Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-12-15
Recent Failures In Iowa Do
Not Disturb Them-situ-
alton Improving
TIGHTENING OF MONEY MARKET
This Fact, Rendering It Practically
Impossible for Some to Get the Mon
ey Needed, is Assigned as the Chief
Cause for the Failures-Trade Brings
About Changed Condition.
Special to Times-Repuhlican,

Special to Times Republican,
| Des Moines, Dec. 15.-Despite the
| fact that in the past few months al
| least two banks organized under tae
| state law went TO the wall and one pri-
yate banking institution is in the hanas
| of receiver and probably IN oda
condition, the bankers in this part OF
the state declare that there Is not
| particle of cause for alarm; in fact,
| thew all say that there is much less
danger now than there was re"
months ago and that the situation is
showing plain signs of Improvement
iIt is now admitted by some financiers
what was not admitted FEW months
ago that then there was some real cause
for apprehension. Now that the furry
lif ii might be so called. is all over
and the danger all past some of the
financiers do not hesitate to admit that
there was a time In the ran Whsh
things looked little dubious for iowa
| hnances Ii is not that the banks and
bankers have been losing money OF
have met with sudden reverses, Lue
there was tightening up OF the money
market SO that they say they rouho y
practically impossible to get the money
lthey needed in their business. Inere
lare no doubt many banks tnat were
in q critical condition few montas
ago, lacking the ready cash on whlcn
! to do any big business. but the Iowa
bankers simply ceased doing business
and have been lying idle. They nave
waited patiently for trade to bring
about changed condition. which 1t has
| done. In the cities the mainstay OF the
banks Is the steady inflow of deposits
| from the wage earners and snlau
tradesmen. This soon has the effect
| of making money easier. Then In the
rural districts the sale Of farm pro-
duce has had the same effect. But
| Iowa banks have made good pro-
nt the last year. A conservative es-
timator stated last evening that IN
this opinion the banks OF Iowa. taken
as whole, have made fully 10 per
cent on their capital stock. The banks
| of Des Moines alone, SO 1t Is stated
have made profit in the year of over
20 per cent. But this rate OF increase
| of funds is not uniform over the state
| In fact the reports show great irregu-
larity in the profits Of banking the pa st
year, and while many have made enor-
nous profits. some of them running up
to over 100 per cent, others have bare
lly realized anything on the work of
the year.
One banker explained the situation
during the past summer by saying that
the Iowa banks came near laundering
on their own prosperity. They were
making money too fast and having
things too easy and therefore became
careless. They were letting toq many
persons borrow and borrow In too large
lamounts and for speculative purposes.
Much money went into land in the
northwest and some Of II was lost
! there Then there We're losses In cat
tie and livestock of different kinds. In
the case of the Colfax bank. where the
cashier killed himself rather than face
a calamity. the investigations OF the
lreceiver show that the bank loaned too
freely. One man, and not wealthy
man nor having much security, had
borrowed upwards Of $4,000. No sens
Iible banker would think OF doing such
a thing, and 1t is never done save when
times are so good that failure or loss
seems impossible. In some parts of
the state the banks were last summer
paying as much as per cent interest
on ordinary deposits Every banker
knows that this can not be done with
safety. The fact is that they were
letting out this money at much higher
rates OF interest and letting it go 20
persons who were speculating in land
and other things and really getting
rich with high priced money. How
some OF these banks have escaped the
pinch is mystery. but they have
pulled thru and are now reckoning
| up big profits for the year. The Des
Moines bankers now report that there
lis much less of a demand from country
banks for cash and that there is every
indication that by the first OF the year
| all the banks will again be on easy
street. One reason for the loss in de-
posts of the state banks on the last
| call is found in the fact that there
were two went out of business, two
lothers became national banks and In
| the case of the Farmers Loan ana
Trust company bank in Sioux City, 1t
| Leased to do business as bank an 4
took up the work as a trust company
| in connection with the branch banks
The state board of health will hold
| a meeting here this week and take up
the work of outlining the legislation
desired from the next general assembly.
One of the chief things sought Is bill
establishing a state bacteriological Ia
boratory. II is the plan of the state
board that this shall be established at
Des Molnes, but movement is stiI
heard from occasionally to have It
placed at Iowa City in connection with
the medical college joired to the State
university. The state board Of health
| and the superintendents of the different
insane hospitals have favored the es-
Establishment OF an Investigating station
or central place for the scientific WORK
| in connection with the four hospitals
land the feeble minded institution, and
| 1t has been suggested this could be
done in connection with the state uni