Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-10-01
Iowa the Center Of Land specu.
lation Which is Exhaustine
Bank Reserves
INTEREST RATES UP 2 PER CENT
President Sioux City Security National
Bank Discusses Financial Conditions
in lowa-state's Enormous Wealth
Thinks Property Well Founded, But
Land Craze Expensive.

Sioux City. Oct. IF New York is
the center of speculative activity in in
dustrial investments, l think we may
fairly say that Iowa is the center Of
land speculation. Land purchases have
been taking the money ont of Iowa just
as Industrial stocks have absorbed the
money of New York. AS a result Iowa
interest rates, on all kinds of paper,
have gone UP about 2 per cent"
This is the summary given by w. =
Manley, president of the Security Ma
tional Bank, yesterday morning, when
asked for an expression about current
business conditions. Mr.. Manley be-
lieyes the west was never i'll better con-
sdition than today. 1t was never SO
able to take care Of its own financial
needs. 1t never had SO much money, or
so much wealth in the products OF It's
soil and industries. And more than all
this, a spirit of conservatism has pre-
vailed in western financial and trade
centers, at the very time when, because
of speculative excuses in the east ~
has been most needed. The west is able
to take care of itself, and with It's
wealth, and its conservatism, to con-
tribute something to help the east over
rough places if they should be met.
Iowa Resources Marvellous.
.SThe resources of this state of Iowa
are something marvellous" said Mr..
Manley. For a year past money has
been drained out of the state in q
steady stream for investment in new
lands OF Minnesota, Wisconsin, the Da-
kotas, and even up in Northwest terri
tory. Nobody can more than estimate
how much has gone. Iowa wealth has
been based on land values, and iowa
people have confidence in land. a
banker from town of 5000 people was
here the other day and told me OF $780,
600 which he knew had been taken from
that town alone for investment in other
states. That was just one town, and
represented items one man was able to
recall.
"The result OF this investment OUT
side has been reduction of bank de-
posits. Des Moines banks have lost
some 81, 10000 since the first of the
year. Here in Sioux City we lost about
l3 per cent between the July and Sep
tember statements; / should say Des
Moines must have lost 20 per cent in
the same time. Other Iowa cities make
similar showings. The result is that in
terest rates have gone up about 2 per
cent all over the state.
What is true of Iowa is true OF
Y1;.,o., Loruoc Nahro Slya ar this en-.
tire section; they are all specializing IN
lands to a remarkable extent, the
banker continued. Iowa leads, but
they are all in the same business. In
Chicago recently a banker told me Iowa
banks had not been so hard up for a
long time as now, and wanted to know
why. told him we felt it less here
than at other places, because there is
little land speculation In
Sioux City. doubt If any city in the.
state has so few people handling lands.
Two Chicago bankers told me 1T was
land buying which has abb
sorbed the surface of ready cash.
Iowa's Enormous Banking Capital.
People in Iowa, and indeed those
outside likewise, don't appreciate the
this state makes to the
banking capital of the nation. 1t is
we'll enough known that there are more
banks in Iowa than IN any other state
in the country. But the full significance
Of that is not always appreciated. Iowa
is thought of as new western state.
Yet on July its 222 national banks
held over s91,00O,0O0 of deposits. Its
state banks, savings, trust companies
and private banks had enough more to
bring 1t up easily to $300,O0000O. And
Iowa bank deposits represent Iowa
alone. I believe it Is true that Iowa is
the best state in the nation. believe
that nowhere in the worlds history was
a new community ever developed in the
same time to such a per capita of sub
stantial wealth as Iowa possesses. Iowa
e q mother of states. 1t has not only
built up its own splendid wealth In two
but it has its sons with
pockets full Of money to coloniZe two
Dakotas, Minnesota, Kansas, Nebras-
ka, and every other western state.
West Called for Its Money.
Down east they ask for money with
which to move the western crops; but
the fact is the west is able to take care
of its own crops" asserted Mr.. Marley.
"Of coure, at this season the west calls
on New York for money, but it is not
to borrow money it Is simply for the
return of cash the west has had there
in balances. The west doesn't have to
borrow money nowadays to care fer; Its
crops; it Is able to do all its own BUSH
ness and then leave balances in east
ern banks. But you see New York has
been loaning Its money on railroad and
securities. in which there Is