The Minneapolis journal., 1902-07-05

has hindered the 1developmen Of the west
ern provinces Under the Canadian sys-
tenn the farmer or business man borrow
ing money on first class security has been
able to get his funds at a rate somewhat
lower than he .could borrow on the same
kind of security in the American north
west. But the settlepewhose main asset
was his onesty- and Industry and whose
only hope Of holding shis farm and con-
tinuing operations lay in help from the
bank; has been barred out. The con-
servative< policy of the Canadian. branch
bank; with Its interests more. in the east
than In the west, has practically told
him to go to the wall and get out of the
country. In Minnesota, and later in North
and South Dakota, the new settler. with
chance to win, has been furnished with
money by his local bank. He has had
to pay all the way from II to 20 per cent,
1t is true, but he has finally pulled out
and become financially independent In
these cases the money loaner has been
big risks, He had faith in the country
and was willing to invest at a rate Of
profit commensurate with the risk. He
has been a potent factor in developing
the country, where the Canadian system
has failed
Right here, a pat comparison can be
made. AS said before, there are bank
efS III WeSCeTn <NOTCu DahOLaT VINO pledQ
guilty to charging IL per cent or better
for money to a big class Of new settlers.
On the fother~ hand ther are several hum
dred northwestern business men at work
exploiting Canadian lands and conse-
quently deeply interested in the develop
ment of western Canada. Many of the
settlers whom they are placing in Canada
are men of honesty and industry but shy
OF. funds In-NoFth Dakota they could
secure the small loan necessary at. "rob-
berry" rates. In Canada the conservative
eastern controlled, branch bank rules
them out entirely. To assist in the de-
velopment of some territory the American
promoters have been forced to establish
private banks.b One of the men who has
given '>the subject much attention ::sayg
that this is absolutely necessary in order
to show good development results. The
private bank will put the community on
it's feet, develop the business and will
later be crowded out of business by; a
branch of one of thenbig chartered banks
which, like the American trust, will
greedily reach OUT Its tentacles for the
new persimmon which it has. done little
to develop. g:,'5% -. r.. S...s -:
These are some of the features Of the
Canadian bank system which are dis
agreeable to the Canadians Of the.western
provinces. Winnipeg men say that in the
administration of all of their big banks
there is nothing which especially makes
for the promotion of local interests or
the2development of the, immense territory
tributary to Winnipeg. The banks are
there to loan money on safe paper at the
best rate they can get and when the divi-
dends are declared, which as rule are
much, larger than the average American
bank lis able to- pay the money is sent
to the eastern stockholders. This is a
state of affairs which the average Cana
dian of the western provinces, a slow
going mortal at the best. has been will
ing to stand. But many Of the Mime
sofa bankers doubt that it suits the
American idea or American needs and
believe that fact will become more ap-
parent as the campaign of education on
this subject goes on. +: tS
who Gets the Ft. Dodges
s4 There is much speculation as to the dis
position of the Des Moines & Fort Dodge
railroad after.the expiration of the Rock
Island s lease Of that property. The Des
tsMoines e. Fort Dodge is 144 miles long,
advantageousfy8i located in choice Iowa
| territory. The Rock Island needs It but
the management Of the big system ap-
pears to, have slept on its opportunity and
two enterprising5 New York brokers have
secured control. Who will get.the small
railroads in choice territory is one of
! the most Interesting subjects for specu-
lation In sconnec ctfon with traffic develop
| ment. It is this disposition to specu-
late along this line which has resulted in
the many reported sales Of the Mime
! apolis & st. Louis to various systems.
! Just now it's said that the Des Moines
& Fort Dodge Is TO be bought by the
Rock Island at d price which will show
a handsome profit to the two New York
ers prominentlin the recent purchase OF
| the property. M S s#
/ On account Of its location the. little
j rnad Ia ua 1ua III a. ft own 81 good fermfna1 1s