The Hartford herald. [volume] (Hartford, Ky.) 1875-1926, 1915-09-29
RAPID development OF WEST
Severe Blow To the Eastern
Bankers No Longer Called
on for Funds.
GOOD SHOWING FOR THE WEST


nancing the move ment of their crops
from the iiclds 10 the markets. have
come from the West reports which
show that III the year 1915. with
their owl rInney. the farmers viii
for the rsost pat finance tie crop
movement.
II was in 1899. three years before
Mr.. Tappll's death. THAI he ventur-
ed to say that IN his view within
the next IS years no demands woull
be made jy The turner's or by the
banks OF he wet in behalf OF the
farmers. upol IRE East Cor funds
with wh:ch 20 facilitate the move
ment of erops
The late summer and early aut-
umn financing of the movement OF
the crops :oo1 crops now Icing sN-
elusivels referred to-beea1 ID as
sumo large proportions soon after
the close .: the Civil War.
The extraordinarily rapid devel-
opment OF IA road construction
from the Mississippi river westward.
and particu arly through what prov
ed to be Ainerr as fines. wheat
belts. caused rapid increase III whea;
production. Bat those WHO hrst
turned up the virgin soil and sowei
it to wheat and corn or other grains
bad Iittla n,0npv
Almost all of them were compell-
ed to borrow money in the East.
| mortgaging their farms for security.
Within few years after the settlers
began TO cultivate wheat and corn,
the bankers and fnanciers of the
East recognized the late summer
and early autumn demands for mon
ey with which to move the crops as
an annual and seasonal transaction,
of which 1t was necessary to take
yearly account.
AS the harvests increased, so also
the demand upon Eastern bankers
for crop-moving facilities increased
The bankers began by mid-spring
to prepare to meet these demands
In some years the amount called
for reached high up in the millions
and once, at least. at time of some
financial strain, the Secretary of the
Treasury, Leslie NJ. Shaw. perfected
extraordinary measures-and in do.
ing that, stretched his discretionary
powers-so that he could by means
of Treasury Department funds make
good what the Eastern bankers fail.
ed in providing.
A year after the first Inauguration
of William Mckinley as President
very heavy exports of food product:
were made. and these were contin
: ued for several years. partly on ac
count of the war Great Britain was
carrying on with the Beers. At that
time began the accumulation of sur
plus funds by the farmers.
In 1899 Mr.. Tappan. not only
as President of an influential New
York bank, but also as an infiuentia
authority in the New York Clearing
House Association. detected a fall
ing OF iE The East with which TO Il
nance the movement of the crops.
Mr.. Tappan followed up the hint,
he then obtained, and was able, af
; ter considerable study of the sub
> ject, to say that each succeeding yea
would show a decrease in the de
mands from the agricultural sec
tons for money accommodation. anC
: that there would be. on the othel
hand. gradual accumulation of sur
pluses by the farmers. which would
enable them ultimately to make us'
! of their own funds for crop-movinl
: purposes.
, Mr.. Tappan also reasoned tina
the larger the harvests OF grains thu
! larger would be the accumulation o
surplus funds. He thought that h'
could venture to say that by the enc
Of the year 1925 the crop-movins
transactions would. so far as thu
/ East is concerned. have become onl,
traditional.
: In June this year reports were is
sued from some of the large grain
= growing districts that the banks il
those districts were overlooking witt
; money. most of which had beer
placed upon deposit by farmers
Therefore. 1t was assumed by bank
ers in this city that the call from
the East. particularly New York. fol-
funds 10 move the crops would b,
greatly diminished.
One OF the features Of our growth
in wealth. which began TO be OBJ