The St. Mary banner., 1906-12-01
MOVING A BUMPER CROP.
BANKERS FIND THEMSELVES
CONF RCNTEC WITH, 4 DIFF
FiCULT PROELcM
What Happens When Farmer Sells
Carload Of Wheat, Corn or Cot
ton-A Task of no Small! Proper
tions-Bankers are Optimistic.

Carload Of Wheat, Corn or Cot
ton-A Task Of no Small! Proper
tions-Bankers are Optimistic.
The attention OF bankers in New
York and Chicago and throughout the
agricultural parts OF the lnitcd
States is devoted just now to the ii
nancing Of the crop movement
Official reports thus far indicate
that the yield of grain and cotton will
be one Of the largest in the history
OF the country Moreover, the re-
markable business activity now ex-
listing throughout the nation is alb
sorbing the supply of money to Won
derful degree. The amount of funds
available for use in moving the crops
of the present season is therefore
somewhat restricted and bankers find
themselves confronted with diff
cult problem
When the country grain dealer
ships carload OF wheat to Chicago.
for instance, he draws ON his COM
mission house here through his local
bank for IS or so per cent OF the
value of the shipment. Hence the
country banker is continually build.
ing up credits with his Chicago cor
respondent against which he mast
draw in actual currency to meet the
demands of the farmers in his vicin-
ity.
At the san.e time the Chicago com
mission merchant sends the grain
East fer export or consumption and
draws his draft for Is or SO per cent.
of the vaue OF the grain shipped AS
a result. the New York banks arc
called upon to ship currency to the
local financial institutions against the
added credits that are built up in
the East through the movement Of,
grain to that point,
Credits for grain sent abroad take
the form OF foreign exchange, against
which the New York banks cannot
quickly rcplcnish the supply of cur
Te.Cy.
The brInt OF the crop moving de-
mand therefore falls upon New YORK
and Chicago, and bankers at these
for almost any call, no matter what
other interests want money, for the
crops must be transferred from field !
to market at all hazards.
Last year the banks OF this city
were compelled to ship to the inter-
ior no less than s93 100000 between
August and December 81. during
which period they received in return
s2S. 900 GOO. thus leaving them 500
600 900 short
Chicago baa!,s are well prepared |
this season, although funds are AT
q lew ebb in NV York, as is reveal /
ed by the wea,,,v state mcnts OF aver
ages submitted Dy the clearing nouse
banks Il
To move the enormous products ol
the ,broai fields Of the West anu
South without disturbing the money
conditions Of the nation this year is
therefore q task Of no small proper
tions.
However. bankers are optimistic.
for during the summer they have been
making unusual preparations. BANK
ers in the country have been puylh%
paper maturing before the
beginning Of the crop movement
while larr: borrowers in Wall street
and Chica 20 have taken the precau'
ton OF securing loans on long time
obligations: to carry them over the
period when crops are in transit. Al
the same lime banks throughout the
West have been guarding their re-
serves W tn more than usual dill
gence.
As r.sult OF these preparations
the movement thus far has been n
nanced b.. the interior banks out OF
their resources, phase of the sltua-
ton which is adding greatly to the
ontimism of financiers The real test.
however, will come when the transfer
of grain will be in full progress
Then there will be steady stream ,
Of currency flowing from New York
and Chicago to the interior country
balances will be drawn down to
ow point, and financiers will be put
% their wits ends to bring the coun-
ry through the period without repe- ,
ition Of the events of last fall which 8
.eachcd q climax in December, with
,all money in Wall street once at ,
he abnormal and dangerous height T
# 125 per cent.-Chicago lnter-Ocean. 7
nneER WAYS OF THE UPOTOS.