The Birmingham age-herald., 1913-09-15
CORN CROP IS SHORT
But MUCH MONEY IS
SENT FROM THE EAST
Frew Finds That Millions
Have Been Forwarded
by New York Banks
NO DISPOSITION TO
WITHHOLD THE FUNDS
Morgan Firms Action in New Haven
Matter Probably Due Directly to
Recent Magazine Ar
ticle
By HOLLAND


Notwithstanding the deficiency in the
corn crop and also that of one or two
other grain harvests and hay, the move
ment of funds from New York to other
parts of the country has probably been
greater than was the case last year when
the harvests were almost record making.
Certainly the movement of funds from
this center to the crop sections will this
year be fully equal to the advances of
funds which were made a year ago.
About two weeks ago Walter E. Frew,
president of one of the largest of New
York banks and member of the clearing
house. committee, made a careful analy-
sis of the reports of the national banks
OF New York to the acting comptroller of
the currency. Mr.. Frew was anxious to
learn by official information what the
total amount OF the loans made by the
bankers Of this city to banks In other
parts of the country, particularly the
crop section, was. His analysis of the
reports showed that up to the time when
the reports were made to the comptroller
OF the currency is national banks of New
York city had loaned to banks elsewhere
in the country sl15,oooooo. OF this amount
s9c,0oo.3eo was loaned TO the banks of the
south and the west, principally in the
crop centers.
MIR. Frew stated that his figures did
not include many millions of loans to
corporations, merchants, manufacturers
and others in the south and west. This
official report is regarded here as an an
swer to those who charged some weeks
ago that the banks Of New York were
lending very little money to the farmers
or to the banks in crop sections, and for
that reason were causing serious embar,
rassaent to the farmers.
More Millions Loaned
Since Mr.. Frew made his analysis of
the reports returned to the acting comp
troller of the currency good many more
millions have been loaned by the principal
national banks Of New York to banks
IN the crop sections. But 1t will not be
possible to obtain accurate statistics re-
specting these loans until after the next
reports are made TO the comptroller at
Washington
Inquiries have been made. however, of
scme of tile largest banks in New York
with the unvarying answer that they have
made since the latest reports to the comp
troller large loans and, in some cases
larger than ever before, in the crop rais-
ing sections. For instance the National
city bank has never in Its history loaned
a greater amount of funds to meet the
demands Of the crop sections than 1t has
done in the past summer and in the
early weeks of September. There has
been no disposition on the part of New
York banks to curtail credits of this
kind. 1t was, in fact, for the purpose Of
n;eetng the situation this fall that the
hanks of New York undertook in the late
spring and the early summer to husband
their resources. At that time they an
nounced that they would not look with
any favor upon the proposition involving
the financing of large new enterprises.
Their purpose was to take care of their
customers as usual and to be ready for
the demands that came from the sections
of the country in which the chief har-
vest We're to be garnered
The fact that in spite of the large fall
ing off from the estimate made by the
government experts in July of the har-
vest of corn the bankers of New York
city have been lending in larger amounts
than ever before to the crop sections fur
nishes good proof that the harvest as a
whole will be better than average or nor
NAL and might have been a record har-
vest had Il not been for the climatic con-
ditions which have impaired the corn har-
vest about one-third
Banker Directors
There appeared about three weeks ago
~ l<- f,,
contained severe criticism of what was
alleged to be a relation established be-
tween some bankers and some railroad
corpora tions. The article was aimed par
y tcularly at the New Haven railroad. It's
criticisms were skillfully insinuated. There
twas no specific accusation, which could
be met by denial. But the apparent pur-
pose of the article was to persuade the
public that the house of J. r. Morgan &
CO really ran the New Haven railroad