The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-07-24
New York Financiers Watching
the West With No Little
apprehension.
BELIEVE WEST HAS
OVERDOSE OF PROSPERITY
Just Now 1t Has Money to
Burn, and Is Burning
1t Up.
BY PRESTON @. ADAMS.
Leased Wire TO The Tribune.


NEW YORK, July 2s-New York finan-
ciers are watching the western money Sit
uation not only with keen interest but
with no little apprehension. 1t is feared
that the western country is suffering from
an overdose OF prosperity and may be
called upon to pay for II later. AS one
Wall street authority put it, THE west
has money to burn. and Is burning 1t to
afford IL. But wheat will not always
bring from Sl.10 to sl.25 a bushe. nor
Will live hogs fetch $40 a hundred at the
western farmers doors-and 1t may be
Kansas. Iowa and Nebraska that money
Ito burn need not OF necessity be burned"
- When People Spend Money.
AS a matter OF fact, Wall street thinks
ii has monopoly on the art of burning
money and when people begin 10 spend
of the Wall street game, the street
feels II is being wronged. A prominent
banker OF ST, Joseph. Mo-, Graham G.
Lacey, has been investigating things and
finds that the money outgo in the west is
enormous, Following letters OF inquiry
sent by him to more than six hundred
bankers in Missouri Kansas Iowa and
Nebraska, he reports that two hundred
and hfty-one banks in this group OF
states have discovered that approximate
~ SlS.000000 has gone out Of their regions
for the purchase OF lands in other states
or outside OF this country, while three
hundred and thirty-four banks represent
that a heavy amount OF money has gone
from their sections for the same purpose,
but the aggregate Of il is uncertain; four
hundred and twcnty-seyen banks report
that a total of fully $4,000 600 has been
expended for automobiles in months COM
parative recent.
a Where the Money Goes.
These banks are in the closest touch
with the peoples money and know pref
~ we'll what is being done with it-and
the probability is that at least S50.OOo,o 900
of II has OF late been put into AUTOMOBILES
and outside lands and has thus been
lost to circulation to these four states.
II may be assumed. OF course. that In
the case OF the land purchases the buy
families with them-another direct loss
TO the region-while the automobile pur-
chascs represent merely a SHIFT In the
character Of the property but automo-
bilies break down and wear out or. AT
best. they constantly decrease In value;
So altogether. these applications of the
accumulated cash OF the people consti-
tute drain on the resources OF that great
farming region.
Will Gall for Funds.
As a result of all this it is feared that
the agricultural sections OF the country
Will be compelled TO call upon New YORK
10 an unusual extent for funds. for hnanc-
ing the haryests. In addition. the dis
arrangement of the financial machinery
in connection with cotton expectations.
as the result OF recent frauds In ohis OF
ladlng. mas also lntcrDOSe0 aDOlH'I VII
settling fea; in the monetary situa =
tion. Unless new arrangements are
pscompIeted there will unquestionably be
. severe decline in the part played by
foreign bankers In the cotton eXpor.
movement. which will TO that extent
place an added strain on New York. ON
the other hand, important oHset 70
money scarcity is contained in the ouH-
ness of stock speculation and tho ire
mcndous sums in the form OF banking
loans that have been released by the de-
cline in quotations Of stock exchange
securities, Still another offset is the re-
dictionary tendency in trade and INDUS
try generally. which dlminishes the de
mand for working capital, and not 10
overlook the readlustment to lower
level of commodity prices that is so ac-
lively under way.
Dividends From Mines.
Dividends amounting to s34.2lSlo:
were repaid by H. American mines ano
rnetallurgical works during the first SIN
months Of the present year, ACCORDING
10 the figures available 10 the Mining
World, Since their Incorporation. these
H. companies have distributed TO stock,
holders $s3l .069 02i. On the comblnet
, Issued capital of these companies. sooi.'
2G755O this makes a turn In excess o
, capitalizations of s66S01.524. or III pc
cent. In addition TO this total are tl'
dividends declared by mine SECURITIES
holding corporations which. In the mrs
half Of 1910 totalcd s7.39I. .223, On IN
issued capital OF these companies, whlci