The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-01-01
VIEWS0F STATEBANKERS
INDIANA BANKS REPORT GOOD BUSI-
NESS FOR 1908.
Money Stringency and Shrinkage of
Security Values Had Little Effect
on Indiana.

III VI LIZ 0N0NN oNNNS " NAAAo Ao(N.
And, according to the of these
bankers. the year 1904 promises to be
an equally prosperous one for Indiana
The great shrinkage in security values
and the general tightening of the money
market in New York and most of the lead
ing cities of the country did not have, with
a very few exceptions, any effect whatever
upon the general business OF the state last
year. The banks all over the State had
plenty Of money for their customers and
some of them had some 10 loan outside or
their own counties. In some communities
bank deposits showed an increase over the
previous year.
The money stringency in Wall street-if
the Tightening of the New York money mar
ket could be truthfully termed a string
ency-had this effect, however,, many or the
county seat bankers say: 1t has tended 10
create more conservatism in general bust
ness sentiment over the State. This has not
been a baleful influence, as one of the bank
ers says, but is a benefit and a safeguard
which the bankers are glad 10 call atten-
ton TO.
The following opinions upon the business
conditions of the State the past year, with
special attention TO the money situation in
the larger cities, have been written for the
Journal by six representative bankers:
James .. Parker, Evansville, President
OHIO Valley Trust C~ompany-ln my opinion
our immediate locality has not been ma
terially affected, one way or the other, by
the ~shrinkage in security values or the
temporary tightness Of the money market.
The general business of this locality has
been exceptionally good during the past
~year-better than in previous y~ears-and
in consequence it has not responded TO the
Wall-street situation. Neither do L believe
that any meritoriouS enterprise has been
abandoned or delayed on account thereof.
The general business and financial out
look for this vicinity for the coming year
is exceptionally good, and / believe will be
even better than this year. The stock
1urries and financial disturbances of the
East have not affected any considerable
rNr1hn - g or~ .A.1A nna xpf1l fhaW mr.
jobbing, manufacturing and mining inter-
ests are so bedrock in security and good
management that they are not likely to be
influenced by the cause TO which you refer.
The one disturbing feature that L see Tor
next year is the political one, which, unfor-
tunately, leaves its impress upon the COM
mercial world at its every recurrence.
William A. Banta. Rochester, Cashier
Bank Of Indiana-As usual during a time
of temporary or prolonged stringency there
is a perceptible advance in interest rates
The rate on real-estate loans has strength
ened from u to / per cent, and this ten
dency is reflected in the shorter time per-
sOnal and collateral loans, where the rate
has grown slightly stronger, contingent
upon the demand for loanaole funds and
the condition Of bank surplus.
General business has not been affected
except that a certain old-time conservatism
is being instilled into all lines of trade,
with the consumer, hoping for lower prices,
perhaps a trife less willing 10 absorb the
various commodities. Collections are being
puSNCu III LGdis anu 0tdiCAS u CIV
ing credit demands finer scrutiny.
Legitimate and substantial business en-
terprises, under good management, have
suffered no check by reason OF any recent
shrinkage in values. The only effect has
been to put an effectual damper on purely
speculative ventures. The opinion seems to
be that we are now in the process of get
ting back to normal. with little probability
Of falling below that point. Needed i'm
provements and solid propositions that can
show a reasonable profit are therefore not
HkelV 10 suffer from want OF encourage
ment.
The general outlook for the coming year
is good. Business will be steady; therefore,
more reliable than the ebb and flow of boom
conditions, and equally as profitable. There
will be sufficient money for cautious and
prudent dealers, but not one cent Tor the
man of visions. A most welcome descent
of the imitation balloon TO the subsoil of
horse sense is very apt to be mistaken for
financial depression, but such is not the
case, especially so long as confidence In
men of solid affairs and institutions, with
more dough than water, is deep-seated.
Politics will play Its inevitable part, but
with the result Of coming issues so clearly
foreseen the usual depressing effect will be
neutralized in a degree
]. A.. Shirk, Delphi, president Citizens
National Bank-In regard to the shrinkage
of prices for industrials and other securi-
ties, which has affected the East so much,
it has no perceptible effect on the business
at this point, neither has the tight money
market at other points had any effect on
US mere yet. Money mas never Deen more
plentiful nor confidence greater than it is
at the present time. In fact, We have had
more money than We could loan TO adj
vantage at home, and have been placing
loans in the larger cities for the past year.
Our bank deposits have never run more
evenly than they have the past year, and
there has been a gradual and steady in
crease in deposits since the beginning of
the year. No worthy enterprises or needed
improvements have been abandoned for
lack of money to carry them on.
In regard to the outlook for next wear it
is. perhaps, too soon TO venture a pre-
diction. This is almost entirely a farming
community and at present the outlook for
the wheat crop for next year is not very
encouraging. However we have an excel
lent crop this year and the county is full
of money, SO the only thing that / can
now see that is likely to interfere with our
continued prosperity is depression and fail
ures in business elsewhere, that might
bring on distrust and fear and cause with
drawals from the banks and the boarding
of money, such as occurred with us in the
panic of 1893, but there is certainly no indi-
cation of any panicky feeling at the present
time.
b. G. Hudnut, Terre Haute, Vigo County
National Bank-There is a noticeable
tendency to less business in building lines
Of trade occasioned largely by the COM
p~arative high price of labor and material.
II is also apparent because of the tenn
porary tightening of money, that less in
clination to extend ones business exists.
1t is possible, Notwithstanding large crops
and good prices, therefore, the business of
the country, contrary 10 mat or 1900, may
experience a lull during the coming presf-
Dental year, and the purchasing power of
the masses being lessened thereby, many
lines not affected as yet may feel the de-
preston. No effect on legitimate business
| lines has been felt because Of the shrinkage
in security values.
John A. Ross, Frankfort, president Ameri-
can National Bank Go not consider that
Tightening of the money market has had
any effect on the general business in this
locality, there has been no promised or
needed improvements abandoned or delayed
thereby; the indications at present point TO
a successful and prosperous year in all lines
in this vicinity.
c. E. Ferris, Winchester. cashier the Ran
dOlph County Bank-We notice very little,
if any. effect from the tightening Of the
general money market and business here
considerable extent. 1t, of course, has
caused some talk and a feeling that trouble
might come later.
No promised or needed improvements have
been delayed or abandoned. but new ones are
being talked. We see no reason why bust
ness for the next year should not be fully
as good as the past unless people lose their
? heads and get scared because the specula-
tors have lost some money.
A. c. Voris. Bedford, president Citizens
National Bank-There has been little ap-
probable effect here Of the shrinkage in
security values or from the temporary
Tightening OF the general money market.
either in the business of the Citizens Ma
tionaI or general business. Contemplated
enterprises have been DELAYED I'm some cases