Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1905-09-02
IOWA BANKS SET RIGHT.
President Mckee Refutes story About
Many Failures.

FTSSaSHl MCNee HeTuteS story ABOUT
Many Failures.
Des Moines, Aug. 31.-The Ameri-
can Banker, prominent financial pub
LEGATION Of New York city, contains
among its leading articles of the last
issue, an extended interview with
President d. H. Mckee, president of
the Iowa State Bankers association
concerning Iowa bank failures, which
have been grossly misrepresented by
eastern newspapers and magazines.
President Mckee shows that there has
not been an unusually large number
of bank failures in Iowa and declares
that the beef trust had nothing to do
with even the few failures recorded.
The American Banker says in this re-
gard:
THAT the beef trust has been re-
sponsible for most of the failures in
Iowa in the past few years, as assert.
ed in recent magazine article which
attracted good deal of attention over
the country is disputed by D. H. Nc
Kee of Mediapolis, state bank exam.
liner and president of the Iowa State
Bankers association.
81 do not wish to be understood as
in any way mitigating or excusing the
evil of the beef trust" Mr.. Mckee
said, because certainly believe in a
competitive market, but never was
there more mistaken idea than that
the beef trust has been wrecking the
banks of Iowa. AS matter of fact,
there has not been an unusual number
of failures in the state and national
bank in Iowa, although quite number
of private banks have failed in the
past few years. In the past three
years just six state banks have failed
in Iowa, and two of these will pay out
dollar for dollar.
investigations show the stock bust.
ness has entered in but slight measure
into the failures of these banks. Men
have gone into the shorthorn cattle
business and have given their notes
| from one to another, and these notes
have gone into the hands of banks
that have failed. But this had moth
ing to do with the operations of the
beef trust.
"The condition of Iowa banks on the
whole is excellent However, it is
true that banks are more prosperous
in some sections Of the state than in
others. In the northwestern part Of
the state and in the eastern and south
eastern parts the banks are extreme
ly prosperous, but in the north central
part, where there have been crop fail
ures for two or three years, the banks
have not shown UP so well. In some
cases the deposits got down pretty
low But these banks are now collect
ing in a good deal Of money and are
thus Strengthening their assets.
zone condition prevails with north
western Iowa banks that does not OBJ
tain in such large measure with banks
in other parts of the state-there Is a
disposition to carr on other lines Of
business such as insurance, real es-
tate, ETC., in conn cction with the
banks. If this doubling up business
were curtailed and the bank business
made as exclusive as possible it would
/ help out the banking business wonder
fully. The impre -sion too often goes
out that there is tendency to invest
| the banks funds Unfortunately and
perhaps unwicely, and it weakens con-
fidence in the banks. In the eastern
part Of the state the banking business
is much more exclusive. Your extern
sive agricultural interests out here are
responsible in large measure for the
doubling in the real estate line"
Mr.. Mckee believes that eventually
4 the legislature will place all private
i banks under state supervision.