Full text of Commercial West : October 17, 1903, Vol. V, No. 42
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WESTERN INVESTMENTS,MANUFACTURING, MILLING AND GRAIN.
THE SOUTHWEST.
THE CENTRAL-PACIFIC W EST.
THE NORTHWEST.
Vol. V.
SATURDAY, OCTOBER 17,^1903
N oT^
*
CAPITAL, ONE niLLION DOLLARS, SURPLUS ONE F1ILLION DOLLARS,
O F F IC E R S :
D IR E C T O R S :
B y b o n L . S m it h , - President
P. L. H a n k b y , V ice-President
G e o r g e F . O r d e , - - - C ashier
T h o m a s C. K i n g , - A s s ’ t Cashier
S o l o m o n A. S m it h , A e s ’ t Cashier
A rth ur H e u r tle y, Secretary
H. O. E d m o n d s , - A ss't Secretary
H. H. R o c k w e l l , A s s ’t Secretary
E . C. J a r v i s , ........................ Auditor
The
RooKery,
A . C. B a r t l e t t ,
C. L . H u t c h in s o n ,
J. H a rley B r a d lr y ,
M a r v in H u o h it t ,
W i l l i a m A. F u l l e r ,
A l b e r t A. S p r a g u e ,
M a r t i n A. R y e r s o n ,
H . N . H ig in b o t h a m ,
B y r o n L . S m it h .
T O THE BA N K E R S
Have you ever considered the
advantages to your family of nam
ing this Company as your Execu
tor or Trustee? Among these are:
PERMANENCY: Because a corpora
tion;
RESPONSIBILITY: Because of our
ample capital and surplus, $650.000.00;
EFFICIENCY: Because of the skill,
experience and prompt procedure of
counsel;
ECONOMY: Because the cost of administration is less than by an individual.
11All accounts balanced daily. YAH Trust Funds
kept separate. 1iAll investments of Trust Funds
must receive IN ADVANCE the unanimous approval
of our President, Secretary, Treasurer and Trust
Officer.
The Minnesota
Loan & Trust C o .
313 Nicollet Avenue,
MINNEAPOLIS, MINNESOTA.
PRIVATE W IRES.
I. G. A N D R E W S
M IN N E A P O L IS
Grain, Stocks, Bonds and
Provisions
MEMBER:
C h ica g o B oard o f T rade
M in n ea p olis C h a m ber o f C om m erce
M ilw au k ee C h a m ber o f C om m erce
13 1 G U A R A N T Y B U IL D IN G
412 to 415 Chamber of Commerce,
MINNEAPOLIS.
National City
Bank,
T e le p h o n e M 156 S
P r iv a te W i r e s .
G R A I N , P R O V IS IO N S ,
__ S T O C K S , B O N D S .
New York and Chicago Correspondents:
Harris, Gates & Co.
Bartlett, Frazier & Carrington.
Hembers of all Principal Exchanges.
John P. Hollingshead & Co.
OF NEW YORK.
B A N K E R S .
Commercial Paper
Capital Fully Paid, Shareholders Liability,
Sur. & Undivided Protits,
$25,000,000
$25,000,000
$ 16,882,152
W . G. HEATH, M gr., 202 LaSalle S t .
New York. 5 Nassau St.
C H IC A G O .
S quire & L u ken
Form erly w ith Norton & Sw itzer.
243-244 Rialto
Building
We Solicit Your Account
fVERSZ. O L IA N S M
’ U CO.f B AN K ER S
H IG H G R A D E
H A I L I T O A I)
13 O N I K S 7 "
C O N S IR V A T IV L
INVLSTM LN I
________________ •+_
2 2 0 LASALLE ST.,
C H I C A G O
T H E NATIO NAL PARK
CHAS. H. F. SMITH&CO.
BONDS,
S t o c k : « , G r a i n , P r o v i s i o n s
M em ber,
RICHARD DELAFIELD, President
STUYVESANT FISH, Vice-Pres.
GEO. S. HICKOK, Cashier.
ALBERT H. WIGGIN, Vice-Pres.
EDWARD j. BALDWIN, Ass’t Cashier.
GILBERT G. THORNE, Vice-Pres. W. 0. JONES, Ass’t Cashier.
J. G. VAN CLEAF, Ass’ t Cashier.
FRED’K 0. FOXCROFT, Ass’t Cashier.
W. A. MAIN, Ass’t Cashier.
J New Y ork Stock E xch an ge.
j Chicago B oard of Trade.
PIONEER PRESS BUILDINO,
ST. PAUL
WALTERCOMSTOCK
GRAIN AND
PROVISIONS
3 Board of Trade,
CHICAGO.
BANK OF
O F F IC E R S :
CHICAGO.
Grain and Provisions bought and sold on commis
sion for Fu tu re TMiVerv. Accounts solicited
NEW YORK.
CAPITAL AND SU R P L U S $ 9 ,9 6 5 ,0 0 0
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
H ICA G O
Chas. E. Lewis 4 Co.
THE
O F THE N O R T H W E S T :
Call or write for further particulars.
c
BANKING, S A VINOS, FOREIGN, AND TRU ST D EPAR TM EN TS.
(O R G A N IZ E O 1 8 5 6 .)
D IR E C T O R S :
JOSEPH T. MOORE,
STUYVESANT FISH,
GEORGES- HART,
CHARLES SCRIBNER.
EDWARD C. HOYT,
W. ROCKHILL POTTS,
AUGUST BELMONT,
RICHARD DELAFIELD.
FRANCIS R. APPLETON,
JOHN JACOB ASTOR,
GEORGE S. HICKOK,
GEORGE FREDERICK VI
ALBERT H. WIGGIN,
CORNELIUS VANDERBILT,
ISAAC GUGGENHEIM.
JOHN E. BORNE.
T H E C O M M E R C IA L W E ST .
2
THE CONTINENTAL NATIONAL BANK
Saturday, October 17, 1903.
Harrison & Smith Co.
O IT C H I C A G O .
Capital
-
-
Surplus and Undivided Profits
P rin ters, Lith o grap h ers, B lan k
$3,000,000
-
-
Book M anufacturers. E lev ato r
1,250,000
B lan k s and B an k Supplies to
order.
Solicits Accounts, Assuring Liberal Accommodations and Courteous Treatment
A G E N E R A L FOREIGN EXCHANGE BU SIN ESS TR A N SA CT ED
Travelers’ Circular Letters of Credit issued Available in all parts of the World
JOHN C. BLACK, President.
GEO IGE M. REYNOLDS, Vice-Pres.
N. E. BARKER, Vice-Pres
E stim ates
C heerfully
furnished.
« 2 4 -< 5 2 6 -6 2 8
IRA P. BOWEN, Asst. Cash.
HERMAN W ALDECK, Asst. C ash’
BENJ. S. M AYER, Asst. Cash.
JOHN MCCARTHY, Asst. Cash.
WM. G. SCHRODER, Asst. Cash.
South
4 th
S t r o o t,
MINNEAPOLIS.
CENTRAL TRUST COMPANY
BilIon=Crandall=McGeary
OF ILLINOIS
Bond and Stock Company,
4 21 Olive Street,
CHI C A GO
Capital,
$ 4 ,0 0 0 ,0 0 0 .
Surplus,
$ 1 ,0 0 0 ,0 0 0 .
O FFICERS:
BONDS
Charles G. Dawes, President; Irving Osborne, Vice-Presi
dent; A. Uhrlaub, Vice-President; W illiam R . Dawes, Cashier;
L . D.
Skinner, Assistant C ashier, Lawrence O. M urray, Secretary and Trust
Officer;
Malcolm
Counsel.
DIRECTORS:
M cDowell, A ssistant Secretary; M ax Pam, General
A. J . E arlin g,
Max Pam ,
C harles T . Boynton, P.
A.
AND
-
St. Louis, Mo.
STOCKS
NEGOTIATED.
UNION NATIONAL BANK
O F GRAND FORKS, N. D.
C tip ittil,
=
$ 1 0 0 ,0 0 0 .0 0 .
Valentine, Fran k O. Lowden, H arry R u bens, Graeme Stewart, Thom as
D avid H. Beecher, P res.
R . Lyon , Alexander H. Revel], Charles G. D awes.
BANKING, SAVINGS AND TRUST DEPARTMENTS.
Chas. F . Sim s, Vice-Pres.
Send us your North Dakota Items.
Sidney Clarke, Cash
Prompt Service Assured.
T H I S IS T H E . H O L E ,
Hole two feet in diameter in
vault wall of State Bank of Wabasso, M inn., caused by explosion
of giant powder in an attempt by
burglars on the night of Sept. 10,
1903, to rob the bank.
The bank was protected by
our electrical vault lining and
complete system , and when the
explosion occurred, it set off the
big fire alarm gongs, and the rob
bers fled in a rig stolen before the
attem pted robbery, leaving all
their tools behind.
I S TH E M O R A L
A P P A R E N T?
How About Your
Bank?
AMERICAN BANK PROTECTION COMPANY
M IN N E A P O L IS , M IN N E S O TA
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
T H E C O M M E R C IA L W E ST .
Saturday, October 17, 1903.
3
The Commercial National Bank
OB'
CHICAGO.
E S T A B L IS H E D
CAPITAL,
-
-
$2,000,000
1864.
Surplus and Undivided Profits, $1,500,000
RESO URCES.
LIA B IL IT IE S .
L oan s and d iscou n ts ........................................................
O verdrafts ............................................................................
R eal estate ............................................................................
U. S. bon ds at par ..........................................................
O ther bon ds and sto ck s ..................................................
D ue from U. S. treasurer ..........................................
Cash an d due from oth er b a n k s ...............................
$17,795,546.39
838.70
95,775.23
500,000.00
1,202,873.53
37,500.00
13,123,568.46
Capital sto ck paid in ......................................................
Surplus fu n d ........................................................................
U ndivided p rofits ..............................................................
N ation al bank notes ou tstan d in g .. .■........................
D ep osits ...............................................................
$2,000,000.00
1,000,000.00
635,382.76
500 000 00
28,620,719.55
T ota l ................................................................................
$32,756,102.31
T ota l ................................................................................
$32,756,102.31
O F F IC E R S : Jam es H. E ckels, P resid en t; John C. M cK eon , V ic e -P r e s id e n t ; D avid V ernon, S econd V ic e -P re sid e n t; Joseph T
T albert, C ash ier; N. R. L osch , A ssista n t C ashier; H . C. V ernon, A ssista n t C ashier; G. B. Sm ith, A ssista n t C ashier- H E Sm ith
A uditor.
F O R E IG N D E P A R T M E N T : M. Krell, M anager.
D IR E C T O R S : F ranklin M acV eagh, o f M essrs. F ranklin M a c V e a g h & C o.; Jesse Spalding, P residen t Spaldin g L u m ber Co •
R ob ert T. L incoln, P residen t T he P ullm an C o.; W illia m J. C halm ers, T rea su rer T h e A llis-C h a lm ers C o.; E. H . G ary C hairm an
U nited States Steel C orporation ; P aul M orton, V ic e -P re sid e n t A tc h is o n , T op ek a & Santa F e R y. C o.; D arius M iller F irst’ V ic e -P r e s
ident C hicago, B urlington & Q u in cy R y. C o.; John C. M cK eon, V ic e -P re sid e n t; Jam es H. E ckels, P residen t.
J t a r m m ( T n t â t ^ u r i n g s B a n k Savinss Accounts Received by Mail
3 PER CENT INTEREST ALLOWED
Q U p r m jfl.
C A P IT A L
S U R P L U S A N D P R O F IT S
$ 2 ,0 0 0 ,0 0 0
$ 1 ,0 0 0 ,0 0 0
Geo. Q. E rskin e, President
Wm. Anglim, Vice-President
J . W. W heeler, Cashier
CANADIAN BANK OF COMMERCE
First National Bank
Head Office, TORONTO
C R O O K S T O N , M IN N .
Capital Paid Up, $8,«00,000
Capital,
.
.
.
.
.
S u r p l u s and U n d i v i d e d Profits We negotiate Farm M ortgages
$ 75 ,0 00
4 2 ,0 0 0
Surplus, $2,000,000
B R A N C H E S at Dawson, W hite Horse, Skagway and Atlin.
tional facilities for handling the business of those districts.
Excep
CROOKSTON LUMBER CO.
M IL L S AT
S h i p m e n t s on
BEMIDJI, ST. HILAIRE
CROOKSTON.
Crookston, Minn.
C . A. S M IT H
Northern Pacific and
Great Northern Rys.
LU M BER
CO.
flanufacturers and Dealers in
L U M B E R , L A T H , S H IN G L E S .
MINNEAPOLIS, MINNESOTA.
O F F IC E :
M IL L YARDS,
4 4 t h A V E . , IN. a nd L Y N D A L E ,
L LAMB, President.
G. R. LAMB, Secretary and Treasurer.
C. F. ALDEN, President.
L. LAMB LUMBER CO.
Operating Retail Yards.
General Office:
Andrus Building,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
M IN N E A P O L IS .
T H E C O M M E R C IA L W E ST .
4
Capital, $1,500,000
Surplus and Prolits, $850,000
OFFICERS
First national Bank
F . G. B IG E L O W , P k k s i d e n t .
W m . B IG EL O W ^ V i c e - P b e s i d e n t .
F R A N K J . K IP P , C a s h i e b .
T. E . CAM P, A s s t . C a s h i e b .
H. G. G O L L , A s s t . C a s h i e b .
MILWAUKEE,
Increased Industrial Paym ents in October.
Based on the declarations thus far announced by in
dustrial companies, the dividend payments in October will
reach $19,593,296. This is an increase over the previous
month of about $2,300,000 and nearly $1,000,000 over the
August disbursements. However, the amount is^ below
the average monthly payments of the year previous to
August. While the October list is a long one, a striking
feature is found in the fact that it is made up mainly of
comparatively small disbursements.
Of the more important corporations that will make
disbursements to their stockholders in October are the
following: Continental Tobacco Co., $2,808,644; Sugar,
$1575,000; Western Union Telegraph Co., $1,216,750;
United States Leather Co., $924,234; American Smelting
& Refining Co., $875,000; General Electric, $878,748; Unit
ed Gas & Improvement Co., $565,000; Corn Products Co.,
$479,162; Swift & Co., $437,5°°- The Distillers Securities
Corporation will pay $293,668, being one per cent on the
stock. This company is a reorganization of the old Dis
tilling Co. of America and owns about 95 per cent of the
stock of that company. It also owns the great bulk of the
Kentucky Distillers & Warehouse preferred stock and
the Standard Distilling & Distributing preferred stock.
All these concerns have declared a dividend of one per
cent, but the great bulk of the money goes into the treas
ury of the Distillers’ Securities Corporation. For this
reason only the dividend of the parent corporation is in
cluded in the current list.
October’s figures compare with payments in previous
months of this and last vear as follows:
1902.
1903.
$26,315,803 $27,751,185
January ..
17,450,722
18,397,212
February
29,968,561
31,283,409
March . . .
19,872,919 20,089,182
April ---i 8 ,7 9 3 ,9 8 i
21,025,697
May .......
18,820,877 20,058,622
June .......
22,342,769
2 5 ,443,651
J u ly .........
18,815,758
18,62^.289
August . .
17,278,403
16,943,967
September
18,847,038
19,593,296
October .
Total ....................................... $216,655,556 $211,061,685
T reasu rer R o berts’ Report.
Ellis H. Roberts, treasurer of the United States,_has
submitted to Secretary Shaw his report on the condition
of the treasury up to June 30, and its operations during the
past fiscal year. The total net revenue for the year was
$50,396,694, an increase of $38,988,439 over the year pre
ceding. The total expenditures were $506,099,007, an in
crease of $35,782,034.
The surplus is $45,297,667 as compared with $91,287,375
in 1902. In recepits there was an increase of upwards of
$30,000,000 from the customs, and a falling off of over $4L000.000 from the internal revenue, the latter being the re
sult of legislation enacted with that object.
In c re a s e d
E x p e n d it u r e s .
On the side of expenditures there was an increase in
every important account except pensions and interest in
which there were slight savings. The expenditures for
the two military departments, $191,237,554, formed the
heaviest outlay for any single purpose and were up
wards of $21,000,000 greater than the year before. lhe
aggregate income was $1,211,394,097 and aggregate outgo
O f $1,122,647,665.
¿OQ*2
At the close of the year, the treasury held $893,008,808
in gold and silver on deposit against outstanding certifi
cates and treasury notes, besides the $150,000,000 m gold
which forms the reserve against United States notes..
Reached
H ig h e s t R a tio .
The share of money for each person increased 89
cents, and the proportion of gold to the whole rose to 42
per cent, the highest ratio ever recorded. There has been
a continual increase in proportions of paper currency 01
the denominations of $10 and under in circulation but the
growth hardly kept pace with the demand.
R e d e m p tio n
of
N o te s .
National bank notes presented for redemption during
the year were $196,429,621. Fifty-one per cent of the
average were outstanding. Of $5 notes redemptions were
55 per cent; of tens, 46; twenties, 49; fifties, 61; hundreds,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Saturday, October 17, 1903.
United States Depository
DIRECTORS
E . M A R IN E R ,
F . G. B IG E L O W ,
C. F . P F I S T E R
H. C. P A Y N E ,
GEO. P. M IL L E R ,
F R E D . T. G O L L ,
WM. B IG E L O W ,
F. VO GEL, J b .
J . H. VAN D Y K E , J b .
WIS.
73. These figures show the tens and twenties remain in
circulation longest.
Roberts placed the monetary stock of the country up
to June 30, including everything except certificates, at
$2,688,149,621, an increase of $124,882,963 for the year.
The increase in gold was $60,137,401, and m national bank
notes $56,998,559. The total estimated stock of gold was
$1,252,731,990, constituting nearly 47 per cent of_ the
whole. The gold in the treasury is $631,420,789, a gam of
$71,220,480 in twelve months. During the year $126,715,723 in gold was deposited at the mints and assay offices.
Imports of gold were 44,982,027; exports were 47,090,595. The increase of money in circulation _during the
year was $121,740,252, of which $59,776,462 was in gold and
gold certificates and $54,520,193 in national bank notes.
G E R M A N I A
B A N K
M E V J V E A P O L IS
Established 1893
Capital $50,000
Surplus and Undivided Profits $8,000
O. E . Naegele, Pres.
Jno. C. Oswald, ist V -Pres.
L . Paulle 2d V -Pres.
D i r e c t o r s - H . J . Dahn, E . W . Naegele, C. G. Laybourn, H. Vogt, Jos.
Ingenhutt.
Transacls a General and Safe Banking Business.
TH E CHASE NATIONAL BANK
OF THE CITY OF NEW YORK
Capital,
Surplus and Profits (Earned)
H. W. C a n n o n , President
E . J. S t a l k e r , C ashier
S. H. M i l l e r , A sst. C ashier
$1,000,000
3 ,4 0 0 ,0 0 0
A. B. H e p b u r n , Vice-President,
C. C. S l a d e , A sst. Cashier
H. K . T w i t c h e l l , A sst. Cashier
'
D esignated D epository of the United States, the State of New Y ork and
the City of New Y ork . Transacts a General Banking Business.
Accounts of B anks and B ankers received on favorable term s. B uy and
sell U nited States Bonds and make transfers and exchanges of Bonds in
W ashington without charge for services.__________________________________
C h a r le s H a t h a w a y &
Co.
Dealers in
COMMERCIAL
C H A R L E S W . FO LD S,
Representative.
-
-
PAPER,
-
-
205 L a S a lle Street,
C H IC A G O .
N E W Y O R K O F F I C E , ................................................. 45 W a ll S tre e t
B O ST O N O F F I C E , ................................................. 53 Sta te Stree t
Minnesota Title Ins. & Trust Co.
M IN N E A P O L IS , M IN N .
Capital, $250,000
Guaranty Fund, $100,000
T h e oldest T itle and T rust Com pany w est of P h ilad elp h ia.
Deposits, Loans, Trusts, Abstracts, Title & Fire Insurance.
J . U. Barnes, Prest.
W allace Campbell, Vice Prest.
C. J . Tryon, Trust Officer.
H. A. Barnes, 2nd Vice-Prest.
W. 8. Jen kin s, Secy. & Treas.
The Swedish-American National Bank,
M in n e a p o liis .
N. 0. W ERNER,
C. S. H ULBERT,
•
President.
Vice-Pres.
F. A. SMITH,
E. L. MATTSON,
-
Cashier.
Asst-Cashier.
Capital,
$250,000
Surplus and Undivided Profits, 90,000
Deposits,
2,708,000
Foreign
E xchange
Bought
J e s s e D. B o n e , M. E ., F ield Manager.
and
Sold.
I r a H. C a s e , President.
MINES AND MINING PROPERTIES
bought, sold and developed. Exam inations and expert reports a
specialty, capital invested through us goes into the development
of properties under our management. Correspondence solicited.
CASE INVESTMENT COMPANY, s°VIcboembaU J« sbhldg-
T H E C O M M E R C IA L W E ST .
Saturday, October 17, 1903.
D
5
1d tf* ! A f f ^ r e S e q u e n t . T h e p o r c h c l i m b e r i s a l e r t .
i l i ^ l d l I v iJ » »
$ 2.50 R e n t s a P r i v a t e » S a fe o n e y e a r
Where your Diamonds and all Valuables are beyond his reach.
G U A R A N T Y SAFE DEPOSIT VAULTS,
B a s e m e n t G u a r a n t y B u ild in g ', M in n e a p o lis .
BANK CLEARINGS.
B ra d street’ s.
N ew Y o rk ................................................. $1,283,450,745
190,964,326
C h icago ......................................................
B oston ........................................................
136,306,766
P hiladelphia ..............................................
115,535,751
St. L ou is ..................................................
54,223,890
43,205,586
P ittsb u rg ...................................................
San F ra n cisco .........................................
32,425,414
B altim ore ..................................................
25,577,938
C incinn ati ..................................................
21,759,600
K an sas C ity ...............................................
26,825,983
C leveland ...................................................
15,939,200
18,427,859
M inneapolis ...............................................
N ew Orleans ................................. ' ..........
14,664,384
D etroit ........................................................
11,148,688
L ou isv ille ....................................................
9,763,197
Om aha .........................................................
8,286,701
8,285,487
M ilw aukee ................................................
6,572,200
P rov id en ce ................................................
B u ffalo ........................................................
7,053,204
St. Paul .......................................................
6,915,769
6,854,618
Indian apolis ..............................................
L os A n geles ...............................................
6,553,214
St. Joseph ..................................................
4,649,673
5,321,288
D en ver .........................................................
R ich m on d ...................................................
4,557,761
C olum bus ...................................................
5,025,500
Seattle .........................................................
4,807,388
W a sh in g to n ...............................................
4,629,983
Savannah ...................................................
6,287,303
M em phis .....................................................
4,203,054
A lb a n y .........................................................
4,267,767
Salt L ak e C ity ..........................................
2,905,292
4,180,708
P ortlan d, O regon ....................................
P eoria ...........................................................
2,956,247
D es M oines ................................................
2,658,926
Spokane, W a s h ..........................................
2,752,390
Grand R ap ids ...........................................
2,080,147
1,447,202
S iou x C ity .............................
T a co m a ......................................................
2,014,607
T op ek a ........................................................
1,845,219
D a v en p o rt ..................................................
1,589,729
Springfield, 111............................................
824,186
W ic h ita .......................................................
892,288
H elen a .........................................................
533,311
721,338
K ala m a zoo .................................................
F argo, N. D ................................................
712,997
R ock ford , 111................................................
417,123
B loom in gton , 111..........................................
457,958
Q uincy, 111....................................................
361,355
S iou x Falls, S. D ......................................
347,452
J a ckson ville, 111..........................................
205,409
211,264
F rem ont, N e b .............................................
T otals, U nited S ta te s......................... $2,180,179,475
896,728,730
O utside N ew Y o r k ..................................
D O M IN IO N OF C A N A D A .
M ontreal ...............
$23,374,185
T o ro n to .......................................................
15,547,975
W in n ip e g ....................................................
5,473,618
H a lifa x ........................................................
1,927,861
O tta w a ........................................................
2,360,968
V a n cou v er, B . C .......................................
1,531,031
Q u ebec .........................................................
2,086,853
H a m ilton ....................................................
1,356,562
St. John, N. B ...........................................
1,051,435
V ictoria , B. C .......................................
534,069
T otals, C anada
$56,234,147
Inc.
Ì6 ’2
15.7
.9
9.3
9.7
4.9
20.3
.7
22 ! 3
14.6
‘ SLO
10.5
Ì5 7
3.0
11.1
38.9
13.8
21.4
4.7
13.6
5.7
.9
37.5
7.8
1.4
10.7
12.2
22.7
34.5
■¿: ó
20.0
5.1
34.2
29.3
.2
3.0
L5
43.7
29.8
42*6
9.6
8.4
4.0
11.2
24.3
31.0
32.6
1.3
1.2
so far uncovered. Hutchinson represents eastern capital
ists associated with the American Tin Plate Co. Upon
D ec.
his arrival at Teller he met Arthur Collier, of the geologi23•5 cal survey, who informed him of the discovery of a tin
¿¿^9 ledge which overshadows in importance the stream where
2.9 tin previously was found through the Cape York district.
—
The ore brought down runs 10 to 15 per cent in tin, while
tin crystals from the decomposed ore averages 60 to 70
..!.
per cent. Hutchinson believes other tin ledges will be
•••• found next year.
’ ’ !3
—
7.4
---‘ ¿[I
—
—
C ..
---••••
L o w One W a y R ates to the Coast.
The Minneapolis & St. Louis railroad has placed on
sale daily special one way colonists excursion tickets to
California, Oregon, Washington, Idaho and Montana at
very reduced rates. Tourist cars through without change
every Wednesday and Thursday via the popular Santa Fe
System and “ Scenic Route” through Colorado. Call on
agents for particulars or address A. B. Cutts, G. P. & T. A.,
Minneapolis, Minn.
The Audit Company of Illinois
’vs
NEW YORK LIFE BUILDING
24.’ 6
Public Accountants and Auditors
3.1
CHICAGO
O F F IC E R S : L . A. W alton, P resid en t; F . W . Little, Vice-President; C.
D. Organ, Secy, and T reas ; C. W. K n isely, Manager.
’ i! 6
D IR E C T O R S : A. G. Becker, A. G. B ecker & Co., Chicago; F . W. L ittle
Vice-President Peoria Gas and Electric Co., Peoria; G. A. R yther,
Cashier National Live Stock Bank, Chicago; J . R . W alsh, President
Chicago National Bank, Chicago; L . A. W alton, Vice-Pres. Equitable
Trust Company, Chicago.
”9 ! 9
4.7
13.7
13.8
17.9
A. C h il b e r g , President.
A. H. So e l b e r g , Vice-Pres.
THE SCANDINAVIAN AMERICAN BANK
Capital Paid Up
=
$ 300,000
Surplus
150,000
Deposits
=
2,700,000
W e Have an Office at Ballard.
SEATTLE,
=
84 W I L L I A M S O N
The stock of gold in the Bank of Russia has steadily
risen throughout the past year, and at the present time the
cash reserves of that bank amount to no less than £91,682,000, in contrast with £83,147,000 a year ago, and
^76,790,000 two years ago. The ability of Russia to se
cure gold arises in a large measure from the recent Rus
sia^ loan issued in Paris, which has greatly increased the
foreign balances of the Russian government. Moreover,
the balances of the Bank of Russia in foreign markets, ex
clusive of. those of the Russian government, are at the
present time unusually large. The gold deposited abroad
by the bank amounts to no less than 85,367,000 rubles, or
£8,500,000. Should the Russian government desire to call
a further amount of gold from abroad it will have no
difficulty in accomplishing the task.—London Statist.
T in Ore in A laska.
A hundred foot ledge of tin ore has been discovered
near Lost River in Cape York district, north of Cape
Nome. Three hundred pounds of sample rock have been
brought down for shipment to Pittsburg, together with
small bricks of tin reduced at Nome.
Details of the discovery are given by Joseph H. Hut
chinson, former lieutenant governor of Idaho, who has
bonded eight of the 17 claims, which embrace the ledge
=
6
ATTORNEYS
R u ssia’s Gold Stock.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
J. F. L a n e , Cashier.
G e o . R . F is h e r , A sst. Cashier
-
WASH.
MERCHANT
AT
LAW
P a te n t an d T r a d e M a r k C a u s e s .
S o lic it o r s o f
U n ite d S ta te s a n d F o r e ig n P a te n ts
t>
, Aœ
M a i n O f f i c e : 9 2 9 - 9 3 5 G u a r a n t y B ld g.
Branch Office:
Room 52 McGill Bldg., Wash., D. C.
M IN N E A P O L I S , M IN N .
B A N K S
Send at once for our book of Modern Country
Bank Buildings, costing $3,000 to $25,000.
Price, $1.00
Modern Homes. 150 pages, paper $1; cloth $1,25
OM LYER & THORI
Architects
St. Pau l, =
- M in n .
COMPETENT OFFICE HELP
Furnished Without Charge
W e are headquarters for Bookkeepers, Stenogra
phers, Timekeepers, Gfeneral Store Clerks, Etc.
L e t us k n o w y o u r r e q u ir e m e n ts .
S.
A.
M ORAW ETZ
L o c a tio n im m a te r ia l.
6
COM PANY
4 0 7 K asota B ld g ., M in n e a p o lis
T H E C O M M E R C IA L W E ST .
6
E L E C T R IC
R A IL W A Y S .
Titonka, la.—An electric line is to be built from here
to Algona.
Preston, Minn. -An electric road is proposed between
Preston and Decorah.
Beatrice, Neb.—Work on the electric line from Omaha
to Beatrice will begin soon.
Waterloo, la.—The street car company will add a mile
of new track in the business part of the city.
Roseau, Minn.—An electric line from here to a point
on the Great Northern is under consideration.
Anaconda, Mont.—Malcolm McDonald intends to build
a new street car line from the city limits to Nine-mile
canyon.
Menomonie, Wis.—It looks as though the proposed
electric line from Eau Claire to Menomonie is likely to be
built soon.
Little Falls, Minn.—A franchise has been granted to
the Minnesota Midland Electric Railway Co. to build an
electric railway.
Fond du Lac, Wis.—The Eastern Wisconsin Railway
and Light Co. has been incorporated and will build an interurban line from here to Oshkosh, with branches to the
principal cities in Winnebago and Fond du Lac counties.
Madison, Wis.—The Chicago & Northwestern Lakes
Electric Railway Co. will build a branch road from the
main line from a point where the main line intersects the
south state line of Wisconsin in the county of Kenosha,
into the city of Milwaukee, to pass through the counties of
Kenosha, Racine and Milwaukee.
Omaha, Neb.—Omaha and Des Moines are soon to be
connected by an interurban line. The Colfax interurban
line will be extended to Newton and Marshalltown. A
line will be built to Ames, via. Ankeny, Polk City and
Croker. Another line will extend west from North Des
Moines to Omaha, through Dallas Center, Panora, Guthrie
Center, Audubon, and Harlan.
Davenport, la.—The Mississippi Valley Traction Co.
has incorporated with a capitalization of $600,000. The
principal place of business of the new company is Moline
and the general nature of its business is given as the con
struction of electric interurbans. The new company pro
poses to construct an electric line from Moline to and
around Campbell’s Island in Hampton Township and
thence to Sterling and Geneseo. The incorporators are all
Chicago parties being as follows: William P. Koop,
Elmer Scott, H. W. Nichols, Jr., Frederick W. Hill and
Albert J. Claussen.
T E L E P H O N E C O N S T R U C T IO N .
Sanborn, N. D.—A new switch-board is to be installed.
Michigan City, N. D.—A local telephone line will be
erected here.
Watertown, S. D.—Watertown is to have an under
ground telephone system.
Seaforth, Minn.—A telephone line is to be constructed
between here and Belview.
White, S. D.—A. H. Greely is making arrangements to
establish a large rural system.
St. Cloud, Minn.—The Northwestern Telephone Co.
will lay a partial underground line.
Jackson, Neb.—The Clark Automatic Telephone Co.
have men at work on their line to Homer.
Troy, Wis.—The St. Croix Valley Telephone Co. are at
work extending their line towards River Falls.
Portland, N. D.—The Buxton Telephone Co. will build
lines out from here and a local company will install an ex
change.
Sioux Falls, S. D.—Work has been resumed on the con
struction of the telephone lines connecting Marion, Hurley
and Parker.
Laurel, Neb.—The Laurel Telephone Co. has material
on the ground, and work will begin immediately on the
rural telephone line.
Cambridge, Wis.—The Cambridge Telephone Co. will
extend their exchange to London. They will also put in a
line to Madison in the spring.
Linton, N. D.-—The Dakota Telephone Co. will ex
tend its line from here to Hazelton this year, and next
year it will be continued to McKenzie.
Boone, la.—The Jackson Telephone Co. has incor
porated with a capital of $10,000. The officers are W. A.
Will, president; W. S. Criswell, secretary, and Emmanuel
Nelson, treasurer.
Dodgeville, Wis.—The Wisconsin Telephone Co. have
been putting in a line between this city and Madison.
They will now commence putting in a line from this city
to connect with their line at Lone Rock.
St. Paul.—The board of aldermen granted the Twin
City Telephone Co. the right to erect poles and wires on
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Saturday, October 17, 1903.
about a dozen streets in the east and west ends. Included
was the right to put in a conduit on Sixth street.
Algona, la.—The Kossuth Telephone Co. will build a
copper wire line from Blue Earth City to Algona, and
from here they will connect with another copper wire line
at Humboldt, thereby giving Algona direct copper wire
connections with the Twin Cities and also with Des
Moines.
N ew Patents.
The following patents were issued this week to Min
nesota and Dakota inventors, as reported by Williamson
& Merchant, 925-933 Guaranty building, Minneapolis,
Minn.:
R. W. Cavanaugh, St. Paul, smoke-preventer furnace.
Jacob Dahl, Bohnsack township, N. D., cylinder tooth
for threshing machines.
John Degendorfer, Grand Forks, N. D., flax-carrier.
Louis Dunn, St. Paul, track laying indicator.
R. Evans & L. E. Fraser, Mitchell, S. D., saw-filing
device.
N.
Grandchamp & L. A. Schlehr, Frazee, Minn., bolt
holder.
Hans L. Moebeck, Ulen, Minn., grain loader for cars.
Isaac K. Storms, Duluth, bob-sleigh.
S. W. Van Nostran, Minneapolis, attachment for
theater seats.
R. H. Young, Minneapolis, ink-stand.
W. H. HORINE & CO.
(IN C O R P O R A T E D .)
C o m m e r c i a l
P a p e r .
M ember American and Illinois B an kers’ A ss’n.
1 't T l L a
S a l l e
S t r e e t ,
C H IC A G O .
W M . H. HORINE, late National Bank Examiner.
A. J. WHIPPLE 6 CO.
Members Chicago Stock Exchange.
S T O C K
B R O K E R S .
Private W ires to all Princepal Exchanges.
CHICAGO.
Main F lo o r New York Life Building.
Long Distance Telephone Central 1031.
Orders by wire in grain and stock Promptly Filled.
CAPITAL SECURED
For Purchase or Construction of Approved
Electric Railways or Power Plants.
L. C. TWOMBLY,
Andrus Building, MINNEAPOLIS
Illinois Trust and Savings Bank
L a Salle Street and Jackson Boulevard,
C H IC A G O
Capital and Surplus,
-
$ 9 ,8 0 0 ,0 0 0
Interest allowed on deposits in Banking and Savings department.
B O N D S.—Governm ent, State, County, City and choice railroad bonds
bought and sold. F O R E IG N E X C H A N G E .—Letters of Credit, D rafts,
Postal Rem ittances and Cable T ransfers.
TRUST DEPARTMENT
Acts as Adm inistrator. Executor, Guardian, Conservat or, Assignee
R eceiver, T ran sfer Agent and R egistrar; makes investm ents and acts as
agent in the collection and disbursement of incomes. T rust funds and
trust investm ents are kept separate from the assets of the bank.
Illinois Trust Safety Deposit Co.
Safety Deposit Vaults.
SNOQUALMIE FALLS AND WHITE RIVER POWER CO.
S E A T T L E -T A C O M A .
Supplies the E lectric Power utilized by the Flour M ills . Street R a il
ways. Interurban Railway, Smelter, Street and Domestic Lights and
the Industrial Motors of Seattle, Tacoma and intermediate towns.
Address
Chas. H. Baker, Pres, and Chief Engineer,
SEATTLE, WASH-
Saturday, October 17, 1903.
TH E
P O S IT IO N
T H E C O M M E R C IA L W E ST .
O F S IL V E R .
The Statist publishes a review of the silver market
that is bullish in tone. It says the recent advance
and continued strength in the price of silver calls
attention to the changes in the commercial conditions of
this metal. A couple of months ago attention was drawn
to the statistical position of the metal so far as this coun
try was concerned, and that has been—not necessarily
consequently, of course—followed by an almost continu
ous advance of the price. From the official figures it was
calculated that in the ten years 1893-1902 inclusive there
had been in the United States an excess of consumption
over production and it was inferred that the deficiency
was supplied from the reserves supposed to be on hand at
the time of the repeal of the purchasing clause of the
Sherman Act. Summarized figures were:
Production ten years 1893-1902, inclusive. .. .$357,004,400
Excess exports over imports..........$265,637,007
Used industrially ........................... 119,340,742
Taken by United States M in t....... 60,139,424
------------- 445,117,173
Deficiency ...................................................... $88,112,773
In this circulation commercial values are used in each
case. Owing to the variety of sources from which the data
are obtained and the different forms in which they are
presented, as well as the different periods for which some
of the returns are prepared, precise opinions of the statis
tical position of silver are unwarranted. But since the
publication of the figures summarized in the foregoing
table events have occurred which tend to confirm the
conclusion put forward with them that the position of the
metal in the market had not only improved, but that there
was prospect of further improvement. Chief of these
events is the advance in the price and next a change in the
international movement. For the first time in a very
long while imports to the United States in June exceeded
exports and this was repeated again in August. The dif
ference was not great, but that it should be on the im
port side of the account was so extraordinary that it ex
cited remark in all interested circles and particularly in
those Mint and Treasury circles who buy a great deal of
silver each year for the Government. This apparent tend
ency of the movement to change may well have excited
remark, because on looking over a Treasury report of ex
ports and imports for thirty years it appears that in not
one did the latter exceed the former. The movement was
in this case given in totals for the Government fiscal year.
When made up for the calendar year they show a small
excess of imports in one year, 1878, which must have
been due to special circumstances. As a matter of fact,
about one-half of the silver produced in this country is
sold abroad and that insures an almost continuous export
excess. To show the extent of this trade the movements
each way for six periods of five years each covering the
thirty years 1873-1902, inclusive, with the balances are
given in the following table:
Imports.
Exports. Excess exports.
