Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1906-08-22
Report of Chicago Bank An
nounces Splendid Bust
ness Outlook
MONEY PLENTY 70 MOVE CROPS
Investigation DiscIoses Almost Ideal
Conditions in All Lines of Business,
North, East, South and West-Bank-
ers Have Made Widespread Prepar-
alton for Fall Demands.

Chicago, Aug. 2o.--Prosperity in all
lines of trade and industry is seen In
a report issued yesterday by the Com
mercial National bank The report is
the result Of an investigation, national
in scope, covering financial, crop, man
ufacturing, transportation, and general
commercial conditions. The bank could
find hardly a cloud on the industrial
horizon.
OF the money market the report
says:
ct seems that we are entering upon
period where it is not unreasonable
to expect realization of legitimate
profits on the large amounts that have
been expended in the betterment OF
railways and industrial enterprises
during the last eight years; increased
earnings must inevitably bring in
creased dividends.
Active Demand for Money.
with the exception of some or rhe
out the country report strong, ac-
tive, and healthy demand for money at
firm rates. and, while there is no pros
pect of recession in interest rates,
money is, and probably will continue
to be, abundant for legitimate business
needs.
The expected strlngency at crop
moving time has been largely dis
counted in the west by the fact that
banks generally have husbanded their
resources, maintained strong reserves
(Which has been made possible by in
terest rates), and are entering the fan
not only with large cash resources, but
with heavy maturities of purchased pa
per.
This preparation has been wide
spread, and is ample in the central
and middle west; small banks, as well
as those in many Of the less important
reserve cities, have not been notably
free and continuous buyers Of COM
mercial paper maturing in the fall
This gives them an element of strength
they have not heretofore possessed
and will provide them abundant means
to meet the crop demands with practi-
cally no borrowing, and with but slight
reductions in their eastern and Chica-
go balances.
This buying commercial paper by
so large a number of small banks is
comparatively new in the west, and
marks the beginning of an important
epoch in the development of the west
ern methods Of banking.
Conditions West and South.
Banks on Pacific Coast cities, out
side of San Francisco, report deposits
largely increased, prosperity unprece-
denied. and all industries fourishins.
Banks In that section are entirely in
dependent and are large lenders OF
money in the east. In San Francisco
there is great activity and the VOL
ume Of business is satisfactory. Banks
are full of money, deposits are larger
than at the time of the fire, and clear
ings have enormously increased. Large
numbers of persons who fled after the
fire are returning.
Banks in all southern reserve Cit
les report the same general conditions
that prevail elsewhere, except that they
are well loaned up, reserves are d1-
minishing, and in many cases banks
will be obliged to borrow largely for
short time. Strict enforcement OF the
new provision of the national bank act,
governing the limitation of loans, Will
seriously handicap small southern
banks in handling cotton accounts, and
may retard the cotton movement.
in tile large eastern cities of the At
lantic seaboard, outside of New York,
the demand for money is active, mer-
chants are large borrowers, banks are
comfortably loaned up, and, while
there is little or no surplus money, no
stringency is expected or feared, and
there is no scarcity of money for legit-
innate business needs. Deposits are
lower, rates are firm, and there is lt-
tie buying of commercial paper.
In New York.
"The same general situation prevails
in the central reserve cities-New
York. Chicago, and st. Louis-where
there is well detineod feeling of con-
servatism and caution. Bankers are
inclined to discourage further extern
sions of credit. Chicago and st. Louis
banks are carrying strong reserves.
Deposits are high and banks are fully
prepared to meet all crop and legiti-
mate business requirements. The stu
alton could scarcely be better, and no
unusual stringency is likely
A disquieting feature is found in the
New York situation in that large
amounts of money have been loaned
there by out-of-town banks and by To-
cal trust companies on call, against
which no reserve is held. The amount
of these loans in the aggregate is esti-
mated to be not less than two-thirds
of the total amount of strictly cali
loans on the stock exchange. Stringent
money, and even conditions bordering
upon panic, may thus be created, not
thru any fault of local banks, and not
by reason of a bad currency system,
but for want of the necessary reserve
which the local commercial banks
neither could be asked nor expected to
carry at their own cost against such
loans.
Terrible Disaster Averted.
The terrible disaster of nervous
breakdown, caused by dyspepsia, is