The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1910-09-04
TAg IOWA FINANCIAL SITUATION

THE IOWA FINANCIAL SITUATION
In his address TO the Iowa Bankers
Association Acting President L. F
Stevens OF Des Moines attributed thu
tightness of the money market durins
the past spring and summer to fout
causes: First the shortage of tht
1909 corn crop: second, the highel
cost of living. or rather. as he ex
pressed IT, the cost Of higher living
third, the increased migration o.
Towans to the new lands of the north
west and the southwest; and fourth
the large sums invested in automo
biles. Mr.. Stevens pointed out that
practically 50 per cent of last years
corn crop was left in the fields. while
a great part of this has not yet been
turned into money. Banks loaned
heavily in anticipation of a good crop
and many are still carrying the loans
paid By them which they expected
( paid last fall Then the March 1st
4 disbursements came on this spring,
with the banks unprepared to handle
/ the large loans and. in consequence,
they found their reserves badly de-
pleted A large shrinkage in the or
binary surplus of live stock for mar
ket has prevented bringing into the
state the usual amount of money from
this source and is in itself an excuse
for the shortage in the money supply"
Mr.. Stevens vas unable TO get the
actual statistics on the number of i'm
migrants from Iowa 10 the far western
states and Canada, bur stated that
the immigration committee reports
the moving OF farmers from the mid
de west 10 these newer countries
where land is cheap has doubled in
the past year. The papers tell Of a
Minnesota colony investing million
dollars in one locality in South Da
Eota the past month. I am sure that
If We knew the amount OF money
taken out Of Iowa for this purpose
the past few years We would be stag
gered- Simply multiply the amount
taken from your bank by the number
Of banks in the state and read the
answer"
The. increased cost Of living Mr.
Stevens believes to be a potent fac
tor in the money tightness People are
demanding articles today as necessi-
ties which were considered Injuries
yesterday. and the effect on banking
balances is directly appreciate.
The automobile industry has grown
to such an extent that Mr. Stevens
believes it is one of the principal fac
tors in the present financial situation.
Iowa has registered in the office of
the secretary Of state from January
LIST to June LIST of this year 4.169 new
automobiles. Say that these cost
including accessories, an average of
$500 each, and you have over sG,000,-
600 in this item-money sent out of
the state never to return" Mr.. Stew
ems did not wish to be understood as
knocking this great industry, but he
mentioned ii as one Of the causes for
close money and as an evidence Of
our extrayagant style of living He
included the purchase by farmers Of
high-priced live stock to eat the soft
corn left over from last year as an
other factor
Notwithstanding the condition of
the money market in Iowa this year,
Mr.. Stevens believes that there is
much cause for congratulation. Not
only are crop prospects good, but
prosperity in practically every line of
work is widespread. Mr. Stevens
called attention to fact that is not
generally known, and that is that
Iowa, although the twenty-second
state in the Union in point of size,
ranks first in number of banks. I'VE
have 955 state and savings. 322 ma
tional and $50 private banks, a total
of 1.636 banks at last report. Their
banking capital, not including the
private banks, was S75,012 560.4 and
their total assets over 100000, 600.
These figures are from the last audi
tors and comptroller's reports and do
not include the 359 private banks.
which do not report
The fact that there has not been
failure OF a national state or savings
bank in Iowa for over two years is
an evidence of careful management
and high standing of the banks and
OF lowas prosperity in general. Never
Before We're the relations of banker
and depositor, and particularly of
banker and farmer. so close or so
friendly as they are at the present
800 ~ ''--- no ti9bt-,r-e