1873-77 ................ $51,426,275
$152,392,124 $100,965,849
1878-82 ................ 62,077,639
93,120,705
31,043,066
1883-87 ................ 77,011,412
135,832,227
58,820,815
1888-92 ................ 93,096,834
155,002,673
61,905,839
1893-97 ..............
116,001,396 206,972,178
90,970,782
1898-02 .................. 161,477,914
282,154,139 120,676,225
Totals .............$561,091,470 $1,025,474,046 $464,382,576
Last year, that is from July 1, 1902, to June 30, 1902,
the imports were $24,163,491 and the exports $44,250,259,
or $20,086,768 more. It would be possible to demonstrate
from these and other figures that the present consumption
is greater than the present supply. For instance, the
production of the United States for the year ending June
30 last could not have been more than (in commercial val
ues) $35,000,000 and was more likely less. If $20,000,000
are deducted for excess exports, only $15,000,000 are left
for governmental and industrial uses, which was most
probably considerably under the actual requirements.
There are other statistics that point to a more rapid con
sumption than production. For instance, the last report
of the Director of the Mint gives the production of the
world for twenty-nine years—1873-1901—at 3,297,601,599
ounces and the coinage of the mints of the world for the
same period at 2,971,593,568 ounces, leaving 326,008,031
ounces for industrial uses, or an average of 11,241,656
ounces per annum. The same report says that the indus
trial consumption of the world in 1901 was 56,965,800
ounces. This would probably include some old material,
but not enough to bring the figures down anywhere near
to the annual average for the twenty-nine years. _The arts
and industries of the United States alone, the Director of
the Mint calculates, consumed in 1901 silver, which he
classes as new material, to the amount of $15,268,742» coin
age value. This by weight would amount to about 30,000,000 ounces. The decline in the price of the metal that
followed the events of 1893 stimulated the industrial con
sumption of silver very much. The returns to the United
States Mint of this consumption for the years 1880-1893,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
inclusive, were in no case more than $9,634,277, coinage
value, of old and new material. Each year since they have
been as follows: 1894, $10,883,048; 1895, $12,277,024; 1896,
$10,204,273; 1897, $11,201,150; 1898, $11,858,545; 1899, $15,677,663; 1900, $17,089,014; 1901, $18,273,867. The increases
here indicated are most largely represented by new ma
terial used.
So far it is pretty clear that there has been of late years
a rapid increase in the demand for silver, both for public
and private account. The question that now arises is
whether this increased demand will be maintained, or
whether, being due merely in the one case, to coincidental
Government purchases of large proportions which will
meet all requirements for some time to come and, in the
other case, to a better market for articles of art and lux
ury due to our recent prosperity, it is likely to soon come
to an end. Forthcoming reports bearing upon this ques
tion will prove interesting. Another point upon which
information is desired is, whether part of the demand for
silver is not occasioned by the condition of the world’s
money market. Rates which draw gold to the great finan
cial centers must attract it away from the silver using
countries that have been struggling to put themselves on
some sort of a gold basis and a substitute must be found
for the gold so withdrawn; this in most instances can only
be silver. If this is the process that has been in operation
it would not only explain part of the demand for silver, but
would also indicate from the nature of such processes, that
this part of the demand would continue for years to come.
Up to this point certainly, the statistics favor the producer
rather than the consumers in the market.— Boston Statist.
WE
INVITE
YOUR
DEPOSIT
ACCOUNT
U n i t e d t o it s
f E a r t g a g e & C r a s i C a m p a im
GEO RGE
55 C E D A R S T .
W . YO U NG ,
President.
73rd S T . & B R O A D W A Y
N EW Y O R K
C A P IT A L A N D SU RPLU S,
FIV E M ILLIO NS
Issues Travelers’ Letters of Credit and Foreign Drafts.
T H E N A T IO N A L B A N K
OF T H E R E P U B L IC
C H IC A G O
C A P IT A L , $ 2 , 0 0 0 , 0 0 0
S U R P L U S , $ 7 0 0 ,0 0 0
John A. Lynch, President
J. H. Cameron, Cashier
R . L . Crampton, A sst. C ashier
Thom as Jan sen,
W. T . Fenton, Vice-President
R . M. M cKinney, A sst. Cashier
W . F . D odge, 2d A sst. C ashier.
Auditor
W IN N IPEG ,
MAN.
C A N A D A
THE BANK OF OTTAWA
Established 1874
Capital Authorized, - $ 3 ,0 0 0 ,0 0 0
Capital Paid up, * 2 ,3 7 6 ,9 9 0
Surplus,
*
2,274.291
A GENERAL BANKING BUSINESS TRANSACTED
Interest Allowed on Deposits
FOREIGN EXCHANGE BOUGHT AND SOLD
S t. P a u l A gen ts:
MERCHANTS’ NATIONAL BANK
BANK
OF
H AM ILTON
W IN N IP E G
H e a d
O fiio e i
H
a m
Capital Authorized
Paid-up Capital
$2,500,000
$2,000,000
il t o n ,
Reserve
$1,700,000
O n t .
Total Assets
$21,959,596
M inneapolis Correspondents: SECURITY BANK OF MINNESOTA
Duluth Correspondents: AMERICAN EXCHANGE BANK
Deposits Received and Interest Allowed
General Banking Business Transacted
Collections carefully and promptly effected at all points in
Canada. Savings Bank at all offices. Correspondence solicited
T H E C O M M E R C IA L W EST .
Saturday, October 17, 1903.
T he N orthw estern N a tio n a l Ba n k
OF MINNEAPOLIS
C apital,
=
=
=
=
=
$1,000,000
S u rp lu s and U ndivided Profits,
600,000
An average of over eight per cent annual dividends paid to stockholders since
organization in 1872.
Dividends Paid since Organization, $2,170,000.
O F F I C E R S :
W illiam H. Dunwoody, President.
Joseph Chapman, Jr ., Cashier.
E . W . Decker, Vice-President.
F . E . Holton, A ssistan t Cashier.
A . E .Z O N N B ,
V-Pres. and T reas.
J . F . C O N KLIN ,
President
G. B . LOOMIS,
A ss’t Sec’y.
E . J . FO R STER ,
Secretary
J. F. C O N K L IN 6 Z O N N E CO .
M. B. Koon, Vice-President.
Chas. W . F arw ell, A sst. Cashier.
MERCHANTS’ NATIONAL BANK
OF SAINT PAUL.
M IN NEAPOLIS
R e a l Instate and In su ran ce in all its B ranch es
Fir st M ort g a g e L o a n s on I m p r o v e d Cit y Prope rty
References : F irst National Bank.
Northwestern National Bank.
Capital, - - - $1,000,000
Surplus, - - - 250,000
United States Depository.
The Equitable Trust Company,
152 M onroe Street, CHICAGO.
Capital Paid Up, $ 5 0 0 ,0 0 0 .
Surplus, $275,000.
Acts as Trustee for Corporations, Firms and Individuals and as Agent
for the registrations and transfer of bonds and stocks of Corporations
and the payment of coupons, interest and dividends.
O FFICER S: K en neth C la rk , P resid en t : C. H
B igelo w , V ice-P resid en t; Geo. H. P rin ce
C a sh ie r; H. W. P a rk e r, A ss’t C a s h ie r; H
Y a n Y leck, A ss’t C ashier.
DIRECTORS: C raw ford L ivin gsto n , Kenneth
C lark , J . H. Skinner, L o u is W. H ill, George
H. P rin ce, D. R . Noyes, E . N. Saunders, V.
M. W atkins, L . P . O rdway, F . B . K ellogg,
C. H. Bigelow .
IN T E R E S T P A ID ON D E P O S IT S .
D IR E C T O R S «
A N D R EW M cN A L L Y
F . M. BLO U NT
L . A. W ALTO N
W ILLIA M B E S T
JO H N M. SM YT H
J . R . W ALSH , President
M A U R IC E R O SE N F E L D
J . R. W ALSH
O F iM C E R S :
L. A. WrALTO N , Vice-President
C. D. O RGAN, Sec. and Treas.
C. HUNTOON, A ss’t Sec’y and A ss’t Treas.
WALTER L. BADGER,
0
1
I
■ *»
O N E ID A
BLOCK,
MINNEAPOLIS, MINN.
B ought and Sold on Com m ission
or J o in t Account.
m ade on F irst-c la ss Im proved Security to net lender 4Vs to 6 per
cent. S p ecial atten tion given to care of property w ith econom ical
m anagem ent gu aranteed. B est of references.
REAL E S TA TE
j
JV ■
Ok i\ i
A rm I T l
Minneapolis Property
Bought, Sold and Managed for
Non-Residents.
Renta collected; buildings improved and reconstructed to produce Increased
results. Satisfactory reference to local and eastern parties.
MOORE BROS. & SAWYER, Minneapolis.
H A RRIS,
G A TES
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9
A Warning from Mr. Field.
A W E E K L Y JO U R N A L R E P R E S E N T IN G W E S T E R N B U SIN E SS,
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Published by the
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E N T E R E D A S SE C O N D -C L A S S M A IL M A T T E R A T T H E P 0 8 T 0 F F I C B ,
M IN N E A P O L IS , M IN N .
SATURDAY, OCTOBER 17 , 1903.
P R IN C IP A L C O N TE N TS.
E d itorial ...................................................................................... ...............
A W a rn in g fro m Mr. Field.
B ish op F ow ler and R ussia.
A N ew Steel M anagem ent.
T he A m e rica n W h e a t Situation.
C leveland on G ood Citizenship.
O bservations ..............................................................................................
F un eral o f W . T. B aker ......................................................................
Industrial P ay m en ts In O c to b e r ........................................................
T he P ositio n o f S ilv e r ............................................................................
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N ebraska B a n k e rs’ C o n v e n tio n ..........................................................
P residen t B u rn h am ’s A d d r e s s ....................................................
“ A C learing H ou se C u rren cy,”
P ap er b y T h eod ore G ilm a n ..................................................
“ T ru st C om pan ies,”
P ap er b y G. S. W a t t le s ..........................................................
“ C oun try B an ks and C om m ercia l P a p e r,”
B y C. F. B e n tle y ......................................................................
“ R ece n t L eg al D e cisio n s,”
B y W . G. H a s tin g s ..................................................................
B an k C learings ........................................................................................
M inneapolis M on ey M a r k e t..................................................................
C h icago M on ey M a r k e t..........................................................................
M ilw aukee M on ey M a rk e t....................................................................
S eattle M on ey M a r k e t............................................................................
C h icago F oreig n E x c h a n g e ..................................................................
W e e k ly R ailroad E a r n in g s.................. . ...............................................
M inneapolis S ecurities ..........................................................................
St. P aul S e cu ritie s....................................................................................
C h icago S ecurities ..................................................................................
N ew B an ks an d C h a n g e s......................................................................
G r a in
and
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S to ck .
L iv e S tock M a r k e ts ..................................................................................
W e stern B an ks and C a ttle ....................................................................
Real
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M illin g .
T he W e e k ’s O b se rv a tio n s....................................
C om m ercial W e s t G o ssip ......................................................................
F lour and M illing .............................................................
F la x seed ........................................................................................ 7...........
M illfeed ........................................................................................................
M inneapolis C oarse G ra in s....................................................................
L on d on W h e a t R e v ie w ..........................................................................
C losing W h e a t P r ic e s ............................................................................
G rain R e c e ip t s ............................................................................................
Septem ber W h e a t O ption R e c o r d ......................................................
C om m ercial W e s t M arket R e v ie w s ....................................................
General G rain S ta tis tic s ........................................................................
M ilw aukee G rain M a rk e t......................................................................
P a cific N orth w e st W h e a t ......................................................................
L iv e
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E s ta te .
St. P aul B u ild in g ......................................................................................
W h a tc o m B u ild in g ..................................................................................
M in n esota L an d S a le s............................................................................
F a rm L an d M o v e m e n t............................................................................
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M is c e lla n e o u s .
E le ctric C on stru ction ............................................................................
T eleph on e C on stru ction ........................................................................
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Federal Reserve Bank of St. Louis
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6
What Marshall Field of Chicago, a practical man of
affairs and noted for business judgment and fore
sightedness, has to say with reference to Mr. Chamber
lain’s preferential tariff propaganda, is interesting and
should be seriously suggestive to citizens of this coun
try who can not believe that England will ever refuse
to turn the other cheek when we smite her with our
hostile tariffs.
Mr. Field predicts the ultimate accomplishment of
Mr. Chamberlain’s plan despite the tremendous oppo
sition against it, and says that “ there is no denying
that the establishment of a tariff on foreign products
will be a serious matter for America, although, of
course, there is no danger that the mere adoption of
a tariff in England will put American commerce out
of business.”
If Mr. Chamberlain proves successful in accom
plishing such an unpleasant result for the United
States, it will be chiefly due to apathetic policy at
Washington regarding reciprocity with Canada. If
Mr. Chamberlain is to be defeated it will rest more
with the Senate of the United States than with the
Cobden Club of England. The United States Senate,
in rejecting reciprocity treaties, has been goading for
eign nations into reprisals against United States com
merce. While the producers of the United States who
want continued free entry into the British market find
strong allies in the Cobden Club and the forces ar
rayed with it for free trade; yet they are likely to see
these allies badly discomfited unless the Senate will
consent to treaties with other nations providing for
fair trade.
Bishop Fowler and Russia.
It is an interesting talk that Bishop Fowler has
given the people of this country on the situation in
the Orient from the standpoint of the nations. In an
address before the missionary convention of the Meth
odist Episcopal church in Philadelphia, Bishop Fow
ler looked far into the future, and he found much
that should attract the careful thought of the people
of this coutry. Fie located the storm center of the
world in the Pacific. He took note of the fact that
Asia cradles three-quarters of mankind, and with new
blood monopolizing her highways, with rival leaders,
the Saxon and Slav fighting with their backs to the
North sea and Arctic ocean, it was impossible for the
imagination to measure her importance. He brands
China as the supreme hypocrite of all the races and of
all the ages, and he refers to that great country as a
“ moral mummy embalmed and wrapped in supersti
tions thousands of years old.”
Bishop Fowler says Russia is the coming power
in the East and the United States is up to an inex
orable proposition. For if Russia assimilates China,
this country is face to face with the most powerful
empire ever known. Let the Czar establish his author
ity in Pekin and the absorption of India by Russia
will follow quickly. The Russian empire practically
extending from the Polar sea to the Indian ocean,
and from Germany to the Yellow sea, and controlling
one-half of the human race, would put Europe in the
greatest peril she has ever known.
And as Bishop Fowler looked down the future, he
saw that while today we face Europe, tomorrow we
T H E CO M M ERCIA L W EST.
10
will face Asia, and that while today San Francisco’s
harbor is our back door, tomorrow it will he our front
door and Europe will be behind us. Sooner or later
we must confront Russia.
The commercial battle of the future is to he fought
out in the Pacific. Shall this commerce be dominated
by Russia or by America? Shall there be a policy of
absolutism in the ports of Asia?
Bishop Fowler has given the people of this coun
try something to think about. James J. FTill saw this
great coming change in the trade routes of the
world, and to meet it he saw that the railroads of this
country must move away from the stage coach basis
on which they had been operated to a more modern
organization that would be better fitted to compete with
the standards that threaten to be set up in the Orient.
The United States cannot support its manufacturing
on the consumption of her people. So great has been
industrial expansion that it becomes necessary to dis
pose of a surplus among the other countries of the
world, and where a better field for work than among
the gradually civilizing hordes of Asia? Bishop Fow
ler and Mr. Hill have read the stars aright. Possibly
if we can subordinate our politics to the needs of the
hour, we may grasp the situation in time to save the
industrial occupations of this nation.
A New Steel Management.
The policy of retrenchment adopted by the
board of directors of the United States Steel cor
poration in reducing the dividend on the common
stock is to be pursued in other directions also. A
party composed of President Corey, ex-Judge Gary,
chairman of the board; Chairman Perkins and
Messrs. Frick, Ream, Widener, Rogers and Bacon,
of the finance committee, and Vice Presidents Gayley and Dickson has left New Y ork on a tour of in
spection of the corporation’s various properties, to
be absent two weeks. It is understood that import
ant changes in the direction of curtailment of op
erating expenses will be effected as a result of the
trip, and it is said to be probable that not only will
economies be enforced at many points, but that also
various mines and manufacturing plants will be
temporarily closed. It is also understood that one
object of the tour will be to secure data to be used
by the steel corporation as a basis for making, in
co-operation with other steel companies, a demand
upon the railroad companies for a material reduc
tion in freight rates upon finished products. It is
estimated by officials of the corporation that its coal,
coke and iron ore tonnage for the year is equivalent
to nearly 30,000,000.
A s the corporation transports most of its raw
material over its own lines of steamships and rail
roads, they do not constitute an important factor;
but it is in the transportation of the 8,200,000 tons of
finished products from the mills to the points of
consumption that the steel corporation becomes a
factor of first importance to the roads interested.
W ith the economies resulting from the concen
tration of manufacturing plants and the reduction
of railway freight charges, it is believed the Steel
corporation will be able to extend largely its ex
port trade.
Under the Steel corporation’s profit sharing plan
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Federal Reserve Bank of St. Louis
Saturday, October 17, 1903.
of January 1, 1903, 27,633 employes subscribed for
preferred stock, of whom 12,170 were in the class
receiving $800 or less a year in wages and 14,260 in
the class receiving salaries of $800 to $2,500 a year.
The profit sharing plan provides that if a subscrib
ing employe “ will not sell or part with the stock,
but will keep it, and in January of each year for
five years, commencing with January, 1904, will
exhibit the certificate to the treasurer of his com
pany, together with a letter from a proper of
ficial to the effect that he has been continuously
in the employ of the corporation or of one or an
other of its subsidiary companies, during the pre
ceding year, and has shown a proper interest in
its welfare and progress, he will during each of
such five years receive checks at the rate of $5 a
share per y e a r a n d if he shall remain continu
ously in the service of the corporation for five years,
he will at the end of the fifth year receive a still fur
ther dividend. But the closing down of several of
the Steel corporation’s plants would necessarily
mean the throwing out of employment of many of
these subscribers to the preferred stock, a condition
apparently not covered by the terms of the profit
sharing offer. The question whether or not sub
scribing employes who, because of the closing of
the plants in which they have been working, may
be unable to meet the profit sharing plan’s require
ment of continuous employment, are to be debarred
from participation in the yearly bonus, is one which
is interesting W all Street.
The Steel corporation is in the process of a prac
tical reorganization. The Schwab administration
was in part a failure, and it is evident that new
methods of administration are to be put in force.
The Steel company must meet conditions on a bil
lion basis just as the company of smaller capital
m ust; its advantage is that it can produce more
economically than the smaller company, but this
advantage is lost in part by overcapitalization. The
blunder of overcapitalizing is now to be corrected
in part by a saving of $10,000,000 as dividends on
common stock. The company is in good control
now and it may be able to evolve a working basis
that will equalize the elements of unsoundness in
the organization and thereby restore itself in public
favor.
The American Wheat Situation.
We bear a great deal from Chicago these days about
the European wheat situation. It has not seemed to
occur to many speculative.writers on wheat that there
is an American situation that needs to be considered.
This is being overlooked very generally.
Last year we raised nearly 700,000,000 bushels in
the United States. Ten years ago' that production
would have put the price of wheat in this country to 50
cents. Instead it went to a dollar, and today is selling
within 15 cents of that price. What is the explana
tion of this ? Is it the European situation, or is it the
American situation ?
In the face of a harvest, which some claim is one
of the largest realized in this country, wheat is stub
born against decline from one of two possible causes.
First, a majority of the grain trade does not be!.eve
we have raised the large crop that the government and
Saturday, October 17, 1903.
T H E C O M M E R C IA L W E ST .
private estimators claim, or our consumption has
reached the point where it makes but little difference
whether we have raised this large crop or not. We in
cline to the latter view. Ten years pass quickly and we
forget to measure consumption accurately. In our
judgment the wheat business in the United States has
passed to a new basis within fifteen months, and per
manently so. Wheat is now selling around 80 cents,
which is, relative to consumption, a price no higher
than was the level of 70 cents a short time back. We
have reached the 80 cent level to stay for a considerable
time and possibly the permanent level may be placed
higher eventually. It certainly will be higher tempo
rarily, because we must get some increase of wheat
production in this country or we must in a few years
become an importing country.
The one crop idea in the United States has gone
forever. The millers of the Northwest are facing a
problem in relation to wheat supplies that is not real
ized. The only way of relief to an abnormal situation
will be the opening of the door into Canada to
let Canadian wheat flow in and come under the control
of the American miller, rather than stand as it does
now, a menace to the world’s wheat prices through the
Liverpool market.
The wheat lands of the Northwest have in part lost
their cunning, and the farmer cannot be blamed if he
plants those crops that give him a larger return on
his investment than he has been deriving from wheat.
Therefore, the price of wheat must be advanced to a
point that will again make it profitable for the North
west grower to raise barley, corn and oats with wheat.
The indications are that another year will bring a
considerable increase of the Northwest^ wheat area,
because there will be a necessary adjustment of crops
on natural grounds, together with an inviting prospect
of a good price for wheat. This will bring temporary
relief, and the settlement of the production problem
in this country will be postponed, hut in the end,
and it will not be long before it is reached, there must
be a settlement of the wheat situation in this country
on the basis of a higher price and profitable produc
tion, or an opening of the door to Canadian imports.
Those who argue for a reciprocity relation between
the United States and Canada, and take the view that
this country will not secure the relief they need in the
matter of a wheat supply by any other method, over
look the fact that the United States has the power
within itself to open the door to Canadian wheat re
gardless of the view Canada may take of the question.
We can reduce the duty on wheat, either wholly or to
a point that will admit of imports. This theory was
advanced some time ago in this paper by Mr. James
S. Bell, manager of the Washburn-Crosby Milling Co.,
of Minneapolis. It is a practical suggestion and
stranger things have happened than would be the
adoption of that policy. There is a prejudice among
wheat producers in this country that they would suffer
were Canadian wheat to> be admitted, but it seems to
us this view is wrong; Canada competes with the Da
kota wheat grower today directly at the point where
it is least desired— Liverpool. Were this supply cut
off from Europe, directly, the American wheat grower
would secure a price adjustment in the more active
buying by Liverpool for supplies, which the cutting
out of Canadian shipments would develop. This is a
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Federal Reserve Bank of St. Louis
11
subject on which there will have to be an educational
campaign. The opening of the arid lands of the West
will offer a wheat supply for a few years that can
probably be taken advantage of, although the wheat
grown will not be of the hard variety that the country
has become used to. But as a permanent settlement of
the wheat question in this country, the arid lands can
not be depended upon.
The most effective remedy offering immediately is
the advancing of the price of wheat to a point that
will for a time increase production. This is the Amer
ican situation as we see it. It makes less difference to
this country what Argentine and Russia are doing in
the way of the export of wheat than ever before, be
cause we have less to sell to Europe today than we
have had for many years.
Cleveland on Good Citizenship.
The remarks on the duties of citizenship which
Grover Cleveland delivered before the Commercial
Club of Chicago last Wednesday night, will still fur
ther deepen, if that be possible, the respect which all
good Americans, regardless of party, must feel for this
great American, whose ideals of citizenship, as prac
tically exemplified in his own career, have ever been
lofty, fearless, and wholly free from cant and selfish
ness.
It was consistent in Grover Cleveland to exalt the
politician, and to assert that ‘‘every citizen should be
politician enough to bring himself within the true
meaning of the term, as one who concerns himself with
the regulation or government of a nation or state for
the preservation of its safety, peace and prosperity,”
for it was just this kind of politician that Grover Cleve
land himself had always been. He himself had af
forded a most sterling example of the soldier “ drilled
in lessons of patriotism,” who is “ enlisted for life and
constantly on duty,” and is one of today’s crusaders
in the cause of good government, fighting “ to recover
their Holy Land from the infidels who would degrade
and defile it.”
In the romance of the Hon. Peter Stirling there is
portrayed a politician who was the fearless and tireless
servant of the people, who did what he thought was
right whether or not he thought it politic, who was the
unselfish, noble hero who was willing to sacrifice for
others his reputation, but never his character, who was
prepared to make himself a living martyr to shield the
honor of those whom he loved. Mr. Ford, the author
of this work, said once before his tragic death, that
while he did not have Grover Cleveland definitely in
view when he wrote that political romance, yet he was
not at all surprised that the Hon. Peter Stirling sug
gested to the readers of the book the Hon. Grover
Cleveland.
While there are a number of American politicians
who have rendered great services to country, yet very
few have had characters so lacking in regard for self,
as has distinguished the character of Grover Cleve
land. The motive for his work has never been greedy
desire for applause from the galleries nor flattering
notices from the press, but the plain satisfaction of
conscience. Always ready to do in a decisive way
whatever he felt should be done, he nevertheless has
never been looking for opportunities to brilliantly ex-
12
T H E C O M M E R C IA L W E ST .
ploit himself before the public, nor to keep himself
personally advertised through spectacularism.
There is no “ politician” in the country today who
holds the admiration and esteem of the business
interests of the country to the same extent as Grover
Cleveland. And yet speaking to a representative or
ganization of this great class of his admirers, “ Tell the
truth ” was the other evening with Mr. Cleveland, the
same admonitory force as always through his career.
He was not afraid to talk to the representative busi
ness men of Chicago about the cant, lack of real
patriotism, laziness and hypocritical respectability
which tends to keep business men out of the mire of
politics, except when urgent necessity, or tempting
self advantage brings them into it.
1 he Commercial Club of Chicago has increased its
great prestige in its non partizanship honoring of
Grover Cleveland, and giving to him the opportunity
to deliver such an inspiring exhortation to higher ideals
of public duty.
O B S E R V A T IO N S .
An episode in the remarkably successful career of
frank A. Vanderlip from newspaper reporter to vice presi
dent of the biggest bank in the country, suggests itself
in connection with the present depression in Wall Street.
Whilst Mr. Vanderlip was financial editor of the Chicago
Tribune there occurred a flurry in Chicago financial cir
cles, and a leading bank failed. This bank possessed the
deposit account of Mr. Vanderlip, amounting to about
$500, which represented all he had saved from his salary
with the Tribune. Mr. Vanderlip, feeling very blue, went
to his desk in the Tribune office to write the account of
the failure. Naturally he did not consider it to be an
agreeable task. He found lying on his desk a telegram.
It was from Mr. Medill, the proprietor of the Tribune,
and read:
“Take a cheerful view of the situation.”
sk
In times of moderate depression it is expected of finan
cial writers that they should express themselves in a cheer
ful strain, whether or not they can really feel optimism.
A banker might be calling loans and a broker might
be calling margins, and the general situation might be
full of embarrassment, and yet if either banker or broker
should see in the financial column of a newspaper a defi
nite statement about his calling of loans or margins, or
referring to any embarrassment whatever, he would feel
as if the financial writer deserved a jail sentence for lack
of discretion in publishing facts tending to create lack of
confidence. It is because many financial writers feel as
if they were committing a sin against property by truthful
analysis of a weak financial position that the unpleasant
truth is often not spoken when it would do good to have
it spoken. If, however, financial writers would show
more wholesome pessimism in times of speculative boom
they would be the better believed and trusted, and be
more influential for good when in times of depression
they write cheerfully of the situation.
* =k *
For over a year back there has been an ultra bullish
tone in the comments of some of the leading New York
financial editorialists. When Frank Vanderlip in his
Wilmington speech over a year ago pointed out the
dangers in the financial situation he was bitterly de
nounced by these editors for being an alarmist. When
Controller Ridgely talked in the same strain at the New
Orleans convention of the American Bankers’ association
last November, he too was denounced as an alarmist.
Secretary Shaw, however, who kept talking at county
fairs and other gatherings of the wonderful and the in
creasing prosperity of the nation, instead of the day of
reckoning ahead when financial balloons would fall to
the ground, was praised to the limit for his patriotic
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Federal Reserve Bank of St. Louis
Saturday, October 1
I9Ò3.
optimism. Yet who has done his country the greatest
service, the pessimist of a year ago or the optimist? The
men who a year ago foresaw the logical results from over
speculation and over-promotion and were not afraid to
speak out their minds about it, are those who are entitled
to credit at the present time.
*
*
*
This column has been consistently “bearish” on the gen
eral situation for over a year, and now if it gives voice to
a cheerful note, its sincerity ought not to be questioned,
nor ought it now to be considered that what is said is
prompted by any feeling of duty to help promote con
fidence, irrespective of what the situation is.
*
*
*
We can easily appreciate the whys and wherefores of
Wall Street’s present predicament, yet there is no more
justification for present bearish hysteria than there was
a year ago for bullish delirium. When Steel preferred,
for instance, was around par, and Steel common in the
50’s, it was proper
to talk pessimism. Butwith Steel pre
ferred now in the
50’s andSteel commonaround 12G, it
would seem more
rationalto say a wordof cheer. We
make no prediction that Steel common and preferred
will not find still lower levels. Nevertheless it is proper
to call attention to the fact that if Steel common and
preferred were such fine “buys” at their prices of two
years ago, they ought to be very much finer “buys” now
that they can be purchased so very much cheaper. If
Steel preferred was ever intrinsically worth par it ought
certainly in the 50’s to be considered a splendid invest
ment. And stripped of a weight of common stock it
would be.
*
*
The public shows childish unreason in its attitude re
garding the stock market. Two years ago there was al
most as much known as now regarding promoter’s “rake
offs.’ But then as the stock market was way up, such
things seemed merely a legitimate part of the business.
Now, however, that the stock market is way down, the
revelations as to the fleecing of the lambs seem perfectly
scandalous. Figuratively speaking we have had a fall to
earth, and naturally we feel bruised and sore, and unable
to take a “cheerful view of the situation.” And yet it
must be confessed that we are safer now than when we
were somewhere in the air between the heavens above and
the earth below. The backbone of business has not been
broken by the violent fall in the stock market. In fact
the strength of the business situation has been proved.
*
*
*
There will be a certain amount of subsidence in busi
ness, but this will relieve the money market of excessive
demand. There will be hundreds of laboringmen thrown
out of employment. But this will tend to make the labor
unions less arbitrary and less inclined to interrupt in
dustry by strikes. There will be less production, but that
will enable consumption once again to more than catch
up. Cheaper prices will make living easier. Certain
salutary lessons have been well learned and will be long
remembered. Moreover, the crop situation is, generally
sp&aking, quite satisfactory. The corn crop has evidently
been spared a great disaster. Agricultural prosperity is
what really underlies the intrinsic general prosperity of
the country, and the present year is not deficient in
agricultural prosperity.
The Onlooker.
M inneapolis B ank Clerks Meet.
The Minneapolis Chapter of the American Institute
of Bank Clerks entertained the officers of the local banks
at an informal smoker on Wednesday evening. There were
present the presidents of two other Chapters of the insti
tute, O. M. Nelson of St. Paul Chapter, and Ralph C. W il
son of Chicago. Both these gentlemen gave excellent ad
dresses, witty, and yet full of good sound common sense.
F.
M. Prince, vice-president of the First National bank,
spoke to the Chapter expressing the utmost good will to
the institute and a lively interest in its success. Follow
ing Mr. Prince, Joseph Chapman, Jr., cashier of the
Northwestern National bank, spoke on the past work of
the chapter and the wisest course for the future.
Mr. Chapman, when a clerk, was the original promo
ter of the Minneapolis Bank Clerks’ Association which has
since affiliated with the American Institute of Bank
Clerks.
T H E CO M M ERCIA L W EST.
Saturday, October 17, 1903.
13
— National Bank of North America
=
-
Capital
C H I C A G O
- $2,000,000.00
= - ____
Surplus -
$500,000.00
OFFICERS:
IS A A C N . P E R R Y , P r e s id e n t
B E R N A R D A . E C K H A R T , V ic e - P r e s id e n t
C H A R L E S O . A U S T I N , V ic e - P r e s id e n t
J U L IU S S. P O M E R O Y , C a s liie r
F R A N C I S V . P U T N A M , A s s t . C a s h ie r
Correspondence or interview s with a view to business relations cordially invited
M inneapolis M oney M arket.
In the face of heavy offerings of Eastern money the
local market for the best endorsed paper is still at 6@ 6T
/2
per cent. A slight softening of the rate of interest seems
impending. As yet very little terminal paper has been
sold this season but the loans on other forms of paper
have been considerable. The crop conditions are still un
favorable and the shipments of wheat are less than a year
ago, for this reason the shipments of currency to the
country have not been heavy and the elevator companies’
agents have not drawn on the Minneapolis houses in as
large amounts as are usual at this season.
The millers’ strike has not affected the offerings of
millers’ paper to any appreciable extent; the mills have
been able to handle the wheat shipments so far; doubtless
this is due in a large measure to the relatively small
amount of wheat that has been moved.
C u rre n cy
From the country ............
From Chicago ....................
From St. Paul ...................
R e c e iv e d .
Week ending Week ending
Oct. 10.
Oct. 3.
$48,001
1,670,000
Total ................................ ---C u rre n c y
$837,700
$1,718,001
S h ip p e d .
To the country .................... .........$936,290
To Chicago ...........................
Total ................................ ----
$936,290
$1,819,363
130,000
$1,949,363
Chicago M oney M arket.
(S p ecia l C orresp on den ce to T he C om m ercial W e st.)
Chicago, Oct. 13.—Money is still quite firm at 6 per
cent. The general situation, especially as regards Wall
Street, affects the market some. Bankers are inclined to
examine paper more cautiously, and to maintain larger re
serves. Though the situation here is very strong, never
theless some of our leading bankers do not quite like the
way the Wall Street market has been going to pieces. On
account of slow crop moving in the Northwest very little
Chicago money has yet been into the Northwestern wheat
country.
M ilwaukee M oney M arket.
(S p ecia l C orresp on den ce to T he C om m ercial W e s t.)
Milwaukee. Oct. 14.—Milwaukee bankers report the
discount rate firm at 6 per cent for prime paper offered by
regular customers, while 6 Y2 to 7 per cent is charged out
siders and accommodation paper. All of the Milwaukee
banks are unusually well supplied with funds this fall, but
the call for currency from the interior has been light so
far and the demands made upon the hoards of money
for the movement of grain and garden produce has been
comparatively light. It is anticipated, however, that the
requirements of the northern iron mines during the next
few days for the purpose of meeting their payrolls will
materially swell the currency movement.
Seattle M oney M arket.
(S p ecia l C orresp on den ce to T he C om m ercial W e s t.)
Seattle, Oct. 13.—The Seattle money market is begin
ning to feel some effects from the situation in the East
ern centers, though as yet no material inconvenience has,
been experienced. The creation of wealth throughout
the Pacific Northwest during the past five years has been
so rapid that debts and mortgages have been paid off to
a large extent, so that the inabilitv to secure loans or ex
tensions in the Eastern centers does not affect business
conditions here nearly so much as it did ten years ago.
One line of business which is beginning slightly to, feel
the Eastern caution is the lumber business. This is due
to a combination of circumstances. Just at the present
time the transcontinental railroads have so large a de
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Federal Reserve Bank of St. Louis
mand for freight cars for handling the grain crops that
they are unable to supply lumber cars in the numbers
demanded by the mills. Lumbermen are therefore unable
to deliver their product to their consumers in the middle
states, and to get money returns for it. Under similar
conditions it has in the past been the practice of the lum
ber manufacturers to borrow money to tide them over
these periods, giving as security mortgages on their hold
ings of standing timber. As these mortgages were floated
in the east, the greater difficulty of floating them just
at the present time is being somewhat felt. However the
lumber manufacturers manage to succeed in continuing
the operation of their mills, and despite the inability to
supply all the lumber cars needed for this traffic, the
transcontinental railroads are still hauling from 20 to 30
per cent more lumber this year than they did at this time
in 1902.
Mr. James A. Moore, president of the Moore Invest
ment Company, returned a few days ago from New York
where he succeeded in securing the necessary capital for
the construction of a five story building on Second avnue,
the construction of a five story building on Second avenue,
ington._ His success in this instance is taken as a reliable
indication that Seattle investments still find favor among
those who have profited by them in the past.
A proposal on the part of the county and the city au
thorities to submit to the people at a special election the
question of issuing $600,000 in county bonds and $350,ooo_ in city bonds for the purpose of securing money with
which to erect a joint county court house and city hall
has been abandoned on,account of the very evident unpop
ularity of the proposal, and the special elections called off.
The unpopularity of the measures arose not so much on
account of any opposition to the proposed building, but to
the dissatisfaction in many portions of the city with the
site which had already been selected for it. It was pro'
posed to erect the building on Third avenue and James
street, near the southern end of the present retail section
of the city, a location which was very unsatisfactory to
many voters.
Chicago Foreign E xchange.
T he N ational B an k o f the R epublic, C hicago, quoted foreig n
ex ch an ge at close o f bu siness Oct. 14:
S t e r lin g 60 d a y s’ sight.
D em and.
P osted rates ............
4.87
A ctual ........................
4.85%
C om m ercial .............
4.8514
Cables ........................
B an k of E nglan d rate, 4 per c en t; p riv a te rate, 3% per cent.
M arks—
A ctu al ..........................
.95 3-16
C om m ercial ..............
.95
Cables .........................
B an k rate, 4 per cen t; private rate, 3y2 per cent.
F ra n cs—
A ctu al ........................
5.17%
C om m ercial ..............
5.18%
Cables ..........................
........................ 5.16%
B an k rate, 3 per cen t; private rate, 2%, p er cent.
The Prosperous F irst National.
The First National bank of Minneapolis, which in
creased its capital last year from $1,000,000 to $2,000,000,
has raised its dividend rate from 6 to 8 per cent, the quar
terly dividend just ordered being for 2 per cent.
The St. Paul National bank, St. Paul, has opened a la
dies’ department in connection with the banking room.
EUGENE,
M.
STE.VENS,
C O M M E R C IA L P A P E R AN D
IN V E S T M E N T S E C U R I T I E S
Municipal, Corporation
and Railroad Bonds.
Local Securities.
127 G u a r a n t y B u i l d i n g .
Bank Stocks
and
M IN N E A P O L IS , M IN N .
T H E C O M M E R C IA L W EST .
14
Saturday, October 17, 1903.
The late W IL L IA M T . B A K E R , Ex-Presid ent of the Chicago Board of Trade.
F U N E R A L O F W. T. B A K E R .
(S p ecia l C orresp on den ce to T he C om m ercial W e s t.)
Chicago, Oct. 13.—The funeral services for the late
William T. Baker were held in the Second Presbyterian
church of this city on Sunday afternoon at 3 o’clock. The
Rev. Frank W. Gunsaulus officiated. The altar was cov
ered with huge banks of flowers. The church was quite
filled with the relatives and friends of the deceased. The
Commercial Club attended the funeral in a body. There
were large official delegations from the Chicago Board of
Trade, the Apollo Commandery of the Knights Templars,
the Chicago Bureau of Charities and the corporations with
which the deceased had been associated.
