Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1907-08-24
PROSPERITY IN ALL
STATES SHOWN BY
BANKS INQUIRY

1--WE mdSnltuQ3S or tne TOTALS Wouiu
probably show a closer correspon'
dence between the growth of deposits
and of loans. It is significant that the
states of primary production in agri,
cultural and mineral products show
larger margin Of deposits over loans
than the states Of secondary produc-
tion-that is, the essentially manufac
turing and trading communities.
General Business Situation.
'The decline in prices measured by
the standard index figures Of British
and American authorities show a
slight and uniform decline between
July and August. but the weighted
average for all commodities proper
toned to consumption remains sew
eral per cent above the similar figure
for year ago. The decline in prices
is inconsiderable as factor in the
soundness of bank credits. The COM
mercial habits and usages alike Of
borrowers and lenders preclude any
possibility of defaults, as result OF
price fluctuations within the narrow
limits We have noted lately.
Labor and Cost of Living.
''The high cost of materials and Ia
Dor, and especially a certain ineff1-
cheney of labor, are noted by some OF
our informants as unfavorable factors
in the situation. The world wide
struggle of all classes to appropriate
more of the comforts of advancing
civilization and to share more gener.
ously in the satisfaction of living have
brought about important changes in
the labor situation and in the tempers
of workers everywhere The demand
for higher wages and shorter hours
OF labor has been insistent and gener
ally successful, resulting in increased
| cost Of producing raw materials and
finished products and naturally en-
HANGING distributive prices, except so
far as economics of organization and
the use Of perfected machinery may
have offset the cost items.
Turning to the crop situation, only
the broadcast concentrations are JUS
titled. 1t is definitely ascertained that
the grasses, which form the primary
sustenance of our animal population,
are an unusually rich crop"
The report estimates that the wheat
crop of the United States will approx.
innate 64O,O00,00O bushels, with an
estimated 60,O00O0O bushels brought
forward from last year. It is estinat-
ed that the worlds crop of wheat is
short by an amount between 100000
900 and 425,000,O00 bushels. The oat
crop is conceded to be short 100000.
GOO bushels TO 150,000,0O0 bushels as
compared with the previous year. The
corn crop is placed at 2,500,000,0 900
to 2,600,000,000 bushels. Minor grains
promise fair harvests both in guam.
tity and quality The cotton crop is
estimated at within 100000 to L..
100000 bales of the splendid crop OF
1906.
Crop Financing.
Continuing, the report says:
"The unmistakable conclusion to be
gathered from our replies on sched
ules touching the crop financing op
erations of the banks Is that though
yields may be deficient in quantity
and quality, these defects, in conjunc
ton with an unabating consumption
, will require practically as large 4
volume Of funds as last year The
very striking fact Is noted this year
as in 1906, that the interior banks
have bought great deal of CONNER
cial paper. but in doing so they have
exercised commendable foresight IL
that they have chosen maturities fal
ling at such times that the crop
nancing would be facilitated withou
excessive drain on the central reserve
banks
'"The unweighted average taken t
show the ratio between total loan
and loans on commercial paper i
about % per cent. The significance
Of this as a test Of the fidelity Of tn
banks to local needs. appears whel
we observe that the reports Of TIL
comptroller of the currency about
year ago showed ratio of above s.
per cent of paper to total loans Of al
loans fer all the reserve and countr
banks.
Currency Reform.
"After the exhaustive and protract
ed discussion of the two plans of cui
rency reform now before the publ
it is rather surprising that the re
turns indicate almost absolute net
trality of opinion as to credit cul
rency. according to the plan of tn
American Bankers association.
Unfortunately the virtual identit
!, of deposit liabilities and credit ban
G nOIoS seems LO ne d less pOtSHl al s
: ment with a large part of the banl
ing industry of the country than tn
traditional horror attaching to ban
: notes without bond issue.
.In this state Of affairs it appear
!. to us that the Central Bank OF Iss,l
r plan, proposed by the New Yor
! chamber of commerce. and the Amel
!. lean Bankers association plan ar
: equally powerless to enlist supper
. enough to insure affirmative iegisl;
ton.
: ut is within the puryiew of thi
summary to remark that the banker
: of the country have been maxim
. fruitful use of the opportunity to il
= struct their customers in the prope
= use of credit Our correspondent
y clearly indicates that the temptatio
to trespass beyond the safe limits
: trading hazards has been well-nig
Irresistible. Land commodities an
\ all lines of industrial enterprise hav
$ held out alluring promise Of lare
e speculative gains The banks hay