Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1910-06-11
MONEY STR|NGENCY
IN West NOT
PROBABLE
CHICAGO BANKER THINKS
~FOREWARNING SUFFICIENT
Says Financial Men Are Pre-
pairing to Prevent Shortages
Advises Conservation Under
Political Unrest.

Chicago, June 10 -George NJ. Rey-
holds, president OF the Continental
hank OF Chicago. does not believe
there is ground fol anticipating n
monetary stringcncY in the west this
fall. lie declares that il is the very
fact that so many business interests
are contemplating such an event and
are preparing for 1t that will prevent
its occurrence. He says II is a good
time to be conservative, while there
is SO much political uncertainty. but
that such sentiment need not neces-
sarily develop pcssinism. The coun-
trY's are vast n With fair
/ crops the effects of politics should be
offset materially.
''Tho money situation in the west
tins year has been q most unusual
one" said Mr.. Reynolds. with
dra walls Of balances from tho reserve
conters by country banks have been
largc. This movement of funds into
the interior west, which began about
April | and kept up q constant drain
for nearly five weeks. finally subsidized
ana left the reserve agent banks. or,
al loist. II iurgc number OF them, with
deposits down to the level ordinarily
experienced in the fan of the year,
when funds are withdrawn for crop
nv ms pun l''H''s 49,
deal of money has returned to the
centors during the past thirty days.
which is to say that the country
| banks are paying back O than
! they are calling for and the great
pressure Of demand is over.
u confidently believe that most un-
usual condition will adjust itself. and
wi; hout adverse effects to the business
interests OF the west The money has
70 NArsIl no 1tfIt-
cult to trace It's exact movements. But
| when It has performed its duties the
usual course Is to come back to the
original source Of emanation-the re-
serve renters. Even q large part OF
the funds utilized in lane investment,
or speculation, rs some choose To call
it. viii return in due time.
personally, | feel that we are in
! for a duh summer in general lines OF
| bl sinoss, which Is no an ~untaVorable
condition under the present monetary
circumstances. IL Is not q good out
look for the banks from the stand
point OF their earning capacities, but
il will permit them to accumulate
! funds and run strong when the
autumn demand fon crop financing
begins late in August
THE present general demand fol
! ,rnney is small and rates remain firm
az 5m5la per cent. This bank has
its loans out in about an equal dlNl-
sion at those figures
There seems to be a great deal OF
instrumentation rs regards the char-
acier of speculation in farm lands IN
the west. and the probable effect oi
tn. condition upon the monetary SIT
uation. have made a rather close
Study Of the situation in this respect
For example, there has been no reck-
less banking by country hahkeiH
These interests have not advanced the
funds to carry on the enormous rntal
real estgte dealings. The armcrs arr
doing II themselves with thelr own
mcuev and are not borrowing IRON
! thci, bankers. They arc not borrow
ers and they do not even seek INC
advice of bankers i'm their ventures
Tho result is nat the hanks have been
1 called mon to pay the deposits OF the
?rmers who are buying land, ana th'
Withdrawals of these deposits IRON
the banks have been two or thret
times larger than customary. lhat If
where the money has been gong. "uu
NOT INTO the general business OF th'
country. -. 4. ,
hroad and expansive one. While We
bovo Tho nsnal conditions to cope WITH
tbcro is the problem of high prices
end the high cost of living TO dea,
Win the uncertainties Of the polltlcai
situation and numerous other iac'u,"'
I. Is these things that Keeps t9'
| boukor busy employing his lull1s
! afcly and remuncratiVely. ha' Il
whv I say conservatism should be eN-
errised in everything, but the under
wing conditions do not warrant q
! ncrsimlstic view of the future sltua-
ton