The Rev. F. W. Gunsaulus in his funeral address spoke
in part as follows:
“When a man has a strong will and an alert intelli
gence it is for his greatness and for the good of the
community that he shall have a luminous and commanding
conscience. Our friend was thus constituted; his virility
of moral effectiveness proceeded from this combination.
Our city has had large duties to perform and he has never
failed to contribute a most precious element to our power
for performing them, and this has been high character. The
foundations of the city are never firmly laid in mere in
telligence however splendid, or in might of will however
courageous. Wm. T. Baker stood at the very place in
the business world where bigness might be mistaken for
greatness, where brilliancy of daring is often confused with
shining honor and, instead of helping to place falsity and
pretense in the fabric of our city life, he has helped our
city to “lay her stories in fair colors.” He had the patri
otism which realizes that there is no contribution to be
made to a republic so valuable as a man whose shield is
stainless and whose helmet glows with the eternal sunlight
of heaven. If he seemed proud of what we call “the old
fashioned virtues,” it was only the self-respect which has
made men refuse to dishonor their imperial mandate. After
he had thought out a problem and perceived its moral
bearing from the point of view of conscience, there was no
further question in anybody’s mind as to his_ opinions or
his methods of enforcing them. His convictions warmed
every drop of his blood and it was certain that all the re
sources of an inflexible and supple will would be brought
to the attack or defense. Such a man leaves behind him
something so much richer than his fortune, that young
manhood will do well to stand by his open grave in a time
of wild devotion to money and position, and realize what
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Federal Reserve Bank of St. Louis
is gained and lost in death. The charities which he helped
to found and nourish will go on with unspeakable benefi
cence. The public life which he adorned and guided will
make loftier demands upon every citizen and the city will
always remember this man of granitic and bold person
ality. But there will be one glorious vine with many ten
drils climbing with tenderness and red with sympathetic
beauty as it spreads over the face of the rock. That will
be the recollection of his home life, which must be kept
in the hearts of those whose lips are silent with their
grief.”
The honorary pallbearers were A. W. Green, R. G.
Chandler, E. B. Butler, Martin A. Ryerson, W. S. Warren,
W. A. Fuller, Henry Towner, and H. J. Macfarland.
The active pallbearers were Ralph C. Otis, Livingston
Fargo, Charles Ailing, F. S. Cunningham, Ernest P. Bicknell, Homer A. Stillwell, C. B. Congdon, and Walter B.
Smith.
The flag on the Chicago Board of Trade Building was
half masted in honor of Mr. Baker.
T r ib u t e
Fro m
Lym an
J . G a g e.
The following letter was received by a member of
Mr. Baker’s family from the Hon. Lyman Gage, who pre
vious to changing his residence from Chicago to Wash
ington to become secretary of the treasury in President
McKinley’s cabinet was intimately associated with Mr.
Baker in world’s fair, civic federation, and other im
portant public work. The letter in part reads:
“ Late in August I had a short visit with him (Mr.
Baker), which I now look back upon with great satis
faction. We went hastily over the events of thirty years
or more in which he and I had been in touch with each
other. Above nearly every man I know he excited and
held my admiration for his integrity of mind and adhesion
to principle. Convinced of the truth of a given cause or
proposition he would support and defend it. Mere ma
jorities had no terror for him, nor could the personal in
fluence of the powerful swerve him in his allegiance to
his convictions of the truth. This was, T think, the strik
ing feature of his character. It was a feature known and
recognized bv all who knew him. His real kindness of
heart—the affectional side of his nature—was less under
stood. It was the privilege of the few who knew him
best to comprehend that side of his character. I am glad
that I was in that favored group. His memory will be
warmly cherished bv me, while to the members of his
family so deeply afflicted by his untimely taking off my
sincerest sympathy is extended.”
T H E CO M M ERCIA L W EST
Saturday, October 17, 1903.
15
The Security Bank of Minnesota,
M IN N E A P O L IS.
CAPITAL PAID I N , ................................ $1,000,000
S U R P L U S ,...................................................
2 0 0 ,0 0 0
Solicit Accounts of Banks, Corporations, Individuals and Business Firms.
OFFICERS:
F. A . Chamberlain, President.
Thos. F. Hurley, Cashier.
Perry Harrison, Vice-President.
Fred Spafford, Assistant Cashier.
E. F. Mearkle, Vice-President
M. C. Hamer, Assistant Cashier
NEBRASKA BANKERS’ CONVENTION.
(S p ecia l C orresp on den ce to T he C om m ercia l W e s t.)
Lincoln, Neb., Oct. 14.—The seventh annual meeting
of the Nebraska Bankers’ association was held at Lincoln
Oct. 13 and 14. The large number of delegates present,
in spite of the fact that this is the busy season for the
country banker, is an index of the increasing interest in
such conventions and also of the substantial prosperity
of the state of Nebraska. This latter fact was emphasized
by the reports of the different groups, nine of which are
organized in the state. The group system is more fully
developed here than in most western associations, and
is proving most helpful.
The convention was called to order by President
Burnham Tuesday morning. After prayer was offered by
Rev. J. E. Tuttle, an address of welcome in behalf of the
city, was delivered by the mayor of Lincoln, Hon. Geo.
A. Adams. P. L. Hall, cashier of the Columbia National
bank of Lincoln, extended the welcome of the clearing
house banks of Lincoln. Response was made for the
visitors by Judge Geo. W. Post, president of the First
National bank of York. Following this was the interest
ing address of S. H. Burnham, president of the Nebraska
association and also of the First National bank of Lincoln.
The afternoon session was given to discussion of the
currency question, the leading attraction being the address
of Hon. E. J. Hill of Connecticut. Mr. Hill made a most
able plea for credit currency, and his logical and com
prehensive talk held the closest attention of the large
audience present. As Mr. Hill has for years been a mem
ber of the currency and banking committee of the house,
he came well equipped to discuss this question. He was
followed by A. J. Frame, president of the Waukesha Na
tional bank, of Waukesha, Wis., whose address on ‘‘New
Financial Legislation,” was in opposition to the credit
currency plan of Mr. Hill and Mr. Fowler a currency
address not down on the program, was the clos
ing one by Theodore Gilman, of New York. Mr. Gilman
was making a western trip for his firm and was prevailed
upon to stop over and address the association. He ad
vocated a clearing house circulation, a currency to be
issued by clearing houses to be established in every
state. This was essentially the plan he outlined at the
meeting of Washington Bankers’ association last summer.
C u r r e n c y R e s o lu t io n
O ffe re d .
At the evening session a lively discussion of the cur
rency question was started by the introduction of a reso
lution declaring against branch banks and asset cur
rency, introduced by President Yates, of the Nebraska
National bank of Omaha. Mr. Hill made an earnest plea
to have this resolution tabled, not to pass judgment at
this time, but to appoint a committee to confer with the
congressional committee having such legislation in
charge. The general discussion that followed was ani
mated, but not always of direct bearing on the question
under consideration. It was nearly midnight when the
meeting finally adjourned, after the following resolutions
were adopted:
“ Resolved, That we are opposed to any amendment to
our banking laws that will authorize branch banking.
“ Resolved, That we are opposed to the issue of any
form of credit or asset currency not secured by the de
posit of United States bonds.”
Omaha is directly responsible for such action. Several
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Federal Reserve Bank of St. Louis
of her leading bankers were most active in pushing the
resolutions adopted. When the bankers from the smaller
towns got such lead from their metropolis it was not sur
prising that they voted to “stand pat” even if many of
them doubted the wisdom of such action and thought the
present currency system could be improved.
W e d n e s d a y ’s S e s s io n .
The Wednesday morning session was devoted to short
addresses. J. R. Cain, of the State bank of Stella, talked
on the many trials of a country banker. N. A. Rainbolt,
of Norfolk, advocated the repeal of the national bank
ruptcy law, the association passing a resolution favoring
such repeal. J. A. Donelson of the City National bank
of Weeping Water, discussed bills of lading in reference
to the way they are handled by banks.
Bank
B u r g la r s .
John A. Morrison, manager of the bank burglary de
partment of Hood & Penney, Minneapolis, talked about the
yeggman. Mr. Morrison’s address was of much interest
to bankers at a time when bank burglaries are of such fre
quent occurrence in many western states.
The executive council, aroused by the activity on the
part of bank burglars, passed a resolution offering a stand
ing reward of $500 for the arrest and conviction of any
burglar that had burglarized or made an attempt on any
association bank. Naturally the demonstrations of the
workings of the electric protection system of the Ameri
can Bank Protection Co. of Minneapolis, in charge of
O. B. McClintock, attracted the attention of many visitors
and strong impression was made.
G.
W. Wattles, president of the Union National bank
of Omaha, opened the afternoon session by a paper on
“Trust Companies.” Mr. Wattles’ impression of the 417
trust companies other than those simply acting as trustees
was that they were largely speculative institutions, gather
ing up deposits from all parts of the country and using
them in speculative ventures in Wall Street.
“ Commercial Paper” was discussed by C. F. Bentley,
cashier of the First National bank of Grand Island, from
the standpoint of the country banker. M. Crandall, of
Steere & Burr, Chicago, handled the same subject from
the dealers’ viewpoint.
The discussions were closed with an address on “ Legal
Decisions,” by Hon. W. G. Hastings, of Wilber.
E le c t io n
o f O ffic e rs .
The election of officers for ensuing year resulted as
follows:
President—J. T. Trenery, president of the Farmers’
National bank of Pawnee City.
Vice President— E. F. Folda, cashier of the banking
house of F. Folda, of Schuyler.
Secretary—H. R. Gould, Omaha (re-elected).
Treasurer— F. I. Hamilton, assistant cashier of Mer
chants’ National bank, Omaha (re-elected).
The convention closed with a banquet at the Hotel
Lincoln, given by the clearing house banks. The solid
prosperity of Nebraska was exemplified by the showing
of these banks of Lincoln with an aggregate capital of
$500,000, and total deposits footing up in round numbers
$5,000,000.
The Nebraska convention was a great success. The
program was interesting and instructive, and the hospi
tality of Lincoln was delightful.
A
Few
o f th e
V is it o r s .
From outside the state the following bankers were
registered: Theodore Gilman, of Gilman, Son & Co., New
T H E C O M M E R C IA L W EST .
i6
Saturday, October 17, 1903.
WATSON & COMPANY,
B R O K E R S
Chamber of Commerce, M inn eapolis—
Stocks,
Bonds,
24 Broad Street, New Y o rk
Grain,
Provisions.
IVI 13 A I l ì IC K* S :
CH ICAGO BOAKD OF T E A D E .
NEW Y O E K PEO D U C E E X C H A N G E .
N EW Y O E K STO CK E X C H A N G E .
CHICAGO STO CK E X C H A N G E .
W IN N IP E G G E A IN E X C H A N G E .
M IN N E A P O L IS C H A M B E E OF C O M M EEC E.
ST. LO U IS G R A IN E X C H A N G E .
Private Wires to Chicago, New York, and Other Cities.
York; W. O. Jones, assistant cashier of the National Park
bank, New York; Charles Pasche, president of the St.
Joseph Stock Yards bank, St. Joseph; J. D. Schneider, vice
president of the German American bank, St. Joseph.
There were also registered J. G. Donaldson, W. H.
Tobin and O. B. McClintock, of the American Bank Pro
tection Co., Minneapolis; Edwin Mead of T he Commercial
W est, Minneapolis; R. H. Brown, of Northwestern Bank
er, Des Moines; M. Crandall of Steere & Burr, Chicago;
Edwin Goodall, treasurer of the Bankers’ Money Order
association of New York, and W. A. Messick of Omaha,
official stenographer of the association.
P R E S ID E N T
D is c u s s e s
B U R N H A M ’S A D D R E S S .
B a n k in g
C o n d it io n s
in
N e b ra s k a .
MaTnsoe andema1nlI i:7.
in com e sufficient to purch ase all the en orm ou s bon d and sto ck
issues of the huge steel trust in the first tw o m onths of the
year— all the stock o f the Standard Oil T ru st at 700, w h ich is
about its m arket v alu e in the n ex t tw o m on th s— to bu y all the
nation al banks in the n ex t tw o m on th s— to p a y the bonded
debt o f the g ov ern m en t in the next tw o m onths— to retire the
g reen ba ck s in less than one m on th an d have a b ou t $500,000,000
le ft over.
“ T h is is agriculture, w h ich is the basis o f the p resen t and
fu tu re p rosp erity o f N ebrask a .”
T h ere is not a state in the U nion th at in agricu ltu re alon e
p rod u ces so m u ch per cap ita as N ebraska. T his is w h at has
carried our bank deposits from $32,000,000 in 1896 to $95,000,000
in 1903— a $60,000,000 increase in five years. T h is kind o f m ining
is w h at is enabling the N ebraska banks to loan m on ey to the
m erchants and m anu facturers o f the east. D u rin g the p ast year
the am ou n t o f eastern paper carried by N ebraska banks w ill
reach into m illions.
A d v is e s C a u t io n .
S urrounded as w e are by p rosperity w e m ust n ot fo r g e t that
S.
H . B urnham , presid en t o f the state associa tion , in his a n h istory w ill repea t itself and w e shall have h ard an d difficult
tim
es again.
nual address, said:
T h e easy m on ey m arket, the flush an d p rosperou s tim es, are
T h e p ast year has been one o f the m o st p rosperous in the
the dangerous tim es, in one sense, fo r the bankers. W h en d e
h is tory o f the state. It is true that in som e section s o f the
p osits are low and m on ey is tigh t w e scru tin ize our loans and
cou n try there are larger industrial, m an u factu rin g an d m ining
r e je c t or dem and security. W e rem em ber 1893, 1894 and 1895,
interests. Y e t w h en w e realize that w e shall p rod u ce ou t o f
during w h ich period w e realized m an y notes w ere first d ou btfu l
the soil in N ebraska this year $250,000,000 w e certain ly have no
and later ab solu tely w orth less.
reason to com plain. A n d these are all p rod u cts w h ich are the
I som etim es w on der if w e are g row in g careless in these
actual necessities o f life and find a m arket in any part of the
tim es, and w hen w e again m eet w ith crop failu res and bad tim es
w orld. D u rin g the p ast fe w y ears w e have been reading in all
all aroun d and a p an ic is upon us, if w e shall w ake up to the
the g reat d aily new spapers h ow our eastern frien d s have, b y is
fa c t that w e have been asleep and have again allow ed pap er to
su ing paper certificates o f stock , m ade fortu n es in a d a y ; and it
gradu ally creep into our bank w h ich w ill have to be charged
m ay have seem ed to som e th at w e w ere a little slow ou t here
off. A re our d irectors takin g the sam e interest in the ba n k they
on the prairies. But, w e have also read the p ast y e a r and are
w ere at the close of the p a n ic?
reading n ow h ow these sam e p eople are in the depths o f despair
an d are on the v e rg e o f nervous p rostration becau se the im
B a n k r u p t c y L a w N o t N e ed ed .
ag in a ry values o f these paper certificates have taken w in g s and
T he ba n k ru p tcy law is an im porta n t su b ject. I believe the
flow n a w a y ; and m an y w h o had im agined that th ey had m ade
law has fulfilled tne o b je c t fo r w h ich it w as enacted and should
fortu n es d iscov ered that they have lo st eyen w h at they a t first
be done aw a y w ith. It m ay have been a w ise th in g to p rovid e
had.
a w a y w h ere those w h o had becom e hop elessly in v olv ed could,
b y turning over to their cred itors ev eryth in g they had, be r e
A L a r g e P e r C a p ita .
lieved from their debts, th ereby enabling them to take a new
T w o hundred an d fifty m illion dollars in the n ecessities of
start in life. W h eth er su ch a law is a w ise th in g or not, c e r
life grow n in one y ear ou t o f the ground is g ood enough fo r me.
tainly su fficient tim e has elapsed fo r all w h o w ish ed to avail
T his is p ra ctica lly $250.00 per ca p ita fo r every m an, w om an
them selves of this p riv ileg e; and I believe it is a g ain st the in
and child in this state. T his is $1,000 fo r ev ery fa m ily o f fou r
terests o f ev ery hon est business m an to let it rem ain.
in N ebraska.
T he qu estion o f the tru st com p an ies is one of g reat im p o rt
T his is n o t fro m m an u factu rin g or the m in in g o f m ineral
a n ce ana should be considered ca refu lly b y ev ery banker in the
w h ich m ay be exhausted an y day, out it is fro m m ining o u t of
state.
the rich b la ck soil o f N ebraska— an inexh austible m ine— corn,
T h e w a y the tru st com pan ies have sprung up in N ew Y ork
w h eat, oats, rye, barley, bu ckw h eat, hay, potatoes, butter, eggs,
the p ast fe w years and the m anner in w h ich tney are con d u ctin g
poultry, liv e sto ck , horticu ltu ral p roducts, w ool, su gar beets and
their bu siness a t the p resent tim e is the m ost dangerous banking
su ch things w h ich are required all over the w orld to keep soul
business, in m y ju d gm en t, ever k n ow n in the h istory of b a n k
and b od y together.
ing. I do n ot m ean the old and reliable tru st com p an ies that
D o w e need an y b e tte r m in in g than th is? In the large m an u
w ere organized fo r leg itim ate tru st purposes to handle tru st
fa ctu rin g or m in in g states they m ay p rod u ce as m u ch in dollars
fu nds and settle estates, a ctin g as ad m in istra tors, receiv in g the
an d cen ts; yet, w ith the e x cep tion o f w h at is required to feed
savin gs o f the p eople as sav in gs banks, etc., but m any o f the
the p eople in p ayin g fo r labor, the large p ercen tage o f it goes
new so -c a lle d tru st com p an ies w h ich have sprung into ex isten ce
into the p ock e ts o f the ow n ers o f the m ines or the m a n u fa ctu r
the p ast y ea r or tw o are entering into a regular com m ercia l
ing plants. B ut, the fa rm ers scattered th rou g h ou t the entire
business. T h ey are solicitin g com m ercia l an d bank accoun ts,
state, in the valleys and on the hill tops o f N ebraska, are the
offerin g to p ay 3 and 4 per cen t in terest on daily, balances and
ones w h o reap the benefit o f their ow n toil in this kind o f m in
refu sin g to carry a cash reserve o f 5 per cent. Such con cern s
ing. Mr. S tickn ey, the presid en t o f the G reat W estern r a il
are bound to m eet w ith disaster and bring d iscred it upon all
road, said in a sp eech a t O m aha the oth er d ay:
leg itim ate banking, fo r the reason that the m asses do n ot d is
“ A sh ort tim e sin ce I had the pleasure o f v isitin g the iron
crim inate.
ranges o f M innesota. T he w h ole train ca rry in g our p arty w as
W o u ld A r o u s e In te re s t.
literally ba ck ed into one o f the great iron m ines. In that single
m ine w ere seven oth er railw ay trains, and sever! huge steam
W h y is it that w ith over 600 banks in N ebraska w e h a ve a
shovels, each m ak in g tw o dips per m inute, and a t each dip lo a d
m em bership o f on ly 260? T he oth er w estern states have a m uch
high er num ber. Iow a has a m em bersh ip o f 735, M innesota has
in g three tons o f iron ore into th ose seven trains o f cars. T he
m agnitude o f the p rod u ction o f a single m ine m akes the p r o
800, M issouri has 740, K an sas w ith 650 banks has 514 m em bers
d u ction o f a single fa rm appear indeed insignificant.
and Illinois a n equ ally large num ber. P erh aps w h en w e have
“ B u t the p rosp erity o f a m arket tow n relates, n o t to the
the reports from the group s w e m ay have som e lig h t throw n
m agnitude o f the p rod u ction o f a sin gle farm , or a single m ine,
on this.
I d on ’ t believe a n y state has a m ore efficient secreta ry or one
but to the aggrega te p rod u ction w ith in its territory.
w h o takes greater in terest in try in g to build up the a ssocia tion .
I am in fa v o r o f tak in g som e a ction h ere at this m eetin g that
F o w ls A r e W in n e r s .
w ill m ake it a d irect o b je ct fo r every banker to belon g to the a s
“ F ro m this p o in t o f v ie w I a scerta in ed the annual p ro d u c
socia tion an d I believe w e w ill in that w a y double our m em
tion o f all the m ines in the larg est iro n -p ro d u cin g te rritory in
bership.
the U nited States, an d to m y aston ish m en t I fou n d th at the
F u t u r e is B r ig h t .
v alu e o f the entire annual p rod u ction o f all the iron m ines in
A s I stated at the outset, w e have abund an t cause to feel s a t
M innesota is less than the value o f the annual p rod u ct o f the
isfied w ith p resen t cond ition s, and I believe w e can see am ple
hens, the co m m o n barn yard fow l, o f the m agnificent agricu ltu ral
reason to felicita te ourselves over the ou tlook fo r the future.
state o f Iow a.
W h en w e stop to con sid er that only, th ir ty -s ix years a g o there
“ I f w e com p are the aggrega te b y the standard o f the num ber
w as n o state o f N ebrask a ; that this fine and fertile co m m o n
o f em ployes, the census o f 1900 sh ow s that ab ou t 6,000 p eople
w ealth w as m erely a n alm ost un inh abited territory ; that a little
w ere em ployed in the M innesota m ines, w h ile m ore than 186,000
over fo r ty years ag o the title to all this v a st tra n s-M issou ri
w ere em ployed on the fa rm s o f N ebraska a lon e; a n d that less
em pire w as ow n ed b y the r ov in g Indian; that th ir ty -s ix years
than 600,000 w ere em ployed in all the coal, iron, silver, gold and
ag o w e w ere a d m itted to the U nion o f states p ra ctica lly w ith ou t
all other m ines o f the U nited States, w h ile m ore than 10,400,000
agricu ltu re, w ith ou t banks, b a n k in g cap ital or d ep osits; that
w ere em ployed in agricu ltu re.
this rich G od -g iv en soil has enabled us sin ce the close of the
“ T he value o f the p rod u cts o f the fa rm s o f N ebraska in the
w ar o f the rebellion in 1865 to increase from a sp arsely settled
censu s year 1900 w as m ore than $162,000,000, w h ich is nearly
territory to an em pire of over a m illion people an nu ally p ro
three tim es the value o f su ch p rod u cts in the p reced in g census
d u cin g and equ itably d istribu tin g a m on g its p eople $250,000,000
year 1890.
w orth of food fo r the w orld. T o g row fro m seven little m eager
“ I have seen it stated in print, and I believe the statem en t
banks to ov er six hundred banks w ith a capital o f $18,000,000
is supported b y statistics that the annual p rod u cts o f the farm s
and from p ra ctica lly n oth in g in d eposits to $100,000,000— it is, I
of the single state o f Io w a ex ceed in value the annual prod ucts
say, w hen w e pause to con sid er fa cts like these th at w e m ay
of all the coal, iron, copper, silver and g old m ines o f the U nited
fa in tly realize som e slight m easure o f the splendid d estin y w h ich
States.
under P rov id en ce is held in store fo r us and our children and
“ T he ag g rega te value o f the p rod u cts o f all the fa rm s o f the
our ch ild ren ’s children.
cou n try in the census y e a r 1900 w as $4,739,118,000, an ag g rega te
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Saturday, October 17, 1903.
T H E C O M M ER C IA L W EST .
W E W IL L DISCOUNT
L U M B E R M A N ’S P A P E R .
W. B. McKEAND & CO.
C O M M E R C IA L P A P E R .
T H E R O O K E R Y , C H IC A G O .
Peoples Trust & Savings Bank
QARRETT E . LAM B,
President
CHAS. F . ALD EN, Vice-President
CHAS B. M ILLS,
- - Cashier
o f C L IN T O N , IO W A .
L IA B IL IT IE S :
C a p i t a l......................
S u r p lu s ......................
U n d iv id e d P r o fit s
D e p o s it s ............... ..
S t a t e m e n t o f S e p t e m b e r 9 th , 1 9 0 3 .
RESOURCES:
$300,000.00
130.000.
00L o a n s .............................................................................
35.000. 14 C ash a n d S ig h t E x c h a n g e ..................................
8,988,219.52
$4,453,219.66
W M. H. E G A N ,
President of the Jack son T rust and Savings Bank, Chicago.
N ew Banks and Changes.
Atwater, Minn., expects to organize another bank.
The Security State bank of Hanska, Minn., is in its new
building.
A new bank will be opened soon at Oldham, S. D., by
A. B. Maxam.
The Commercial and Savings bank of Monroe, Wis.,
has organized.
The State bank of Clinton, Minn., is about to move into
its new building.
The First National bank of Rugby, N. D., has increased
its capital to $50,000.
The Citizens’ State bank of Williston, N. D., will soon
move into its new building.
The McGowan National bank is a new bank to be
established at Plains, Mont.
The First National bank of Willow City, N. D., has
installed an electric burglar alarm.
F. B. Davis, of Mapleton, will succeed F. A. Kneeland
as cashier of the State bank of Walker, Minn.
The bank at Sunbury, la., has made a good record. It
has $15,000 capital and deposits of about $150,000.
The Security bank has been opened at Barlow, N. D.
A. J. Smith is president and A. E. Swanson, cashier.
The American Bank Protection Co. of Minneapolis has
installed its burglar alarm system in the Bank of Adams,
Adams, Minn.
J. W. Wheeler, Crookston, Minn., Edward Florance of
Humboldt, Minn., and N. J. Nelson will open a bank at
Humboldt next month.
John Clay, Jr., succeeds H. G. Hay as president of the
Stock Growers’ National bank of Cheyenne, Wyo. A
recent statement shows deposits of $1,108,000.
The following western banks were recently made U.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
$3,818,605.56
634,614.10
$4,453,219.66
S. depositories: The First National of Albert Lea, Minn.;
the First National and National Farmers’ of Owatonna,
Minn.; the First National of Forest City, la.
There is talk of a new bank at Edgerton, Wis. Ex
state Bank Examiner Kidd, Geo. Doty, Dr. W. H. McChesney, T. A. Clarke, Jno. McWhinney and others are
interested.
P.
M. Reagan will open a bank at Shell Lake, Wis.
Associated with him will be J. A. Reagan, president of the
First National bank, of Winnebago City, Minn.; B. A.
Ells, president of the Minnesota State bank, of Amboy,
Minn.
The following national banks have been authorized to
commence business: The Miners’ National bank of Eveleth, Minn., capital $25,000; the Jackson National bank of
Jackson, capital $30,000; the Commercial National bank of
Sturgis, S. D.
Charters are issued for following banks in Nebraska:
Dixon State bank; authorized capital, $25,000; $14,000 paid
up; incorporators: W. P. Truax, Ed. O’Flaherty, W. R.
Rice and R. F. DeLay. Bank of Commerce, Broken Bow;
authorized capital, $50,000; F. M. Rublee, S. B. Thomson,
C. E. Stevens.
A new bank will be started at Prentice, Wis. The in
corporators are K. Rosholt of Eau Claire, Dr. C. Middlefort, A. T. Galby and Thos. Tollefson. Mr. Rosholt is the
president of the State bank, of Fall Creek, and the Farm
ers’ and Merchants’ bank, of Chetek. Mr. Galby is cashier
of the Farmers’ and Merchants’ bank, of Chetek.
The bank at Le Sueur Center which has been owned
by L. Patterson and S. H. Whitney as a partnership, has
just been turned into a national bank with a charter as
provided by act of congress, and is to he known as the
First National bank of Le Sueur Center. The directors
are L. Patterson, president; W. H. Jaeger, of Le Sueur
Center, vice president; S. H. Whitney, of Le Sueur Center,
cashier; H. A. Patterson and E. L. Patterson.
T hrough to California W ithout Change of Cars.
The Minneapolis & St. Louis R. R. will operate two
weekly tourist car lines to California this season.
V ia
th e
“ S c e n ic
L in e . ”
The first car will leave St. Pijul, Thursday, Sept. 10th,
at 8:00 p. m., continuing each Thursday thereafter, and
will run via Omaha, Denver, “The Scenic Route,” through
Colorado, Ogden, Salt Lake City and Southern Pacific, ar
riving San Francisco 4:25 p. m. following Monday and
Los Angeles, 1:00 p. m. Tuesday.
V i a th e “ S a n t a F e R o u t e . ”
The second car will leave St. Paul, Wednesday, Oct.
21st, Train No. 2 at 9:00 a. m., continuing each Wednes
day thereafter, and will run via M. & St. L., Iowa Central,
Wabash to Kansas City; thence the popular Santa Fe Sys
tem through New Mexico and Arizona, arriving Los An
geles 8:00 a. m. following Sunday.
The rate for double lower berth, through to the Coast
is $6.00 from St. Paul and Minneapolis.
For full information as to rates and berth reservations,
apply to agents or address
A. B. CUTTS, G. P. & T. A., Minneapolis, Minn.
B A N K B U R G L A R Y IN SU R A N C E .
HOOD 4 PENNEY,
General Agents for the N orthwest of
THE OCEAN ACCIDENT AND GUARANTEE CORPORATION.
A ll „losses settled by us.
W e have never contested a bank b u rglary loss.
T H E C O M M E R C IA L W EST,
Saturday, October 17, 1903.
A CLEARING HOUSE CURRENCY.
Address delivered at N ebraska B an k e rs’ Convention, Oct. 13th, by Theodore Gilman, of N ew Y o rk .
T he resolu tion on cu rren cy re fo rm ad op ted b y the c o n v e n
tion o f bankers o f the state o f W ash in g ton , held at N ew
W h a tco m , on the 23rd, 24th and 25th o f July, o f this year, p re
sents a them e w h ich is w ell w o rth the con sid eration o f other
ba n kers’ con v en tion s th rou g h ou t the U nion.
It reads as fo llo w s: “ R esolved, that the W a sh in g to n State
B an k ers’ A sso cia tio n expresses its h ea rty endorsem ent o f the
efforts bein g m ade to am end our p resen t ba n k in g law s so as
to p rovid e a th orou g h ly scien tific system o f cu rren cy that w ill
p rove resp onsive to the requirem ents o f business, a u tom atica lly
expa n d in g an d co n tra ctin g a cco rd in g to the dem ands o f trade
and com m erce, and to that end w e fa v o r a clearin g house
em erg en cy circu la tio n .”
T h ose w h o a cce p t that resolu tion and approve its c o n c lu
sions, unite in sa y in g first that our b a n k in g law s need a m en d
m en t; second, that chan ges in the banking system o f our c o u n
try should be m ade on ly in C om form ity to the settled law s and
p rinciples w h ich the best a u th orities are agreed u p on ; third,
th a t the cu rre n cy sq p rovid ed should be resp on sive to the d e
m ands o f trade ap p earin g w h en business requires its aid and
disappearin g w h en its tem p orary w o rk is d one; and fou rth, that
these v ariou s desirable o b je cts can be atta in ed b y m eans o f a
clearin g hou se em erg en cy circulation .
C le a r in g
H ou se
C u rre n cy .
W e need first to ask, w h a t is a clearin g hou se em ergen cy
circu la tio n ? T he an sw er is that it is sim ply a cu rren cy that
is secured b y bank assets sp ecifica lly pledged to a clearing
hou se w h ich hold the pledged assets in tru st fo r the benefit o f
the holders o f the currency. It is a tru steed currency. It is a
cov ered in con tra d istin ction to an u n covered currency. A c o v
ered cu rre n cy is one th at is issued on securities th at have been
selected, appraised, approved an d handed over to a tru stee to
be held in tru st fo r the sole p urpose o f p ro v id in g fo r the p a y
m ent o f the cu rre n cy issued thereon. A n u n covered cu rren cy is
one that is issued b y the sam e p arty that, a cco rd in g to its
ow n u n restricted and un supervised ju d gm en t, selects, appraises,
ap p roves an d holds in its ow n cu sto d y the secu rities w h ich are
to p rovid e fo r the p ay m en t o f the notes issued.
T h a t is the great d istin ction m ade b y the W a sh in g ton r e s
olutions. It involves the affirm ation o f three p rin ciples, first,
that cu rren cy should be co v e re d b y specially p ledged security,
second, th at the se cu rity pledged shall be ap p roved ba n k assets,
third, that the tru stee to ap p raise and hold the se cu rity fo r the
benefit o f the p ublic shall be a clearin g house.
T h is prin cip le o f a secured cu rren cy, w h ich is really the
m ain qu estion n o w b e fo re the cou n try fo r a cce p ta n ce or r e
je ctio n , is n o new one.
It w as evolved fro m the cu rren cy
d ebates in E nglan d an d A m e rica during the d isorganized and
calam itou s tim es o f the first quarter o f the last century. D avid
R ica rd o w ritin g in th at tim e said in his tra ct on “ A n E c o n o m i
cal and S ecure C u rren cy,” “ W h a t o b je ctio n can there be
a g ain st requiring those w h o take upon them selves the office o f
fu rn ish in g the p ublic w ith a circu la tin g m edium , to deposit w ith
the govern m en t an ad equ ate se cu rity fo r the due p erform an ce
o f their e n g a ge m e n t?” “ W h a t is really w a n te d ,” said J. R.
M cC ulloch, w ritin g soon afte r R icardo, “ is n ot a regulation to
allow banks w ith large capitals to be set on fo o t, fo r there
have been at all tim es m an y su ch banks in E ngland, hut a
regulation to p reven t an y bank * * * fro m issu in g notes
w ith ou t p reviou sly g iv in g se cu rity fo r their p a y m e n t.” Soon
a fter these w arn in gs had been uttered, our co u n try transgressed
these principles.
T he p ra ctice o f issu ing u n covered cu rre n cy becam e un iversal
am on g banks in the U nited States, and tne p en alty fo r this
brok en law w as the catastrop h e o f 1837.
S hortly a fte r th at p an ic on the 18th o f A pril, 1838, the le g is
latu re o f N ew Y o rk p assed the first law p ro v id in g a tru stee fo r
the currency, and con g ress follow ed the exam ple in 1861 by
m ak in g the treasurer o f the U nited S tates the tru stee to hold
the gov ern m en t bon ds pledged as secu rity fo r the na tion al bank
notes.
T he issue w h ich is fa irly raised b y the W a sh in g to n resolu
tion is betw een a covered and an u n covered cu rre n cy ; betw een
a cu rren cy w ith or w ith ou t a trustee, o r in oth er w ords, b e
tw een the inflation w h ich resulted in 1837 and the sound m on ey
w h ich w e n ow enjoy.
It can n ot be su cce ssfu lly denied that an u n covered cu rren cy
is a form o f inflation, or that a secured cu rren cy is a form o f
sound m oney.
U n co ve red
C u rre n cy
A rg u m e n ts.
T h ose w h o a d v oca te an u n covered cu rre n cy have m an y a rg u
m ents w h y w e should try the experim en t again. Som e o f these
argum ents are trivial, som e sp eciou s, som e fallaciou s. One
rem arkable argum ent is th at the am oun t o f the u n covered notes
p roposed to be issued is sm all, and th erefore the dam age, if
any, w ou ld be sm all. A n o th e r is th at the co u n try has grow n
rich er and w iser sin ce 1837, and rem arkable tables are draw n
up to sh ow w ith b u co lic sim p licity th at if the losses in the fu
ture on u n covered cu rren cy p rove to be the sam e as th ey w ou ld
have been if the u n covered system had been w o rk in g during the
p ast 40 years, w h en the treasurer o f the U nited States acted as
tru stee and the failu res o f banks had been the sam e under
the u n covered system as th e y have been un der the national
cov ere d system , then it is triu m p h a n tly claim ed, no d oubt sa tis
fa cto r ily to those w h o w a n t to believe it, that the unsecured
notes w ou ld have proved to be as safe as those secu red b y
g ov ern m en t bonds. I f an y on e can a cce p t su ch an argum ent,
his m ental con d ition ough t to be inquired into. W is e R icard o
said, “ E x p erien ce sh ow s that neither a state n or a ba n k ever
had the u n restricted p ow er o f issu in g pap er m on ey w ith ou t
ab u sin g that p o w e r.”
It is n ot on ly the general prin ciple o f a cov ered cu rren cy
th at is approved b y the W a sh in g to n resolution, but a particular
ap p lication o f it. A clearin g house e m erg en cv circu la tion is
approved as the b est w a y to obtain “ a cu rren cy resp on siv e to
the requirem ents o f business, au tom atica lly expa n d in g an d c o n
tra ctin g a cco rd in g to the dem ands o f trade and co m m e rce .”
W e have th erefore to inquire w h at is the clearin g house
system , and h ow w ou ld it p rovid e a resp on sive cu rre n cy that
w ou ld expand an d c o n tra ct a cco rd in g to the dem ands o f trade.
The
New
Y o rk
M e th o d .
N early all the clearin g hou ses o f the co u n try are m odelled
on that o f N ew Y ork . Its rules and regulations in the issue of
clearin g house certificates are m ost ca re fu lly w orked out and
have been u n ifo rm ly su ccessfu l in operation. T he N ew Y ork
C learing H ou se has had a lo n g ex p erien ce in m an y panics.
It has inherited the m eth ods and cu stom s o f carefu l bankers,
not only in this co u n try bu t in E urope. T he origin o f its
p ra ctice in the issue o f clearin g house certificates can be
tra ced b a ck perhaps fo r 100 or 200 years. T here is n oth in g n ew
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
or un tried ab ou t this p ra ctice. M acau ley in his H isto r y o f
E ngland, says that m an y o f the b a n k in g cu stom s o f his d ay
origin ated w ith C harles M ontague, the astute C hancellor o f the
E x ch eq u er o f W illia m the T hird in 1696. A m o n g these cu stom s
w e m ay find the p rototyp e o f the clearin g hou se certificate in
the issue o f ex ch equ er bills w h ich M ontague origin ated to su p
p ort the trem blin g cred it o f the B an k o f E ngland. C learing
hou se certificates are n ow issued fo r a sim ilar purpose and have
m an y p oin ts o f sim ilarity to M on tagu e’ s ex ch equ er bills.
T he operation s o f the N ew Y ork C learing H ou se have been
so con serv a tive and su ccessfu l that they m ay w ell be taken as a
m odel. T he proposal in the W a sh in g ton resolu tion is sim ply to
take this m odel and ap p ly it to the w h ole coun try, and t'o
chan ge the certificates into a cu rren cy to be used b y banks
to m eet the dem ands of trade and com m erce. T hu s the ben efit
N ew Y ork has received from its clearin g house certificates w ill
be shared in by all the coun try.
It
W o u ld
Be
R e s p o n s iv e .
