Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1917-11-29
FINANCING OF LIBERTY LOAN
AND LIVE STOCK PURCHASES
TAKES LARGE SUM.
LOANS HAVE INCREASED
SAVINGS ACCOUNTS LESS
Purchases of Cattle and Hogs to Eat
Up the Soft Corn Make Unusual
Demands on Banks-Money, How
ever, Only Has Been Sent East and
Still Is Available For Local Banks.


banks of the city, published this week.
show the call made upon local banks
in the last ninety days to finance the
liberty loan subscriptions and large
purchases of cattle and hogs to feed
soft corn. In view Of the amount OF
liberty bonds on the second loan taken
in the city, the shrinkage in saving
deposits is not large. The financing OF
farmers purchases of live stock is CIV
ing the banks more concern just at
this time than the furnishing OF money
for the purchase of liberty bonds.
A compilation Of the savings de-
posts of the six banks shows they
have decreased 35s,600.39 since Sep
TENDER. Practically all OF this money
was withdrawn and sent east to pay
for liberty bonds. While this amount
was being Withdrawn the combined
loans made by the six banks have in
creased s3560S2.6s since September.
The combined total of decreased saw
!ngs accounts and increased loans rep
resents d total ot :7i5,SS3.@s tha. has
been withdrawn from the banks in
ninety days.
Large Live Stock Loans.
While it Is quite true that a consid-
era BILE part Of this sum represents cash
sent away and credit extended for
purchase and payment OF the second
liberty loan. a larger part OF it repre-
sents money loaned TO farmers to buy
cattle and hogs. The city, including
the banks subscribed for $4,000 worth
Of second liberty bonds. OF this amount
presumably from 100000 20 100000
has been sent east to pay for the bonds
since only 20 per cent OF the payments
for the bonds are due. This repre-
sents no more, and actually probably
less than half Of the amount with
drawn from the local banks. At least
the bankers say that 1t Is requiring as
much or more to finance live stock
purchases as It did the second liberty
loan
Money Soon to Como Back.
Much Of this money will return to
the banks before the winter is over.
Probably none Of the live stock paper,
which bankers regard as most salts
factory kind OF loan. IS for longer than
six months and most Of It for shorter
periods. Beginning early in the year
and continuing for the next ninety
days, the cattle and hogs bought with
this borrowed money will be going to
| market and the money will be repaid
| to the banks.
with banks Of the northwest states
Just the opposite condition exists.
Money IS all coming IN and little going
out The wheat and other cereal crops
OF the northwest are going to market,
and the cash Is being sent west. This
accounts for the statement issued by
the First and Security National Bank,
Of Minneapolis, which reported an IN
| crease Of s2.273,000 Of deposits IN
seven days. bringing the total OF de-
posts to SO. 19s, 900 the largest in the
history Of the bank and said 70 be
the largest Of any bank west OF the
| Mississippi.
Money Still Available.
In spite Of the fact that the money
| is going east from local banks, It is
still available for them. The money
paid for liberty bonds is being de-
| posted in banks used by the govern
ment in the large eastern cities. These
deposits account for the tremendous
gains in deposits all the big banks have
reported this fall. These banks. in
turn, have financed their liberty bond
loans by borrowing OF the federal re-
serve banks. The local banks, can in
turn, borrow Of either the federal re-
serve banks or their correspondent
banks, associated in federal re-
serve districts. by merely sending
east and red!scounting paper they
have taken for money loaned
or other satisfactory security The
point L. that none Of the liberty loan
money has left the country, and aItho
invested in government bonds, Is still
available for the banks to get back
by the ordinary banking processes.
This VIII also be true when the gov
eminent checks It out for munitions.
for It will all be spent in this country.
Even a portion Of the soldiers pay
when IN France will be held back and
deposited to his credit in this country,
SO as to obviate the necessity Of ship
ping too much gold to Europe