The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-12-29

checking the vests demands for cash
and today he win see others. He was
hampered in his mission yesterday by
the Fact that many Of the local imam
ciers were out Of the city, having gone
on trip Of inspection Of the John b.
Walsh properties.
A Irrational mania'' to loan money
last summer, regardless Of the rate OF
movement Of crops, is assigned by the
secretary Of the treasury as the reason
for the stringency in Wall street. He
vigorously denies that it is the result
of speculation.
shortness Everywhere.
"The shortness Of cash is not con-
fined to New York, but prevails all
thru the county, Secretary Shaw said d
national condition that exists in fnan-
cial circles. The treasury department.,
in depositing money in New York, is
not benefting its friends. the fnanciers
every man, woman and child In the
country who has dollar to invest.
Legitimate business, not specula-
ton, has caused the situation. The
money is not demanded now, owing to
manipulations in stocks. It is the nat
ural result of conditions that prevailed
last summer and of mistakes made then
from lack of foresight.
HWhen I attended the meeting Of
the state bankers in Nebraska, last
summer, they told me that they had
! loaned out. The bankers there felt
very proud Of themselves that they
were able to send such an amount to
Wall street, where they could get it, as
they said 'any time we want it.
~@* Money Sent East.
The situation was no different In
Nebraska than In other parts Of the
west: From all parts Of the country
to be loaned, last summer. There
seemed to be national epidemic to
loan money. Every person that had a
dollar wanted to loan. it, to get rid Of
! it-at almost any price. Money was
loaned at as low a rate Of interest as
I pei, cent; Indeed, millions were
loaned for less than 1 per cent-which
"Now, from all over the country
these persons are calling for their
money. Crops were slow this year, and
ready money is not as plentiful and
easy as it might be. The banks in turn
are calling in their loans, and the final
call comes with a stunning, ,accumuls,
tive force on the New York banks. It
flowed during the summer, and now
they are being called upon to return it
"The same condition existed in
1902. The situation in New York is
little different now than it was then
In 1908 the money-lending class had
not forgotten the lesson. The New
York banks did not loan out what they
had accumulated from various parts
Of the country. With $50,O00,O0(
reserve on hand, everything went along
pleasantly thru the winter.
Chicago Position.
IT saw one Chicago banker today.
told him that the banks of Chicago
should not embarrass the New Yorl
institutions and possibly provoke a sit
uation which may be serious by insist
ing on the recall Of their loans at th'
present time. He replied that his banl
right to call for It.
that has sent It's money to Chicago t.
: be loaned should make a simultaneou
: demand for it, what would you dos
: demanded.
"sThe situation would be the sam
here as in New York now
"When. the farmer reads Of Wal
\ may give it, he shouts Of stock specu
2 lators' and gamblers Is it any: wors
= for man in New York to pay $1,O0
! on $4,000 worth Of stock than it is TO
one in Kansas to pay 81, 900 on Cana
! dian farm worth $4,000, and expect t
9 sell it at profit before the remainin
a $4,000 is dues Yet the Kansas farme
+ stocks, and the Kansas banker curse
+ at the Wall street fnancier who doe
i not return his money the moment it
+ called for.
=. "What do they expect the Wa
street bankers to do with this none
= that comes in to them from all part
d Of the country.9 They could not let
q what it was sent there for. The
y loaned it out again at interest an
!. now when 1t is called for, someone els
= has it, The only criticism which hay
v to make is that the bankers Of Ne
York should not have offered interes
" on the money which was sent them an
II thereby attracted it from the section
~ Of the country where it belonged an
:. which are now crying for it. I.
"a Chicago banks and banks in oths
% cities have sent money to New Yor
\ and they should appreciate the situ
tion there.' ~ u ,... ~ #.
IS Call Money see-saw.
a New York, Dec. 29.-Can none
'e opened strong and in considerable d
L mand today. hTe first bid was 40 o
4 cent. Two loans were made at go D
y. cent. By 1O:45 am the rate for ca
money advanced to 70 per cent bid,
asked.
Call money ruled at so per cent
noon with large offerings: Much Of tt
money came from new out-of- toy
IS sourcese, including Philadelphia al
Pittsburg. Some Of the big local me
bo chants made further loans. Loa
re- made yesterday at top prices were
he Viewed today at IS per cent.
r. ABOUT nail an nOuT DeIore the clio
st OF the STOCK market, call money "
ed quoted at 35 per cent, the lowest poi
Of the day up to that hour.