T h e resolu tion claim s that a clearin g hou se cu rren cy w ou ld
be resp on sive to the dem ands o f business; T his is the g reat
d esideratum in an y currency. I t is eviden t th at cu rren cy is
su ed on g ov ern m en t bon ds is la ck in g in this im porta n t p a rticu
lar. I f a n a tion al bank in L in coln takes out currency, it buys
bonds in N ew Y ork, receiv es the cu rren cy fro m W a sh in g ton and
lends to cu stom ers the sam e am oun t it w ou ld have lent if it had
n ot bou ght the bon ds or taken out the currency. T he sam e
result is reached if a bank in L in coln is m ade a d e p ository of
g ov ern m en t m oney. T he bank bu ys bonds in N ew Y ork and
w ith the govern m en t m on ey pays fo r the bonds. In b oth cases
there is a slight d im in ution o f loan able fu nds caused b y the
lock in g up of m on ey in the m argin or ex cess o f c o st o f the
bon ds ov er the am oun t o f cu rren cy or gov ern m en t m on ey r e
ceived thereon. T he seller o f the g ov ern m en t bon ds is the one
w h o receiv es the new cash and has it to lend, and n o t the
banks. T he seller is usually a savin gs bank or som e tru st
w h ich is restricted in its investm ents. T he proceed s o f the
bonds can n ot be used in com m ercia l business, and th erefore
su ch m on ey is n ot resp onsive to com m erce and trade in its in
ception. It is eviden t that if the bon ds ad van ce con sid erably
in price, then the bank in L in coln w ou ld sell them in N ew
Y ork and p a y the proceed s ov er to the U nited S tates trea su ry
to retire its cu rren cy or retu rn the govern m en t deposit. T he
redem p tion o f cu rren cy or the retu rn o f govern m en t deposits
th erefore has n oth in g to do w ith com m erce and trade. T hese
op eration s are sim p ly perquisites to the bank, and are o r d i
n a rily a sou rce o f a sm all profit. It also look s w ell in an a d
v ertisem en t or bank statem en t to be a g ov ern m en t d epository.
B u t as to an y benefit to a cu stom er in L in coln from these
operation s, there is none. T he secreta ry o f the trea su ry m igh t
d eposit $200,000 w ith banks in L in coln , but the business of
L in coln or the su rroun din g cou n try w ou ld n ot be benefited
th ereby to a n y ap p reciab le exten t, and perhaps it m igh t be
curtailed.
T he W a sh in g ton resolution a p p roves a clearin g house c u r
ren cy becau se unlike a bon d secured cu rren cy it is resp on sive
to the requirem ents o f business. T he reason is easy to see, fo r
under the clearin g hou se system , cu rren cy m a y be obtain ed
on an y o f the ap p roved assets o f the bank. T h e bank w ould,
therefore, lim it its use o f m on ey to th ose assets w h ich it knew
beforeh an d w ou ld be accep ted at the clearin g house.
T hese
assets are p rescribed and lim ited fo r nation al banks in the
N a tion a l-B a n k act. If a bank carried its full requirem ent o f
legal reserve, and held beside a line o f assets w h ich w ou ld be
accep ta b le at clearin g house, it w ou ld be in an im pregnable
p osition . T he legal reserve w ou ld be sufficient fo r all ordin ary
needs, and the bank a ssets w ou ld be a secon d line o f reserves
w h ich m igh t be used in an y em ergen cy.
C learing house cu rren cy w ou ld th erefore be taken out only
w h en business dem anded its issue, and thus be in tim a tely c o n
nected w ith business. It could hard ly be taken ou t as a m oney
m ak in g tra n saction d isassociated fr o m business. It w ou ld be
retired w h en the bu siness w h ich called it into bein g w as ended.
H ow
It W o u ld
W o rk .
T he op era tion o f the clearin g house system m ay be e x
plained b y ta k in g the na tion al banks o f the states o f N ebrask a
as an exam ple. B y the report o f the com p troller o f the c u r
ren cy fo r S ep tem ber 25th, 1902, the nu m ber of nation al banks
in the state is g iv en as 124, their cap ital then w as $10,088,300,
and their d eposits in round num bers $41,000,000. T he law fu l
m on ey reserve on that date w as $4,649,000, or a b ou t 11.2 per
cen t o f deposits. T he deposit reserves w ere $10,217,000 or 24.9
per cen t o f deposits. T he deposit reserves, on w h ich a low rate
o f in terest is received, are su b ject to the v icissitu d es o f the
m on ey m arket, and m igh t ag ain be lock ed up as th ey w ere in
1893. T h ey are ov er tw ice as large as the cash reserves, and if
the con tin g en cy o f 1893 should o ccu r again , the banks o f N e
brask a w ou ld have to g et alon g w ith on ly 11.2 p er cen t reserves.
T his w ou ld p rob ably result in serious inconven iences and great
d em oralization of business. It th erefore becom es o f the utm ost
im porta n ce to p rovid e a secon d reserve w h ich w ou ld be a b
solu tely reliable and under the con trol o f the banks o f N eb ra s
ka, so that they w ou ld be independent of all outside troubles
and be able to take care o f them selves un der any and all c ir
cum stances. T his ad d itional reserve the clearin g house system
w ou ld provide. I f the state clearin g hou se o f N ebraska w as
au th orized b y a ch arter g iven under an a c t o f congress, to
issue to a n y o f ' the banks o f the state w h o w ere its m em bers
a clearin g house cu rren cy to the par o f its capital on pledge of
a p p roved ba n k assets, that w ould p rov id e in case o f need an
additional reserve o f 24.6 per cent o f deposits, m ak in g a total
reserve in case o f need o f 60.7 per cen t o f deposits. A s the
reserve banks of C hicago and N ew Y o rk and elsew h ere w ould
have the sam e pow er, it is eviden t that the d enosit reserves in
th ose cities w ou ld be available at all tim es and could n ot be
locked up as in 1893.
B y the help o f the clearin g hou se an y N ebrask a ba n k could
p ay off on an a v era g e 25 per cen t o f its d ep osits w ith ou t calling
a loan or distu rb in g a single b orrow er, and at the end have
their la w fu l m on ey an d d eposit reserves untouched, w h ich w ou ld
then be 50 per cent o f the redu ced am ou n t o f the deposits.
A n y experien ced hanker can see th at su ch a con d ition w ou ld
be one o f entire ease and safety , and that all fea r o f m on etary
strin g en cy in the state o f N ebrask a w ou ld b y this system be
fo re v e r rem ov ed fo r the reason that a clearin g hou se cu rren cy
stands read y to respond to the calls o f business a t an y and all
tim es.
It w ou ld be w h at is called an elastic currency. T here are
som e m isapprehen sions regardin g the s u b je ct o f elasticity w h ich
w e should try to rem ove. It is eviden t that e la sticity is p ro
duced b y the la st cu rren cy th at is called in to existence. A ll
the ordin ary requirem ents o f a ba n k are m et b y its law fu l
m on ey and d eposit reserves. It is o n ly w h en som eth in g m ore
T H E C O M M E R C IA L W EST .
Saturday, October 17, 1903.
19
The First National Bank of Minneapolis
U N IT E D S T A T E S D E P O SIT O R Y .
C a p i t a l , ........................................
Surplus and Undivided Profits,
$ 2 ,0 0 0 ,0 0 0
1 ,2 5 0 ,0 0 0
O F F IC E R S :
J. B. Gilfillan, President.
F. M. Prince, Vice-Pres.
C. T. Jaffray, Cashier.
D. Mackerchar, Asst. Cashier.
Ernest C. Brown, Asst. Cashier.
is w anted, that e la sticity is required. T h ese last w an ts under
norm al circu m sta n ces are alw ays sm all com p ared w ith the total
tra n saction s o f a bank. A fe w per cent o f increase o f cu rren cy
w ou ld m ove all the. crop s o f N ebraska. A n elastic appliance
alw a ys bears bu t a sm all p rop ortion to the m ass o f the b od y to
w h ich it is applied. T he sprin gs on w h ich a lo co m o tiv e rests
bea r bu t a sm all ratio to either the size or the w e ig h t o f the
locom otiv e . A bu ffer p la tform on a P ullm an car yields but a
few inches, an d y e t b y that sm all am ou n t o f elasticity, the
train starts and stops alm ost im perceptibly. So w ith a rubber
tire on a w h eel and w ith the springs o f a carriage, and w ith an
elastic su bstan ce w h en ev er used to prod uce elasticity. Sir
F ra n cis B aring, w ritin g in 1796, in d escribin g the issue o f e x
ch equ er bills b y a parliam en ta ry com m ission in 1793, to relieve
the p a n ic o f that year in L ond on, said that the am oun t o f the
issue w as no m ore than a “ drop o f o il” w hen com p ared w ith
the enorm ous tra n saction s in the co m m e rce o f E ngland. T he
w eig h t o f the oil used in lu b rica tin g an engine bears bu t a
sm ah p ercen ta g e to the w e ig h t o f the engine, and yet it is
sufficient to m ake the m a ch in ery m ove freely an d w ith ou t fr ic
tion. T ak e a w a y th ose fe w drops o f oil and the engine w ould
soon tear itse lf to pieces. So w ith our currency. T he fe w m il
lions o f clearin g hou se cu rren cy w h ich w ou ld be issued to m ove
the_ crop s w h en com p ared to the thousands o f m illions o f m on ey
w h ich pass through our clearin g houses, appear on ly like the
w eig h t o f the oil in com p arison w ith the w e ig h t o f the lo c o m o
tive.
A n oth e r p oin t is to be noticed, w h ich is that e la sticity is an
a d ju n ct o f rigid ity. A P ullm an car and a lo co m o tiv e engine
are m odels o f rigid con stru ction , y e t they ride easily b y m eans
o f a sm all ad d ition o f elastic springs. So ou r cu rre n cy is
based on gold, and is u n v aryin g in value. E v e ry d ollar a u th or
ized b y con g ress to_ circu la te as m o n e y is as g o o d as every
oth er dollar. T here is absolute rigid ity in the value o f the d o l
lar. T he clea rin g hou se cu rre n cy w ill n ot debase th at value,
fo r ev ery dollar so issued is secu red b y gold values a t 75 per
cen t o f the appraisem en t. E la sticity is th ereb y obtain ed w it h
out inflation and w ith ou t d ebasem ent.
It m u st be a cce p te d as p roved b y this lo n g d iscu ssion that
the W a sh in g to n resolu tion is righ t in claim in g that a clearing
house cu rre n cy w ou ld be resp on sive to the dem ands o f trade.
The
S y s te m
in
F ra n ce .
T h e p roof, h ow ever, does n o t re st on a d iscu ssion o f a su pposable case, but on fa cts. T he problem has been w ork ed out
b y the banks o f F ra n ce, and all that is claim ed fo r this system
m our cou n try has been experien ced in F ra n ce fo r m an y years
b y a sim ilar system . T he prin ciple is the sam e in both cases,
as is sh ow n w h en the p ercen tag es o f the banks o f N ebraska
and those o f a large F ren ch bank are p laced side b y side. A
recen t report o f the C redit L yon n ais, fo r exam ple, sh ow s cash
on hand to be 10.29 per cen t o f deposits, as again st 11.2 per
cen t held b y N ebrask a banks. T he call loans o f the C redit
L y on n a is w ere 8.57 p er cent, w hile th e d eposit reserves o f the
N ebrask a banks, w h ich corresp on d to call loans, w ere 24.9 per
cent. T h is large d ifferen ce in fa v o r o f the e co n o m y o f the
t r e n c h sy stem and a g ain st our nation al svstem , as will appear
presentty is m ore than balanced b y the bills receiv ab le held b y
the C redit L yon n a is, w h ich th ey ad vertise are “ im m ed iately
d iscou n table at the B an k o f F ra n ce ” w h ich am ou n t to 51 27 per
cen t o f deposits. T he corresp on d in g item w ith the N ebraska
banks un der the clearin g hou se system , w ou ld be the 24 6 per
cen t o f clearin g house cu rren cy w h ich th ey could obtain in case
o f need.
T he total reserve o f the C redit L yonnais is th erefore
Call loans_ ........................... ........ ....................................... 8.57 p er cent.
B ll»s receiv ab le
im m ed iately d iscou n table a t
th e B an k o f F ra n ce ” .................................................. 51.27 p er cent.
° rA.
_o f 70.13 p er cent o f d eposits im m ed iately available!
i h e total reserve o f N ebrask a banks under the clearin g house
system w ou ld be:
T w i L - 1 ........................................................................................ ..... per cent.
D ep osit reserves ..................................................
24 9 per cent
C u rren cy w h ich m igh t be„ had from clearin g
hou se on ap p roved security, to the part o f the
cap ital o f N ebraska b a n k s ..........................................24.6 per cent.
M ak in g a total reserve o f ...........................................60.7 p er cent.
K J s v T L ennident the 9 redit L yon n a is carries su ch a sm all cash
reserve o f 10.29 p er cen t o f deposits, and still sm aller line o f
call loans, 8.57 p er cen t o f deposits, becau se it has the right
to call on the B an k o f F ra n ce to discou nt fo r it in case o f need
P er ceni o f d eposits. T h a t reliance is so sure that
the C redit L yon n a is is p e rfe ctly safe in sw in gin g- their large
d eposit line o f $248 000,000, w ith on ly 10.29 per cent o f a c t u ll
cash in hand and 8.59 per ce n t o f call loans. In like m anner
^ k r a a k a banks w ou ld be p e rfe ctly safe w ith their present
reserves, if th e y could lo o k to the clearin g h ou se fo r 25 per
ifi ®lea rm ^ h ° u se cu rren cy in case o f need, in addition to
them 11.2 p er ce n t o f cash an d 24.9 per cent o f d eposit reserves.
s7 sA -rtif JTe u recisely parallel, and a clea rin g house
aa VvT’ - ¿ L p ta^h SLed Wlth Hs w ou ld be equ ally safe and solid
as the B an k o f F rance, and our co u n try "would be p rotected
th ereb y a ^ m s t p anics and m on eta ry d istu rbances as com p letely
as is the F ren ch nation w h ere m on ey panics are unknow n.
u ° 1Vt t0
n Jt.i(^ed in these system s is their
+-T he bank assets w h ich m ay be turned into m on ey
a t sh ort n o tice and w h ich con stitu te a reserve o f 25 or 50 per
cent, are d ra w in g interest in fa v o r o f the bank. T h e y m ay be
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
com p ared to a m ilitia, com p osed o f m en engaged in daily rem V,n ^rative I°h> bu t ready at a m om en t’s n otice to respond to a
call fo r a ctiv e serv ice. Our present system m ay be com pared
to the w astefu l and expen sive m eth od of m ain tain in g a large
stan d in g arm y in tim e o f peace. T he clearin g house system
keeps n o larg er sta n d in g arm y o f u n prod u ctiv e cash than is
n ecessa ry to m eet foreig n dem ands. A large sav in g m igh t be
effected b y redu cin g h ea v y u n prod u ctiv e balances.
T he C redit L y on n a is carries 8.57 per cen t o f its deposits in
call loans. T he banks o f N ebrask a ca rry 24.9 per cen t of their
deposits m d eposit reserves, or over $10,000,'000 on w h ich th ey
receiv e about 2_ per cen t interest. It w ou ld n ot be n ecessa ry
under the clearin g house system to ca rry so large a p ercen tage
oi d ep osit reserves.^ E xp erien ce w ould sh ow h ow m uch o f these
•lvTces now earnin g 2 per cen t could be sa fely and pru den tly
w ith d ra w n and loaned at hom e on g ood com m ercia l paper at the
better rates w h ich prevail fo r m on ey in N ebraska. T hree
g ood results w ou ld be obtain ed b y this redu ction of deposit reseryes. F irst, the banks o f N eb ra sk a w ou ld get a b etter rate
ot interest on from fo u r to seven millions, o f dollars; second,
hom e enterprise w ou ld be fostered b y these additional bank
a ccom m od a tion s, and third, there w ou ld be less m on ey sen t to
reserve centers fo r stock op era tors to gam ble with. F or there
is little d ou b t but that m uch o f d eposit reserves are lent on
stock s on accou n t o f their con vertibility. T he w h ole tend ency
ot the clea rin g hou se system w ou ld be to foster legitim ate b u si
ness and to p lace restriction s upon speculation. W h a t w ou ld be
true m N ebraska w ou ld be true in ev ery state in the Union.
t h e system w ou ld also raise the ch aracter o f bank assets
as a class. T h e y w ou ld be govern ed b y a n ew and b etter rule
than prevails at present. E x am in ation s b y bank exam iners
are inost valuable, but th ey are n ot like the ex am in ation o f a
A,eallms= hou/ e loan com m ittee. T he bank ex am in er sees that
the term s o f the law are com p lied with, but a loan com m ittee
w ou ld pass on the g oodn ess o f collateral offered. T h at w ou ld
be a fa r m ore efficient ch eck on u n safe ba n k in g than com es
from the v isits o f a bank exam iner. A ll the business o f the
A ° uId
i^ e beneficial influence o f the su pervision,
con su lta tion and _ m utual su pport w h ich w ou ld be gained b v
g iv in g our clearin g hou ses a legal stan d in g in our ba n kin g
10m •
An
E m e rg e n cy
C u rre n c y .
T his cu rren cy is called an “ e m erg en cy ” currency. T hat
w ord requires som e explanation, and perhaps the best is that
A 1S
£m e« ? e,n cy , cu rren cy to w ard o ff a catastrophe. It is
ha n d fu ! o f m ud w h ich m ay stop a break in a levee
or dyke. If the m ud is n ot at hand fo r the em erg en cy the
break m ay soon develop into a catastrophe. A n em erg en cy m igh t
9Le b a nk. or one city, or one section , and not exist
o A ? A ^ ere'- ,Conf effuently p rov ision again st an em erg en cy m ust
T>La5u 1r W ^ ,w n o
rendy fo r call at all tim es and in a ll'p la ces.
as L Ihe need o f the issues m u st rest on the
in saTer ha n d s’’ and n ° w h ere else can that resp on sibility be
• 3 ® h^ve been con sid erin g thus fa r the resp on siven ess o f
T b p L ^ a J^?UiS-e cu rren cy to the dem ands o f com m erce and trade.
T he redem ntion and retirem en t o f the cu rren cy is eau allv im tT h -re is A 10 ela sticity w ith ou t recoil' or rebound. It
is easier to issue than to redeem . C onsequen tly nrovisions fo r
reclem ption should be m ost ca refu lly p rescribed
T he N ew Y ork
I’ e u r ^ a l o ^ e flnd that the possession o f a m $ e c o T l a t S S
give sufficient m otiv e fo r the sp eedy retirem ent o f clearing
house loans. T he rate o f interest a c t s 'lik e a tax on circulation^
tiite
of- the clearin g house to c on stiguarantPP n f t ? b P
* the clearin g house again st loss on its
guarantee o f the currency. T his charge o f in terest m igh t be
e r ^ th a ?
° f- V1® C0Unti 7 f,han in m o th e r. It is f m a tT t h . p rop riety m ay be left to the d iscretion o f the
C f 1L i
,C,learAn s houses. I f th ey con trol the interest th ey can
ontrol also the p aym en t o f the loans. A n oth er p rov ision to
beClh
reldrehvmpbA0n
im i^htg house,
a flvefoVer
redem
tion
to
be held
b y the clearin
llow cent
in g the
m peth
od fund
o f the
ov^vn?<?ai ® anh A ct. In addition, the clearin g hou se com m ittees
it
eln Psu
A Wer
loans
them
. erican
A lso,
it has
has h
been
ggested b y inan the
ex -p
resid m
enade
t o fb ythe
Am
B a n k ers’ A ssocia tion that the secreta ry o f the trea su ry should
have p ow er to dem and the redem p tion o f p articu la r issues b v
sep arate banks or clearin g houses, if in his ju d gm en t lu c h ac
I.10" w as reauired to restore ela sticity to the currency. Joint
liability o f the m em bers o f a clearin g house fo r losses on an v
cu rren cy issued b y them , is an invariable rule a m on g clearin g
houses, and w ould be a p oten t influence to secure sa fe ty and
com pel redem ption s. T he natural m eth od o f redem ption is the
presentation o f cu rren cy fo r paym en t w hen it has done it«
w ork. This natural m eth od w ou ld n o d ou bt be sufficient w ith
the m a jo r ity o f issues, and com n u lsory action b y the clearing
house w ou ld on ly take p lace w ith a fe w special cases
T he
com m ittees o f a clearin g house m a y be relied on to deal w isely
and effectiv ely m all su ch instances.
w isely
, H 1153 discu ssion sh ow s the grounds fo r the opinion that a
clearin g hou se cu rren cy w ou ld be resp onsive to the dem ands
o f trade,
and w ou ld au tom atica lly expand and con tra ct
a ccord in g to those requirem ents.
con tra ct,
T J - oJfH w ^ h oase hi]1 introdu ced in the last session o f the
?^ n a I„e aad R o u s e does fo r banks w h at the N ation al B an k A ct
d°®s fo r individuals. It is intended to sh ow that banks m ay be
organized into clearin g houses as read ily as individual p e rl t 1S.g en era lly conceded th at it is a w ork able
®laa u d the, cu rro n cy issued un der it w ou ld he sound and good
he p h raseolog y is m ostly taken from ex istin g b a n k in g laws!
T H E C O M M ER C IA L W EST .
20
17, I9 °3 -
D IR E C T O R S :
D IR E C T O R S :
A. C. A n d e r s o n .
C h a s . W. A m e s .
E. H. B a il e y , President.
C. H. B ig e l o w .
K e n n e t h Cl a r k .
H a y d n S. C o l e , V .-P. & Counsel
W. B . D e a n .
R o b e r t R . D u n n , V . Pres.
F r e d e r ic A. F o g g .
THIS
Saturday, October
COMPANY
Northwestern Trust Company
T h o s . I r v in e .
F r a n k B. K e l l o g g .
Ja m e s W . L u s k .
A. E . M a c a r t n e y .
A lbert L. Or d e a n .
G e o . C. P o w e r .
E d w a r d N. S a u n d e r s .
R . E .S h eph erd.
J . H. S k in n e r .
T h e o . L . S c h u r m e ie r .
------------------------------------ ACTS AS-------------------------------------
Trustee, Registrar, Transfer Agent. Fiscal Agent, Executor,
Administrator, Receiver, Assignee, Guardian, Etc.
Assumes General Charge and Management of R eal and Personal E states.
DOES
NOT
RECEIVE
DEPO SITS
fo llow in g chiefly the N ational B an k A ct. T he plan o f o rg a n iza
tion is sim ilar to that o f the N ew Y o rk C learing H ouse.
It has been o b je cte d that it is not sim ple enough, but it
m u st be rem em bered that all sp ecification s are apparently
p rolix, bu t if an interpretation o f a single phrase or sen ten ce
is necessitated, then the criticism is usually that the e x
pressions w ere n ot full enough. It m ay be claim ed in fa v or of
the bill that it is sh ort and sim ple w hen com p ared w ith the
N ational B an k A ct, or other financial legislation.
In this stage o f the d iscu ssion no particular plan can be
adopted. D etails should be le ft fo r the future. W h a t is needed
is the affirm ation o f the p rin ciple op posin g inflation, and fa v o r
ing sound m on ey and the clearin g house system . T h at step
can n ot be taken to o soon.
W h y should an yone w ish fo r d elay in d ecid in g this broad
qu estion unless they m ay have lin gerin g hopes that som e other
OR
DO
A
BANKING
BU SIN ESS
system w h ich they prefer m ay be ad op ted ? Is n ot bran ch
b a n k in g dead beyon d the hope o f resu rrection ? N ow is the
tim e to d ecid e betw een a covered an d an u n covered currency,
betw een inflation and sound m oney. N ow is the tim e to end
this th irty year w ar again st inflation. A re w e not ready fo r
the qu estion ? W ill the cou n try ever be b etter prepared to
v ote on that qu estion than it is n o w ? “ D o it n o w ,” is a good
bu siness m otto. There is n o ad vantage an d there are m any
risks in delay. Som e p olitician s say w e m ust w a it until after
this or that election . B u t can a p olitician have a better reason
fo r r e -election than that he has done his d u ty and has d ecided
b y his v o te a m om en tou s question rightly, fo r the benefit of
the w h ole people and n ot fo r a class, and fo r the benefit o f his
constitu ents equally w ith those o f an y other districts.
T here is no m otto better ap plicable to the nresent situation
than the business m otto I have ju st quoted, “ D o it n o w .”
COUNTRY BANKS AND COMMERCIAL PAPER.
Paper by C. F . Bentley, Cashier F irst N ational Bank of Grand Island, Neb., read before the N eb raska B ankers, Oct. 14.
C apital has been defined as the sto re d -u p p rod u ct o f labor
w h ich m ay be used fo r fu rth er production.
If a y ou n g m an could not built a house until he had a c
cum ulated the last penny o f its cost, fe w e r houses w ould be
built. I f n o railroad could be con stru cted until its p ro jectors
had a ccu m u lated the last penny of the n ecessa ry funds, we
m igh t tod a y be u sin g the “ p ony ex p re ss” to cross the plains of
N ebraska.
B ut the industrious y ou n g m an o f sm all m eans
is tau gh t to build his hom e w ith borrow ed m oney— m oney
that has been earned and saved b y others— and then gradually
to repay the loan. T he railroad com p an v reaches out to the
ends o f the earth fo r the a ccu m u lation s o f cap ital w ith w h ich
to built its road ; and thus hom es and railroads are bu ilt; and
thus the great enterprises o f the day are m ade possible by
use o f credit.
A rem arkable th in g is the m obility o f credit. A t a m inim um
of expense and in the tw in k lin g o f an eye, the fu nds that
stood b y y ou r frien d ’ s cred it in San F ra n cisco, m ay be at your
disposal in N ew Y ork. T he savin gs o f the east are loaned on
the secu rity o f fa rm s in the w est, until the tide turns, and the
w estern fa rm er begins to p ay off his m ortgages.
Then the
eastern m erch a n t and m an u factu rer m ay turn to the w est foi
loans.
S om etim es it is the south that clam ors fo r credit,—
som etim es the w est.
S om etim es it is R ussia, then Germ any,
and again it is E ngland, in w h ich the dem and fo r loanable
funds is the keenest.
B u t w hile the p oten tial m obility o f cred it is g reat— that_ is,
w hile credits m ay be tra n sferred from p lace to place, at a m in i
m um o f tim e and expense, there are p ra ctical difficulties in the
w a y o f exten din g cred it to persons liv in g and engaged in b u si
ness at a dista n ce from the lender.
C onfining ourselves to the con sid eration o f the class of
cred its dealt in b y banks, and b egin n in g w ith an exam ination
o f the m eth ods ad op ted b y banks in d ecid in g upon th e d esir
a b ility o f m ak in g ad v an ces to their local custom ers, w e find
the cou n try banker continually storin g up fa cts to u ch in g the
stand ing o f his local cu stom ers,— tou ch in g their w orth iness to
receiv e cred it.— tou ch in g the sa fe ty w ith w h ich a d v a n ces can
be m ade to them .
T he p rocess o f sto rin g up these fa cts is
som etim es alm ost un con sciou s, and at other v ery deliberate,—
som etim es seem ingly p assive, at others, v ery active.
N o one has greater fa cilitie s fo r learn in g the value of his
cu stom er’ s real estate,— the am oun t fo r w h ich it is incum bered,
— the value o f his sto ck o f g o o d s,— the m ann er in w h ich he
m eets his o blig ation s,— his skill in bu siness,— his m oral ch a r
acteristics, than has the cou n try banker. P ro x im ity g ives the
banker a van tag e ground that n o one else occu pies.
The
B a s is o f C r e d it.
It requires, assuredly, good sound ju d gm en t to d ecide w ho
is w orth y o f credit, and w h o is not, and to p lace a prudent
lim it upon the am ou n t o f cred it to be exten ded to those w ho
are w orth y. B ut the best ju d gm e n t o f the brig h test intellect
is of no value here, unless based upon fa cts, and fo r this
purpose, a little k n ow ledge is som etim es a d angerous thing.
If the a p p lican t fo r cred it has secret liabilities w h ich do not
appear o f record, the m ost carefu l valu a tion o f his assets w ill
n ot lead you to a co rre ct d ecision as to his w orth in ess o f credit.
Y ou need the fa cts, the v ery b ottom fa cts, and all these fa cts in
full detail, if y ou r ju d gm ent, as to a cu sto m e r’s cred it stand ing
is to be tru stw orthy.
W ith all the advantages o f p roxim ity, this intim ate k n o w l
edge o f a m an ’s ch aracter and ab ility and financial stren gth is
difficult to obtain. M any a m an k n ow s but little o f the fin an
cial affairs o f his next door neighbor. T he local banker, h o w
ever. has fa r better op portunities fo r k n o w in g than the nearest
n eigh bor; it is his d u ty and his business to know . It g e n e r
ally happens, then that cred it can be exten ded through a cred it
institution like a bank, m uch m ore efficiently than d irectly b e
tw een individu als; an d becau se o f th eir su perior efficiency,
institutions sprin g up that like the cou n try bank, serve as cred it
interm ediaries, re ceiv in g the m on ey o f one person, on ly to lend
it to another, thus re ceiv in g and lend ing m on ey that never
w ou ld be used, but fo r their in terven tion T he w ork o f the cou n try ba n ker as a cred it interm ed iary
is no slight one— it requires p ain stak in g effort to enable him to
extend his cred it safely, even am on g the m em bers o f the c o m
m unity in w h ich he is located. T h is bein g true, h ow w ill the
banker succeed, in case he attem p ts to m ake loan s aw a y from
h om e? S upposing that he has been su ccessfu l in m a k in g loans
to the grain dealers in his ow n tow n, len d in g to those w ho
w ere sound, and refu sin g to lend to those w h o w ere unsound,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
shall he now attem p t to lend to the grain dealer at the cou n ty
seat to the ea st? Or to the g rocer and the hardw are m an and
the d ry g ood s m an a t the cou n ty seat to the w e st? P erh aps he
has a n abundan ce o f funds, and perhaps m on ey is sca rce in
coun ties to the east and the w est. I think you w ill sa y at
on ce that he had better let the bankers in the n eigh borin g
tow n s m ake the loans there. Y ou will argue that he lacks that
intim ate know ledge o f the grain dealer and the dry g ood s m an
and the g rocer and the hardw are m an in the n eig h borin g tow n,
that he has acqu ired in regard to the business m en of his ow n
tow n, and that, fo r this reason, he ca n n ot deal w ith the b u si
ness m en o f the n eig h borin g tow n s as sa fely as he can w ith the
sam e class o f m en at hom e. A nd you w ill be righ t w hen you
say this.
T he p ra ctice that the cou n try bankers have of k eep in g
reserve and ex ch an ge balances in the banks in the larger cities,
results in an a ccu m u lation of funds in these cities available fo r
use in the su rroun din g territory that tends to b rin g about an
equilibrium betw een su pply and d e m a rd in the differen t parts
o f the coun try.
B u t there are certain cu stom s w h ich seem
v ery firm ly rooted, that p reven t the banks in reserve cities
from p rov in g as efficient agen cies as th ey m igh t oth erw ise be
in secu rin g and m ain tain in g su ch an equilibrium . One of these
is the cu stom o f the banks in reserve cities o f m ain tain in g the
rate o f interest on bank balances rigid ly at a fixed figure.
T he qu estion o f su pply and dem and does not seem to enter into
the qu estion of w h at this rate should be; it is the sam e w hen
call m on ey in N ew Y ork is w orth 1 per cen t per annum , as if
it w ere w orth 1 per cent per d iem ; it is the sam e w hen large
unused surplus reserves are th reaten in g to curtail dividends,
as w hen it requires a hard stru ggle to m aintain the legal r e
serve. T his rate of interest bein g p ra ctica lly u n iform and in
flexible, exerts no influence in a ttra ctin g fu nds to the loca lity
w here they are needed, or in repellin g them w h ere they are
redundant.
R e d is c o u n t in g .
T he un popu larity that atta ch es to the p ra ctice o f r e -d is
cou n tin g bank paper, is an obstacle in the w a y of equilibrium
betw een supply and dem and. T he fa ct that banks v erg in g on
in solv en cy have often had resort to rediscou n ts to p rolon g a
useless existence, has brough t the rediscou n t a ccou n t into
d isfa v or; but if it w ere cu stom a ry fo r g ood banks, w ith ou t
attem p tin g or p erm ittin g undue expansion, to m ake an effort
to su pply the legitim ate cred it w an ts o f their com m u n ity by
offerin g paper, w ith the b a n k ’ s endorsem ent, fo r sale in lo c a l
ities w here loanable fu nds w ere abundant, such a cu stom w ou ld
have a v ery stron g tendency, it w ou ld seem , to assist in
b rin gin g about an equilibrium betw een su pp ly and dem and,
throughou t the entire coun try. I am n ot urging, here, that it
is the duty o f banks to attem p t to supply the w an ts of their
cu stom ers b y red iscou n tin g paper. I am sim ply n otin g the
fa ct that this m eth od o f crea tin g and m ain tain in g an eq u ilib
rium betw een supply and dem and is n ot used to an y su ch e x
tent as to m ake it a recog n ized fa cto r in a d ju stin g the supply
and dem and for loanable funds.
C a t t le
P a p e r.
A m on g institutions fo r secu rin g the actu al m obility o f lo a n
able funds, the cattle loan com p an y is w orth y o f note. T he
p aper handled b y these com pan ies is, th eoretically, v ery nearly
the high est type of com m ercia l paper. It represen ts co m m o d i
ties in the process o f p reparation fo r the con su m er,— c o m
m odities destined to be consu m ed at an early date, and thus
destin ed to be con v erted into cash w h ich will be available fo r
the p aym en t of the paper. It is secured b y the pledge o f the
com m od ities them selves. T he c a ttle -fe e d in g industry is one
that, under ex istin g circu m stan ces, leg itim a tely dem ands the
use of cred it to a d egree that in m o st localities w here it flou r
ishes, is largely in ex cess o f the a b ility o f the local banks to
supply. T he paper is n ot m erely selected, it is endorsed b y
the loan com p an y that negotiates it— a featu re th at d istin
guishes it from m ost o f the com m ercia l paper that is offered
to the cou n try banker. In the m a jo rity o f cases, full detailed
and reliable in form ation con cern in g the cattle paper can be
procu red from disinterested sou rces. W h ere the loan com p an y
has an ad equ ate capital, and is under con serv a tive m an a ge
m ent, it w ou ld seem as if this institution obviates, th eoretically
at least, the difficulties that con fron t the cou n try bank w hen it
attem pts to invest its fu nds aw a y from hom e, b y offerin g the
en d orsem en t of a w ell-k n ow n nam e in com p en sation fo r the
incom pleteness of the in form ation con cern in g the m aker.
C o m m e r c ia l
P a p e r.
W h e n a bank in a m etrop olitan c ity attem p ts to in v est its
funds in a n oth er large city, it has ad vantages that the cou n try
ba n k does not possess. It goes w ith ou t sa y in g that the C hicago
banker has a k n ow ledg e o f N ew Y o rk affairs, and the N ew
Y ork banker has a k n ow ledge o f C h icag o affairs, th at is su -
T H E C O M M E R C IA L W EST.
Saturday, October 17, 1903.
S . A . H A R R IS , President.
H. H. T H A Y E R , Vice-President.
21
A . A . C R A N E , Cashier.
W. S. H A R R IS , Asst. Cashier
THE NATIONAL BANK OF COMMERCE
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p erior to that w h ich the cou n try ba n ker possesses in regard
ers have carried on th eir business fo r years, to the p erfect
to affairs o f bu siness m en at the nea rest cou n ty seat.
T he
sa tisfa ction o f their custom ers, and have accum ulated fortu n es
a b ility o f the c ity banks to ca rry loans o f large am ounts,
in the bu siness; and althou gh these fortu n es are not pledged fo r
m akes it profitable and desirable fo r them to spend tim e and
the p aym en t o f the paper they n egotiate, y et the fa ct that they
m on ey freely in in v estig a tin g the ch aracter o f the loans o t
have been su ccessfu l, w ins fo r them w ell deserved confidence.
tered them . C ity banks, n o w -a -d a y s , are fa r .m ore th orou gh ly
T hese fa cts m ust not, h ow ever, p reven t the cou n try banker
equipped than form erly,, fo r in v estig a tin g n ot only the cred it
from exam in in g the paper carefully, learnin g its true ch aracter
stan d in g o f their custom ers, but the cred it stan d in g o f any
and a p p lyin g to it the sam e tests that he w ou ld apply to paper
w h ose p ap er they m ay think o f buying. H en ce it is that a
offered him by his local custom ers.
C h icago ba n k m ay be alm ost as w ell prepared to pass upon
M o t iv e s o f B o r r o w e r s .
certain lines o f N ew Y o rk paper, as it is to pass upon C hicago
paper. U nder su ch circu m stan ces, the C h icago bank can lend
T he m otiv es that lead a b orrow er to p lace his p aper in the
its m on ey in N ew Y ork, alm ost as sa fe ly as it can a t hom e.
hands of note brokers, rather than to d iscou n t it w ith his b a n k
A s a m atter o f fa ct, the cou n try banker does not go to the
er, m ay be various, an d should be taken into a ccou n t in c o n
nearest co u n ty seat to bu y com m ercia l paper. H e goes to the
sid erin g the d esira bility of the paper. It m ay be that he can
city, w h ere he ex p ects to find com m ercia l p aper o f a m uch
g et low er rates through the note b roker than his banker will
h igh er grade than that w h ich he gets a t hom e. H e is con ten t
give him ; it m ay be that he w an ts to use a larger d iscou n t line
w ith a low er rate o f interest on the city paper than he gets
than his banker w ill g iv e ; it is even w ithin the bounds o f p o s
on hom e paper, becau se he thinks the qu ality is superior. H e
sibility, that his banker m ay be glad to see his d iscou n t line
looks over his bills receivable, and sees that perhaps n ot one of
reduced, and. the paper transferred to the p o ck etb ook of som e
his local cu stom ers is w orth $100,000; but the paper he has
other banker. A n d this m ay happen w hile the b orrow er is
bou ght o f the note broker is again st a m an w ho is
su pposed rated w ell and deem ed to be solvent.
to be a m illionaire.
