The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1904-09-15
BANKS NEED LESS
MONEY oMOYECROPS
Local Bankers Say They VIII
Make Smaller Drafts on Their 5
Reserves in the East

7
With a Northwestern crop, meas
ured by a. monetary standard, as large
or larger than for some years, the
/ banking Institutions of the Northwest
expect to have to call on their East
erll correspondents for smaller!
amount offmoney with which to move
/ the crop than for several previous sea-
sons.
The prosperity of the people of the.
Northwestern states, with the reflect
] ed prosperity of the banking institu-,
/ lions, is responsible for the anomalous
/ condition
Up to three or four years ago the.
| crop movement called upon the New
York and Chicago centers of finance in
no uncertain voice, and the metropoli-
tan banks felt deeply the drain upon
! their resources. With the Northwest
calling for money to move it's wheat
crop, the central West for the means
| to put its corn and cattle on the mar
Isket and the Southwest to market it's
| cotton, the great financial companies
| of New York and Chicago staggered
under the combined demands.
| This year the Northwestern banks
and elevator companies will call on
| in New York yesterday told CORE
spondent of T he Glob e in that city
that he estimated the amount of money
that would be sent to the Northwest
to assist in the crop transfer from the
farmers to the elevator and mill men
would not be far below s50,000,0o0
A ST. Paul banker. in private con-
versation, yesterday said his institu-
ton had drawn on its New York cor
respondent for 100000 in the last
six days. But this amount did not
represent the actual transfers of mon
ey from the East to the West, for the
same bank had sent several hundred
thousand dollars to. it's Eastern cor
respondents in the same period to be
placed to its credit there.
Will Need Less Money
Other bankers said that in less
degree than formerly would they call
on the East for money. They would
bring the money from the East to the
West but it would be simply with
drawals from the reserves carried with
their giant Eastern correspondents.
st. Paul banks are in turn reserve
agents for many Northwestern banks,
and they are daily supplying their
country banking connections with cur
rency with which to meet the demands
OF their customers, who are meeting
payments for the crop and the live
stock now being marketed.
Minneapolis. being the largest pri-
mary grain market in the worlds, is
more seriously concerned in thef task
Of supplying the money for the move
ment of the Northwestern crop. But;
many of the big line elevator coinpa-
MES carry accounts with New York
and Chicago, banks and and trust icom-
panies. Their paper is therefore large
~ cared for by the Eastern financial
houses direct, without intermediate
banks negotiating the loans, and Twin
City banks have only a general knowl-
edge of the transactions.
St, Paul banks, which are possibly
more intimately connected with the
financial life of the great Northwest
than the banks of any other purely
Western city, are in splendid financial
condition, and there is note of op-
timism in the statements of their fof9S
f1cers. Never have the resourcesi of
the state been at higher stage of de-
velopment, they uniformly declare, and
while millions and millions must be
supplied to market the crops of the
group of states of which the Twin Cit
les are the; financial and industrial
center, they will call on the East efor
less money than formerly merely be-
cause they are better equipped to sup
ply the demand at home than ever be-
| fore.
Farmer Will Fare Well
While the rust in wheat has de-
preciated the crop Of that cereal to
some extent in the low lands of the
Red river valley country, the general
crop is good and the price higher than
Tor many years. In dollars and cents
the wheat crop is worth as much to
the farmers as a bumper crop has been
In some years. The barley, rye. oats
and hay crops are all excellent, and
prices obtained are really good
The best corn crop in three years is
being harvested in Southern Minneso-
ia, Iowa and South Dakota Cattle
and hogs are low in price, but at pres
ent prices the stocklnen are making
money. The estimate that Western
banks will need $50,000,O00 of capital
now in New York banks to move the
crop is not believed to be :extravagant.
but much of the money which will be
brought from the East is really the
property of the West and has simply
been on deposit in Gotham banks.