The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-02-09
General Financial News.

The banks in New York designated to re-
ceive the government deposits called in by the
secretary of the treasury Commerce. First
City. Central, Hanover. American Exchange
Mercantile, North America, Park and Chase
Commenting upon the effect of war between
Russia and Japan upon American finances and
general business. John J. Mitchell, president of
the Illinois Trust and Savings Bank says:
Ten years ago such a situation as now OBJ
tans in the East would have given this country
a great chill. Conditions are so changed
that l do not believe declaration of any
upon the money market. Ten years ago Euro
peans were large hold holders Of American seeuri-
this country. If our securities were largely
owned abroad it might be expected that they
would be thrown on the market in order to real
ize on holdings. which would bring the best
prices But at this time Europe has only mod
crate amounts OF American securities, and I
believe it will be inclined to keep Them re-
gardng this country so far removed from the
trouble that investments here will be safe
Again, European investors, in the of
war will not be inclined to place their idle
money in the securities of countries more or
less likely TO be involved in the trouble. For
that reason / expect to see European capital
turned from some OF Its present investments
into investments in the securities of this coun-
try. War should help general business here.
Shutting off the Russian wheat market will
make enlarged demand and high prices for
our own wheat The packing industries will
helped To be sure. war means destruction,
and the Gripping of some of the countries with
whom now largely trade would be felt here"
= +
at is a fact of little significance that of
the f2ll national banks. with a total capita!za-
ton of ssi SOS 900. organized since March H. 1900
s02 having a capitalization of SIS 693, 0O0 were
ORGANIZED in the Western and Southern States
saws the Wail-Street Journal. This extension Of
rhe national bank system through these sections
is q result of the change in the national bank
law by which the organization OF banks OF small
capital was permitted. There some appre-
hension when that law passed that IL might
have disastrous results, in that banks OF small
capital would be organized by persons without
Ranking experience, and that this would lead TO
had banking methods and financial failures The
oneration OF the law, however, has yindicated its
Massage and notwithstanding the stress and
storm of last years liquidation and decline the
national banks have emerged from the expert
enc in excellent shape, and this applies AZ
wen TO the small banks in the Southern and
Western States. IL does the larger and
over that the banks in the Western and Southern
furaI prosperity which those sections have en-
loved The extension OF the national banking
system brought about by the law OF March IA
1900 should have effect. and has already to some
extent rad the effect OF bringing the different
sections of the country closer together in a
financial sense. and OF creating what, In a meas
ur. may be described federated system of
banks each independent. and each serving TO the
best OF its ability the local interests OF the
CITY or town in which Ii Is located. and Vet
bound TO the others by certain ties of common
interest. thus creating banking structure Of
notable strength