in no hurry to use their savings.
Following the corn failure this SEEM
ed remarkable, but it was really the
logical result. The loss of the corn had
taken the cattle feeding industry from
the farmers, and they really had moth
ing to do after the wheat was harvest
ed and sold but to wait for the coming
of another crop. They did not want to
hold over anything that they could not
feed, and they disposed of as much stock
as possible, with the result That the
money was put in the banks. Many OF
them bought land, thus making gooa
market for real estate, and they nave
during the year past been living on the
little things that have become SO large
a part of the farmers income In the
prairie states.
The wheat did not make the farmers
rich this year. The crop was less than
half that of last season, and being mar
vested under difficulties returned a.
much smaller amount than 1t might
have done had there been better wealth
err.
Then came the corn, fine crop turnout
this section of the west, but 1T has not
gone to market, nor will it do SO rapidly
for many months yet
The farmers have not been compelled
to sell. They have been able to keep
thru the year with the small sources of
income that have come to be so large
a part of the vests business returns.
They have had the creamery, the alfal-
ia, and the chickens to assist them.
Now they want to do something with
their corn that will repay them for the
loss of last season. AS a result they
are planning to feed as much stock as
possible.
The grain will go to market on foot,
as the farmers express it, this year to
a greater extent than in the history OF
the west. The feeders are buying cattle
and hogs and sheep and will feed their
grain. In many counties 25,C0O head of
cattle have been shipped in from the
ranges already this year. More would
have come had there been railway ia
cilities to handle them.
The farmers are drawing their money
out of the banks for this business, and
as consequence are leaving the bank
ers with small deposits, large loans and
small surplus.
Thus the bank conditions are almost |
the reverse of last year, when the !
money was coming in over the counter.
Rates are strong at 10 per cent on short
time loans, when year ago money
could not be placed at s per cent.
The conditions are similar over the
corn belt. An Iowa banker who was
here recently said that the banks of his !
section are losing deposits because the
farmers are using their surplus funds /
is true Of Nebraska, and the effect is t
due to the same cause in each case.
The farmers of Kansas We're never in
better financial condition than they are
today. They could cash in far more
ready money at this time than ever in
their history. Their land is worth twice
what 1t was five years ago; they owe
less money on it; any kind OF good
horse is worth 500; cattle are high;
hogs are bringing top prices; sheep are
high. With the single exception Of
wheat, they are getting more money for
everything they raise than in years.
More than this, they can sell IN day
all they possess and get fair price
for it, which was not true a few years
ago.
This condition has given them con-
fidence, and they are willing to under
take the speculation of holding their
corn, putting it into stock, and waiting
for the spring to realize on their crop.
They will borrow money to do this, and
II they can get enough cattle to feed
here is scarcely a limit to their desires .
IN this direction.
It is the opinion of the well informed
that there will not be a mater
al change in the financial condition of
the west in the next ninety days. 1t is
Unlikely that there will be material in
,rease in DEPOSITS shown at the next
eank statement, for the money Is at
work, not in the banks. 1t is a busy
condition and one that ought to result
n large returns in the end.