Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1910-06-17
high standing Of the banks and Of the

high standing OF the banks anu VI IA'o
states prosperity.
Many reasons have been given 1of
the present tight condition or the
money market, and 1t has oeen laio
to everything from politics to HALEY $
comet. I think its real cause GATES
back to last fall, with the shortage Oh
the corn crop, its un1narketaole con.
dition. and the fact that so per cent OF
1t was left in the fields, and has not
even yet been turned into money.
1.-THE banks loaned heavily in an
ticipation Of good crop, and many
are still carrying the loans made then
which they expected paid last fall.
.-Then the March 1 disbursements
came on this spring with the banks
unprepared TO handle the large loans,
and in consequence they found thelr
reserves sadly depleted, and they still
remain that way.
"A large shrinkage in the ordinary
surplus of livestock for market has
prevented the bringing into the state
the usual amount of money from this
source, and is in itself an excuse TOT
the shortage in the money supply.
But add to this the startling sums
Of money sent by our farmers and IN
vestors to Canada, Texas, South Da-
kota and other so-called new countries,
for payrlent of cheap lands, and the
higher cost of living, or rather cost OF
higher living as someone has so aptly
put it. and you have the principal real
causes.
Farmers Going West.
1.-THE papers today tell of Mime
sofa colony investing a million dollars
in one locality IN South Dakota the
past month. 1 am sure that If we knew
the amount of money taken out OF Iowa
for this purpose the past re" monlhs'
we would be staggered
Simply multiply the amount taken
from your own bank, by the number
of banks in the state, and read the
answer
And this money will not come back
to US. The same is true of the auto
mobile Industry. Iowa has registered
in the office of the secretary of state
from JANUARY to June /, 4169 new
automobiles. Say these cost, including
accessories, an average of $500 each,
and you have over six million dol4afs
in this item-money sent out 'of the
state never to return.
The relief will come with the mar
keting of corn and small grain stored
in the country, the extent of which Is
mathematical. but believed TO be quite
large and the harvesting of new
crop.
when field work lets up little, 1t is
thought that the farmers will com
mence to move what marketable stock
and grain they have and relieve the
situation. Let us hope that this is true
Crop Conditions Good.
considering the cold spring and
backward weather, crop conditions are
excellent.
The small grain promises to yield
a good crop. above the average; nay
more than half an average. and corn
has more than an average chance con-
siderable replanting has been neces-
sary, but the ground is in an unusual
" good condition and little warm
weather would bring the prospects or
crop ahead of last year.
Cattle and hogs for markets are
scarce, but there will be more for the
fall market, according TO authorities,
than the most OF US are counting on.
A Note of Warning.
And now word Of warning. Pros
perity begets extravaganza. We nave
bean living too fast. have been too
optimistic Of our present and our fut-
ur6, nave DSSI DUy lOo hCo'i4s ~
nearly all lines; in fact, have been car
ried away by existing high and ad-
vancing prices. We should rernem Der
that 50-cent corn, scent cattle, Decent
hogs and s1o-hay will have to be paid
for sooner or later with real money
The debts we contract unwisely are
going 10 come due and will have to be
met or repudiated. Even Uncle Sam IS
growing reckless in his expenditures.
He is not only the best fed, best cloth
ed, best educated and best housed man
on earth, but is now the most ex-
pensively fed, etc.
we must curb our wastefulness or
menace our future. l am not pessi-
mist and I think the country Is on a
sound basis. l do not see any clouds
on the financial horizon nor anything
to cause uneasiness, but at the same
time believe it TO be the duty OF every
banker TO advise conservation on the
part Of his customers and TO SAX them
TO keep away from speculative ventures
during the present high prices, making
their investments cautiously and on a
basis Of values secured by taking an
average for several years past
we can do much to maintain a
healthful condition OF business and fin
ancial affairs by using word of eau
ton 10 our customers and friends"