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

keeps leaking out from the banks In
payment of small grain checks, until
a great deal of it is In the hands of
i the farmer, and this takes much
money that during other times OF the
! year is in circulation or on deposit
i with the banks of the state, and Gre
ates time that we have always
known as the crop moving period.
i During this time the banks Of our
state have to call their deposit bal
ances down in New York, Chicago.
and other large centers, and have as
sistance at times, more or less. / do
not know that this season is going
to be anything but normal one
wish that campaign of education
would be taken up by the papers in
connection with small checks of the
farmers being deposited the same as
they do with larger ones, and this
difficulty in crop moving times would
be minimized, but everyone selling
load of grain feels that it would be
too much trouble to bother his bank
er in getting a credit. carrying his
cash home, and that adds to the diff
Guilty.
The demand in Iowa has been active
the last two years, and the banks
OF our state have purchased little out
side commercial paper on that ac-
count, as the needs of the people OF
our state have kept up fully with the
wishes OF the banks during that time.
IN answer to your question refer
ring to mortgages held by the banks
of our state made this last winter
and spring with the thought of turning
to the large insurance companies that
have been regular investors for many
years past, will say that there are
several millions of this class of paper
in the country banks of our state to-
day. 1t Is the best paper that our
state has to offer, as the basis of cred
1T In this state is the farm, and it
has always been readily taken up
from the sources that I mention, but
the failure on the part of the insur-
ance companies this year to take on
the normal amount of mortgages is
due, | think, in part, to deprecia-
ton in quoted values of high grade
listed bonds taken by them last sum-
mer at time when our mortgages
could not be secured, they expecting
to sell these bonds and take on the
Iowa mortgages during the winter and
spring months at the. season of the
year when they are always offered,
but they realized that the depreciation
I in the value of their bonds was but
temporary and would be neutralized
In time, and did not wish to face any
unnecessary losses therefrom.
This has resulted in the country
banks of our state being compelled to
carry several millions of dollars In
/ farm mortgages, and If any country
bank in our state is borrowing at this
time 1t Is largely due to this cause,
/ for just to this extent they are doing
! for the state that which is ordinarily
companies OF our country.
The farmers of our state. as well
as other citizens here, have made
purchases in cheap lands, including
all the arid countries from the Gulf
ito Canada. but they figure these in
vestments have made them good
money, and there has been an adj
vance in real estate prices l do not
think, however, that there has been
any more money going out of our
state in the last year in this way
than has been leaving us for this pur-
pose the last several years, but 1t
is true that little of this money has
as yet been returned, as these lands
are largely in the hands of the orig
inal purchasers.
With reference to automobiles, will
say that, comparatively speaking,
there are but few as yet in the hands
of the farmers of Iowa, and in those
cases they were paid for, | think,
almost entirely by checking on their
account in the local bank, as the farm
ers Of Iowa are fast becoming full
handed. There has been a great deal
of money taken out of our state in the
/ last year for automobiles, as we have
had, | think. nearly 5000 shipped in
in that length of time, but largely pur-
chased by the people of our cities and
towns. but these are all American
manufactured machines, and the
money is retained in the United
! States. that has gone into labor, ma
terial and profits.