The weekly times-record. (Valley City, N.D.) 1912-1922, 1915-12-23

Minneapolis, Dec. 17.-Banks Of New
York City are offering to loan money
in Minneapolis on short time, selected
collateral loans at the lowest interest
rate for IS years.
Messages from big New York insti-
tutions Offering such rates for large
loans were on the desks Of executive
officers of Minneapolis banks and
heads of financial departments of mer-
camille and manufacturing firms that
are large borrowers when these men
reached their Offices for the days bust.
ness.
Shortime commitment only in impli.
ed in the offers, indicating, local finan.
cial men said, that while the extraor-
binary financial condition in the Unit
ed States is promoting New York to
seek in the west opportunity for en-
ployment of funds, such canvass indi-
Gates no expectation on the part Of
the eastern financial world that the o.
listing condition will long sontinue.
The Specification Of the situation to
Minneapolis, as seen by local bankers,
is that all that has been predicted OF
increased volume of business, extern
sion and new enterprise will be more
than borne out in the year of 1916.
In 1898 there was situation COM
parably roughly to that now existing,
although the basic causes differed
widely from those now showing ef-
feet.
Minneapolis bankers declare them
selves optimistic over the prospect for
legitimate business in every line, but
their own business, they say, is pres
enting less opportunity for profit than
for nearly two decades.
Pres. E. W. Decker of the North
western National bank said that the
situation is unprecedented, and is max
ing new financial history both in Min
neapolis and in the United States as
a whole.
THE United States has imported
$500 100000 in gold since JAN l." Mr.
Decker said. There is basis therein
for credit much in excess of the actual
gold itself. European buyers of our
war material have made large pay
ments, some in advance. There is also
the important fact that while the new
federal reserve law reduced the re-
serve requirements of the banks, and
also required payment by the national
banks into the federal reserve banks
of a sum that would about Offset the
reduction in reserve requirements, the
Jne was immediate in effect and tho
other was extended over three.year
period. !
while the New York banks, for ex-
ample, had three years in which to pay
in their federal reserve bank reserve !
requirements, their own reserve re-
Quirements were reduced, as soon as
the law became operative, from Is to
IL per cent of the total deposits. To.
day the New York banks have $1,000
100000 more loaned out than a year
ago and still have idle funds, but if
their reserve requirements were rs per
cent, as formerly, they would be loan
ed up, or more than loaned up.
There is an existing condition that
warrants optimism in the general bust
ness outlook. The danger, that in a
period Of cheap money, enterprise and
ambition might in time develop a con-
dition of money stringency, brings into
view al once the new federal reserve
system. These federal reserve banks
if kept in such strong emergency pur-
poses, will prevent repetition of such
sudden and severe expansion and con-
traction as in past years has been seri-
Gus, and the fear of which has worried
many a prudent business man.
1.-THE United States never again will
go back to where it was before the
war. We have made great advances
financially, commercially and industri-
ally, that we will hold. In my judg-
ment, Minneapolis will have very
large, healthy business next year.
"The offer of lower New York mon
ey here while it reflects a condition
that has not been seen in Minneapolis
since early in 1898, does not imply |
permanence. It is noteworthy that
the offers are for round sums and for
short time loans only.
II have never seen a brighter out
look for Minneapolis and the north
west. Ordinarily good business judy
ment is all that is needea to carry us
A