H e looks over the lot o f little pieces of
W h en a c o m p etitor’s cu stom er com es to the cou n try banker
paper that fill up his p ock etb ook , take up his time, and cause
and applies for a loan, the cou n try ba n k er’ s first though t is
him trou ble and w o rry w hen they are overdu e; then he looks * “ W h y does he com e to m e ? ” A n x iou s as he is fo r business, he
at the one clean, n ea tly w ritten note fo r $10,000 that he has
w an ts to be sure th at n oth in g has occu rred to render the a p
ju st bou gh t a t the note broker, and thinks how m uch less
p lica n t’s business undesirable, before he m akes the loan. T he
labor is involved in
handling the one large note, than the
sam e qu estion should be asked before lending a stranger, w ho
m an y sm all ones. T hen he look s over his local paper again,
com es to you through the note broker, w ith an ap p lication for
an unsecured loan.
and w on ders h ow m u ch o f it w ill be paid, in case the m on ey
m arket tightens up.T ra de in A .’ s line has
been light, he
N ot v ery lon g ago, I w as sittin g in the sm ok in g com p artm en t
says, and A. will not be read y to pay. B. has to be carried
o f a sleeping car, w ith tw o gen tlem en — one a banker from Il
from N ew Y e a r ’s till C hristm as; he is good, but his capital
linois, the other, a m an u factu rer from Indiana. T he co n v e rsa
is too sm all. B. w ill n o t be able to pay. C. has ju st been
tion of the banker d rifted on to the su b ject o f com m ercial p a
m ak in g som e fresh in vestm en ts w ith the funds origin ally in
per. H e had bou ght paper again st a m an u factu rer in an oth er
tended -to p ay his n o te ; C. will not pay. A n d so on, through the
tow n, a few hundred m iles aw ay. T he broker sp oke w ell of it,
alphabet. T h en he looks at the $10,000 note ag ain st the m il
the com m ercia l a g en cies’ statem en ts revealed no w eak points;
lionaire, an d thanks his stars that he does n o t even have to
bu t before the paper m atured, the m aker failed. T he bankerask fo r p aym en t o f this note— that all he has to do is to fo r
felt that he had used ordin ary p recau tion in bu yin g the paper
w ard the paper to his corresp on d en t fo r collection , and it will
but he felt, also, as other bankers have at tim es had occa sion
to feel, that it w as n ot alw ays an easy m atter to pick out the
be paid, w ith o u t fail, at m atu rity.
best p aper on a note b rok er’ s list. A s w e w ere talking the m a t
I f the co u n try banker could kn ow all the fa cts, he w ould
ter over, the Indiana m an join ed in the conversation. H e said
p rob ably find that the m inor d efects that attach to his local
paper, a tta ch also, in n o slight degree, to the paper offered by
that he w as located in a sm all tow n in Indian a; that the w ants
o f his fa cto r y w ere largely in excess o f the ability of the
the note broker. One m arked d ifferen ce there will be; if the
local banks to su pply; that he w as con seq u en tly com pelled to
m aker o f the note b ro k e r’ s paper is alive and solvent, he will
go to the note brokers w ith his paper. H e told 'us that he a p
be p rom p t in m eetin g his obligations. In the coun try, too o f
p reciated the d ifficulty that bankers had in corrob ora tin g the
ten the solv en t m an thinks that his so lv en cy is a valid excuse
in form ation they obtained con cern in g paper bou ght of the note
fo r failu re to p a y prom p tly. In the note b ro k e r’s list, the
brokers. _ H e said that, as fa r as he was concerned, he w ou ld be
cou n try ba n ker find v e ry little o f w h at is som etim es called
glad if it w ere p ossible to p ay an au diting com p an y or som e
“ trade p a p er” — pap er giv en b y the purch aser o f com m od ities
oth er institution a good fe e to au dit the book s of his com pany,
and endorsed b y the seller, represen tin g the value o f c o m m o d i
ties, that, through su bsequ ent sales, and ultim ate consu m ption ,
m su ch a w a y as to giv e the public, and esp ecially his note
brokers, t h e . benefit o f ex act, detailed k n ow ledge as to the
will p rov id e a fu nd fo r the paym en t o f the paper. T he bulk
assets an d liabilities, and the profit and loss accou n t of his
o f the p aper in the list w ill p ro b a b ly be in pieces o f $5,000
com p an y. In som e su ch w ay he though t he ough t to be able
or $10,000— n otes that form parts o f the sum total that the note
to establish his com p a n y ’ s credit. H e knew that his com p an y
b roker p rocu res from cou n try banks fo r his clients. A great
part o f this pap er w ill be strictly on e -n a m e paper, m ak in g no
w as in excellen t con d ition ; he knew that it w as entitled to the
best o f cred it; he knew the lim itations o f his local bankers, and
p reten ce o f o fferin g an y other secu rity than that o f the b o r
he realized the d ifficulty o f placing’ a statem en t o f his affairs
ro w e r’ s nam e.
Such p aper sim ply represents an unsecured
loan.
before other bankers in such form and w ith su ch corrob ora tive eviden ce as to com m an d their confidence and resp ect
T w o N a m e P a p er.
and to open up fo r him the d iscou n t line that he th orou gh ly b e
A n oth e r part w ill con sist o f nom inally tw o -n a m e paper.
lieved his com p an y w as entitled to.
T h is is pap er w h ich som e m em ber o f a firm or som e officer or
D oes it n ot seem as if the Indiana m an w as righ t? D oes it
stock h old e r has endorsed fo r his firm or -corporation. S om e
not seem as if the cou n try banker, w hen asked to m ake u n
tim es the en d orser’s m eans are all invested in his firm or c o r
secured loans through note brokers, should have the stron g est
poration , and at other tim es, he is a m an o f large outside
possible corrob ora tion o f the statem en t o f the p rosp ectiv e b o r
m eans. W h e th e r su ch paper is actu a lly entitled to be classed
row ers— or, fa ilin g that, should he n ot have good secu rity for
as tw o -n a m e paper, depends on w h eth er the en d orsin g officer
his loa n ?
J
is a m an o f m eans independent o f his in vestm en t in the concern
, I am inclined to think that, as a rule, the cou n try banker
fo r w h ich he endorses.
should ab an d on the p ra ctice o f lend ing m on ey to the note b r o k
O ccasionally, one w ill find offered side b y side the paner of
ers clients on on e-n am e paper, leav in g the handling o f such
A ., endorsed b y B .’ s, and the paper o f B. endorsed by A
A
paper to banks located in the sam e place as the borrow er is lo
has b ecom e possessed o f B .’s note fo r $10,000, and b y som e
cated, for the reason that the b o rro w e r’ s hom e banks can in
stra n ge chan ce, B. has becom e p ossessed o f A .’s note fo r a
v estiga te and w atch su ch paper v ery m uch better than the
like am ount, and both parties are m ak in g sim ultaneou s efforts
cou n try bn nkcr cbr . B ut w h atev er p olicy the cou n try banker
to d ispose o f their holdings to the cou n try banker.
m ay ad op t the n ecessity of secu rin g an equilibrium betw een
A p art o f the pap er offered by the note broker w ill annear
the redu n d an cy and d eficien cy o f loanable fu nds in d ifferen t
to be actu a lly tw o -n a m e paper. T here w ill be no apparent c o n
parts o f the coun try, w ill alw ays exist. In fa ct, the econ om ic
n ection betw een the m akers an d endorsers, and n oth in g will
w elfa re of the cou n try depends, in no sm all degree, on at least
indicate that the endorsers are a ccom m od ation endorsers e x
a p p rox im ately secu rin g and m ain tain in g such an equilibrium .
cept perhaps the fa ct that the paper is g iven in even am ounts,
I he though t that su ggests itself to m y m ind m ost forcib ly in
as if giv en fo r a loan, and n o t fo r odd am oun ts, as if g iven for
con n ection w ith this su bject, is that our custom s and our credit
an in v oice o f goods.
organ ization w ith referen ce to these m atters, are capable o f im
A n oth er part (a sm all one) will be secured b v pledge o f c o l
provem ent. I have alread y referred to the in flexib ility o f the
lateral o f ap p aren tly su bstantial value.
rate o f interest paid b y banks in reserve cities, on cou n try
A n exam in ation o f paper offered in several recen t note
bankers balances.
This cu stom is certain ly illogical and it
b rok ers’ lists, w ith a v ie w o f c la ssify in g it, gives the fo llow in g
seem s as if a chan ge m igh t afford relief in m any instances
result:
B ut obstacles apparently insurm ou ntable seem to stand in the
O n e-nam e p ap er ........................................................................................ 19
w a y o f an y change in this respect.
T w o -n a m e paper, the second nam e apparently being" that
A m ore ex ten sive resort to the p ra ctice o f rediscou n tin g
o f an officer or p a r tn e r........................................ ...
jg
paper betw een banks, w ould help to restore the equilibrium b e
tw een localities w here there w as a redundancy, and those w here
T w o -n a m e paper, w h ere the endorser on one piece ’ appears
as m aker on the other, and v ice v e r s a ...................................... 2
there w as a d eficien cy o f loanable funds. A line of apparently
ch oice eastern m ercan tile paper has recen tly been offered to
T w o -n a m e paper, w here there is no apparent con n ection b e
w estern banks a t seven per cent. T he m akers of this paper
tw een m akers and endorsers, but w h ere the paper is in
even sum s o f $5,000, or m ultiples o f $5,000...................... ....
10
,‘J'.PParently w illin g to p a y the note b rok ers’ com m ission in
audition to the seven per cen t interest. If this paper is’ as
T w o -n a m e p ap er fo r odd sum s, that appears to be g iven "in
settlem en t fo r in v oices o f g o o d s .................................................. 4
ch oice as it appears to be— and I have no reason fo r thinking
oth erw ise— it m ight sa fely be d iscou n ted by the m ak er’ s regular
Secured b y collateral o f apparently substantial v a l u e '. ! ! ! ! ! ! ! 3
bankers, and by these banks offered fo r rediscou n t w h erever
E viden tly, the great bulk of paper offered on these lists is
surplus funds could be found. B ut fo r the p reju d ice that e x
eith er on e-n a m e paper, or paper w ith a ccom m od a tion endorsers
ists again st rediscou nts, I kn ow no reason w h y su ch a practice
E viden tly, too, in the great m a jo rity o f these cases, the tra n s
w ould not be safe and con servative.
a ction sou gh t to be consu m m ated, is n ot the sale o f “ trade
T he C attle L oan C om pany, w ith a p aid -u p capital o f its own,
paper,
but the n e g otiation o f loans from the cou n try bankers
is lend ing its funds to feed ers and sellin g their paper w ith
to the clients o f the note brokers.
the c om p a n y ’s endorsem ent. W h y should not the coun try
T he risk a tten d an t upon the m aking o f su ch loans is verv
banker require the endorsem ent of the note broker on paper
m uch reduced b y the fa ct that the citv corresp ond ent o f the
he buys o f h im ?
^ v
cou n try ba n k er w ill v e r y often help him select the p aper he
ro rt I ? 61?!18, 1°
i hai the tim e is ripe fo r the chan ge that
T 5 is ’ ° f course, is a distin ct advantage, as it gives him
w
as
effected
m
E
ngland,
m
an
y
years
ago,
to
be
carried
out
in
the benefit or the su perior k n ow ledge o f his c ity correspondent.
this coun try. T he Cattle L oan C om panies have sh ow n us the
In m ost cases, the note ‘ brokers them selves are men o f ex way._
L
et
us
hope
fo
r
the
sp
eedy
organization
of
“
n
o
te
perien ce, in teg rity an d ability. V e r y often they have sufficient
brok in g
com panies, w ith am ple capital, officered b y m en of
confid ence in the paper they sell, to buy it w ith their ow n m o n
m
ature
ex
p
erien
ce
in
the
business,
that
w
ill
n
ot
be
afraid
ey, and to hold it until th e y find a purchaser. M any note b rok to endorse the p aper that they a sk us to buy.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
T H E C O M M E R C IA L W E S T .
22.
Saturday, October 17, 1903.
B u s in e s s E s ta b lis h e d 1873.
Western Trust $c Savings Bank, Chicago.
C a p ita l
-
TRANSACTS A GENERAL
D O M E S T IC
SI,OOO,OOO
AND
F O R E IG N
B A N K IN G
AND
BOND
O F F IC E R S :
LAW REN CE NELSON. V ice-President
H. L. CHAPM AN, Bond Officer.
W ALTER H. WILSON, Vice-President.
H.
W O LLEN BERG ER, Asst, to the President.
OSEPH E. OTIS, President.
W ILLIAM C. COOK, Cashier.
B U S IN E S S .
TRUST COMPANIES.
Address delivered by Gurdon W . W attles, President of the Union National Bank of Omaha, at the Convention of the
N ebraska B an k e rs’ Association at Lincoln, Neb., October 14.
In m y efforts to prepare an address on the su b je c t o f T ru st
C om p an ies” fo r this m eetin g o f the N ebraska B a n k ers’ A s s o c ia
tion I w as rem inded o f the sto ry often told o f the govern m en t
specialist, w h o w as sen t to A lask a to in vestigate the su b ject oi
snakes. A fte r an elaborate classification o f the sp ecies and fa m
ilies o f sn akes w h ich m igh t su rvive in that rigorou s clim ate,
the report ended b y sayin g, “ T here are 110 snakes m A laska,
and so I m igh t end m y address at the b egin n in g b y the rem a rk
th at there are no tru st com p an ies in N ebraska ; bu t as N ebraska
bankers have all been solicited by these com pan ies to deposit
surplus fu nds w ith them at fro m 3 to 4 per cent interest, and as
w e all have heard the p ro p h e cy that tru st com pan ies, w ith their
m ore m odern m ethods, are so o n to supplant all other b a n k in g in
stitu tion s and as w e have read in ba n k in g jou rn als o f the m any
recen tly organized tru st com p an ies w ith colossal cap ital and
enorm ous surplus and have n oticed the rapid a ccu m u lation o f
their profits and have no d ou b t com p ared them w ith the results
o f our ow n slow m ethods, it m ay n ot he out o f p lace at this tim e
fo r a fe w m om en ts to inquire into the ch aracter o f their business
and to ascertain, if possible, w h erein lies the secret o f their s u c
c o r m an y years tru st com pan ies have served a useful purpose
as trustees, ex ecu tors, ad m in istra tors, guardians and custodians
fo r m on ey an d p rop erty to be held in tru st fo r the benefit o f oth ers. In this legitim ate field o f their operation s th ey offer m any
ad van tages o f benefit to the public, and w h at I shall say at this
tim e w ill n o t in an y w a y be in criticism o f this bran ch o f their
business, w h ich until recen t years included p ra ctica lly all the
serv ice they ad v ertised to perform . B u t in exam in in g the r e
cen t a d vertisem en ts o f m an y o f the lead ing tru st com p an ies of
the cou n try I find in alm ost ev e ry instan ce the first sen ten ce,
statin g their business, reads su bstan tially as fo llo w s:
R e
ceives deposits, upon w h ich ch eck s at sigh t m ay be draw n, and
allow s in terest th ereon ; issues certificates o f d ep osit payable
on dem and or at fixed dates, d ra w in g in terest.” I do n ot k n ow of
an y great increase in the m ortality o f m en w ith large fortu n es
d uring the p ast fe w years, n or o f an y increase in the d em and for
guardian s fo r m inors, lunatics, idiots or drunkards, n or do I
believe there has been any m aterial increase in the dem and for
the use o f tru st com p an ies fo r other serv ices w h ich th ey a
vertise to perform . I th erefore conclud e that the prin cip al b u si
ness o f the recen tly organized tru st com p an ies has been that of
ba n kin g pure and sim ple, an d th at this bu siness has been built
up to its present large p rop ortion s at the expen se o f the c o m
m ercial banks o f the coun try.
R e co rd
of T ru s t
C o m p a n ie s .
A cu rsory in v estig ation o f the reports o f tru st com panies,
as published, reveals the fa ct that the g row th in num ber and
in volu m e o f bu siness o f these institutions during the p ast few
years has been phenom enal. T h e la st report o f the C om ptroller
o f the C urrency g ives the nu m ber o f tru st com pan ies m the
U nited S tates on June 30, 1902, as 727, divided as fo llo w s:
N ew E nglan d S ta te s ........................ '....................................................... 122
E astern S tates ...............................................................................................
S outhern States ........................................................................................^
M iddle States ............................................................................................
W e ste rn States .........................................................................................
¿j*
P a cific S t a t e s ..............................................................................................
T h ese com p an ies had on that date a total cap ital an d surplus
o f $348,446,817. F ou r hundred and seven teen o f these com pan ies,
w h ich reported their con d ition to the C om ptroller o f the C ur
rency, held deposits o f $1,525,887,493. A c co r d in g to the rep ort of
the S uperintendent o f B an ks o f the State o f N ew Y o rk ju s t is
sued the increase o f resou rces o f tru st com pan ies m that state
in 1901 w as o v e r $170,000,000, and fo r the first six m onths of
1902 these institutions sh ow ed an additional increase in resou rces
o f over $108,000,000. T he total net earnings o f the tru st c o m
panies o f N ew Y o rk State am oun ted in 1902 to ab ou t 39 per
cent on their total capital. In som e cases th ey sh ow ed earnings
in 1902 in ex cess o f their capital stock . T h is phenom enal sh o w
in g has led m e to in vestigate w ith som e care the ch a ra cter oi
the business o f these institutions, as n o ordin ary ba n kin g m eth
ods could prod uce su ch p henom enal results. In a recen t c o n
v ersa tio n w ith a gen tlem a n ly ag en t o f one o f these large in
stitu tion s, w h o w as solicitin g deposits fro m w estern banks, I
ask ed him h ow his com p an y could p ay as m u ch as 4 p er cent
fo r deposits, and w as in form ed that “ T h ey invested a large
am ou n t o f their deposits in standard stock s and bon ds w hen low
an d sold them w hen high, an d that as they w ere not obliged to
ca rry a reserve ag a in st deposits, th ey w ere able to m ake a g ood
profit a fte r p ay in g 4 per cent interest on fu nds entrusted to
th eir care- that tru st com pan ies frequ en tly had o p p o r t u n i t y to
p articip a te in u n derw ritin g large financial transactions, on w h ich
in m an y cases large profits w ere realized, w ith ou t h a v in g to
actu a lly bu y an y o f the secu rities.” It is perhaps needless to
say th at this ag en t did n o t secure a d e p o sit fro m the bank w h ich
I represent.
T ru st
Com pany
Loans.
B y re fe rrin g again to the a b stra ct o f the con d ition o f the 417
o f the tru st com p an ies w h ich reported to the C om p troller o f the
C urrency I asce rta in that am on g the assets o f these com pan ies
are loans on or in vestm en ts in sp ecu lative securities to the
am ou n t o f $1,139,358,266, and that su ch sp eculative m vestm ents
and loans increased from 1897-8 to 1901-2 in the sum o f $675,766 391 It w ou ld thus seem that through the a g e n cy o f these
com pan ies this enorm ous am oun t has been w ith d ra w n from
com m ercia l uses and. invested in or loan ed on sp eculative securities
D u rin g the sam e p eriod the rem a in in g tru st c o m
panies and the com m ercia l banks o f the cou n try have greatly
increased their sp ecu lative investm ents. S ince these _ in v esti
gations I h a v e n o t been surprised a t the d aily receip t fro m
brokers o f large offerin gs o f the paper o f the stron g est m en and
corporations engaged in com m ercia l bu siness m the co u n try at
rates o f interest fro m 6 to 7 per cent, n or is it su rp risin g th at
the U nited States treasury should be so u rg en tly invoked to
assist the banks in m ovin g the crop s o f the coun try. A lw a y s
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Federal Reserve Bank of St. Louis
take note that the reason fo r g ov ern m en t aid is to m ove the
crops and n ot to assist in m ovin g the p rice o f stock s. T o m ove
the crops is resp ectable and alw ays ap p eals to the A m erican
p eople as a legitim ate ex cu se fo r g ov ern m en t aid.
L oa n s are required fo r tw o prin cip al purposes, first, fo r the
dem ands o f com m erce, su ch as loans to m erchants, m a n u fa ctu r
ers and the g rea t agricu ltu ral interests, and, second , fo r s p e c u
lative purposes, su ch as the p urch ase o f stock s and bon ds fo r a
rise an d the organization and flotation o f railroad, industrial or
oth er corp oration s. T h e m ost im porta n t business of any c o u n
try is its com m erce, its m an u factu res and its agricu ltu re. In on e
of these g rea t d epartm en ts o f hum an in d u stry nearly all o f the
w ork in g classes are engaged. In fa rm in g alone, a cco rd in g to
the census of 1900, no less than 10,381,765 p ersons w ere engaged,
an d the value of their p rod u cts fo r that year w as $4,464,177,706.
In the sp ecu lative business com p a ra tiv ely few are engaged, and
the p rosp erity or ad v ersity o f this class does not add to n or su b
tra ct from the general p rosp erity o f the cou n try a t large, so it
has becom e a m axim u m w ith every com m ercia l ba n k to first
su pply the dem ands o f com m erce and the p rod u ctive classes b e
fore assistin g the sp eculative custom er. W h en b y v irtu e o f e x
trem e p rosperity and inflation a n y large p ortion of the available
fu nds of the coun try, d eposited in its banks, is d iverted into
sp ecu lative channels, the com m ercial, m a n u fa ctu rin g and fa r m
in g classes are m ade to su ffer b y the restriction o f the legitim ate
a ccom m od a tion s w h ich they need.
S p e c u la t iv e T e n d e n c ie s .
D u rin g the p ast few years o f u n precedented p rosp erity and
inflation the business d em ands fo r loans have greatly increased.
D u rin g the sam e p eriod o f rapid g row th railroad s have required
large sum s fo r im provem en t, e lectric prop erties have m ultiplied,
industrial corp oration s have com b in ed and enlarged, and nearly
all o f the large corp ora tion s o f the cou n try have been reorg a n
ized, their stock s an d bon ds increased, th ereby afford in g the
sp ecu lator a rare op p ortu n ity fo r sudden w ealth. D em an d s have
been m ade on financial institutions fo r large sum s to fa cilitate
these g ig a n tic operations. T he un d erw ritin g and fin ancing of
sp ecu lative enterprises has been ex trem ely profitable. T his
bu siness has b rou g h t into p rom in en ce and g reat w ealth a c o m
p a ra tiv ely few v e r y able m en o f affairs, m ost of them located in
the financial centers o f the coun try. T h ese m en have fou n d it
exped ient to organ ize or p urch ase banks an d tru st com p an ies
to a ssist in their operations. T h ese financial institutions have
p articipa ted in the p rofits o f the enterprises th ey have assisted.
T he stock h old ers o f these banks an d tru st com p an ies have r e
ceived large d ividends. T h eir shares have until recen tly sold
readily on the m arket, so that the origin al p rom oters could easily
sell the prin cipal part of their holdings and still retain the p ow er
an d a ssista n ce w h ich su ch large a g g rega tion s Q.f cap ital give.
B ran ch es have been establish ed in all parts of the cities w here
these banks and tru st com p an ies have been acquired, and w hen
the loca l field has been fu lly covered , this sam e coterie of
financiers has p urch ased banks in oth er cities, con solid ated them
into larger ones or reorga n ized them into tru st com panies, so
that the m on ey p ow er of com p a ra tiv ely a few has been greatly
increased b y these operation s. A fe w years ago the p residen t
of one o f the la rg est banks in this state w as tendered the p resi
d en cy o f a tru st com p an y in N ew Y ork C ity; One of the c o n dition s o f the p rop osition w as that a con trollin g in terest in this
ba n k should be purch ased b y this com p an y, thereby insuring
that the resou rces o f this local in stitu tion should be diverted into
eastern securities. F ortu n ately fo r the state the offer w as d e
clined and the bank rem ains a N ebraska in stitu tion to pursue
its p o licy o f serv in g N ebrask a interests instead o f assistin g in
sp ecu lativ e enterprises.
,
. , .
T h e p rin cip al business o f the recen tly organ ized tru st c o m
panies has not been that o f ex ecu tin g tru sts bu t o f receiv in g
deposits at interest and loan in g these deposits on sp eculative
collateral or in v estin g them in sto ck and bonds. In other w ords,
their bu siness has been that of b orrow in g m on ey of the m an y
to accom m od a te the dem ands o f the few . L iberal rates of in
terest h a ve attracted the cou n try banker, the bu siness m an and
the w ag e earner, and one and all have jo in ed in p la cin g under
the con trol of a fe w ex trem ely b rig h t fin anciers an aggrega tion
o f capital b y w h ich it has been m ade p ossible fo r them to bu y
railroads fran ch ised corp oration s, industrial properties, and, in
fa c t all kinds of p rop erty on land and sea w h ich w ou ld prod uce
sa tisfa cto ry returns.
. ,
.
.
. .
F rom these sam e sp ecu lative interests com es to a large exten t
the u rgen t dem ands fo r a n increase in the circu la tin g m edium
b v w a y o f a sset cu rren cy and fo r trea su ry deposits to be secured
b y m unicipal bonds. T he interest paid on deposits b y tru st
com p an ies a b solves them from fu rther obligation s to their c u s
tom ers so that the m erchant, the m an u factu rer or the business
m an m ust look to the com m ercia l banks fo r fu nds to carry on
his operation s. T he increased com m erce d u rin g this period o f
g reat bu siness a c tiv ity has added to this dem and, so that c o m
m ercial banks o f the TVest are d aily offered the paper of b u si
ness houses from all parts of the cou n try at h igh er rates than
these banks can get from their cu stom ers a t hom e. T h is co n d i
tion lends color to the statem en t th a t there is n ot sufficient
m on ey in circu la tion to m eet the dem ands o f trade.
M oney
in
C ir c u la t io n .
In this con n ection it is in terestin g to com p are the present
volu m e of circu la tion w ith that of six y ears ago. In 1897 the
m on ey in circu la tion in the U nited S tates am oun ted to $22.87
per capita. In 1902 this am oun t had been increased to $28.43 per
cap ita
This increase is accou n ted fo r b y the g old p rod u ction o f
this cou n try during this p eriod o f over $400,000,000, our net im
p orts o f gold o f a b ou t $213,000,000, the increased circu la tion o f
the nation al banks o f the cou n try du rin g this period o f $150,000 000 an d b y the retu rn o f con fid en ce in banks m an y m illions
have com e out o f sa fe ty d eposit vaults, cellars and stock in g s to
sw ell the circu la tin g m edium . W h ile the g row th o f the c o m
m erce of the cou n try during these years h a s been unparalleled
in the h istory o f the w orld, it w ou ld seem th at the sou rces of
increased circu la tion a b ove noted, togeth er w ith the additional
T H E C O M M E R C IA L W E ST .
Saturday, October 17, 1903.
H a m il t o n M. P e y t o n , President.
W il l ia m C. H e g a r d t , A ss’t Cash.
23
J a m e s C. H u n t e r , Cashier.
I sa a c S. M o o r e , 2nd A ss’ t Cash
The American Exchange Bank
OF D U LU TH , MINN.
(Estab lished D ecem ber, 1879)
Capital,
- $500,000.00
Surplus,
- $225,113.0 0
DIRECTORS:
T. F. COLE
G. A. TOMLINSON
S. G. KNOX
H. M. PEYTON
A. GOWAN
C. A. CONGDON
W. C. AGNEW
JAMES DAVIDSON
KENNETH CLARK
JAMES C. HUNTER
J. D. ENSIGN
THE MERCHANTS’ LOAN & TRUST COMPANY,
T he PLYMOUTH CLOTHING HOUSE
A D A M S A N D C L A R K S T R E E T , C H IC A G O .
E S T A B L IS H E D 1857.
C a p it a l and S u r p l u s , $ 6 , 0 0 0 , 0 0 0 :
H IG H GR A DE B O N D S .
TRUSTS.
O L D E S T B A N K IN C H IC A G O ,
D ep osits, $ 3 6 , 0 0 0 , 0 0 0 .
FO R E IG N E X C H A N G E .
S A V IN G S .
SAFE D E P O S IT VAULTS.
OFFICERS.
DIRECTORS.
M ars h all F ie l d ,
Albert Keep,
A. H . B u r l e y ,
E l ia b T . W a t k in s
E nos M. B a r t o n ,
E . D. H u l b e r t
C yr u s H . M c C o r m ic e ,
L am bert T ree,
E r s k in e M. P h e l p s ,
M oses J . W e n t w o r t h ,
E. H . Gary,
O rson S m it h .
OxsON S m it h , P resident.
E . D . H u l b e r t , V ice-P residen t.
J . G. O r c h a r d Cashier.
F . N. W i l d e r , A ssistant C ashier.
F . G. N e l s o n . A ssistant C ashier.
P . C. P e t e r s o n , A ssistant C ashier.
L eon L . L o e h r , S ec’y Trust D ep t.
John E. Blunt, Je., Manager Bond Dept.
im ports o f g old w h ich m ust com e to p ay the large balance of
trade in our fa vor, w h en our foreig n debts have been liquidated,
this balance h a v in g am ou n ted in the p ast five years to ov er tw o
billion dollars, w ou ld soon su pp ly all the cu rren cy needed fo r
the leg itim ate business o f the coun try. W o u ld an y hanker a d
v ise a cu stom er to borrow m oney, p ledg in g his p rop erty as s e
curity, if this cu stom er had sp ecu lative in vestm en ts w h ich he
could sell, fro m w h ich his needs m igh t be su pp lied? Is it a
g ood bu siness p o licy fo r all the banks o f the cou n try to borrow
m on ey on their assets, w h ich w ou ld n o t be needed, but fo r the
enorm ous am ou n ts in vested in or loan ed on sp eculative s e
cu rities?
E m e rg e n cy
C u rre n c y .
I w ou ld n ot be m isu n derstood on this su b ject, w h ich I w ill
ad m it is a d eparture fro m the te x t o f m y address, but w h ich has
m uch to do w ith the business the m odern trust com p an ies have
inaugurated. I am certain ly in fa v o r o f a law w h ich w ill a u
thorize the issue o f e m erg en cy asset cu rre n cy to be used on ly in
tim es o f p an ic and su b je c t to su ch a g ov ern m en t ta x as to in
su re its early retirem ent. T he p an ic o f 1893 dem on strated the
urgent need o f a cu rre n cy o f this ch aracter, and but fo r the
illegal su pp ly o f the clearin g hou se certificates o f the banks of
N ew Y o rk City, no m an ca n p rop h esy the e x ten t o f the trouble
w h ich m igh t have co m e to the bu siness interests o f the cou n try.
B u t if the cre d it o f a n individual or bank is fu lly exten ded in
tim es o f tra n qu ility in the business w orld, w h at is to be done
in tim es o f em e rg e n cy ?
I w ill ad m it th at an increase in the m on ey o f the coun try,
either b y asset cu rren cy, rem on atization o f silver or the u n lim
ited issue o f green ba ck s, w ou ld tem p orarily at least increase the
value o f sp ecu lative secu rities and th ereb y a ssist the fe w e m i
nent financiers, I have be fo re m entioned, in m ark etin g securities
they n ow hold or in fin an cin g other prop erties, w h ich m igh t yield
liberal returns. B u t I can n ot see h ow the p rod u cin g classes o f
the cou n try are interested in brin g in g ab ou t this result.
D a n g e r s o f I n fla tio n .
It w as only a fe w years ag o w h en the savin gs hanks o f
O m aha n ea rly all entered the co m m e rcia l b a n k in g business.
T h ey paid in terest on d aily balances, loan ed m on ey on s p e c u
lative m ortg ag es an d did m an y things the nation al banks could
not do. T en years a g o there w ere tw elve savin gs and state
banks in O m aha; to d a y bu t one o f them rem ains, an d it has
chan ged its nam e and closed its com m ercia l d epartm en t. It
m akes but little d ifferen ce w h eth er sp ecu lation is carried on in
w orth less lots or w orth less stock s, the p en alty is the sam e. H e
m ust take the loss w h o ow n s them w hen reason retu rn s and the
sp ecu lator and in v estor realize their w orth lessn ess.
H a p p ily fo r the W e s t an d esp ecia lly fo r w estern hanks the
m isch ief has been larg ely done in the E a st during the p ast fe w
y ears o f w ild speculation, and w hile the W e s t fo r ten years
p ast has been p a y in g the p en alty o f a sim ilar sp ecu lation in
land, lots an d w ild -c a t m ortg a g e loans, the E a st m u st reap
the result o f the recen t u n precedented m an u fa ctu re and sale of
w orth less securities. W estern bankers w orked w ith ou t d iv i
dends fo r years to rid them selves o f the bad loans and in
v estm en ts they had accu m u lated during the b oom o f 1880 and
1890, and I p rop h esy that eastern tru st com p an ies w ill have a
sim ilar p en alty to pay..
The
M o d e rn
T ru st
Com pany.
T he banks o f N ebrask a w ill do w ell if th e y d iscou rag e an y
en a ctm en t b y the legislature o f this sta te w h ich w ill p erm it a
ba n kin g bu siness to be done h ere under the guise o f the m odern
tru st com p an y. Our prin cip al assets are ou r fa rm s, ranches,
cattle, hogs, sheep and horses. Our prin cipal bu siness is that
o f fu rn ish in g the oth er parts o f this cou n try and the w orld w ith
the n ecessities o f life. A ll the m o n e y w ith in our borders is r e
qu ired in the legitim ate bu siness in w h ich w e are engaged. W e
are n atu rally a n ti-m o n o p o lists and should lo o k w ith d isfa v or
on ev ery e ffo rt to d ivert the m on ey o f this state fro m its le g iti
m a te chan nels into sp ecu lativ e enterprises. W e have no law s
in this state a u th orizin g or p erm ittin g tru st com p an ies to do a
ba n k in g business here, w ith the usual p ow ers su ch com pan ies in
oth er states possess. T h ere can be no o b je ctio n to a u th orizin g
tru st com p an ies here or elsew h ere to do the bu siness w h ich
th eir nam e im plies. O nly disaster w ill fo llo w the trust c o m
pany, eith er h ere or elsew here, that a ttem p ts to do a ba n kin g
business, d isreg a rd in g the rules and regulations w h ich fo r m an y
y ears have been fou n d n e ce ssa ry b y the na tion al and state banks
o f this coun try.
L e g it im a t e T r u s t C o m p a n ie s .
I have n o quarrel w ith, nor shall I seek to cond em n the le g i
tim ate bu siness o f tru st com p an ies w h erev er located, bu t to
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Federal Reserve Bank of St. Louis
E sta blish ed 1882.
H. J. B u r t o n , P res.
H. L . T u c k e r , V -Pres.
W H OLESALE
C ap ita l, $300,000.
E . A. D r e w , Treas.
. W . C. B u r t o n , S e c’y.
M AN U FACTU RERS OF
FURS AND CLOTHING.
J O B B E R S A N D R E T A IL E R S O F
M en’s C lothin g,
F urs,
B oys’ C lothin g,
Shoes,
H ats and Caps,
T ru nks and B ags,
Shirts,
C loa ks and W raps,
F urnish in gs,
M illinery,
"Plymouth Corner,” Sixth and Nicollet,
Minneapolis.
tra n sact a ba n k in g business and receive deposits s u b je ct to
check, w ith ou t observ in g the tim e -trie d and n ecessa ry rules o b
served b y all com m ercia l hanks in the investm ent o f funds, is
su icidal fo r an y in stitu tion that a ttem p ts it. T he C learing
H ou se o f N ew Y ork C ity recen tly p assed a regulation requiring
the tru st com p an ies belon gin g to that associa tion to m aintain a
cash reserve o f 10 per ce n t o f their deposits. N early all o f
these com pan ies refused to acced e to this requirem ent and w ith
drew from the a ssocia tion . In tim es o f p eace and plenty, o f
rapid g row th in bu siness an d d eposits, all banks are able to
m eet the usual dem ands o f their custom ers, but in tim es o f
trou ble and panic, the banks w h ich ca rry large reserves, w h ich
loan their fu nds on high grade com m ercia l paper, w h ich are
s u b je c t to official exam in ation s an d publish frequ en t statem en ts
o f their condition , w ill stand the storm and respond to the
dem ands o f th eir cu stom ers better than those o f an y other
character.
T H E C O M M E R C IA L W E ST .
24
Saturday, October 17, 1903.
RECENT LEGAL DECISIONS OF INTEREST TO BANKERS.
Paper read by W . G. H astings, Commissioner Supreme Court of Neb., of W ilber, before the Neb. Bankers at Lincoln.
T he task o f p rep arin g a 20-m inute paper on recen t legal d e
cisions o f interest to bankers requires first o f all a determ in ation
as to w h at ones shall be included. T he legal decision s in E n g
lish sp eakin g coun tries rendered since July, 1903, num ber so m e
thing over 13,000. O f these a little m ore than one in a h u n
dred are digested in the C urrent A m e rica n D ig est under the
head o f “ B an ks and B a n k in g .” T he cro ss-re fe re n ce s, how ever,
under the sam e headin g have to do w ith about three tim es as
m any m ore, p a rticu la rly those under the title o f “ B ills and
N otes.”
B ut is one at liberty to assum e that legal decision s o f in ter
est to bankers are to be fou nd solely under that head and its
c r o s s-r e fe r e n c e s? T he banker w as su rely a citizen be fo re he
em barked in his present business. Surely, like other citizens,
he feels that our govern m en t, that un iversal guarantee o f all
his righ ts o f person and property, w h ich alone renders, n ot only
his business, but his d om estic tra n qu ility and com fort, p o s
sible, is an interest above that o f the business itself. Of the
486 reported cases, decided b y the U nited States Suprem e C ourt
at its last annual term , only three are indexed under the head
o f “ B anks and B a n k in g .” E arle vs. Carson, 23 Sup. Ct. R. 254,
188 U. S. 42, w as a case hold ing that the fa ct that a bank w as
in solven t and a t the tim e o f a tra n sfer o f sto ck in it, if not
kn ow n to either party, w ould not o f itself render the transfer
fraudulent. E astm an vs. State o f Iow a, 23 Sup. Ct. Rep. 288, 188
U. S. 220, held an Iow a statute fo rb id d in g the recep tion o f d e
p osits b y any officer o f a bank w hile k n o w in g it to be insolvent,
and fixing a penalty fo r su ch action, to be v oid so fa r as an
attem pted ap p lication to the p residen t o f a nation al bank was
concerned. It w as held that the Iow a legislature w as p o w e r
less to prescribe an y con d ition s on w h ich the national banks
should receiv e deposits and that a co n v ictio n o f the b a n k ’s p resi
dent On this Iow a statute w as void. It w as held to be “ not c o m
p eten t fo r state legislatures to interfere, w h eth er w ith hostile
or frien d ly intentions, w ith national banks or their officers in
ex ercisin g the pow ers bestow ed upon them by the general g o v
ern m en t.” T he other case, 189 U. S. 242, 23 Sup. C. Rep. 553,
R an kin vs. F id elity Insurance & T ru st & Safe D ep osit C om
pany, is a h old in g that the pledgee o f nation al bank stock, w h ich
he took as collateral secu rity fo r a loan, is n ot chargeable w ith
the personal liability fo r the d ebts o f the bank w h ich is im
posed upon their stock h old ers “ unless he has either b ecom e the
actu al ow n er o f the sh ares in fa ct or has held h im self out to be
the ow ner, thereby estopp in g h im self to deny his personal lia
b ility .” T h ose are all the cases w h ich are th ou gh t b y the in
d exers o f the Suprem e C ourt R ep orter to d irectly con cern banks
and banking, but at the sam e term o f the F ederal Suprem e
C ourt it w as held in H a w a ii vs. M ankich i that the p rovision s of
the F ederal C onstitution w ith referen ce to trial b y ju ry have
no ap p lication to the H a w aiian Islands, and b y the sam e re a so n
ing they w ou ld have none at least b y v irtu e o f their own
effect, and in the absence o f con gression a l legislation in the
P hilippine Islands or P o rto R ico. F ollow in g this d ecision, as it
w as bound to do, the Suprem e C ourt o f the P hilippin e Islands
held that the C on stitu tion w as n ot exten ded over these islands
by the trea ty of P aris, and that they w ere like the H aw aiian s,
sim ply su b je ct to the legislation o f congress. H ad this great
con stitu tion al d ecision no interest fo r ba n kers?
