Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1903-04-18
NO UNEAsINEss THERE.
CHICAGO BANKERS VIEW.

CHICAGO bankers VIEW,
The Chicago reply came from one Of
the heaviest banking institutions in the
city, and said: Dear Sir-Your opinion
is SO absolutely in accord with mine
that / hardly need say that | concur
In your views | think a money strin-
gency approaching q panic can he
avoided II the banks would only con-
cert their action In q conservative way
from now until fall. | think the pes
slmlstlc feeling pervadng Wall stree
Is entirely due TO conditions existing
there. and Is based on the stagnant con-
dition Of the market for securities Of
which too many have been floated. So
far as / can learn. the commercial husi-
ness of the country Is in healthy con-
dti0n. Our western banks are In rea-
sonably good condition for this season
of the year. Many Of them are still
buying commercial paper In this mar
ket. and even new issues Of securities
that are unknown 10 western investors
have found ready market here. We
have ourselves, within the past month.
successfully handled two new issues Of
bonds of one million each. In COM
merclal lines, demands for money are
moderate. There Is no doubt that the
business Of the country has been ex-
panded to such an extent as TO absorb
our financial resources. and the banks
in the financial centers are feeling the
strain. We must all go along on a con-
sentative basis this year, discouraging
large borrowing and maintaining high
rates for our money during the sum-
mer even at the sacrifice of profit, and
prepare ourselves for the regular fall
demands for currency. This we will
have an opportunity TO do, as In the or
binary course OF business money will
return to US during the next two or
three months,
II, however. as soon as the banks get
a little surplus reserve. they lower the
rates and push their money out they
win go into the fall business In bad
shane. The New York bank deposits
from the west will naturally increase
during the summer, commencing TO do
so shortly after lake navigation opens.
but they viii be withdrawn again in
the fall. especially II we get big crop
for (which the conditions are encourage
ing. New York banks should be care
full how they use their temporary
money under present expanded condi-
tons. This applies equally to Chicago
banks. only they are likely TO turn over
their surplus to the New York banks
in order TO get per cent on their bal
ances, and they will be drain on New
York along with the other western
banks whenever the fall demand begins.
Just at present our Chicago banks are
not strong In reserves, but there are
none OF them, at least none of the ma
tlonal banks, that are very much inter-
ested In carrying what Mr. Morgan
calls undigested securities. Our banks
here, with the exception Of one or two
trust companies. coniine themselves TO
commercial business. and we are not
feeling at all nervous. We are all SAN
gulne that money must soon commence
10 return to us. and that we will have
some accumulation OF II during the
summer. II We can handle II judiclously
and conservatively we can prepare our
selves for the fall campaign, and work
through the year with satisfactory re-
suits.