The Montgomery advertiser., 1903-11-22
HARD TIMES FEARED.
New York Bankers Taking Precau-
 tions Against Lean Winter.

New York Bankers Taking Precau-
 t1ons Against a Lean Winter. Brooklyn Eagle
 mere Is a growing feeling among local
 bankers that times for the next year are going to be fairly hard. As to whether
 this condition will be peculiar to New
 York and growing out of conditions pre- vailing here. or whether the whole coun- | try Is to feel the pinch, opinion is divided. Good times generally follow good crops | and certainly the crops this year have l been all that could be wished. Reports of | railroads show good earnings and fair success has met recent attempts to float new securities, thus showing that what ever the conditions may be for specula- | tive issues, market still remains for in- vestment issues. Some of the local bank | ers majority perhaps, say that the hard times that they think are indicated for New York will be in spite of the conditions. prevailing nationally. The smaller part of the banking community seems to feel that the conditions that are to prevail here will be reflected in a great CT or less extent throughout the Eastern section, at least, of the country. In the manufacturing sections the industrial de- pression, 1t is feared will be of far-reach, ing influence With many thousand men out Of employment at the beginning of winter it is argued, the times cannot help but be bad. In the local field the industrial depression which is feared is one brought about by the action of the men themselves.
 Thousands of men will be out of em- ployment in Manhattan and Brooklyn during all the coming winter as a result of their unanimous decision not to work when work could be had And not only will these men not be earning money dur Ing the coming months. Many of them have spent what little they had saved up, and are without any reserve with which to begin the cold season. That this fear of hard times IS not a vain one, talks with bankers will show. Some of the more conservative banks are, and have been for some time, getting ready for any possible emergency. The President of one of the oldest banks in this bor- ough said that, whereas the law required a reserve of 25 per cent, he had been gradually increasing his fund, until it now has reached 36 per cent. We have found that 1t pays" said he. Ito be well protected. Nothing may happen and sincerely hope nothing will, but if 1t does, We will have made such precautions as in us lies, and, well, we all sleep better on Se per cent. than on 25 per cent
 So far as could be learned no other bank has taken quite so extended precau- tions as to run their reserves up to 36 per cent. That others are thinking over the situation. however, is certain. One bank CT. speaking for himself and for the other banks tof the borough as far as he knew them. said that there was a general ten dency toward the cutting down of dis counts. "We are not looking for paper," he said. and the amount of accommo- dation extended is not so liberal as II was a while ago."
 There are various signs in the financial and commercial world by which the bank CT reads the times. One has already been instanced-the conditions in the labor market. Another is the preparation which the merchant makes for the winter trade. The merchant doesn't buy unless he thinks he can sell again, and when he is sure times are good he buys extensively. The smaller merchant. at least. the one who has to do with what are sometimes called the great middle classes, is not buying as extensively this year as last. Indeed. the merchants in general, 1t is said are cutting down their stocks and are confining their buying to the staple lines. This last sign Is one that is usually | considered pretty good. It cannot be said that there is any fear of a panic Just hard times is what is feared and many people will be agreeably surprised if they | do not come