I f the popular ideas o f the lu xu ry w ith w h ich bankers live
and travel are in an y d egree correct, the d ecision o f the T exas
cou rts in the P ullm an P alace Car C om pan y vs. H a tch w ould
certain ly be o f interest. T he ba n ker w ould w ish to kn ow
w hether his valuables w ere insured again st loss b y th e ft w hile
he w as e n jo y in g the privilege o f sleep in one o f the co m p a n y ’ s
cars. T he T ex as cou rt holds that there is no such im plied c o n
tra ct o f insurance. It flatly repudiates the au th o rity of our
state in the one case w h ich is cited to uphold su ch a liability.
P ullm an Car C om pan y vs. L ow e, 28 N ebr. 239.
P r o m p t P r e s e n t a t io n
of C heck.
A fe w cases w h ich d irectly con cern bankers have been decided
w ith in the p ast year b y the Suprem e C ourt o f N ebraska, and
a m o n g these is E d m iston vs. H erp olsheim er, 92 N. W . 138; this
case w as tw ice be fo re our Suprem e C ourt and resulted each
tim e in a hold ing that a ch eck m ust be presented on the day
after it is received, if all the parties live in the sam e tow n, and
is retained longer a t the h old er’ s risk. H erp olsh eim er & C om
p an y had receiv ed a ch e ck fo r $200.62 on the M erch ants B ank
in p aym en t o f their a cco u n t a g ain st J. H. E d m iston and d e
p osited it the next d ay w ith the A m erican E x ch an ge Bank. T he
latter bank did n ot p resent it on that day, bu t put it in the
clearing house. T he next day w as Sunday and the day fo llow in g
D ecora tion day, and on M ay 31st the M erchants B an k failed to
open. C onsequen tly the ch e ck could not be p resented; nothin g
w as ever realized out o f the M erchants Bank. H erp olsheim er &
Co. sued E d m iston fo r the am oun t o f the ch eck and recovered
ju d gm en t in the d istrict court on the ground that their action
had been in a cco rd a n ce w ith bu siness u sage; the E x ch a n ge B ank
had placed the ch eck w ith its others in the clearing hou se and
in ordin ary course o f business it w ould have been p resented on
the 31st had the M erchants B an k opened that day. T he d istrict
cou rt held that this usage o f business w as su fficiently established
to ex cu se the failu re to com p ly w ith the general rule that checks
m ust be presented on the d a y -fo llo w in g their acqu irem ent if the
draw ee bank is in the sam e tow n. In the Suprem e C ourt it
w as conceded, as it m ust be, that the general rule requires,
w h ere all o f the parties reside in the sam e place that a ch eck
be p resented n ot later than the close o f the n e x t business day
a fter it is received or the. holder m ust bear any loss w h ich o c
curs from its non -p resen tation . It w as urged, h ow ever, and
the a u th ority o f the Suprem e C ourt o f Pa. cited, that the real
rule is that the hold er has a reason able tim e w ith in w h ich to
present his check, and if he does present it w ith in su ch re a
sonable tim e he w ill not be chargeable w ith loss b y reason of
fa ilin g to g e t it there sooner. It w as con ceded that in the a b
sen ce o f an y special circu m stan ce m akin g a fu rth er d elay r e a
sonable the one day rule prevailed, bu t it w as urged th a t w h ere
the usage o f a clearin g house w as w ell established and m ust
have been w ell kn ow n to all o f the parties, and it w as the o r
dinary and usual business ag en cy fo r the presen tation o f checks,
all checks should be held to be draw n w ith su ch usage in view
and com p lian ce w ith su ch usage should be consid ered sufficient
diligence. T he cou rt declin ed to a cce p t this argum ent and
after tw o hearin gs d ecided to abide b y the one day rule n o t
w ith stan din g the earnest and brilliant argum ent in the d issen t
ing opinion o f Judge S edgw ick. T he rule ad op ted b y the court
is sim ple and clear a t all events. It is that if you are in the
sam e tow n w here the bank is you m ust p resent y ou r ch eck
on the day you g et it or the next. I f you carry it lon g er you
take the risk o f a failu re o f the bank.
This decision w ill hard ly result in p rev en tin g the adoption
of the clearing house as agen t fo r the p resen tation o f checks.
Sooner or later it is p robable that su ch usage w ill be r e co g
nized as reasonable becau se so nearly universal. C hecks w ill
: be presum ed to have been draw n w ith such usage in v ie w and
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Federal Reserve Bank of St. Louis
the d elivery o f a ch eck be held tan tam on t to an express p e r
m ission to use su ch a m eth od of presentation .
N e g o t ia b le
In stru m e n ts
Law .
It is to be said that the negotiable instrum ents law w h ich
has been adopted in so m any o f the states, and w h ich the B a n k
ers’ A ssocia tion o f N ebraska so a b ly cham p ioned a t the last
session of our legislature, provid es fo r a reason able tim e fo r
the p resentation of checks and dra fts an d w as draw n w ith a
view of a llow in g such exten sion o f tim e w here p resen tation
through a clearing house as an establish ed m ethod. I f in no
other w a y w e hope p resently to have this chan ge introdu ced
in N ebraska by m eans o f a n egotiable instrum ent law.
A n oth er case in w h ich the N ebraska S uprem e C ourt fou nd
it n ecessa ry to deal w ith a m uch disputed qu estion in ba n kin g
law w as H offm a n vs. A m erican E x ch a n ge B ank, 96 N. W . Rep.
112. H offm a n w as d isbu rsin g agen t fo r the e x ecu tor of an e s
tate at E lizabeth tow n, Pa. One o f the heirs w as P eter W . B r u
baker. T w o dividends had been paid him and a third w as o r
dered. H offm a n could n ot find B rubaker at his form er address.
Inquiries w ere unansw ered. F in ally a letter cam e ask in g fo r
his m on ey and requ estin g that it be sent to L incoln. H offm a n
m ade ou t a receip t and release of fu rth er claim fo r the m on ey
and sen t it to L in coln to be ex ecu ted before a n otary public.
In due tim e it cam e b a ck to E liza beth tow n signed w ith the
nam e of P eter B rubaker and purported to have been a c k n o w l
edged by him before W a lter A. L eese a n otary o f this citv.
H offm a n purch ased a d ra ft in E liza beth tow n p ayable to his
ow n order, endorsed it to the order of P e te r W . B rubaker and
sent it to L incoln, addressed in care of W a lte r A . L eese. It w as
cashed b y the A m erican E x ch an ge B an k fo r a p erson identified
by Mr. L eese as P eter W . B rubaker. A b ou t eight m onths later
the real P eter W . B rubaker turned up in E liza beth tow n , P a.,
and w an ted his m oney. C onfron ted w ith the ca n celled draft,
he at once declared that he had never been in L in coln in his life
and that at the date of the transactions in L in coln he w as at
w ork on a fa rm near E vansville, Indiana. T his he w as able to
su bstantiate and H offm a n w as com pelled ‘ to p ay him .
Then H offm a n brough t suit again st the A m erica n E x ch a n g e
N ational B an k fo r the am oun t of the draft, cla im in g that it had
been paid on a forg ed endorsem ent and the righ t o f the m on ey
w as in him . T his con ten tion the d istrict ju d ge, H olm es, r e
fu sed to sustain. H e said that H offm a n had n eg lig en tly su p
plied an im poster w ith the m eans of d efrau d in g an d should h im
self bea r the loss.
H offm a n took the ca se to the Suprem e C ourt w h ere it w as
tw ice heard. Our cou rt w as not fu lly satisfied w ith its first
conclusion that the d istrict cou rt w as righ t and granted a r e
hearing. T his resulted, how ever, in the sam e conclusion . It
w as decided that H offm a n h a v in g h im self procu red the false
B rubaker to ex ecu te a release and h a v in g h im self in response
to the release sent the d ra ft to the im poster, could n ot c o m
plain of an y bank fo r d oin g p recisely as H offm a n requested to
be done, and p ayin g the m on ey to the sw indler.
One difficulty in this and sim ilar cases is to distin guish it
from these cases w h ere the sw in dler perp etrates one frau d on
the m aker o f the d ra ft and an oth er on the purch aser of it, as
in the num erous instan ces w here a loan in g ag en t gets a d ra ft
sent him fo r som e im aginary borrow er, endorses the draft
h im self in that b orrow er’ s nam e and gets the m on ey on it. In
that case the bank ta k in g the d ra ft has to m ake g ood its loss
to the ow ner. It is not p ay in g the m on ey to anv person in
tended b y the rem itter to have it. A differen t d ecep tion is s u c
cessfu lly p ra cticed on the p a y in g bank from that w h ich w as
used again st the sen der and th erefore the bank can n ot shelter
itself behind his error.
V a lid it y o f C o n tra c ts .
T he case of L og a n vs. T he N ebraska M oline P low C om pany,
92 N. W . Rep. 129 and 93 N. W . R ep. 1128, first decid ed in
O ctober, 1902, an d again on reh earin g in M arch, togeth er w ith
the F ederal C ourt cases w h ich w ere passed upon w hile it was
g oin g on and w h ich w ere finally held to d eterm in e it, are o f in
terest to bankers perhaps m ore than to m ost c itiz e n s 1as they
are con cern ed w ith titles and the v a lid ity of con tra cts d epending
upon them . It is a h old in g that con d ition al sale agreem en ts
w ith one w h o becom es an ad ju dged bankrupt, w here the con tra ct
is not o f record, are v oid as again st his tru stee in bankruptcy.
The. P low C om pan y had sold som e $2,800 w orth o f p low s to a
dealer and taken his notes fo r them and b y the con tra ct title
should n ot pass until the notes w ere paid and if the purch aser
becam e insolven t his righ t of p ossession should cease at once.
B efore the n otes becam e due the purch aser filed a v olu n ta ry
p etition in bankrup tcy. T he P low C om pan y at on ce replevined
the goods. T he trustee in ba n k ru p tcy w as app ointed a b ou t a
m onth later and intervened in the suit. T he con tra ct had never
been placed o f record. T he d istrict court held in a ccord a n ce w ith
the on ly F ederal case then decided, In re N ew Y ork E con om ica l
P rin tin g Co., 49 C. C. A. 133, that the title rem ained in the P low
C om pan y and that the tru stee’s righ ts w ere su b ject to the c o m
p a n y ’ s although the co n tra ct w as n ot of record. T he tru stee
appealed the case to our Suprem e Court. W h ile it w as p en d in g
fou r cases w ere d ecided in the federal, circu it and d istrict courts
each h old in g that a trustee in b a n k ru p tcy had all the righ ts
o f a lev y in g cred itor in p ossession and that his title relates
b a ck and takes effect as o f the date o f the filing o f the p etition
in bankruptcy. One of these decision s, In re P ekin P low Co.,
50 C. C. A . 257, w as in this circu it and from this state. T he
F ederal S uprem e C ourt m eanw hile, w ith ou t d ecid in g this e x
press qu estion as to the tru stee’ s righ ts ag ain st an un recorded
con tra ct, had held in M ueller vs. N ugent, 22 Sup. Court. Rep.
269, 184 U. S. 1, that the filing o f a p etition in ba n k ru p tcy w as
a ca v ea t to all the w orld as to the in solv en t’ s p rop erty and
equ ivalent to an a tta ch m en t or an in ju n ction . It w as held,
therefore, that the tru stee could hold the plow s and the m an u
fa ctu rin g com p an y could on ly p rove up its claim on the notes
ag ain st the ba n kru p t’ s estate.
A n oth er case o f interest an d im porta n ce to an y one h old in g
or g iv in g guaranteed com m ercia l paper in this state is the v ery
recen t one o f L em m ert vs. G uthrie B ros., 95 N. W . 1046.
T he d efau ltin g m ak er of the note in qu estion w as a firm o f
bankers, but the on ly p oin t determ in ed in the case is the e x
tent to w h ich the g u a ra n tor o f p ay m en t on a note is relieved
b y a failu re to n o tify him o f the p rin cip a l’s default. Guthrie
B ros, had fo r accom m od a tion guaranteed p aym en t o f a m achine
note o f M eek & B riggs, bankers and brick m an u factu rers o f
Superior. T he m achine com p an y sold the note to one o f its
ow n officers w h o laid it aw a y and w en t off to E urope. It w as
n ot fou n d until som etim e after his return w hen it w as eighteen
m onths p ast due and M eek & B riggs had fa iled fo r som eth in g
like $150,000.00. Suit w as brou g h t again st Guthrie B ros, an d
th ey defended on several grounds, one of w h ich w as the failure
to n o tify them o f the n on -p a y m en t o f the note b y M eek &
B riggs, w h o at the tim e o f its m atu rity w ere en tirely solvent.
T his d efense our court pron oun ced good, fo llow in g the great
T H E C O M M E R C IA L W EST .
Saturday, October 17, 1903.
w eig h t o f au th ority, though som e late cases, and one o f them
in N ebraska, hold that one w h o guarantees the d oin g o f a s p e c i
fic, th in g a t a sp ecific tim e m ust at his peril see that it is done
and n o n otice is n e ce ssa ry to fix his liability. In the case o f a
p rom isso ry note, how ever, it seem s m uch m ore ju s t to hold that
a reason able regard fo r the gu a ra n tor’s sa fe ty is required of
the payee and that he m ust n o tify the gua ra n tor w ithin a re a
sonable tim e or the latter w ill be disch arged to the e x ten t that
he is dam aged b y fa ilu re to g e t the notice.
Is a L o a n
Com pany a Bank?
T he case o f H a m ilton C oun ty B an k vs. A m e rica n L oa n &
T ru st Co., 92 N. W . 139, had fo r its m ain qu estion sim ply, w as
the A m e rica n L oa n & T ru st C om pan y a ba n k ? If it was, its
stock h old ers w ere under the liability to double the am oun t of
sto ck held w h ich is prescribed again st ba n k stock h old ers in the
N ebrask a S tate C on stitu tion (S ec. 7, A rt. II b ). It w as fou nd
that the articles o f the corp oration p rov id ed fo r m ak in g loans,
bu y in g and selling com m ercia l paper, bo rro w in g m on ey and
issu ing its ow n obligation s fo r it and re ce iv in g m on ey on deposit
and ex e cu tin g trusts. It w as fou n d to have done all these
things, and sold exch an ge on other cities as a part o f su ch
business. T his w as held to m ake it a bank though it called it
self a loan and trust com p a n y and a lth ou gh it transferred its
d eposits s u b je ct to ch e ck to an oth er organ ization m ade up
largely o f its ow n officers, T he A m e rica n S avings Bank, w hen
the p resen t ba n kin g law o f this state w en t into effect. T he a r
ticles of in corp oration set a lim it upon its indebtedness, but
ex p ressly ex cepted d eposits fro m su ch lim it. T he cou rt holds,
a d op tin g the opinion o f Ju dge K irk p a trick , that it w as a
“ b a n k in g in stitu tion ” w ithin the m ean in g o f the state co n stitu
tion, an d the stock h old ers liable in double the am oun t o f their
stock .
O f the recen t cases relatin g d irectly to banks, m an y are
m erely a reiteration o f fa m iliar doctrines. In the case o f Falls
C ity S tate B an k vs. W ehrli, 93 N. W . Rep. 994, the bank had
agreed w ith a custom er, M iller, to ad v an ce him m on ey to buy
a carload o f horses, he to turn in a d ra ft w ith his bill o f lading
w h en he shipped the horses. H e turned in his d ra ft and it was
paid before som e o f the ch eck s fo r the h orses w ere presented.
T he bank ap p lied the proceed s o f the d ra ft in part to the p a y
m ent o f an old claim ag ain st M iller and refu sed to h on or a cheek
given b y him to W e h rli fo r a horse. W eh rli sued fo r the
am ou n t o f his ch e ck and w as g iven ju d gm e n t under the rule
o f our state that the p ayee o f a ch e ck has an action a g a in st the
d ra w er if the m on ey is still there.
O f the cases in other cou rts than the F ederal Suprem e Court
and that o f N ebraska, there is not m uch sp ace to speak. M any
of them are o f m u ch interest. T h e M issouri case o f F irst N a
tional B an k vs. A m e rica n N ation al Bank, 72 S. W . 1059, is an
in terestin g exam ple o f the legal d octrin e that estoppel cann ot
con fer pow er. T he A m erican B an k had agreed, in return fo r
certain accom m od ation s, that a d ra ft d raw n upon one o f its
cu stom ers should be paid. T he N ational B an k a ct does not
au th orize su ch a use o f a national b a n k ’s credit. T he F irst
N ation al carried out its part o f the agreem en t, but the court
held that no estopp el arose w h ich preven ted the A m erican B an k
from p lead in g its w an t o f p ow er to m ake the agreem en t. T he
F irst N ation al B an k w as denied a recovery.
T he C alifornia case o f Pullen vs. P lacer Co. B an k is o f m uch
interest in this state. It illustrates the difficulties w h ich are
liable to arise in a p p lyin g tw o separate d octrin es o f the law.
T here is a d octrin e in this state that a ch e ck operates as an
assign m en t o f the fu nd on d eposit if there is one, an d g iv es the
holder a righ t o f a ctio n a g ain st the bank, as w e have seen
in W e h rli’ s case. It is also a d octrin e o f our law that a g ift
is n ot com p leted till the th in g is delivered. In the C alifornia
case a ch e ck fo r $1,000.00 w as giv en b y a fa th er to his son
w ith a requ est th at it be n o t presented till a fte r the fa th e r’ s
then expected death. T he fa th e r did n o t die until ten m onths
later. T he m orn in g a fte r his d eath the son presented the ch eck
Spencer T r a s k &
25
and it w as paid alth ou gh the b a n k ’ s officers w ere aw are o f the
m a k er’s death. T he ad m in istra tor sued fo r the $1,000.00 on the
ground that h a v in g kn ow ledg e o f the m ak er’ s death, there
w as no a u th ority in the bank to pay the m on ey on the check.
T he trial court held that the bank w as n ot bound to p ay the
m on ey again. T he C alifornia S uprem e C ourt so held a t first
in one of its departm ents. A rehearing before the w h ole court
in ba n c w as obtained and finally the d octrin e that there m ust
be a com p leted g ift to. carry title w as held to prevail. T he bank
w as com pelled to pay the m on ey again to the adm in istrator.
P rob a b ly in this state the rule th at a ch e ck is an assign m en t
of m on ey a c t u a lly ' in the bank to the m a k er’ s cred it w h en it
is presented, w ould be applied in this state, bu t if the banker
know s that the m aker is dead, it w ill be sa fer to refuse p a y
ment.
T he case of C rock er W o o lw o rth N ational B an k vs. N evada
B an k of San F ra n cisco, 73 P a c .' Rep. 456, decid ed by the S u
prem e C ourt of C alifornia, July 14th, last, is of deep interest
to m em bers of C learing H ou se A ssociation s.
On D ecem b er 9th, 1896, the B an k of W ood la n d sold to A . H.
D ean a d ra ft fo r $12.00 on the C rocker W o o lw o rth N ational
B an k in San F ra n cisco. On D ecem b er 17 th, w ith its date
chan ged to D ecem b er 13th an d its am ount raised to $22,000.00,
D ean d eposited this draft, bea rin g his un restricted endorsem ent,
in the N ev a d a N ation al B ank. H e g o t only a p rovision al credit
on his pass b ook fo r its am oun t. T he sam e day the N evad a
B an k put it in the clearin g house fo r collection w ith a n e n
dorsem en t su ch as the clearin g house rules required “ pay
through clearin g house on ly ” and w ith no other restriction s. It
w as accep ted w ith oth er clearings b y the C rocker W oolw orth
Bank. T he next m orning, the 18th, D ean drew out the m oney
by ch eck on the N evada B an k and left fo r parts unknow n. T he
C rock er W o o lw o rth B an k on January 1st, sent" its statem en t
to the B an k o f W ood la n d and w ere at on ce inform ed o f the
raised draft. January 3rd dem and w as m ade on the N evada
B an k fo r the m on ey and retu rn o f the d ra ft offered. It w as
refused and suit begun b y C rocker W o o lw o rth B an k fo r the
m oney. T h e C aliforn ia Suprem e C ourt refuses to allow the
r ecov ery o f the m oney. It says th at the p ay m en t w as a s
sen ted to by the draw ee fo r fifteen days and until a fter the
N evad a B an k had paid out the m on ey and the latter is not
liable. It had failed in no d uty an d the law w ould leave the
parties as they w ere.
T his result seem s so con tra ry to the general sense o f ju stice
and fa ir dealing that if it is the law then the clearin g house
should chan ge its rules. T he d ra ft w as presented to the N e
v a d a B an k bea rin g a general endorsem ent. T here w as nothin g
to ap p rise an y one that the latter bank claim ed to be only an
agent. Of course, if there had been any one p ay in g the draft,
m any w ou ld have u n derstood that the N evad a B an k w ou ld not
be liable after it paid the m oney to its principal. Of course,
too, the draw ee is presum ed to k n ow the sign a tu re o f its c o r
respondent. It is n ot ordin arily presum ed to kn ow w h eth er
d ra fts have been raised in am ount. T his d ra ft the N evada
B an k w as handling as ow ner. In p resen tin g and p rocu rin g itg
p aym en t as ow n er the latter bank in ordin ary bu siness usage
w ou ld be un derstood to assert the genuineness of the draft.
If su ch a result does not follow from a clearin g house p resen ta
tion, then the rules o f the clearin g house a ssocia tion should be
chan ged to m ake it so.
W e have seen that w ith all the business they do, all of, it in
v olv in g cred it on one side or both of each transaction, the
bankers, as such, con trib u te little m ore than a hundredth part
of the litig a tion o f the E n glish sp eakin g w orld. T he reason for
their com p arativ e im m u nity from litiga tion is becau se the rules
o f law and the d ecision s o f the courts on this top ic so ex actly
follow the current opinion and sense of ju stice o f the bankers
them selves. T h ey and the law s are in harm ony. T his last
d ecision, like that of H erp olsh eim er & Co. vs. E dm inston , seem s
an ex cep tion and it should be eith er chan ged b y the cou rts or
its effect rem oved b y a rule of the clearin g house.
GEO. B. LANE,
Co♦
DEALER
BANKERS
Commercial Paper
IN
8c
investments
2 0 3 G u a r a n t y B u ild in g , M I N N E A P O L I S .
W illiam & Pine Streets, N ew Y ork
IN V E S T M E N T S E C U R IT IE S
Members New York Stock Exchange
Branch Office, Albany, N. Y
D a v id C. B e l l , P res.
W a l t e r A. E g g l e st o n , Sec’ y
J a m e s B. S u t h e r l a n d , T reas.
DAVID C. BELL INVESTMENT CO.,
INVESTM ENT
Capital
Surplus
$500,000.00
$125,000.00
O F F IC E R S
C H A R L E S B. P I K E , President.
D . W. B U C H A N A N , Vice-President.
H E N R Y M E Y E R , Cashier.
G E O . H. W ILSO N , Asst. Cashier
BONDS)
CAREFU LLY SELECTED .
Municipal and R ailw ay Securities.
C H IC A G O .
SAN FR AN CISCO
ìli
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
CHICAGO.
1880.
E. H. R O L L IN S & SONS.
DENVER.
OF
Minneapolis
Established 1880
Incorporated 1889
C H O ICE, F I R S T M O R T G A G E S
Secured on new modern residence properties in Minneapolis, each security
having been personally inspected and approved by us. Many years ex
perience enables us to get the best securities.
R efer to any Bank in MinneaDolis.
E S T A B L IS H E D
T h e H am ilto n N atio n al B a n k
D IR E C T O R S
T.
A. Delano, - - Gen. Mgr. Chicago, Burlington & Quincy Railroad
W allace Heckman,
Business M anager Chicago U niversity
Charles L . Bartlett, President Orangeine Chemical Co.
T . A. Shaw, J r . , ........................................... of T . A. Shaw & Co.
A. A. S p r a g u e , ........................................... 2d, of Sprague, W arner & Co.
Louis E . Lafiin,
Manager E state of Matthew Laflin
Granger Farw ell,
- - - - - 0f Granger Farw ell & Co.
Charles B . P i k e , ............................................................
- President
D. W. Buchanan,
- - - - - Vice-President
Liberal terms are extended to banks and bankers.
Open your Chicago account with U S .
T H E C O M M E R C IA L W EST .
2Ó
F a r m
Saturday, October 17, 1903.
M o r t g a g e s —{ S ix : l * e r C e n t
A Resident of 22 years, 18 years B an kin g and R e a l E sta te .
Personal
know ledge and approval of every loan offered. Not a foreclosure of my m ort
g a g e s and not a dollar of delinquent interest.
T h e closest investigation
courted.
W rite for references.
\V .
Iv.
W II/I/IAM SO N ,
W E E K L Y R A I L R O A D E A R N IN G S .
1903.
1902.
-Changes-----D ec.
Inc.
C anadian P a cific:
4th w eek Sept. $1,226,000
$1,162,000
$64,000
M onth ..............
3,888,000
3,605,000
283,000
10,217,000
Ju ly 1-Sept. 30 11,796,000
1,579,000
C h icag o G reat W e ste rn :
$231,551
4th w eek S ep t.
$204,013
$27,538
743,264
662,677
80,587
M onth ..............
2,116,058
1,837,426
278,632
Ju ly 1-Sept. 30
C hicago, St. P aul, Minn. & O m aha:
M onth A u g u st. $1,015,677
$1,019,627
Jan. 1-A u g. 31.
6,612,691
6,424,827
187,864
C olorado & S outhern:
$142,750
$125,179
$17,571
4th w eek S ept.
M onth ..............
549,583
506,471
43,112
1,623,894
1,548,613
75,281
Ju ly 1-Sept. 30
D en ver & R io G rande (incl. R io G. & W e s te r n ):
$466,400
$20,200
4th w eek Sept.
$486,000
1,588,400
1,523,600
64,800
M onth ..............
Ju ly 1-Sept. 30
4,660,200
4,562,900
97,300
D etroit Southern:
$46,885
$38,127
$8,758
4th w eek Sept.
152,314
127,063
25,251
M onth ..............
441,120
372,060
69,060
July 1-Sept. 30
D e tro it U nited R a ilw a y :
$109,262
$112,490
4th w eek Sept.
40,134
395,131
354,997
M onth ..............
2,937,160
350,209
3,287,369
Jan. 1-Sept. 30
E van sville & Ind ian ap olis:
$10,752
$10,853
4th w e k S ept.
35,384
35,491
M onth ..............
112,874
104,819
$8,055
July 1-Sept. 30
E van sville & T erre H a u te:
$10,853
$10,752
4th w eek S ept.
162,016
148,613
13,403
M onth ..............
508,075
459,113
48,952
July 1-Sept. 30
Iow a C entral
$67,395
$65,600
$1,795
4th w eek Sept.
208,140
207,028
1,112
M onth ..............
601,825
617,024
July 1-Sept. 30
K an aw h a & M ich igan :
$16,928
$36,871
$19,943
4th w eek S ept.
62,074
71,052
M onth ..............
133,126
218,124
176,213
July 1-Sept. 30
394,337
L ou isville & N ash ville:
$981,975
$898,840
$83,135
4th w eek S ept.
207,650
3,095,770
2,888,120
M onth ..............
9,137,940
8,369,257
768,683
July 1-Sept. 30
M inneapolis & St. L o u is:
$108,192
$82,611
4th w eek Sept.
263,636
351,232
M onth ..............
975,769
772,247
Ju ly 1-Sept. 30
M issouri, K an sas & T e x a s:
$575,155
$593,166
$18,010
4th w eek S ept.
1,663,460
1,618,580
M onth ..............
4,385,245
4,370,160
15,085
July 1-Sept. 30
N ashville, C h a ttan ooga & St. L ou is:
$229,373
$255,380
$26,007
4th w ee k Sept.
832,091
739,764
92,327
M onth ..............
2,462,549
2,211,419
251,130
July 1-Sept. 30
N ation al R ailroad o f M e x ico :
$199,104
$245,813
$46,709
4th w eek Sept.
763,521
677,707
85,814
M onth ..............
7,458,244
1,933,834
9,392,078
Jan. 1-Sept. 30
P ere M arquette (in clu d in g L ak e E rie & D etroit)
$295,872
$27,641
$323,513
4th w eek Sept.
1,082,010
985,285
96,725
M onth ..............
8,268,920
7,562,855
706,065
Jan. 1-Sept. 30
T oledo & Ohio C entral:
$100,062
$78,447
$21,615
4th w eek S ept.
249,200
91,021
340,221
M onth ..............
761,241
1,003,002
241,761
July 1-Sept. 30
T oledo, P eoria & W e ste rn :
$34,612
$35,119
4th w eek Sept.
113,607
105,872
7,735
M onth ..............
337,106
293,432
43,674
Ju ly 1-Sept. 30
T oron to, H a m ilton & B u ffalo:
$13,053
$9,323
$3,730
2d w eek Sept.
127,592
87,035
Ju ly 1-Sept. 14
40,557
T w in C ity R ap id T ra n sit:
$97,202
4th w eek Sept.
$89,386
$7,816
370,348
337,965
32,383
M onth ..............
2,651,472
3,004,681
353,209
Jan. 1-Sept. 30
W a b a sh :
$702,348
$572,728
$129,620
4th w ee k S ept.
2,239,507
1,840,912
398,595
M onth ..............
5,466,182
6,361,261
895,079
July 1-Sept. 30
Central o f G eorgia R y. :
$257,312
$268,442
4th w eek S ept.
820,252
770,832
2,171,494
2,180,273
July 1-Sept. 30
C hicago T erm inal T ra n sfer
$43,430
$43,799
4th w eek S ept.
145,997
141,133
430,001
418,161
Ju ly 1-Sept. 30
M issouri P a cific:
$1,157,000
$370,000
4th w eek Sept. $1,527,000
3,896,000
3,123,000
773,000
M onth ..............
26,052,512
4,403,880
Jan. 1-Sept. 30 30,456,392
Central B ran ch :
$72,000
$38,000
$34,000
4th w eek Sept.
158,000
105,000
53,000
M onth ..............
774,429
265,125
1,039,554
Jan. 1-Sept. 30
M obile & Ohio:
$231,350
$225,492
$5,858
4th w eek S ept.
608,790
605,252
3,538
M onth ..............
1,830,786
1,721,867
108,919
Ju ly 1-Sept. 30
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
IrfisTborx,
N o rfo lk & W e stern :
4th w eek S ept.
$570,036
M onth ..............
1,841,785
July 1-Sept. 30
5,712,600
S outhern R a ilw a y :
4th w eek Sept. $1,250,176
M onth ..............
3,810,014
July 1-Sept. 30 11,144,390
M oney
$3,950
$3,228
$101
107
$101
No.
Dak.
$528,604
1,684,900
4,961,150
$41,432
156,876
751,450
$1,190,002
3,620,342
10,410,014
$60,174
189,672
734,376
in
C ir c u la t io n .
A m ou n t and kinds o f m on ey circu la tin g in the U nited S tates
O ctober 1 are com p ared in the su bjoin ed table w ith returns o f a
m on th and o f a y ear ago, and holdings o f the fed eral treasury
are n ot included:
Oct. 1, 1903.
Sept. 1, 1903. Oct. 1, 1902.
Gold coin ..............................$622,550,934
$620,375,159
$624,728,060
Gold certificates ............ 394,097,659
394,155,919
304,382,054
S ilver dollars ...................
75,959,483
72,929,012
75,043,719
Silver certificates .......... 458,522,216
455,928,384
459,571,478
S ubsidiary silver ............
94,867,102
92,870,952
89,906,205
17,335,208
T rea su ry notes ................
17,850,254
26,741,790
U nited States n o t e s ........ 336,378,769
335,377,568
342,930,036
N ational bank n o t e s ....... 404,905,698
379,384,930
352,383,259
T ota ls ......................... $2,404,617,069 $2,388,902,178 $2,275,686,651
M on ey circu la tin g in the U nited S tates on O ctob er 1 fo r a
series o f years com p ares as follow s:
1903 ........................... $2,404,617,069 1895
$1,585,593,509
1,655,038,982
1902 .......................... 2,275,686,651 1894
1901 .......................... 2,227,188,491 1893
1,701,939,918
1900 .......................... 2,113,294,983 1892
1,596,049,983
1899 .......................... 1,948,703,186 1891
1,530,531,470
1890
1,497,804,599
1898 .......................... 1,816,596,392
1897 .......................... 1,678,840,538
1889
1,404,743,070
1896 .......................... 1,582,302,289
1888
1,384,059,734
Gulf & Ship Island Railroad.
$15,199
$25,581
87,596
203,522
$44,879
$507
$11,130
49,420
8,779
$369
4,864
11,846
The Gulf & Ship Island Railroad, which has just de
clared its regular quarterly dividend of 1 per cent pay
able October 15, reports for September the highest gross
earnings ($159,619) for any month in its history. For the
three months ended September 30, the gross earnings were
$464,986, as compared with $403,203 last year. These in
creases are the more noteworthy in that the gross earnings
increased from $1,030,849 in 1901 to $1,374,684 in 1902 and
to $1,707,143 during the fiscal year ended June 30 last.
Should the present rate of increase be maintained the
earnings for the current year will approximate $1,950,000.
An important case, involving the People’s bank of
North Enid, Oklahoma, in a suit against the Bankers’
Mutual Casualty Co. of Des Moines, has commenced in
Judge McVey’s division of the district court. The case
is one in which the Oklahoma bank is seeking tç recover
on an accident policy for $5,000. The bank claims that it
is entitled to recover under the policy for something over
$2,000, which amount was stolen from its bank at North
Enid, January 11, 1902. The vault in which the safe was
kept was entered and the safe blown up. The sum of $2,000 was taken from the safe and $20.25 from outside. The
Casualty company is resisting the payment of the loss
on three grounds. In the first place, the company claims
the safe was blown open by an employe of the bank, or
some person closely connected with its management. In
the second place there is a claim by defense as to a breach
of the policy and also carelessness with regard to the care
of the safe.
In thé court of Cass county, N. D., at Fargo, was be
gun an action by the Merchants’ National bank of Far
go against that city to recover judgment for $898.04 and
interest at the rate of 7 per cent from September 3, 1896.
The bank sues to recover on city warrants issued in pay
ment for the paving and curbing of Eighth street south
in that city in 1896, and paid to Henry O’Neil, the con
tractor who did the work, and who in turn sold the war
rants to the bank. It is stated that the necessary money
to pay for these warrants was raised by special assess
ment and turned into a special paving fund but that the
fund has been diverted out in other ways, till there is now
a shortage of something over $1,000. The suit is brought
to recover out of the general funds of the city.
CHARLES A. CHAPMAN
CONSULTING ENGINEER
1040=42 Marquette Building,
=
=
CHICAGO
T H E C O M M E R C IA L W EST .
Saturday, October 17, 1903.
27
H E R E IS A S A M P L E O F
O U R L O A N S 4 £ 4* * 4
FARM MORTGAGES!
N o . 1 5 5 8 : $ 4 0 0 . 6 p e r c e n t 5 y e a r s . S ecu red b y 160 acres o f lan d. 214 m iles fro m
m a rk e t. A ll tilla b le ; 60 acres n o w u n d er p lo w ; lies In a w ell settled an d w ell im p r o v e d lo
ca lity . T w o g o o d w ells, fra m e house, barn and g ra n a ry on p lace. B orrow er lives on the land
an d v alu es sam e at $2,400. W e reco m m e n d it as w ell w orth $2,000. L oa n is m ad e w ith w h ich to
m a k e fu rth e r im p ro v em en ts on p lace. Our loan s ta lk fo r th em selv es; th ey are c o n se r v a tiv e
ly m ad e. B orrow er and lan d p erson a lly in v estig a ted in ev ery case. Over tw en ty y e a r s’ e x
p e rie n ce in this lo c a lity . H ig h e s t referen ces, co m p le te d escrip tiv e list o f o n -h a n d loan s a n d
co p y o f B o o k le t, “ W E ’R E R IG H T ON T H E G R O U N D ” fu rn ish ed u p on a p p lica tion .
E . J. L A N D E R & CO.
Minneapolis Securities.
Q u otations fu rn ish ed b y E ugen e M. Stevens, C om m ercial P a
per and In v estm en t S ecurities, 123 S outh T hird Street, G u ar
a n ty B uilding, M inneapolis.
M inneapolis, Oct. 14.
L ast
Bid.
A sked
sked..
Sale.
G e rm a n -A m e rica n B a n k ....................
130
HO
175
175
180
100
105
105
150
150
120
125
140
M in n esota T itle Ins. & T ru st Co., p fd ... 117
120
127
120
123
127
125
130
125
N orth w estern N ational B an k.
192
190
195
127
130
127
135
130
157
160
157
130
130
M inn. Gas L ig h t Co., con. 6’ s, 1910-30... 108
iii
111
M inn. G eneral E le ctric Co., con. 6’ s, 1929 1031/3
104
M inneapolis B rew in g Co., c o m m o n ........ 101
103
ÌÒ4
M inneapolis B rew in g Co., p re fe rr e d ........ 106
M inneapolis B rew in g Co., b o n d s .............. 110
112
110
102
105
102
175
200
M inneapolis Steel & M ach in ery Co., pfd.
100
100
N orth A m erican T elegrap h C o ..................
70
72
70
T w in C ity T eleph on e Co., first m ortg ag e
5’s, 1913-16 ..................................................
95
100
T w in C ity T eleph one Co., c o m m o n ..........
iòò
107
iio
110
S t. P a u l S e c u r it ie s
secu rities are furnished
ts’ N ational bank bu ildSt. Paul, Oct. 7.
L ast
Bid.
A sked.
Sale.
A m erican N ation al B a n k ..................
100
C apital B an k ........................................
125
F irst N ation al B a n k ............................
250
M erch an ts’ N ational B a n k .............. .
Ì42
145
130
135
130
N ational G e rm a n -A m e rica n B an k.
St. P au l N ation al B a n k ....................
107
108
Ì3Ò
135
130
S econd N ation al B a n k ....................................
220
State B an k ........................................................
iòò
N orth w estern T ru st C o .................................. 105
ÌÓ5
M inn. T ra n sfer R y. 1st 5s, 1916................
M in n esota T ra n sfe r R y. Co., first 4s,
1916 ................................................................
*90
95
S ecu rity T ru st C o m p a n y ..............................
iòò
*125
Ì3Ó
St. P aul U nion D e p o t Co. first 6s, 1930..
115
U nion D ep ot Co. consol. 5s, 1944.............. *110
106
U nion D ep ot Co., consol. 4s, 1944.............. *100
132
In tersta te In v estm en t T ru st C o ................ 125
55
50
54
A m erica n L ig h t & T ra ctio n Co. c o m . . . .
