Omaha daily bee., 1910-07-24
EAST WATCHES THE WEST
Overdose Of Property that Must Be-
Paid For.
MUCH APPREHENSION IS FELT
wall street IL Claiming n MONOPOLY
on the Art OF Crem"tinE
Money-The Outlook In
General.
Ry Preston q. Adams.

BY Preston G. Adams.
NEW YORK, July 3-(Special Dispatch
TO The Bee.)-New York financicrs arc
watching the western money situaton nol =,
only with keen interest but with no little
SPpTenenson es from 'sS' overdose e O,
prosperity and may be called upon to pay
for II later .
west has money TO burn and Is burning ie
to the queens taste. Perhaps It can well
afford It, But wheat will not always bring
from SL1O to $i.25 bushel, nor VIII
live hogs fetch $40 a hundred at the western
farmers doors-and Il may be timely TO re-
mind the people Of Missouri Kansas, lows
and Nebraska that money to burn need
not OF necessity be burned 49,
As a matter of fact Wall street thinks
II has a monopoly on the art or burning
morey and when people begin TO spen9
money, especially in speculation, outside Oh
the Wall street game, the street reefs IL
Is being wronged.
Mr., Graham G.. Lacey, has been investi-
eating things and finds that the money
outgo in the west Is enormous. Following
letters of inquiry sent by him to more than
600 bankers in Missouri Kansas, Iowa and
Nebraska he reports that 25l banks In TINS
group of states have discovered that APP
proXimately S1S,00O,OO0 mas gone out OF their
regions for the purchase Of lands In other
states or outside of this country while SO
banks represent that heavy amount OF
money has gone from their sections Tor the
same purpose, but the aggregate OF " -
uncertain; Az banks report that total OK
fully Sl5,oOOOO has been expended Tor auto
mobiles I'm months comparatively recent.
These banks are in the closest touch WIN
the peoples money and know pretty Wen
what is being done with lt-and the prop
ability is that at least $50, 100000 OF II has
OF late been put into automobiles ana OUT
side lands and has thus been lost to circu-
lation of these four states; 1t may De as
sumed, OF course, that in the case or the
land purchases the buyers went into these
lands and took their families with them
another direct loss to the reglon-whne the
| ant
shift in the character Of the property pue
automobiles break down and wear out OF,
at best, they constantly decrease In Value'
so, altogether, these applications of the &C
cumulated cash of the people constitute IS
drain on the resources of that great farm
As a result of all this 1t is feared that
the agricultural sections of the country VIII
be compelled to call upon New York 70 an
unusual extent for funds financing the
harvests. In addition the disarrangemen&
of the financial machinery In connectrds
with cotton expectations as the result OF
recent frauds in bills of lading mas aisol
Iinterposed another unsettling feature in theS
monetary situation Unless new arrange
ments are completed there Will unquesuon-
ably be a severe decline in the part played
| by foreign bankers in the cotton export
movement, which will to that extent place
an added strs in on New York.
On the other hand, an important o1lSet
to money scarcity is contained in the dull
ness of stock speculation ana the tremeh-
dous sums in the form OF banking loans
quotations OF Stock Exchange securities.
Still another offset Is the reacGonery
tendency in trade and industry generslly
which dimnlshes the demand for WORKING
capital, and not to overlook the readJust-
ment to lower level OF commodity prices
that Is SO actively under way
Dividends amounting to 24.2lS.lO9 were re-
paid by 112 American mines and metallufSl-
| cal works during the first six months OF
the present year, according 70 me LsulS1s
available to the Mining World. Since their
incorporation these 112 companies have dis-
tributed to stockholders $63l O6904. On tne
combined issued capital OF these companies;
1864 267, $50 this makes turn In excess OF
captailzatons of SD, S01,64 or Ill per cent.
In addition to this total are the dividends
declared by mine securities holding corpor-
atoms which in the first half OF 1910 to-
| tailed 81, S97, 223. on the issued capital oft
these companies, which Is $Sl4,l!2.lo, there
has been paid since incorporation total
OF SlO9 S66 Az OF a return equivalent TO "a
Then there are the hundreds OF close and
private corporations and individuals from
whom no reports are received, which go to
swell the total OF profits from mining.
The scheme of guaranteeing cotton bills
! of lading advocated by several or the larR-
I est banking institutions in the city, 1t was
learned today, is to be carried out by
combination OF five surety comp p NE
whose total assets are In excess or $EoOOO'-
900 and whose capital and assets aggregate
SIG O00, 900. These companies, It Is planned
will guarantee that all bills OF lading is
sued were issued on merchandise actually
delivered to the railroad; and, secondly
| that the endorsements on the documents
are genuine signatures OF authorized
agents. ,...
arrangement will not be announced until
the committee of representatives or the
surety companies returns from the south
and confers with the bankers, 1t has been
learned from reliable sources that the con-
Germs interested intend issuing Joint bond,
apportioning the individual liabilities. It,
is argued that bond from combination
OF five surety companies would be more Sc
cure than a bond issued by one concern.
This ARRANGEMENT was made with the idea
in mind that the general expense incident
| TO this new form OF insurance would not
be quite as heavy to each Individual com.a
pany as It necessarily would be IL they
worked Independently. Furthermore, the
| cotton interests assured that there Is
considerable capital In back Of the bond
and that they need not entertain any fear
of the combination failing TO make good
any losses which may be incurred.
| a shTiakage IN the production OF textile
in the last few weeks. The largest manu-
facturers of worsted fabrics for mems wear
and dress purposes say fully one7halt OK
their looms are idle one of the best in
formed silk manufacturers in the trade es-
Inmates that less than As per cent OF the
silk looms are running. Conservative est-
mates among cotton goods men Indicate
that curtaiment in that branch OF textiles
has reached fully 80 per cent and VIII be
| Increased to nearly 80 per cent in the next
| eight weeks. This latter estimate Is based
upon the very extensive shutting down OF
mills, which began saturday at noon hld
will extend until well after the holidays.
Baslng deductions upon the foregoing es-
| Inmates, one dry goods merchants figures
that the present ratio OF contrasted pro-
duction would mean lessening In out
put OF 500, 100000 in value II the current
curtaiment were to be continued Tor Twelve
months, and that is moderate estimate
All Things considered.
bachelors Reflection.
A lot OF trouble isn't so any longer when
| YOU stop thinking about IT,