Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-04-25

trust companies in that city and at the
deposit Of over So, 900, 900 600 only amounts
TO about IL per cent on this deposit.
Deposits More, Interest Less.
In Nebraska our deposits have increased
from $33, 100000 in 1895 to over 100000
at the present time. Rates Of interest have
gone down until they are as low, and fire.
quently lower than in eastern centers. We
have been obliged to loan large sums In
eastern markets. We have large reserves
tons to eastern mortgage companies have
been paid and the relations Of our people
have been reversed. We are the creditors
and they the debtors now, and as creditors
We have the right to scrutinize and criu-
There is no business so sensitive to public
sentiment as that of banking. Credit is
like tender plant, which only thrives in
the sunshine OF public confidence. Some
years ago. during period the older bank
ers present will never forget, a species of
Against the advice OF the more conserve
tive, which were designated as "old
fogies." We nearly all became more or less
tinctured with the glamor Of a wild specula-
tive and debt-making period, and when the
panacea of cheap money to pay our debts
was offered by one Of our most worthy and,
by our sick and suffering people as a ready
relief for all our troubles. But when we
sober senses, we found that the commercial
world did not approve of our misdoingS
nor Of the cure we had proposed. The
most OF us then learned the lesson that
confidence in the commercial world did not
be restored by statute enactments. Today
the situation has been reversed, the east
has had its dreams and has awakened
from it's nightmare. 1t is suffering the
evils of a period of speculative insanity.
From afar we hear their cry for help from
the government treasury for asset currency
and for gold from foreign countries. When
we were their debtors we were told that
confidence in our business methods must
be restored before further credit would be
given. We felt the force Of public senti-
ment and corrected the error OF our ways
walton along these same lines. Laws 70
] provide more currency VIII be OF no avail
can TOi' oniy be retained by correct business
methods. II unlocks the vaults of the
/ miser, inspires the business man to re-
/ newed VigOr, incites enterprise and restores
| normal conditions.
| Trust Company Methods.
Some of the modern trust companies in
eastern centers are menace 20 the banks
/ where they exist. Their methods are re-
pugnant TO conservative bankers every
| where. They do a commercial business and
| carry practically no cash reserve against
! deposits And vet no laws are necessary
! 10 correct the evils OF their methods. The
| failure Of few Of these Institutions will
| sentiment will compel those which remain
in the field to correct their dangerous prac-
tices. They have been one OF the evolu-
times They have filled place in the bus
mess world and have come to stay. Those
| worthy OF public confidence will prosper
| after the storm, which will destroy the
I weak ones, has passed, II the bankers of
J Nebraska are wise they win adopt the cor
rect principles of those which FIJI public
| demand. We must recognize the changed
| conditions OF our customers and adopt
new methods TO meet these conditions. OF
good, will come in Response TO public de-
| mand. Many OF our customers have In the
last prosperous years accumulated surplus
| funds which thew not Tor
months or years. Such funds must be re-
ceived by commercial banks at liberal rates
OF interest or they viii seek repositories In
the trust companies of other states. Great