The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1910-08-12
MONEY is PLENTY.

go Tribune printed Letters from rep
resentative bankers of fourteen cities
in ten western states in reply to In
bquiries suggested by the scare over
the money outlook which recently
originated in New York. The CUES.
lions submitted were as follows:
/. What will be the probable fur
Their cash needs of the banks in your
section for crop moving purposes
Chicago banks find that many of their
country correspondents already have
drawn down their balances and are
asking for loans. Do you think there
will be a much further demand OF
this character, or do you anticipate
some repayments-tha is, are tae
banks hard up?"
g. Do you find it advisable to re-
strict loans, and if SO, on what class
of applications
4 5. What is your estimate of the
amount of money tiled up" In farm
mortgage loans, and what is your es-
innate of the amount of cash which
during the last year has been invest.
ed in Canadian lands by western
farmers
4 ~ WAdb SAlCnl uO YOU tCASioOA
true the announcements that farmers
GENERALLY Gave purchased automobiles,
borrowing money to pay for them?
5. How do you regard Secretary
| McVeagh's suggestion that the ma
tional banks of the country organize
currency associations?
The consensus of opinion expressed
by the bankers is that conditions
which may have been regarded as un
usual are of no greater magnitude
than the average progressive changes
from year to year with the growth OF
communities and that the banks in the
west are @all right" The replies sug
gest that the pessimistic forebodings
originating in the east have had a
good effect in that western bankers
have been led to act with caution in
ing about degree of conservatism
| which should operate to lessen the
chances, if not to prevent, any
extraordinary stringency in money In
the coming autumn. In reviewing the
letters the Tribune does Iowa the
credit OF saying that the most careful
observations came from this state
But from all the cities the replies were
such as to Indicate:
l. No unusual demand is expected
in the coming autumn.
/ 2. The amount of money tied up in
farm mortgage loans has been due
lin large part to the fact that insur
lance companies did not make their
anticipated disturbance over the
money prospect.
8. It is admitted that farmers have
been considerable purchasers of auto
mobiles, but they have made such
purchases out of their bank balances
rather than by means of borrowed
money or credit.
4. The bankers whose views are
presented have mixed notions of the
necessity for the organization of ma
tional currency associations as re
quested by Secretary MacVeagh. But
those who did not favor such associ
ations spoke from the viewpoint. not
of expediency, but rather from objec
ton to the law as ii stands
The replies from Iowa were contrib
uted by Arthur Reynolds, president
of the Des Moines National Bank. Des
Moines; Homer Miller, president Of
the Iowa National Bank and the Des
Moines Savings Bank, Des Moines
and w P. Manley, president of the
Security National Bank, Sioux City
President Reynolds reports that
many banks in this state have been
compelled to reduce their balances
and to borrow money from their in
termediary reserve agents located in
the state of Iowa, as well as from
their eastern correspondents. to meet
4 the decline in deposits which most
banks have experienced and also tc
take care of the legitimate demands
OF the community. THE small grain
crop in the state of Iowa is perhaps
the best the state has ever had" he
writes. THE quantity and quality are
both very satisfactory to the farmers
and on account of the quality will un
doubtedly command high price in
the market; hence, it will take quite
little money to move the early crops
5 Some banks will undoubtedly be com
r PEELED to borrow money to take care
: OF this demand" AS regards corn
b the prospect is for a large crop OF
e corn, which is the important product
), of this state, and it will be some
d months before the corn is gathered
and sold, and it is impossible to fore
ID cast at this time what the require
r ments will be at that time. But Mr.
70 REYNOLDS foresees that It may reason.
ct ably be expected that the demand for
v, money will continue strong and that
1e the requirements for country banks
i'd VIII be greater as fall approaches
he President Homer Miller analyzed
the situation quite Thoroughly and
is gave summary of conditions which
he VIII be read with general interest
ca his reply in part, was as follows.
M The banks throughout the sfata -
M M Iowa are in a healthy condition am
4 : tuliy up to normal, and our cron con
NJ dltlons have never been any NOR,
!, promising than at this date. We av,
Nh harvested a good crop of small grain
the best that we have bad -. 9 am an