85
90
A m erica n L ig h t & T ra ctio n Co. p r e f----112
St. P aul Gas L ig h t Co., 1st 6s, 1916........ *110
111
iiò %
St. P aul Gas L ig h t Co. Cons. 6s, 1918... *110
89
90
St. Paul Gas L igh t Co., g e n ’ l 5s, 1 9 44...
110
1OS
St. P aul C ity R y. Co., cable 5s, 1937----- *105
300
250
W e s t P u blish in g C om pany, c o m m o n .... 250
105
105
W e s t P u blish in g C om pany, p r e fe r r e d ...
175
St. P aul F ire & M arine Ins. C o m p a n y ... 175
iòò
96
St. P aul T ru stee C o m p a n y ..........................
Superior W a ter, L igh t & P o w e r Co. first
*67%
4s 1931 ..........................................................
South St. P au i U nion S tock Y ards Co.
78%
82
77
first 5s, 1916..................................................
*And interest.
ing, St. P aul:
C h ic a g o
B a n k S tock s.
C hicago, Oct. 14th, 1903.
C orrected b y A . J. W h ip ple & Co.
A sked.
Bid.
B ook V. D iv. R. L. Sale.
165
170
170
6
A m erican T ru st ........ . 159
182
182
ISO
6
B a n k ers’ N ation al . . . . 148
115
113%
113%
C entral T ru st .............. . 130
175
8
170
163
C h ica g o C ity .............. . 147
350
360
380
*12
C h icag o N ational . . . . . 236
142
150
135
C h icago S avings ........ . 101
315
350
330
.
180
Ì2
C om m ercial N ation al.
180
175
C olonial T ru st .......... . 130
255
260
247
8
C ontinen tal N ation al. . 141
385
12
400
373
Corn E x ch a n g e .......... . 196
109
109
112
6
D rexel State ................
180
178
195
8
D ro v e rs’ D e p o v it . . . . . 135
149
137
140
F ederal T ru st ............ . 132
363
363
370
Ì2
F irst N a tion al ............ . 184
F irst N a tion al B an k o f
165
6
E n g le w o o d .............. 175
150
140
i 50
6
F ort D earborn ............ . 128
125
123
125
H a m ilton N ation al ..
640
*Ì2
650
620
Illinois T ru st .............. . 253
126
J a ck son T. & S .......... . 125
iòò
110
6
iiò
M etrop olitan T. & S .. . 124
325
320
330
12
M erch a n ts’ L, & T . . . . 210
115
117
125
6
M ilw aukee A v e. State . 170
130
128
131
N a t’ l B an k No. A m .. . 136
*12
300
275
310
N ational L iv e S to c k .. . 232
450
500
8
N orth ern T ru st .......... . 252
150
165
6
Ì5Ó
O akland N ational . . . . 187
160
175
8
P ra irie State .............. . 149
6
Ì42 ,
140
145
R oy a l T ru st ................ . 175
6
250
245
250
S tate B an k C h ic a g o .. . 137
6
123
123
127
W e ste rn T. & S .......... . 112
110
112
So. C h icag o S a v in g s.. . 105
180
220
U nion T ru st C o .......... . 133
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Box 11
Grand Forks, N. D.
W E S T E R N BO N D IS S U E S .
Fosston, Minn.—This village voted $8,000 bonds.
Walcott, Minn.—Walcott voted $1,500 bonds for bridge
purposes.
Hibbing, Minn.—This village voted $2,000 bonds for
waterworks.
Wittenburg, Wis.—This village will vote on bonds for
electric light.
Cloquet, Minn.—Cloquet voted $50,000 bonds for water
works system.
Belle Fourche, S. D.—This town has voted $7,000 re
funding bonds.
Lawrence County, S. D., advises $30,000 bonds for
sale Oct. 31st for refunding purposes.
Ada, Minn.—Norman county will vote again on ques
tion of issuing $25,000 for new court house.
Wahoo, Neb.—The proposition to issue $85,000 court
house bonds will be voted upon again at the general elec
tion in November.
South Stillwater, Minn., will vote Oct. 20th on issuing
bonds for $10,000, or more, for the purpose of putting in
an electric light plant.
S P E C IA L A D V E R T IS E M E N T S .
The C om m ercial W e st w ill publish w a n t ad vertisem en ts u n
der this general hea din g fo r one cen t a w ord, no a dvertisem en t
to be inserted fo r less than 20 cents. A ddress is to be counted,
but classification side head w ill be inserted free. P rice the sam e
w h eth er one or m ore insertions are taken. Cash or tw o -ce n t
stam ps m ust a ccom p a n y the order. C opy m ust be received
W edn esda y of each w eek to insure p u blication in the current
number.
F in a n c ia l.
F or Sale— 5% and 6% per cen t m ortgages on im proved M in n e
apolis real estate. Care of prop erty solicited. A lexan d er C am p
bell & Co, N ew Y ork L ife building, M inneapolis, M inn.
Y ou n g m an w h o has been ph ysician w ish es to chan ge re si
dence to Seattle, and w ou ld like to represen t m an u factu rin g or
other com pan y, or en ga ge in other business. H a ve som e capital
as guarantee fo r h on esty and services fa ith fu lly rendered. A d
dress, Seattle, Care C om m ercial W est.
P u rch a se
W a n te d .
W A N T E D — T o purch ase a g ood secon d hand b u rg la r-p ro o f
vau lt door, and 300 sa fety d eposit boxes. A ddress B., care C om
m ercial W est.
F O R SALE.— State bank in N orth D akota, G erm an settle
m en t; large territory trib u ta ry; good land bu siness in co n n e c
tion. A ddress I. C., C om m ercial W est.
Bank
f o r S a le .
S T A T E B A N K in N orth D a k ota — V ery large territory, p op u la
tion m ostly Germ an. L and bu siness in con n ection . A ddress,
L5, C om m ercial W est.
If You W a n t D e p o s i t o r s
FOR THE POCKET
(GOOD ONES)
Communicate with
us. We will supply
them for you in a
clean and conserv
ative manner with
out the objectiona
ble feature of un
reliable canvassers.
Or sell you our
little savers with
our improved sys
tem of obtaining
depositors.
BANKERS’ CONSOLIDATED HOME SAFE CO.
828=830 O p e ra H o u se Bldg., C H I C A G O
T H E C O M M E R C IA L W E ST .
28
G A S
W O R K S —W e
Saturday, October 17, 1903.
Credit
G ive
T o, and co-operate with local investors, who desire to install local g a s w orks giving
superior quality of light and heat for municipal and domestic purposes.
1 1 1v
l 'C I »1Clv*A I,
GAS
CO M PANY
1 8 8 M a d is o n S tr e e t, C H I C A G O
1 1 3 2 C o llin s S tr e e t, S T . L O U I S
W innipeg D esires M ore A ctivity.
L U T H E R S. C U SH IN G
(S p ecia l C orresp on den ce to T he C om m ercial W e st.)
Winnipeg, Oct. 12.—The business men of Winnipeg
are urging greater activity in advertising the city. An
appropriation of $5,000 is talked of.
REAL ESTATE
JO H N T O W N S E N D
C are and M a n a g e m e n t o f
F IR E IN SU R A N C E
E ndicott B uilding,
=
=
ST. PAUL
St. Paul Building.
The St. Paul building record for this year is as follows:
1903.
1902.
$58,860
lanuary . . ........................................... $151,057
91,865
February ...............................................
59,905
210,467
March . . . ............................................. 478,402
585,084
April ....... ............................................. 437,708
May ......... ............................................. 280,955
367,724
429,750
June ......... .............................................. 392,065
342,940
July ......... ............................................. 274,020
August . . . ............................................. 210,225
317,945
September ............................................. 269,113
345,545
Totals . ........................................... $2,553,450
500 Oneida Building, MINNEAPOLIS
A g e ia t
f o r
t lie
D r e x e l
E J s ta te
Real Estate and Loans,
Bonds, Lands and Mortgages.
References: Drexel Estate, Philadelphia, or any Bank in Minneapolis
E l w o o d S. C o r s e r , P res.
W il l ia m B . T u t t l e , T reas.
L e s t e r B E l w o o d , Vice-Pres.
E d w a r d B. N ic h o l s , Secy.
Corser Investm ent C o.
$2,750,180
Established 1870
M anager New Y ork L ife Building
M O R T G A G E L O A N S , R E A L E S T A T E and I N S U R A N C E
Special attention given to M anagement of E state s for Non-Residents
W hatcom ’s Building Record.
Since January 1, 1903, to October 1, 1903, the city clerk
of Whatcom, Wash., has issued 321 building permits, rep
resenting a total value of $407,200.
The building record for the current year to October 1,
as recorded in the office of the city clerk of Whatcom
is as follows:
Amount.
No.
Month—
$37,450
January ............................. ...................... 31
43,650
February .................................................. 46
50,150
March ................................ ...................... 46
■32,600
April .................................. ..................... 38
32,700
May ....... .......................... ...................... 32
18,000
June .................................. ..................... 20
40,000
July ........................................................... 45
41,050
August ............................... ..................... 35
111,600
September ......................... ..................... 28
&
$407,200
Totals ........................... ...................... 321
D esert Land s W ithdrawn From
J . E . CALH O U N
E n try.
The Great Falls land office has received instructions
from Washington to withdraw from entry under the desert
land law all lands in the district lying south of the Mis
souri river. The order affects approximately 1,150,000
acres. The officials were instructed also to suspend pend
ing investigation of all desert entries upon which patents
have been issued.
These orders are the result of a report made by Spe
cial Agent Chadwick, who recently was sent to this city
by the interior department to investigate the charge that
gross frauds were being committed in this district. The
report is said to have been a sensational one, sustaining
practically every charge made by United States Senator
Gibson of Montana.
New York Life Building,
D.
P. Jones, Pres
MINNEAPOLIS
W. H. Davis, V-Pres.
DAVID
W. C. M cW hinny, Sec. & Treas.
P. J O N E S
& CO.
(Established 1868. Incorporated 1900.)
M ortgage Loan s,
R e al E sta te and
R en tals
Special attention given to management of estates of non-residents.
Satisfactory reference to local aud eastern parties.
Main Floor Bank of Commerce Building,
CHUTE
M IN N E A P O L IS
R E ALTY
CO.
301 Central Ave., Minneapolis.
Manufacturing sites and trackage, business and residence
property in Minneapolis and S t. Paul for sale or rent. Five
story manufacturing plant with machinery, elevator, etc.,
centrally located.
TflBOUR REALTY COMPANY
Solicits the placing of your money and the care and sale of your property
Twenty years’ experience. References.
’i l l ) 1 s t A v e . H . ,
M IIV iV E A U O L IS
When, in n e e d o f
BOOKKEEPERS OR STENOGRAPHERS
T e l e p h o n e or W r i t e th e
C O M M E R C IA L
BUREAU
54o A n d r u s Building,
M IN N E A P O L I S , M IN N .
We have a large list of E X P E R I E N C E D P E O P L E registered
Dates of M innesota Land Sales.
State Auditor S. G. Iverson of Minnesota has fixed the
dates for the sale of approximately 60,000 acres of state
lands in seven counties as follows:
Mille Lacs County—17,160 acres, to be sold at the
office of the county auditor at Princeton at 9 a. m. Nov. 24.
Crow Wing County—13,320 acres, to be sold at Brainerd at 2 p. m. Nov. 19.
Becker County—10,320 acres, to be sold at Detroit at
9 a. m. Nov. 17.
Otter Tail County—7,850 acres, to be sold at Fergus
Falls at 9 a. m. Nov. 16.
Wadena County—4,100 acres, to be sold at Wadena at
10 a. m. Nov. 18.
Morrison County—3,400 acres, to be sold at Little Falls
at 10 a. m. Nov. 20.
Stearns County—2,000 acres, to be sold at St. Cloud at
9 a. m. Nov. 21.
In the meantime the tracts will be appraised by a com
mission, of whom one will be appointed by Gov. S. R. Van
Sant, one by State Auditor Iverson and one by the county
commissioners of each county. Fifteen per cent of the
purcuase price must be paid in advance, together with
interest until June 1, 1904. The balance may be paid
within forty years, with interest at the rate of 4 per cent.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
$ 25.00
Buys
It
A typew riter equal to the b est on the
m ark et at any price. It has the
U N IV E R S A L K E Y B O A R D
o f 8 4 c h a r a c te r s a n d p o s e s s e s m a n y d is tin c t ad=
v a n ta g e s o v e r o th e r m a c h i n e s . W e ig h s bu t 2 0 lb s .
YOU RUN NO RISK in ordering a postal sent to your office or
home today as it is GUARANTEED ABSOLUTELY to be satisfactory in
every particular.
TH E
HUDSON
COMPANY
G EN ER AL SELLING AGENTS
Dept. J. Hudson Building
NEW
Y O R K , N. Y .
On receipt of $2. to cover express the postal w ill be sent for inspection.
Saturday, October 17, 1903.
6%
29
T H E C O M M E R C IA L W E S T .
First M ortgage Loans
6 ° /o
On improved farms in the Red R iver V alley, North D ak ota and M innesota. We furnish complete evidence of perfect
title—make careful and prompt collection of interest and principal. ALL SECURITY C AREFULLY INVESTIGATED.
R e f e r e n c e s : J . B . C o lg a t e & C o., 3 6 W a l l S tr e e t, N e w Y o r k C it y ; F i r s t o r F a r g o N a t io n a l B a n k s , F a r g o , N . I>.
R S T A 3 R R S it is iY x&tre*.
M O R T O N
The Farm Land Movement.
The following are late farm land transfers, as taken from
official county records. They indicate the value of farm lands
in the respective localities:
Minnesota.
Otter Tail County.—NEJJ sec. 5-132-44, eR> swA 33133-44, Tillepaugh to Esblach, $6,840; sl4 seA 3I_I35-38,
Ivain to Gulzow, $1,100.
Red Lake County.—John C. Bennewitz to Estelle L.
Bennewitz, nRi seA 28-155-48, wj4 nw jj 7“I55-47> seA l2~
155-48, lots 10, 11, 12 and 13, blk. 2, Middle R., lots 1 and 2,
blk. 5, Argyle, $15,000; Leland H. Plank to Eva M. Plank,
ny2 neA sec. 7-154-46, $1,462.50; Richard Russell to Frank
R. Crumpton, nwjj sec. 34- x58-49, $3,529Martin County.—John Koebnick to G. M. Scott, sel4
sw Id sec. 36, Elm Creek, $2,200; Lars Thornblad to C. E.
Vanalstine, n o f sw jj and nvrA sejj sec- 29, East Chain,
$4,800; A. J. Wasgatt et al, to C. W. Garrison, sw jj seA
and seH sw jj sec. 34, Center Creek, and nwA neA and
neA nw jj sec. 3, Pleasant Prairie, $5,869.
Steele County.—Christian, and William Woker, Rosenau, nwA of sec. 25, town of Meriden, $9,600; Chancey B.
Wilkinson to Ernest T. Winship, 30 acres in sec. 4, and
30 acres in sec. 5, town of Owatonna, $5,5°°; Patrick Grif
fin to Guy B. Bennett, 80 acres in sec. 20, and 80 acres in
sec. 29, town of Aurora, $7,200.
Wright County.—Herman Pretzer to Aug. Pretzer, sA
of sw jj 27-120-27, Albion, $500; Conrad Friedrich to Jacob
Friedrich, nwjj of seA and wA of sejj of neA x5- X2°-24>
Frankfort, $1,500.
&
C O .,
F a rg o ,
South Dakota.
A A A
u U U jU v v
A p r n c
A t l C O
$ 3 ,0 0 ° .
Story County.—Duntz to Heimark, nw jj x5-83-23> $x2>~
800.
Boone County.—Conway to Burwell, cA seA sec. x4
and swA seA 14-82-25, $4,200.
Woodbury County.—Strohmeier to Gray, neA 28, nwJq
nwjd 27-86-43, $ tt,000.
Grundy County.—Daniels to Snitzer, Ik sejj 7-88-17,
$5,200.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
of smooth Umber, meadow and
burned over lands in eastern-
central Minnesota, in tracts to suit, at $4.50 to $8.00 per acre.
Strong soil, excellent climate, big crops and an abundance of fine
timber for fuel and building material.
HENRY
5 0 2 G U A R A N T Y Q L D G .,
M
TROY,
M IN N E A P O L IS , M IN N .
The American Mortgage & Investment Co.
21G-218 Endicott Bldg-.
St. Paul, Minn.
Offers
CHOICE FARM MORTGAGES
to con se rv a tiv e in v estors at a ttra ctiv e
rates. C orresp on den ce in v ited . A ll loans
p erson a lly in spected . Send fo r ou r list of
loans.
A . D. W A R N E R ,
E. F. A N D R U S ,
President,
V ic e P residen t.
H E N R I K STRO M , Sec. and Treas.
THE VERY
BEST
LANDS
in the very
Best States.
Timber, Prairie, Wild
and Improved Lands
Iow a.
Clayton County.—Andrew Ross to Henry Goodhile,
190 acres secs. 13 and 24, Lodomillo, $9,000; Henry Good
hile to Jesse Bailey, 190 acres secs. 13 and 24, Lodomillo,
$10,100; Jno. R. Woods to Frank and Clarence Beal, 160
acres secs. 1 and 2, Lodomillo, $3,200; Frank R. and Clar
ence Beal to Geo. C. Durey, 160 acres sec. 1 and 2, Lo
domillo, $3,200; Jno. R. Woods to Geo. C. Durey, 160
acres secs. 1 and 2, Lodomillo, $3,200.
Dubuque County.—S. Schirmer to F. E. Schirmer,
141-10 acres in secs. 21 and 28, Jefferson, $3,500; C. Lindecker et al. to I. Wardle, 40 acres in sec. 1, Center, $1,300;
A. Thielen to J. Schiltz, 7.91 acres in sec. 30, Jefferson,
$3,500; G. Metcalf to F. D. Melloy, 19.50 acres in sec. 7,
Table Mound, $1,000; E. Erpelding to J. W. Norton, 51
acres in sec. 18, Mosalem, $2,000.
Buchanan County.—Samuel Knowles to Henry K. Meffert, seA neA ex Ik acre, 24-89-8, $1,975; William F. McPike to Oliver P. McPike, n>J neA ex 10 acres, 33-87-10,
$2,000; Frederick Bremer to Lucius and Lillie Stout, w /
seA swAa 31-87-7, $500.
Dickinson County.—M. M. Williams to Iver J. Lee;
nw frl Id 6, Okoboji, $6,400; A. A. Skinner to Mills Ld. &
Ln. Co., a A n e A 4, Lloyd, $4,800; Matilda Mahannah to
S. R. Raymond, n 115 acres of neA 18, Diamond Lake,
$3,705; Elmer E. Mahannah to S. R. Raymond, s 25 acres
of neA 18, Diamond Lake, $1,463.
Polk County.— Chiles to Chiles, swfd seA 33-78-23,
D a k .
Brookings County.—VerSteg to Heemstra, und. A
sw Id 28-110-51, $2,400; w 60 acres neld 26-111-49, Doughty
to Doughty, $1,300; Holliday to Holliday, und. 2d ne/4
10 and seA 10-109-50, $5,000.
Charles Mix County.—Kinney to Laisy nwA 22-98-67,
$5,300; Smith to Adams, eld swl4, seld nwld, swld neA in
25-100-68, $3,200; Wellington to Amundson, ejd sw jj 495-63, $1,880.
Hughes County.—Gibson to Gas Belt Land Co., nwld
sec. 1-112-78, $1,775; Lyman to Emerson, nwld sec. 30-11278, $1,200.
Minnehaha County.—Feyder to Muchow, seld 33-10251, $6,800; Rime to Aker, swld 30-104-50, $6,600; Aeils to
Thoreson, n f d of nwld 24-102-48, $3,280.
Brown County.—Neeb to Brown, swld 20-124-63, $3,000;
Townsend to McGregor, wfd 10, swld 3-125-62, $3,022.22;
Wells to McKenney, nwld 6-122-62, $3,500.
N orth Dakota.
Walsh County.—Robert J. Widdes to Elizabeth
Widdes, nwj4 and swR 11-156-55, $8,000; Malcolm Mc
Donald to Henry W. Wallace, w d., seA 3 and nwA x°158-51, $5,7oo.
Stutsman County.—E. N. Campbell et al, to K. A. Bonhus, sA 20-138-62, $4,000; Edgar N. Campbell and wife to
K. A. Bonhus, nwU 20-138-62, $2,000; Harry Hunter to
David Thiessen, neA 19-144-68, $1,600; Joseph Genack to
Ivan Carrick, sw A of neA and nwjj °f se/4 and SA °f
nwR 14-143-66, $2,000.
Cass County.—Gertrude Powell to Delno A. Powell, sA
of sec. 34-141-52, $8,000; Harvie M. Rich et al to Geo. G.
Wright Co., all of sec. 29-139-55, $13,000; Henry C. Grover
to Geo. G. Wright Co., neA of sec. 18-141-55, $3,2oo.
N o .
In M innesota, W iscon sin , N orth D akota.
W e are ow n ers, an d can sell y o u fa rm lands th at
w ill please y o u and m a k e y o u m on ey , n o m atter
w h at k in d y o u w an t or w h ere y ou w an t it. W rite
fo r ou r d escrip tiv e circu la rs.
L arge tra cts a
sp ecia lty . A g en ts w an ted in ev ery city .
Burchard-Hurlburt Investment Co ,
ST . PAUL, MINN.
M ANHATTAN BUILDING,
H A V E YOUR IN V E ST H E N T S IN
STOCKS PROVED DISAPPOINTING?
THEN W H Y NOT TURN TO IMPROVED REAL
ESTATE, THE TRUE BASIS OF ALL VALUES
C o n s id e r l h e f o l l o w i n g h i g h g r a d e i n c o m e e a r n i n g p r o p e r t i e s :
$ 1 5 ,0 0 0 —Set of new and up-to-date apartment buildings, pay $11,000 per
annum gross rentals, very centrally located.
$ 5 0 ,0 0 0 —Handsome trio of flat buildings, 24 apartm ents, everything the
latest improved pattern, pay 1 0 p e r cent net, 6 squares from the
retail center of the city.
$ 1 0 ,0 0 0 — Colonial duplex detached flat, very elegantly finished and located
on Nicollet Ave. inside 22nd St., pays 9 per cent net under long lease.
$ 7,5 0 0 —Up and down stairs flat dwelling, colonial pillared porch, every
modern convenience, located in very desirable part of city, and pays
10 per cent net.
$ 3 ,5 00 —Modern 8 room dwelling on corner lot. good neighborhood, vapor
heat, open, nickel plumbing, hardwood finish and floors, rented to
desirable tenant at $35 per month, till M ay rst, 1905.
The above properties were all built two years ago, before the rise in
prices, and are offered at about the actual cost of construction of the build
ings today, making the ground a present to you. If they interest you write
us and we will gladly furnish you photographs and full details.
YALE
206
SOUTH
REALTY C O M P A N Y ,
FOURTH
ST.
M IN N E A P O L IS ,
M IN N .
T H E C O M M E R C IA L W EST .
30
SB National Livestock Bank
Saturday, October 17, 1903.
WH, H. BR1NTNALL, President.
JOHN BROWN. Vice President
O F C H IC A G O
WM. A. TILDEN, Cashier
GEO. M. BENEDICT, Ass’t Cashier,
D R O V E R S DEPOSIT
C a p i t a l , .................................. $1,000,000
Surplus and Profits,
1,300,000
N A T IO N A L B A N K ,
The Volume of our business exceeds that of any bank in the United
States of equal footings.
The most courteous and liberal
treatment is extended to all who may be in need of
first-class banking facilities
Union Stock Yards,
CHICAGO.
C a p it a l and Surplus
Your account is respectfully solicited whether large or small, per
sonal or corporate.
»
-
$ 7 5 0 ,0 0 0
Accounts of Banks, Corporations, Firms
and Individuals solicited.
O F F I C E R S :
S. R. F L Y N N , President
G. F . E M E R Y , Asst. Cashier
G. A . R Y T H E R , Cashier
W . F . DOGGETT, Asst. Cashier
Has the sau’~ facilities for reserve deposits as any other Chicago Bank.
SOUTH ST. P A U L
UNION STOCK YARDS
S th e b e s t e q u ip p e d and m o s t ad van tage=
o u s m a r k e t fo r liv e s t o c k s h ip p e r s in
th e N o r t h w e s t. It is c o n n e c t e d w ith a ll
th e r a ilr o a d s a n d w a n ts 1 ,0 0 0 b e e v e s and
5 ,0 0 0 h o g s d a ily .
SOUTH ST. P A U L , M I N N .
M. D. FLOWER, Prest.
r
L
Live Stock Markets.
(S p ecia l C orresp on den ce to T he C om m ercial W e s t.)
J
H og s .
South St. Paul, Oct. 15.—Receipts of hogs at the six
largest markets for the first three days this week total
about 92,300, against 118,400 for the same three days last
week and 125,800 for the corresponding period last year.
Local hog receipts during the first three days this week
were about 6,650, compared with 5,612 during the first
three days last week and 5,790 for the like three days last
year.
There were 206,900 hogs received at the six big mar
kets last week, compared with 236,800 for the preceding
week, 251,600 for the like week last month, 245,100 for the
same week last year and 276,000 for the corresponding
week two years ago. South St. Paul received 9,888 hogs
last week, against 8,114 for the week previous, 4,599 for
the corresponding w'eek last month, 10,169 for the like
week last year and 11,506 for the same week two years
ago.
During the latter half of last week the hog market
showed one of the worst slumps in the history of the
trade, prices here declining 50c to 60c in three days,
Wednesday, Thursday and Friday. During the same
period eastern markets showed even more loss. This
sharp break checked the marketing during the past four
market days and, with light runs east, all but about 20c
to 25c of the decline had been regained at the close of
today’s trading. The season of the year is at hand for
heavier receipts and further declines seem almost an
assurity. A trader said, “ Hogs have been entirely too
high compared with prices for all other kinds of animal
food and with no evidence of a scarcity for the fall and
winter trade, lower prices for hogs are naturally in order.”
Quality has averaged fair. The bulk today sold from
$5.15 to $5-55, against $5.35 to $5-75 last Wednesday, $5.65
to $5.80 the same day last month, $6.80 to $6.95 the like
day last year, and $5-75 to $6.05 the corresponding day
two years ago.
I
Y o u r s h ip m e n t s are in v ite d .
H. B. CARROLL, Gen’l Supt.
the best. Bulls have shown little change in value and veal
calves have ruled strong and active. The trade on stock
and feeding cattle has ruled more active and prices on
the better grades have advanced 10c to 15c during the
week. The common kinds have improved but little in
value but good clearances have been made from day to
day. With the corn yield fully up to any ordinary re
quirement and with the crop made, high prices for that
cereal are rather improbable and with thin cattle selling
low, it looks like a good winter for feeding operations.
S h ee p.
The six principal markets had an aggregate supply
of about 234,200 sheep during the first three days this
week, against 261,300 for the same three days last week
and 159,100 for the like three days last year. Sheep re
ceipts here during the first three days this week were
about 27,335, compared with 39,919 for the like three days
last week and 20,448 for the corresponding three days last
year.
Aggregate sheep receipts at the six big markets last
week were 345,000, against 306,800 for the week previous,
256,200 for the like week last month, 341,500 for the same
week last year and 188,800 for the corresponding week
two years ago. South St. Paul received 61,399 sheep last
week, compared with 36,857 for the preceding week, 7,305
for the corresponding week last month, 28,998 for the
same week last year and 18,091 for the like week two years
ago.
There has been a good, strong undertone to the trade
on mutton sheep and lambs here this week and, notwith
standing a declining eastern market, prices have ruled
strong to higher. Lambs have shown the most strength
and have advanced fully 15c to 25c since Wednesday of
last week. Killing sheep have sold strong to 10c higher
with the best grades selling to the best advantage. Choice
lambs have sold up to $4.75
and thebulk of the fair to
good killers are going from
$4-35 to$4.50. Good native
ewes are selling
from $2.90
to $3.00and good wethers
have sold up to
$3.50. The demand for good qualified
stock and feeding sheep and lambs has held good at firm
prices while the common kinds have been of slow sale
at unimproved figures.
C a tt le .
Combined receipts of cattle at the six most prominent
markets for the first three days this week total about
173,200, compared with 171,200 for the same three days
last week and 207,100 for the like three days last year.
There were about 8,175 cattle received here during the
first three days this week, against 8 ,q i 8 for the correspond
ing three days last week and 6,280 for the same three
days last year.
Cattle receipts at the six large markets last week ag
gregated 224,800. against 260,000 for the preceding week,
207,700 for the like week last month, 211,400 for the same
week last year and 176,700 for the corresponding week
two years ago. Cattle receipts here last week were u ,375,
compared with 17,862 for the week previous. 8,729 for the
corresponding week last month, 17,58a for the same week
last year and 6,599 for the corresponding week two years
ago.
The local market has shown no decided changes either
way on native beef and butcher cattle since Wednesday
of last week, although continued liberal receipts at Chi
cago has caused further declines there on all but the best
light beeves which latter kind have held fully steady.
Western range cattle have sold strong, particularly those
of good quality. On Monday extra good western beeves
sold here up to 4.15 and butcher cows as high as $3.25 for
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
C o m p a r a t iv e R e c e ip ts .
T h e follow ing' table sh ow s the receip ts at South St. Paul this
y ear up to and includ ing W edn esda y, O ctob er 14, as com pared
w ith the corresp on d in g p eriod last year, sh ow in g increase or d e1903.
C attle ..................................... 186,121
C alves ................................... 36,872
H og s ........................................ 519,111
Sheep ...................................... 453,426
H orses ....................................
7,729
Cars ........................................ 16,988
1902.
205,699
35,809
442,442
352,126
7,061
16,106
D ec.
......... 19,578
1,063
76,669
101,300
668
882
Inc.
T he fo llow in g table sh ow s the receip ts this m onth, up to and
including W edn esda y, O ctob er 14, as com p ared w ith the c o rr e
sp on d in g p eriod last year, sh ow in g increase or d ecrease:
Inc.
Dec.
, 1902.
1903.
.. 20,501
5,256
25,757
C attle
5
1,470
1,465
Calves
1.677
17,639
.. 19,316
H ogs .
34,872
69,914
.. 104,786
Sheep
703
835
132
H orses
50
1,663
1,613
Cars .
T hu rsday, Oct. 8.
F riday, Oct. 9 . . .
Saturday, Oct. 1(
M onday, Oct. 12.
a t South
1903:
Cattle.
708
589
1,160
5,540
St. P aul fo r the w eek ending
H ogs.
2,120
1,211
945
2,399
Sheep. H orses. Cars.
8,834
74
97
22
65
4,917
7,729
19
96
331
18,885
64
T H E CO M M ERCIA L W EST.
Saturday, October 17, 1903.
T u esd ay, Oct. 13.......... ..
W edn esda y , Oct. 14........
1,737
897
2,802
1,447
1,472
6,979
112
1
104
81
ST. P A U L
i
U N IO N
STO C K YA RD S
31
CO M PAN Y.
R ep ort fo r m on th o f Septem ber, 1903:
T ota ls ............................ 10,631
R eceip ts o f live sto ck at S outh
W edn esda y , O ctob er 15, 1902:
C attle.
T hu rsday, Oct. 9 ..............
394
F riday, Oct. 10................
290
S aturday, Oct. 11............ 1,209
M onday, Oct. 13.............. 3,549
T u esd ay, Oct. 14.............. 1,958
W edn esda y , Oct. 15___
773
T ota ls ............................
8,173
10,924
48,816
292
774
H og s.
1,370
1,328
947
1,900
2,132
1,758
9,435
Sheep. H orses. Cars.
2,320
70
48
579
..
33
2,479
447
88
16,464
64
246
1,637
31
114
2,347
..
66
25,726
612
595
R a n g e o f H o g S a le s.
T h is W eek .
P rev iou s W eek .
T h u rsd ay ............................................ $4.50@ 5.75
$5.25@ 6.10
F rid a y .......................................
4.5 0@ 5.6 0
5.15@ 6.10
S atu rd ay .............................................. 4.50@ 5.60
5.25(5)6.10
M ond ay .................................................. 4.65@ 5.65
5.20@ 6.10
T u esd ay ............................................... 4.9 0@ 5.70
5.10@ 6.25
W ed n esd a y ......................................... 4.85@ 5.75
5.10@ 5.95
B u lk o f H o g S a le s.
T h is W eek .
T h u rsd ay ............................................. $5.10@ 5.50
F rid ay .................................................... 5.0 0@ 5.4 0
S aturday ............................................... 5.00@ 5.40
M on d ay ................................................. 5.1 0@ 5.45
T u esd a y ................................................ 5.15@ 5.45
W ed n esd a y .......................................... 5.1 5@ 5.55
P rev iou s W eek .
$5.45@ 5.80
5.40@ 5.80
5.40@ 5.S5
5.40@ 5.80
5.40@ 5.80
5.35@ 5.75
C o n d it io n o f H o g M a r k e t .
T his W eek.
T h u rsd ay ................ 25c to 30c low er.
F rid ay ......................10c to 15c low er.
S aturday ................ S trong.
M ond ay .................. B ig 5c to 10c higher.
T u esd a y .................. F u lly steady.
W ed n esd a y ............. 5c higher.
P reviou s W eek .
5c to 10c low er.
S teady to 10c low er.
F irm .
S teady to w eak.
Open steady. Close
10c low er.
10c to 15c low er.
C o m p a r a t iv e H o g R e c e ip ts .
C hicago ................
K an sas C ity . . . .
S outh Om aha . . .
South St. Joseph
B a st St. L o u i s ...
S outh St. P a u l ..
T ota ls
............
R eceipts.
St. P au l fo r the w eek ending
L a st W eek.
. 98,400
. 28,000
. 21,000
. 19,200
. 30,400
9,900
. 206,900
P rev iou s W eek.
97,100
38,700
32,100
25,200
35,600
8,100
T e a r A go.
107,500
48,500
18,200
19,900
40,800
10,200
236,800
245,100
C. R. I. & P ..........
C. G. W ..................
C. M. & St. P . . . .
M. & St. L,............
O m aha ....................
C. B. & Q ..............
W is. C e n t r a l ........
Soo ..........................
G reat N orth ern .
N orth ern P a cific
D riven in ..............
............
............
............
............
............
............
............
...........
............
............
Cattle. Calves.
46
14
530
147
2,782
276
529
180
1,565
216
162
19
85
12
846
19,160
882
17,053
771
397
36
T ota l ................ ............ 50,507
T o ta l la st y e a r ... ............ 55,153
3,399
3,606
T ota ls
............ .............. 224,800
P rev iou s W eek.
92,300
68,700
31,800
17,800
31,500
17,900
Y ear A go.
62,400
61,500
29,900
15,400
24,600
17,600
260,000
211,400
C o m p a r a t iv e S h e e p R e c e ip ts .
L a st W eek.
C h icago ................ ............. 133,800
K an sas C ity ___ .............. 30,900
S outh O m aha . . . . .’ .......... 91,700
S outh St. Joseph,.............. 17,700
E ast St. L o u i s ... ..............
9,500
S outh St. P a u l ... .............. 61,400
T ota ls
............ .............. 345,000
P rev iou s W eek.
124,400
35,100
83,800
14,200
12,400
36,900
Y ear A go.
141,100
43,300
100,300
16,200
11,600
29,000
306,800
341,500
W estern B anks and Cattle.
(S p e cia l C orresp on den ce to T he C om m ercia l W e s t.)
Abilene, Kan., Oct. 12.—The uncertainty of the corn
situation, taken in connection with the general demoraliza
tion of the cattle market, probably will curtail the expected
amount of cattle feeding in the Middle West the coming
autumn and early winter. The effect, of course, will be to
make a less demand on the Western banks for loans, as
the cattle feeding industry is one of the most important in
the farmer’s round of money making industries. The fact
is that there has been little money in the cattle feeding
business for some time. The price of feed has kept up,
owing partly to the unsatisfactory crop of marketable
corn last year and partly to the after effect of the failure
of the previous season. The summer has, too, been fraught
with all sorts of fears for the corn and at no time has the
farmer felt certain of a full yield. The late planting,
the danger of frost and the possibilty of the larger portion
of the late corn not coming to maturity has given a chill
to the feeder and he has pursued a waiting game.
Then there is another factor. Said a leading cattleman
of the prairie section: “Thefarmers and the feeders gen
erally feel that they are at the mercy of the packing houses
and the cattle buying firms, as of course they are. The
bulk of the meat goes through the packers’ hands and
when they are in so close combination as now with un
limited possibilities in the manipulation of prices there is
little chance for the farmers to make monev. Hence they
are keeping their credit and money at the bank and the
demand for cattle paper loans will not be what it should
be. Even with a large corn crop there will be hesitancy
in entering on the somewhat speculative business of fatten
ing stock on a large scale. The farmers of the prairie
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Sheep.
110
865
774
172
4,811
663
34
7,178
46,848
29,750
100
30,343
24,163
91,305
77,444
T ota l
Cars.
9
71
183
92
214
19
7
395
1,121
851
2,962
3,054
S hipm ents.
C. R. I. & P .......... ............
C. G. W .................. ............
C. M. & St. P . . . . ............
M. & St. L ............ ............
O m aha ................... ............
C. B. & Q .............. ............
W is. Central ........
Soo ..........................
Great N orth ern .. ............
N orth ern P acific . ............
D riven out .......... ...........
Cattle. Calves.
480
12,573
296
10,579
256
32
357
6,657
10
9,389
12
H ogs.
651
51
Sheep.
592
22,189
29,945
2,638
4,753
5,865
T ota l
Cars.
21
540
554
24
318
445
5
6
24
29
620
577
1,515
4
163
193
282
92
103
1,433
736
55
T ota l ................ ............ 42,903
T ota l la st y e a r ... ............ 46,454
1,248
1,784
838
503
68,309
60,018
1,966
2,150
Sheep.
7,428
5,458
Cars.
927
206
12
2
105
715
972
18
Origin
o f S tock
C attle.
M innesota ............ ............ 14,625
W is co n sin ............ ............ 3,534
Iow a ....................... ............
14
F ar S o u t h ............
S outh D a k ota . . . ............ 2,212
N orth D a k ota . . . ............ 15.011
M ontana .............. ............ 15,052
F a r W e st ............
F ar N orth ............
M ich, and E, Can
U naccounted fo r .
R etu rned ............... ............
59
T ota l
................ ............ 50,507
44
R eceived.
Calves. H ogs.
2,717
24,007
429
3,668
2
805
86
119
46
1,024
839
79
15,447
59,857
2,855
181
5
3,399
30,343
91,305
2,962
S u m m a r y N in e M o n th s .
R e c e ip ts .
