Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1904-09-16
MOVING THE CROPS.
West and South Require Millions of
Money for This Purpose.

Line annual movement of money from
New York, the financial center Of the
country, to the West and South, to "move
che crops, has begun, says the Toledo
Blade. In the ordinary business of the
country, transfer of credits is the main
feature; but when it comes to harvest
ing, thresihng and moving the grain crop,
the picking, ginning and packing Of cot
ton, the demand is for actual money.
Hence each year, from the end OF August
to about the middle of November, the
demand for currency comes ON the finan-
clal centers. Money goes West and
South by millions Of dollars in the ag
gregate. It is paid out to farmers and
planters, Who in turn pay their labor and
other expenses, and purchase their fall
supplies. About mid November this is all
dome, and the tide of currency turns to-
ward the financial centers once more
This annual movement has the certainty
and regularity of the tides of the sea.
All over the country there are banks
in the county seats and the larger towns
and villages. The farmers and business
men deposit therein their surplus funds.
One of these country banks, say in an in
terror town in Iowa, finds that it has a
larger amount of money ON hand than
ut can use in loanS and discounts. Its
officials do not allow this cash to remain
idle in the vault. They send this unused
surplus to the bank in Chicago with
which 1T does business, receiving interest
thereon. The Chic2 go institution, finding
that it also has more money than it
cam protltably use, sends ITS surplus
funds to It's correspondent in New York.
This is simply an example and illustra-
ton of what is going ON all over the
country. The small banks send the funds
they do not require to the larger centers,
which in turn send their excess to the
great financial centers, Of which New
York lis the chief. The result is a gem
eral movement of money during the sum-
nper to the East.
The banks of New York City often
have total of such funds from the in
terror Of 400 millions or more in August,
on which they pay 2 per cent interest.
When the harvest and crop-moving pc
riod comes, usually about Sept /, the
country banks are called ON by their GUS
tomers-the farmers and planters, the
grain buyers, the cotton factors-for
money to meet this annual expenditure.
When the Iowa bank, mentioned above,
finds this demand beginning, it calls on
its Chicago correspondent for the funds
deposited. The Chicago bank in turn
calls on the New York bank for its bal
ance. And as this is true of all the coun-
try banks, the result is heavy move
ment of money from the great financial
centers out into the country.
This demand for crops, as above stat
ed, will end about the middle Of No
vember, and the return flow of money to
the East will begin, and continue during
December and january. In February,
the New York banks generally have the
largest amount Of deposits from the in
terror. When spring opens, there is
smaller outward movement, to provide
funds for planting the crops. Then comes
the summer dizziness, and a return flow
of money eastward sets in, which lasts
until the crops begin to move.