Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1905-10-01

OMAHA A FINANCIAL CENTER
Gate City the Money apitsl Of Vast
Commonwealth.
LOCAL BANKERS ON THE SITUATION
Conditions All of strength with Most
Encouraging Indications of En-
during Growth and Con-
tinued Prosperity.
ocAL BANKERS ON THE SITUATION

proud. All express themselves as pleased
with the present situation, which they say
is the most fiattering in the history Of the
state. They also believe that prosperity
will continue and that the brilliant record
for the current year OF the Omaha banking
houses will be eclipsed by that of 1906.
Financial Capital.
Luther Drake. president OF the Mer-
chants National bank, says:
Omaha is the financial capital of the
vast agricultural commonwealth OF Ne
braska, and the states west of us, whose
wealth seeks outlet and finds its natural
! distributing agencies in Omaha. Stronger
and more conservative banking institutions
cannot be found in any city in the coun-
! try. A very healthy tone now underlies
the financial condition Of the city. While
the banking laws provide that the reserve
Of national banks shall be 25 per cent, the
banks of Omaha show, and have shown for
some time, reserves of more than 10 per
tional banks issued August 26 at the call
of the comptroller OF the currency show the
largest Increase of deposits ever known in
the history OF the city between two calls.
The magnitude Of the increase is due to
the large deposits in the country banks
Of the state and the territory. tributary
TO Omaha and to the growth of our city.
and II reflects the general prosperity OF
the farmers, tradesmen and working peo-
The outlook is more than satisfactory
Large crops have been raised this year
wealth to put into the banks this fall
F. H. Davis, cashier of the First National
bank, says:
The wonderful growth Of the business
OF the banks of Omaha as shown by the
recent statements, is a fair Index of the
prosperity OF Omaha and the territory west
and northwest of us. The abundant crops
of this year, now safely harvested. promise
still further growth during the next twelve
months. A large number of new banks
have been organized this year in territory
/ ~ "a hn n wnrfl H..
tain accounts here. Omaha is advan-
! tageously located as banking city In my
! opinion the next ten years will bring us
prominently into view a financial center.
! The banks here carry portion Of the re-
| serve funds OF a large per centage of strong
banks west OF US as far as the Pacific, on
| three different lines OF transcontinental
railways, In addition Omaha's banks are
! favored with a large amount Of business
from Iowa, northeastern Kansas and South
| Dakota.
During the summer, the prominent banks
of deposits than banks of the same
standing in Minneapolis and St. Paul. Our
facilities for loaning money are not as
great as those of the Twin cities. and the
| Omaha banker is obliged to seek other
markets for desirable paper.
Due to Agricultural Prosperity.
Gurdon w. Wattles, vice president of the
United States National bank. says:
| For Ave or six years an enormous sur
plus of farm products has been raised by
the farmers Of the state, and during all
| this time the price has been better than
| for any like period in the history of the
i, state. The result is that large amount
| Of money has been brought into the state.
1t is not borrowed money, but is owned
| here IL Is the price of farm products sold.
More than sos. 10000 came into the pockets
of Nebraska farmers last year for grain
| and produce shipped out of the state.
This wealth has been put into the local
banks. and by them into the city banks,
until all the financial institutions now have
more money than they ever had at their
| disposal before. About October the banks
| Of Omaha usually face demand from the
country banks for money to take care of
| Omaha are loaning money to New York and
other eastern financial 6enters at the cur
| rent rates there, and at the same time the
| rates of interest on first-class loans are as
| low in Omaha as in any other city in the
United States. This year, for the first
Nebraska money and New York does not
have to help us care for our banking busl-
ness.
Omaha National bank, in reviewing the
financial situation said
In 1900 very prosperous conditions gen.
orally prevailing, the total deposits OF the
clearing house banks In Omaha were SPA
100000, holding an available cash reserve
OF S11, 800, 900; while the corresponding state
ment of 1905 showed total deposits of $37,-
0OoooO. and available cash reserve of over
market at Omaha has been the most i'm
portant event in its history since the loca-
ZION OF the terminus OF the union racine
railroad. With four large storage and dis
tributing elevators now in operation. and
several more in the course Of construction,
its stability az one OF the leading grain
markets OF the country is beyond question.
We question II there is a bank today in
in i New York City City to the extent OF dollar
certainly none of the larger ones are; In
fact. hundreds OF thousands of dollars were
loaned during the summer months by Ne
braska banks to the manufacturers and
jobbers of New York and New England,
much of which paper remains unmatured,
so that the money that now comes west
from New York belongs TO the people OF
the west and they are only calling for their
own.
Stock Business Helps.
Regarding the outlook for an increase
in business t, B. Mcpherson cashier OF
the Union Stock Yards National bank
said:
With enormous crops. not only in Ne
braska, but all over this section of the
increase in business. Receipts of live stock
at the South Omaha stock yards are large
just at present and to great extent the
business of the banks at the yards de-
Ponds on the receipts. From indications
there is still large quantity OF stock &c
Constant CO Increase IN business G for som
months to come and there is every indica
ton OF continued prosperity.
H. c. Bostwick, vice president and cash
Ter OF the South Omaha National bank
has this to say OF present conditions:
OF course our business is regulated TO
great extent by the live stock market. Re
ceipts at South Omaha are quite heavy, II
fact larger than at this time last year
Cattle are coming 10 market in good condi
ton, and while the prices paid are not 81
very high just at present. fair prices ar,
maintained and the outlook is exceedingl,
bright. AS for the money demand, 1t is no
equal to the ordinary. Borrowers are no
as plentiful as they have been in the past
To great extent this is caused by tn,
generally prosperous condition of the PEG
pie In this section OF the country.
Frank J. Moriarty, cashier OF the Pack
ers' National bank. said:
The usual fall demand for money 4
starting in, but II is not as large as usual
and the demand is later than usual II
starting. This condition is brought abou
by the general prosperity in the west
Crops all over Nebraska are heavy, bu
less money is being borrowed than usua
to move the crops. The year will be
good one from a business standpoint an,
look for a continuance of the presen
prosperous conditions.
F. N. Clarke, manager OF ]. L. Brandsi
& Sons bank. says:
The welfare OF our banking depends OF
the crops Of Nebraska and surrounding
4 country. We have had good crops In tn
last few years and good crops this year
AS result the bank deposits are large
That Is all there Is to IT, / remember tn
I story of the Nebraska farmer who said: -
Il raise big crops OF coTn: feed the corn an
/ raise hogs; / sell the hogs and buy NOR
II land; then / raise more corn TO feed NOR
b.r 70 ct frk -