Warren sheaf. [volume] (Warren, Marshall County, Minn.) 1880-current, 1907-10-31
Sl.OO PER YEAR.
THURSDAY, OCT. 81, 1870.
BANKING SITUATION IMPROVING

BANKING SITUATION IMPROVING.
The banking situation in the east
has caused a great deal of uneasiness
for some weeks. There is no doubt
but what the country was on the
verge of very serious panic, which,
if it had been allowed to run wild,
would have swept this country from
ocean to ocean, and scattered finan-
cial ruin in it's path. Fortunately,
however, the danger has been avert
ed by the wise and patriotic action
of a number of our great fnanciers
who are not all mercenary and grasp
ing, though some of them may be so
classed. BY a concerted movement
of the banks all over the United
States not to pay out currency on
checks, except in the most urgent
cases, it has been possible to prevent
the country from being drained of it's
supply of money, now so much
needed in moving the crops to
market and in other legitimate
channels of trade. A bank is the
medium by which idle money is put
to work. 1t receives the money
from it's depositors subject to Call
check, and loans it out to those who
need to borrow, taking the very best
security for loans made. These
loans are for longer or shorter
periods, as the case may be. 1t is
plain that If all the people who have
money deposited in the banks should
call for their money all at once, the
strongest bank in the country would
be forced to close it's doors because it
would not have enough money on
hand to pay them all at once. as the
time loans, gilt edged as they may
be. cannot be converted into cash
right away. 1t is just like farmer
who owns farm worth 500. 900, but
has only 800 cash money at hand.
If he were asked to pay a debt of
$4,000 at once it would be impossible
for him to do so, notwithstanding
all the property he possesses. The
banks, therefore. in deciding to
take advantage of the so days with
zdrawal notice required by law for
time deposits. and refusing to pay
out currency on checks drawn on
banks in other cities, are enabled
to keep sufficient supply Of money
for the needs of their respective
communities, and to avert a general
panic which would have been newt
able had there been d general run on
banks all over the country. In some
states the governors have proclaimed
one or more holidays with view to
keep the banks closed, prevent
run on them. and to give the bank
ers time to take their bearings and
the deposiUors a chance to calm
themselves and learn the true situa-
tiOn.
! The fact of the matter is that the
country is prosperous. The farmers
in all the western states have raised
fairly good crops. much Of which has
already been marketed at very high
prices. This is particularly true of
the Red River VALLEY. With the
cash received from his grain the
farmers are paying their notes held
by the banks. The banks OF the
valley are therefore supplied with
money enough to enable the public
to do business. According to the
rule adopted thew cannot at present
draw on other cities for loans. and
they don't need to. Mr.. H. l..
Wood, of the First National Bank of
Warren. assures the Sheaf that his
institution is stronger and better
fortified with actual cash than at
any other time since the bank was
organized. and that the same is true
of all the other banks Of the city.
Every dollar deposited in any of the
Warren banks is safe. and this
applies also to all the banks in
Marshall County. Their business is
done in a conservative manner. and
there is no safer place for banking
than.-in a staid and prosperous agri-
cultural community. The Crookston
banks, also, report their condition
stronger than ever. and can, if need
be, assist the smaller banks in the
valley with current funds.
But the banking situation in the
east has improved very much in the
last few days, and will soon be