C o m p a r a t iv e C a t t le R e c e ip ts .
L a st W eek.
C hicago ................ .............. 79,200
K ansas C ity . . . . .............. 59,100
South Om aha . . . .............. 30,900
S outh St. Joseph,.............. 14,700
E ast St. L o u i s ... .............. 29,500
S outh St. P a u l ... .............. 11,400
H ogs.
392
2,650
4,211
3,957
7,786
647
261
2,795
4,790
2,289
565
C attle .......
H og’S .......................................................................
Sheep .......................................................................
H orses ....................................................................
Cars .........................................................................
T h is Y ear.
201,336
499,738
348,576
6,329
15,159
L a st Y ear.
214,270
424,749
282,212
6,358
14,446
T h is Y ear.
135,580
22,351
275,988
5,976
5,731
L a st Y ear.
154,311
10,013
277,133
6,093
6,445
S h ip m e n ts .
C attle ......................................................................
H og s .........................................................................
Sheep ......................................................................
H orses .....................................................................
Cars ..........................................................................
S la u g h t e r e d .
S outh St. Paul, Jan. 1, to d a te:
C attle ...................................................................................................
Calves ...................................................................................................
H og s ......................................................................................................
Sheep ....................................................................................................
50,646
12,835
477,481
129,414
states are not in the condition of previous years, when they
were inclined to take long shots. They are so well es
tablished in business and have so full a control of their
affairs that they can afford to wait on the turn of affairs
and can hold themselves in readiness for market liuctuations without going into debt.”
What this will mean to the Western banks is this:
They will have their loan fund for the handling of the
wheat in a larger degree than, if the demands were dou
bled at this time, including the cattle anu wheat. They
will make less calls on the East and will seek other ways
in which to invest their money.
It is interesting to note that commercial paper which
was last year quoted to the country banks for investment
at 5T2 to 6 per cent is now 6 and 6 y per cent. The Chi
cago brokers send out to the Kansas and Missouri banks
long sheets of offerings of1this kind, the securities issued
by the leading business firms of the West, with the rates
attached, and many of the banks invest a portion of their
surplus thus. They get practically 6 per cent on call
loans and as the amounts offered run from $1,000 to $5,000
lots, there is abundant security. The effect is also to assist
the city banks, so that when there is need of their surplus
it is not dissipated in the commercial paper, the country
banks being the investors. It is into this sort of paper
that the banks will put a larger amount of money now
that the wheat is going to market—slowly yet, but with
promise of swifter motion when the car shortage is
straightened out. They will find this an outlet for their
loan fund and thus will be sent into the East a larger
amount of loan money than would otherwise be put in
use there. The growth of this business is rapid and the
firms that deal directly with the Western banks increase
each season.
T H E C O M M E R C IA L W EST .
32
h ^ G R A I N
^
——
— ■■
T H E W E E K ’S O B S E R V A T IO N S .
The government report for October raises the yield
of wheat in the United States this year to 673,671,000 bush
els, an increase of about 40,000,000 bushels over
its August report. This calls for crops slightly in excess
of the government figures for 1902. It will be difficult to
make the conservative thinkers in the trade believe that
the country has raised more wheat this year than last,
and in looking over the government figures it is not diffi
cult to find 45,000,000 bushels that from their standpoint
will not be realized, and of this amount 30,000,000 bush
els is for the three Northwest states, leaving 15,000,000
overestimate on winter wheat. There is only a differ
ence of 600,000 acres between the government and the re
port of this paper for the three Northwest 'states, but as
there is a difference of 30,000,000 in estimated yield, a
part of the difference must come from a wrong estimate
of yield on one side or the other, as only a part can be
charged to the difference in acres. Up to date Minne
apolis and Duluth have received 9,000,000 bushels less of
spring wheat than last year. It will take until about
April to make positive statements as to the crop result
based on the record of distribution, no matter what pres
ent opinion may be.
*
*
*
The millers of Minneapolis are making a good record,
with a strike to deal with. On the half week stocks of
wheat in Minneapolis increase only 25,000 bushels, due to
the ordering out of wheat from the elevators for the mills
to grind. The scarcity of contract wheat accounts for the
strength of the option this week. The mills have made
some good flour sales during the week, one lot of 25,000
sacks having been sold for export at the highest price this
year. The rains have damaged wheat in grade so exten
sively in the Northwest that it is practically settled that
contract wheat will be in demand until another harvest.
Threshing was interrupted near the close of last week by
rains, and in some localities there is too much water to
permit of moving threshing machinery. This is causing
delay in staxk threshing and suggests a moderate move
ment of wheat until frost cuts off the chance for fall
plowing. Minnesota has a large part of her crop to thresh,
but North Dakota has made progress with the work and
has completed it in some sections.
*
*
*
A Duluth firm that opposed strongly the estimate by
this paper, and especially that part that affects acreage on
account of diversification, has this to say in its Circular
issued this week: “Our total receipts for two days foot
up 1,400 cars, all kinds of grain, aid the fact that only about
one-half of our receipts are wheat, tells the story regard
ing the increase in the volume of coarse grains.” It cer
tainly looks that way.
It is sometimes of interest to read what the uninitiated
have to say on any subject. We have before us a letter
written by a resident of Chicago to a Minneapolis gentle
man, who calls our attention to the line of reasoning
adopted by one not fully posted as to the daily routine of
a market, but a part of which is sufficiently close to good
judgment to be of interest. * The Chicago gentleman
writes under a September date: “ It seems queer, but I
have been thinking for a week or more of writing to you
and asking for a candid opinion on the wheat situation, as
I felt that something was to be doing and I did not wish
to be counted among the rank outsiders. For the imme
diate present, everything points to a good set-back in
price. The farmers at the end of La Salle Street have
turned bearish at brilliant Argentine prospects for export
demand and large rush in offerings. These causes will
keep the recession going while they last, and I hope to
see this market go back to about 75 and hang around
there until January 1st, or until the contract seekers be
gin to get in their work. There seems to be a great dif
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Saturday, October 17, 1903.
M I L L I N G á M
~
.
.
.
ference m opinion as to the crop of this country. Murray,
of Cincinnati, says he will have an exportable surplus of
220.000. 000, while the government report would only show
180.000. 000. In taking Jones as authority on the North
west, the exportable surplus would be somewhat less than
that, with the visible smaller than for five years.
*
*
*
“ I am one of the wicked and perverse generation
which searcheth for a sign; in other words, for gross
mathematical figures, and if you have figures on the
world’s crop around the demand and supply for this coun
try, l would like to see them. It looks as if the winter,
however, was about 400,000,000, and the spring wheat not
over 200,000,000, or, say, a total of 10 per cent less than
last year, but if Mr. Jones’ figures on the Northwest are
right, and the reserves being smaller than last year, the
shortage for this country may well be 20 per cent less on
the whole, which would justify higher prices. I started
to think of the situation about two weeks ago and got
quite bearish on the export situation, and sent a small
check to the kind broker who sold some May at 84 and
took it in at 82 yesterday, making enough to satisfy all
outstanding liabilities. I find men who consider this
nothing more than a gambling game, which it certainly is
not, but it is a very sensitive and highly ,organized me
chanism. Do you notice that when the market reaches in
its reports, up or down, a certain point where it seems to
stick, to which it returns, from which there are no great
departures, it makes a turning point in the tendency of
price. For example, last week, wheat here touched 84,
went a fraction above several times, then seemed unable
to get to,85. It then started down a decisive break. Last
spring it touched 72 after the season here and stayed there
for two weeks or more. I notice there is seldom a sudden
change or reversal, except where the public is in. It takes
postive bull news to keep a price going. No news, or
bear news, can be depended on to send it down. Wheat
seldom closes lower for more than three days in succes
sion, or higher for more than two days in succession. I
note also that the trend of any day’s business is de
termined by 12 o’clock. If the market is lower at 12 it
will close still lower, while if it is higher at 12 than it
closed the night before, it will close higher. This wis
dom, such as it is, has been acquired without outlay, and
I would like to have you confirm without suggesting that
I am trying to give my grandmother points on knitting.”
*
*
*
There is considerable of fact in what the Chicago cor
respondent suggests, but it would hardly be wise to follow
too closely the rules he has laid down for 12 o’clock noon,
and for the continuous days of advance or decline in price.
The letter is of interest, however, for what it sets forth
as to the arguments that are influencing individuals as
to market conditions.
M r. K in g at H is Best.
Frank I. King, who edits the “Special Market Report”
issued by C. A. King & Co., Toledo, O., is always good in
his original comment, of which the following is just at
hand: “Mother Queen and writer were married 21 years
ago. Result, happy family. We have three little Queens
and one little King, all attending school. Writer had a
limited education, because he was compelled to work to
help the best mother who ever lived. His anxiety to have
his children enjoy a more liberal education, is why he is
himself on deck every day exerting himself to please his
customers. W e were married when only 22. Our wed
ding trip was a hack ride from a farm to my mother’s
home. Don’t save your presents for our silver wedding.
Let your orders come in the meantime. Our firm had a
golden wedding seven years ago. Here’s hoping all of our
good friends will enjoy one.”
The first grain ship of this season’s fleet cleared Sept.
30 from Tacoma. The German bark Nomia sailed for
Plymouth or Queenstown for orders with 38,135 bushels
of wheat and 95,529 bushels of barley. Total value, $82,480.
THE COMMERCIAL WEST.
Saturday, October 17, 1903
MINNEAPOLIS AND THE NORTHWEST.
Office, Oct. 15.—Minneapolis re
ceived 1,483 cars of coarse grains in the week ending to
day, and Duluth received in that time 1,327 cars of flax,
which continues to support the theory of a decreased
wheat acreage in the Northwest this year. The percent
age of No. 1 northern wheat arriving is very small, only
about 7 to 8 per cent. The probability is that when stack
threshing is reached, the percentage of cash wheat will in
crease to some extent, although the stack wheat will be
disappointing to a good many. Some of the wheat will
be tough, and a percentage of poor stacking will show
damage from the rain. The indications are that Minne
sota will be slow with her threshing until cold weather
comes. The fall work has been so delayed that farmers
will be inclined to use the pleasant days for plowing,
rather than for hauling the wheat to the station. We are
in receipt of a letter from a North Dakota farmer who
reports 2j4 days farm work out of 14 days this month, on
account of rain and the condition of the ground. In some
parts of the Northwest there is not one-half of the plow
ing done that is usual for this date, and for some of the
sections, where the ground is low and filled with water, it
will be impossible to do any plowing this year. With un
favorable weather in the spring for these same sections it
can be foreseen that the wheat acreage would be affected
next year unfavorably, regardless of the price of wheat.
C o m m e r c ia l
W est
E s tim a te d
R e c e ip ts .
There have been some estimates made this week in
the trade as to the probable receipts up to January. If
receipts in Minneapolis average 600 cars a day until Jan
uary, there will be about 36,000,000 bushels received.
Allowing 100 cars a day for shipments, the net supply for
this market would be 30,000,000 bushels. It takes 23,000,000 bushels running light to supply the mills, which would
leave about 7,000,000 bushels January 1st for require
ments. At the rate receipts have been running, it seems
doubtful whether the estimate of 600 cars a day can be
realized up to January 1st; for if it is, there must be a
heavy marketing period soon, and the prospects for that
are limited. The market is in an unpleasant situation for
operators generally. The high premium for cash wheat
over December, and the premium for December over May
makes it difficult for elevator companies to carry on
hedging on the large amount of low grade wheat that
they have to buy. In fact, the amount of hedging done
this year is greatly reduced, and instead the elevators are
substituting the merchandising of much of the low grade
receipts. A good quality of no grade wheat is selling at
Minneapolis around 78 cents, or within about 2kjc of De
cember price. It is estimated that this market carries 8
per cent more water than a fair quality of No. 1 northern
wheat, and on this account the price is much too high, and
yet the demand seems to be taking it at these relatively
high quotations.
N o rth w e s t
T h r e s h in g .
From reports received by this paper during the week
it is estimated that between 75 and 80 per cent of wheaf
threshing in North Dakota is completed, and about 35 per
cent of the marketable surplus of North Dakota wheat has
been marketed in Duluth and Minneapolis. In Minnesota
not to exceed 25 per cent of the threshing has been done,
and perhaps a little more than this in South Dakota. Of
the three states North Dakota is the first always to com
plete its threshing. This is due to the number of large
farms in the state which are fitted with threshing ma
chinery and are not dependent on the transient thresher.
In Minnesota Otter Tail county has made splendid prog
ress with her threshing and also with the fall plowing,
due to the favorable conditions in that county as to drain
age, but in the prairie districts plowing is way behind.
There is considerable wheat yet in shock in northwestern
Minnesota. It is damaged in grade, of course, but the
loss in bushels is probably not large.
C ash W h e a t.
There has been but small accumulation in terminal
wheat supplies in Minneapolis this week owing to the de
mand from the mills for contract wheat and the better
qualities of low grade. The premium over December is
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
33
strong and it is working unfavorably to the mills. The
hope is that when stack threshing begins there will be a
sufficient increase in percentage of No. 1 northern wheat
to reduce the premium over the option. It is desirable for
the markets in general that a more normal condition
should obtain. No. 2 wheat is in good demand and the
farmer is receiving a good price for it. Country mills
are buying wheat freely, which adds to the complica
tion for the city mills.
C a lifo r n ia
W h e a t.
Secretary Friedlander, of the San Francisco Merchant
Exchange, writes as follows: The final figures of distri
bution show that the wheat crop of California in 1902 was
562,000 tons, or 18 million bushels, and that his informa
tion shows that the crop this year is undoubtedly still
smaller. The government estimate the other day put the
California crop at 29 millions. This authority keeps track
of the exports and the rail movement into and out of the
state and the final figures are always practically exact.
The government estimate for California this year is ap
parently at least 10 millions too high.
FLOUR AND MILLING.
Foreign O rders Declined— Prices V e ry Firm — The Out
put In creasing— Cash W heat a Scarce Article.
_Millers were in position to land some foreign business
this week. Although the foreigners are basing their views
on the option and are therefore out of line with millers
who have to figure on cash wheat at a four cent premium,
and although foreign business on any considerable scale
is impossible at this time, there were some foreign bids
received that showed a margin, on which, ordinarily they
would have been accepted. But millers could place their
product to better advantage at home, and they were de
clined. Monday the local mills got out 55,305 barrels in
the shipments and made the best showing for any day
since the labor trouble handicapped them so badly. Prices
are firm but were not advanced more than 10c a barrel,
which was a little surprising in view of the advancing
cash wheat market and a decline in millstuffs. As quoted,
however, prices are firm and likely to advance.
As a matter of fact there was no immediate increase in
offerings as result of the larger local production, as local
millers needed all they could turn out for orders already
in hand or pending. But the prospect that the Minne
apolis production would soon be back close to normal was
not lost upon the country millers, who thought it well to
be forehanded, and that day offered at lower prices all
around. Tuesday the quotations were reduced locally.
Mixed feed suffered most and was quoted $1.00 a ton
lower both f. o. b. Minneapolis and Boston basis.
On Thursday the millers were again unable to get
enough wheat off the cash tables and turned to terminals
for some choice wheat to help out. At 8qL@85c for
No. 1 northern, flour prices as now quoted are not high
and would probably be a notch higher but for the coun
try mills and their offerings which have some effect on
low grades.
Domestic buyers are taking flour freely at this time
and good demand is assured for some time to come.
M in n e a p o lis F lo u r O u tp u t.
W eek ending—
Barrels.
O ctob er 10 ........................................................
189,870
O ctober 3
........................................................ 195,795
S eptem ber 26 ..................................................... 130,995
S eptem ber 19 ..................................................... 338,025
S eptem ber 12 ..................................................... 261,100
S eptem ber 5 ...................................................... 294,300
A u g u st 29
........................................................ 242,500
A u gu st 22
........................................................ 240,000
A u g u st 15
........................................................ 290,500
A u gu st 8 ............................................................. 282,200
A u g u st 1 .............................................................. 246,000
July 25 .................................................................. 238,000
Ju ly 18 .................................................................
259,200
R O L L IN
B
E.
R
O
S M IT H
K
E R
Y ear ago.
353,650
471,070
372.300
367,785
334,200
251,950
305.100
278.600
275,800
362.600
345.100
232.300
343,000
&
CO.
S
73 Chamber of Commerce, MINNEAPOLIS
Memher« • -i Chamber of Commerce
l Chicago Board of trade
Chicago Correspondent
R IC H A R D S O N & (
C O R R E S P O N D E N C E ON T H E M A R K E T IN V IT E D
SAMUEL
W. OSGOOD
C O N S U L T IN G M INING EN GINEER.
Operation and Examination Mines and Mills
Telephone Harrison 2805
15 Temple Court Building,
C H IC A G O
T H E CO M M ER CIA L WEST.
34
E xport Shipm ents.
B arrels.
46,445
W e e k ending—
O ctober 10 ............
O ctober 3 ..............
S eptem ber 26 ........
S ep tem ber 19 . . . .
S eptem ber 12 ........
S ep tem ber 5 ........
A u g u st 29 ............ .
A u g u st 22 ..............
A u g u st 15 ............
A u g u st 8 ................
A u g u st 1 ..............
Ju ly 25 ....................
July 18 ....................
43,850
85,670
48,400
72,700
49,000
37,600
46,500
30,300
17,900
23,600
25,200
Y ear ago.
96,760
102,620
100,235
86,495
99,500
63,600
48,100
65,800
69,800
61,600
62,800
66,900
38,000
FLAXSEED.
F la x A dvances H ere in the Face of Dull Oil T rad e— D u
luth L ead s the Strength.
Extreme dullness in the linseed oil trade and a strong
active and higher market for seed appears very anomalous
yet such is the condition here. The oil mills are run
ning, but are not forcing matters and no very favorable
reports are heard. Some mill managers say trade is fair
and from this the range is to poor business and very slow
sales. There is some talk that the mills will close down
in part, but of this there is no immediate likelihood. Seed
has been strong and higher in the face of such conditions,
No. 1 selling to $1.02, and rejected following along at
about ic under No. 1 for the most desirable lots.
The primary cause of the strength lies in Duluth.
With the Northwestern crop movement almost a month
late, the eastern oil mills dependent upon the Northwest
for supplies must get their seed down the lakes from
Duluth very soon, if they are to avoid the rush and con
fusion incident to the closing of navigation. Consequently
Duluth October fffix is very firm, and Minneapolis cash
is firm at i @ i ^4 c under. Duluth got three cars to one at
Minneapolis, or for the week 1,327 against 436 here, and of
the Duluth receipts the bulk was sold to go out soon.
M inneapolis cash ..
Y ear ag o ................
M ay ..........................
C h icago cash ...........
S outhw est ..............
M ay ..........................
D uluth cash .............
N ov em b er ..............
D ecem b er ...............
M ay ..........................
..
..
..
..
..
..
..
..
..
Flax
Fri.
Oct.
9.
1.00%
1.21
1.01%
1.02
.95
1.00
1.02%
1.01%
1.003/4
1.04
P rices.
Mon.
Sat.
Oct.
Oct.
10.
12.
1 . 00% I.OO1/2
1 . 201/2 I . 201/2
1.01% 1.02%
1.02
1.01
. 941/2 . 941/2
1.01
1.01
1.02% 1.02%
1.01% I.O 234
1.01% I.O I 34
I.O 41/2 1.05%
Tues.
Oct.
13.
1.02
1.20%
1.03%
I.O 31/2
.96
1.01
I.O 334
1.03 34
1.03
1.06%
W ed.
Oct.
14.
1.01%
1.20
I.O 334
I.O 31/2
.96
1.02
1.03%
1.03%
1.02%
I.O 51/2
Thur.
Oct.
15.
1.01%
1.18
1.03
I . 021/2
.95
I.OII/2
1.02 34
I.O 21/2
I.O I 1/2
I.O 434
MILLFEED.
Dullness and Price Reductions— E astern B u yers H esitant
— Country M ills O ffering Freely.
When the big Pillsbury A mill got under way this
week it became evident that millers would find it more
difficult to hold up prices of by-products. Buyers were
already holding off and country mills were offering in the
East at prices in some instances considerably under cur
rent quotations. The country mills are still in the posi
tion of trying to move a much larger production than
usual, and have been pressing the market in various di
rections in search of an outlet. On Monday the market
was barely steady, and it needed but the promise of an
increased production here to take the edge off.
Q uotations o f M illstuffs in Car L ots, P rom pt Shipm ents, F. O. B.
M inneapolis.
Ton.
Bran, 200 lb. s a c k s ..................................................................$ 1 4.00 @ .........
Bran, in bu ik .......................................................................... 13.00@13.25
Standard m iddlings, 200 lb. s a c k s .................................... 1 6 .0 0 @ ........
F lour m iddlings, 200 lb. s a c k s ............................................ 1 8 .5 0 @ ........
M ixed feed, 200 lb, s a c k s ..................................................... 16.50@16.75
R e d -d og , 140 lb. ju t e ............................................................ 21.00@ 21.25
M illstuffs in 100 lb. sack s 50c per ton ov er ab ove quotations.
R e d -d o g in 100’s 25c over.
Q uotations o f M illstuffs, B oston Basis, Lake and Rail Shipm ent.
Ton.
Bran, 200 lb. s a c k s ................................................................. $19.10@19.35
Standard m iddlings, 200 lb. s a c k s .................................... 21.10@21.25
F lour m iddlings, 200 lb. s a c k s ............................................ 21.60@ 22.00
M ixed feed, 200 lb. s a c k s ...................................................... 2 1 .6 0 @ ........
R e d -d o g , 140 lb. j u t e ..................................... ........................ 26.10@26.50
M illstuffs in 100 lb. sacks 50c per ton ov er ab ove quotations.
R e d -d o g in 100’s 25c over.
M inneapolis Coarse Grains.
High receipts and higher prices were the features
this week. There was a material falling off in receipts all
around, but the same falling off was noted in wheat, and
in the total movement the same relatively large propor
tion of coarse grains was noted, indicating again that the
production of coarse grains in the Northwest is this year
proportionately larger than ever.
Corn.
Only 25 cars were in during the entire week. There
is a continued good demand for choice corn of which little
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Saturday, October 17, 1903.
comes in and good lots of No. 3 yellow sell at 46@46J4c,
a good cent over last week.
D aily closin g p rices o f No. 3 corn during the w eek w ere:
Y ear
ago.
N o. 3 Yel. N o. 3.
F riday, Oct. 9 .................... ............................. 45
44
59%
441/2
58%
S aturday, Oct. 10 ........ ............................ 45i/2
45
M onday, Oct. 12................ ............................. 45i/2
591/4
45
T uesday, Oct. 13 ............ ............................. 451/2
591/4
59%
W edn esda y, Oct. 14........ ............................. 46
451/2
46
T hu rsday, Oct. 15 ........ ............................ 461/2
591/4
Oats.
Oats led the local markets in strength and No. 3 white
sold midway in the week at 36c. Minneapolis is again the
leading oats market in the country and all classes of buy
ers are turning here for supplies. Local feed men and
elevators are in the market for the ordinary stuff, and the
cereal mill buyers are all back in the market again for the
choice lots. Receipts during the week ran to 505 cars in
which there was a good percentage of oats suitable for
cereal purposes and while this continues the local mar
ket will lead all others in strength and activity.
D aily prices o f N o. 3 w h ite oats during the w eek were^
Y ear
ago.
35
32@33
F rid ay, Oct. 9 ....................................................
36
31@33
S aturday, Oct. 10 .............................................
351/2
31 @33
M onday, Oct. 12.................................................
351/2
31@33
T uesday, Oct. 13..............................................
35%
32@34
W edn esda y, Oct. 14 .......................................
35?4
•
32@34
T hu rsday, Oct. 15 ............................................
Barley.
The big end of the run this week was low grade bar
ley. This hurt the market a little as the offerings of
choice malting stuff were lighter and eastern maltsters
were not always able to find just what they wanted with
ease, and the stimulus of active competition noted in the
previous week was lacking. As an offset to this there
were much lighter receipts, the total running to 480 cars
against 679, and with the larger proportion of off grade
barley, not much over half the former quantity of malting
barley was offered. Prices varied little. Occasional com
plaints were heard of inability to move low grade lots at
former prices, but each day showed a good clean up, and
on the whole the market was satisfactory.
Local barley men saw the season start here with Min
neapolis leading all markets in volume of business and
relatively high prices. With a steady local demand and
the market filled with outside buying orders it was an
easy matter to move the heaviest consignments at prices
well up. This could hardly continue indefinitely, and the
market now is less buoyant and there is less of a rush
for the barley, but it is a good market nevertheless and
there is every evidence that it will continue to be.
Much barley is now moving from North Dakota
straight across to Duluth, and thence to eastern markets.
There has been some turning of malting demand into this
channel which showed its effect in this market but malt
sters in the West and Southwest sent increased inquiry
here. Elevator men are active and the large Minneapolis
malting company is a steady buyer, and it is likely receipts
will be quickly absorbed however heavy they may run
from now on. At present 55c is about top, but good lots
will bring the figure, while on the feed lots the range is
as low as 40c, but little comes that will not bring 44c.
Rye.
On Monday the market advanced a full cent, this not
withstanding receipts of 21 cars the largest of any day for
T he
A lbert
D ic k in s o n
C o.
DEALERS IN
FLAX SEED
GRASS SEEDS, CLOVERS,
BIRD SEED,
BUCK-WHEAT, ENSILAGE CORN, POP-CORN,
BEANS, PEAS, C R A IN BAGS, ETC.
M IN N E A P O L IS O F F IC E :
912 CH AM BER
L. D. KNEELAND
OF CO M M ERCE.
ALLAN IVI. CLEM ENT
C H IC A G O
JOHN F. L. CURTIS
Kneeland, Clement & Curtis
S T O C K S , B O N D S , G R A IN ,
P R O V I S I O N S , C O T T O N &, C O F F E E
219 LA SALLE STREET
ROOKERY BUILDING
M EM B E R S :
New York Stock Exchange ; New York Coffee Exchange ; Chicago
Stock Exchange; Chicago Board of Trade.
PR IV A TE W IR E S
TH E COM M ERCIAL WEST.
Saturday, October 17, 1903.
35
THE LONDON WHEAT REVIEW.
(S p ecia l C orresp on den ce to T he C om m ercial W e s t.)
London, Oct. 1.—F. Lenders & Co. say in their wheat
review:
Wheat shipments last week were very heavy, the total
exceeding 1,500,000 quarters. The quantities afloat were
increased by 285,000 quarters and the American visible sup
ply by 1,200,000 bushels.
Extreme dullness has characterized the market since
our last, with an almost complete absence of business and
a steady falling away in values. The exact decline is diffi
cult to register, as it would be hard to say what the sell
ing value of some descriptions really is. Sentiment just
now is dead against the market, and it is useless attempt
ing to disguise the fact that there seems very little hope
of any immediate improvement. The market is certainly
not prepared to receive,, the large quantities recently put
afloat, and it must be also observed that, in spite of very
liberal shipments which have taken place from Russia,
stocks at the principal shipping ports are beginning to ac
cumulate at a considerable rate, and we are informed that
large sales of these will soon have to take place, the cash
being urgently wanted. Such a market as this is certainly
not the one on which heavy stocks can be realized with
out considerably affecting values, and if a slump is to be
avoided the Continent will have to come to the rescue.
That the Continent is capable of taking large quantities
this season we have not the slightest doubt, but if prices
are to be upheld the movement must be gradual and not
in such quantities as last week, for instance.
Complaints of drought in various parts of ivussia and
the Danube have been received during the last week, and
autumn sowings have been considerably delayed in con
sequence. This, of course, can only affect winter sow
ings, but the Azima and rye crops together aggregate a
fair total, and if conditions do not speedily alter for the
better, the quantity of old wheat which growers will mar
ket will no doubt be seriously affected. In spibs of that,
some time previous. Two eastern distillers had orders in
for several cars each, and some little competition devel
oped for the desirable lots. No. 2 sold at 5I^2@5I^ic>
against the ruling figure of 50^40 on Saturday. The ad
vance was well maintained and good rye has sold readily
all week at firm prices.
D a ily closin g p rices o f rye during the w eek w ere:
F riday, Oct. 9 .......................................................
Saturday, Oct. 10 .................................................
M onday, Oct. 12 ....................................................
T uesday, Oct. 13 ...................................................
W edn esda y , Oct. 14 ............................................
T hu rsday, Oct. 15..................................................
50%
50%
51%
51%
51%
51%
Y ear
ago.
45%
45% @ 46%
45% @ 46%
45% @ 46%
45% @ 46%
46 @ 46%
C lo s in g W h e a t F u tu r e P ric e s .
D e c e m b e r W h e a t.
M inneapolis ......................
Y ea r ag o ........................
C h icago ...............................
Y ea r a g o ........................
D uluth ................................
K an sas C ity ......................
St. L ou is ...........................
N ew Y o rk ..........................
Fri.
Oct.
9.
78%
67%
78%
70
76%
67%
85%
84%
Sat.
Oct.
10.
79%
68%
79%
70%
77%
68%
85%
85%
Mon.
Oct.
12.
78%
68%
78%
71
76%
67%
85%
85
Tues.
Oct.
13.
80%
68%
79%
70%
7734
69%
85%
85%
W ed. T hur.
Oct.
Oct.
15.
14.
80%
79%
69%
69%
79%
78%
72
71%
78%
77%
69%
68%
85%
85%
85%
86%
Make Drafts through Corn Exchange Nat Bk.
MACK
(Member Chicago Board of Trade)
T lie S h i p p e r s
MASCOT
The Market gets manv but Mack gets
the Market
Consign as follows!
Order J. P. Mackenzie
New York
Notify J. P. Mackenzie, Chicago
Via Chicago for Inspection and Transfer
J . P. M A C K E N Z IE ,
265 L a S a lle S t.
-
C h ic a g o
however, there is a large quantity already marketed to be
dealt with, and buyers are not at all anxious for it.
Everything seems against wheat. Even the elements
took a hand in the game and sent an exceptionally wet and
cold August, which drove buyers to load themselves up
with wheat, and then sent a fine September and good crop
reports from quarters where nothing but disaster was ex
pected, and the buyers now find that nobody seems to
want the wheat which they had paid such good prices to
secure.
The condition of the money market in America, to
which we have drawn attention on more than one occa
sion, is also a factor which must not be ignored. Excel
lent reports as to the industrial condition continue to be
received, but if Wall Street is any index of the nation’s
progress, we fell inclined to doubt the truth of these bril
liant accounts, and fear another panic similar to 1893 may
not be far off. Increasing imports of merchandise and ex
ports of gold at the same time are not indicative of eco
nomic progress, and sooner or later this condition of
things must make itself seriously felt throughout the
states, and whether their own special market warrants it or
not, we think larger exports of wheat, maize, cotton, etc.,
inevitable.
The results of the 1903 crop are now pretty well known,
and the trade is beginning to look to the exporters of the
1903-4 crop. From these directions reports continue ex
cellent, and we are promised large crops in the Argentine,
India, and Australia. Sellers of Pacific white wheat have
also been a little more in evidence, so that there is no in
dication of scarcity, either in the near or distant future,
and unless America is sufficiently strong to keep up her
own prices, it is pretty evident that* we are not going to
receive much support from Europe.
Maize.—This article has also been dull and declining,
but the tone now seems a little steadier.
M a y W h e a t.
Fri.
Oct.
9.
78%
67%
78%
71%
77%
68%
83
82%
M inneapolis . . . . ..............
Y ear ago ........ ..............
C hicago .............. ..............
Y ear a g o ........ ..............
D uluth ................ ..............
K an sas C ity . . . . ..............
St. L ou is .......... ...............
N ew Y ork .......... ..............
M in n e a p o lis
Sat.
Oct.
10.
79%
68%
79%
71%
78%
67%
83%
83%
M on.
Oct.
12.
78%
68%
78%
72%
77%
68%
82%
82%
Tues.
Oct.
13.
79%
68%
79%
72%
78%
69
83%
83%
W ed. Thur.
Oct.
Oct.
14.
15.
78%
79%
69 %
69%
78%
79%
73
73%
78%
79
69%
69%
82%
83%
83%
83%
C ash W h e a t, O ffic ia l C lo se .
Fri.
Oct.
9.
No. 1 h a rd .......... .............. 81%
N o. 1 northern . ...............
803/4
No. 2 northern . .............. 78%
D u lu th
No. 1 hard .......... ...............
N o. 1 n o rth e rn .. ..............
No. 2 northern . ..............
C ash
81%
80%
77%
Kansas
No. 2 hard .......... ...............
N o. 2 red ...........................
Sat.
Oct.
10.
82%
81%
79%
C it y
M on.
Oct.
12.
82%
81%
79%
Tues.
Oct.
13.
83%
82%
80%
W ed. Thur.
Oct.
Oct.
14.
15.
83%
85
84
82%
80%
81%
W h e a t.
82%
81%
78%
81%
80%
77%
82%
81%
78%
82%
81%
78%
83%
82%
79%
74
85
73
83
74
83
C ash W h e a t.
73
81
73
81
73
81
Wm. Dalrymple Wm. Dalrymple Co.
501 Board of Trade, Duluth
901 Chamber of Com. Minneapolis
G R A IN C O M M IS S IO N
Receiving a Specialty.
Advances made to Farmers, Shippers and
Elevator Companies
Opposite Board of Trade
J. V. McHUGH
C. A. CHRISTENSEN
J. E. STAIR
A Reliable Firm to which
to Consign Your Grain
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
THE COMMERCIAL WEST.
36
L iv e r p o o l
W heat
P ric e s .
D ecem b er Close.
F riday, Oct. 9 ................................................................................... 6s 4 li d
S aturday, Oct. 10 .......................................................................... 6s 4% d
M onday, Oct. 12 ............................................................................ 6s 4% d
T uesday, Oct. 13 .......................................................................... 6s 4% d
W edn esda y, Oct. 14 .................................................................... 6s 5 d
T hu rsday, Oct. 15 .......................... .............................................
£s 5% d
W heat
F ri., Oct. 9 ............
Sat., Oct. 10........
M on.,
Oct.12___
T ues.,
Oct.13___
W ed .,
Oct.14----T hur.,
Oct.15___
D a ily
R e c e ip ts .
M inneapolis.
Cars. Y ear ago.
296
494
216
462
569
1035
236
413
200
407
273
565
Duluth.
Cars. Y ear ago.
371
280
297
409
368
384
540
360
315
581
409
250
R e c e ip ts o f C o a rs e G r a in
Corn,
Cars.
F ri., Oct. 9 ...................... 5
Sat., Oct. 10...................
4
M on., Oct. 12.................. 8
T ues., Oct. 13................ 1
W ed ., Oct. 14................. 2
T hur., Oct. 15................ 5
M in n e a p o lis
Oats.
Cars.
104
55
153
28
61
104
W e e k ly
in
M in n e a p o lis .
B arley,
Cars.
107
45
173
35
41
69
R e c e ip ts
C hicago.
Cars. Y ear a^o.
84
68
82
91
165
111
195
117
104
202
79
95
R ye,
Cars.
5
4
21
2
10
4
F lax, D uluth
Cars. F lax.
87
205
59
221
126
203
28
369
56
143
80
186
o f G ra in .
R eceip ts o f grain a t M inneapolis fo r the w eeks ending on the
d ates given, w ere:
W e e k en d in g W e e k ending W e e k ending
Oct. 10.
Oct. 3.
Sept. 26.
W h eat, bushels ...........
1,826,720
2,694,400
2,316,800
Corn, bushels ......................
23,230
57,750
42,000
Oats, bushels ......................
814,680
998,720
894,240
B arley, bushels ..................
596,400
788,810
769,410
R ye, bushels .......................
38,400
22,400
42,400
F lax, bushels ......................
431,300
375,820
268,450
W e e k ending
Oct. 10.
N o. 1 h a r d .................... ........
3,512
N o. 1 northern ......... ___ 1,637,180
N o. 2 n o rth e rn .......... ___
262,787
No. 3 ............................. ----2,376
R ejected ..................... ___
13,551
Special bin ................. ___ 2,223,435
N o grade .................... ___
26,198
T ota l ......................
M inneapolis increase
D u lu th stock s ..........
D uluth increase . . . .
*W in ter w heat.
C o a rse
W e e k ending
Oct. 3.
4,521
1,598.732
153,541
W e e k ending
Sept. 26.
4,521
1,214,832
1,749,199
*76,934
1,086,096
4,169.039
663,046
1,469,879
454,210
G ra in
in
M in n e a p o lis
W e e k en d in g
Oct. 10.
C orn .......................................
13.243
Oats ........................................ 1,089,854
B arley ....................................
995,606
R y e .........................................
90,098
881,363
F lax ........................................
3,505,993
2,382,383
1,015,668 „
1.023,015
G ra in
C . A. C H R I S T E N S E N , P R E S I D E N T
Y ear ago.
Oct. 10
3,153
1,017,780
367,221
61,628
196,760
J. E .
in
M in n e a p o lis
E le v a to r s .
R ep ort o f the C ham ber o f C om m erce regular elevators for
the w eek ending Oct. 10, 1903:
E levator—
Inc. D ec.
W heat.
Oats.
Flax.
A tla n tic ......................
6
85,680
111,379
13,991
“ C ” ..................................
1
7,359
317
24,120
3 378
180 625
E x ch an ge ....................
i
1,349
22,569
914
E lectric .......................
47
521,772
191,052
Great E astern ..........
78,584
88,031
Great N or. No. 1 . . . .
i
49,641
52,571
D ibble ..........................
5
13,294
87
G reat N. “ B ” C om o.
Great W estern 1 . . . .
37
77,725
220,163
15,187
G reat W estern 2 . . . .
In terior 2 and 3 ........
In ter-S ta te N o. 1 . . . .
In ter-S ta te No. 2 . . . .
K ....................................
M idw a y No. 1 ............
M idw a y N o. 2 ............
M ississippi ................
M onarch ......................
N orth w estern 1..........
P illsbu ry ....................
P ion eer Steel ............
S boreham ....................
St. A n th on y 1 ............
St. A n th on y 3 ............
Standard ....................
Star ...............................
U nion ..........................
C oncrete .....................
X ....................................
T ota ls
....................
35
8
134,081
146,170
27,441
549
42
56,378
1 006
40
4
42
21
18
52
5
176
39
7
103
15
62
10
721
56
153.493
49,690
374.152
173,375
68.497
108,087
$6,053
458,456
169,308
1.522
35 081
933,740
24.728
165,694
53,979
4,169;039
538
17Ì911
14,858
5.054
3,432
46,249
161,956
35,327
3,963
21,159
54,586
58,351
277,185
771
16 283
40,326
175.873
6,056
58,989
51 393
2,246
79,482
1,089,854
881,363
Hay is at a premium in Oregon, and unless there is a
good rain to start the grass soon, the price will be much
higher before spring. The present price is $12 to $13 per
ton.
There are prospects of the Northern Pacific railroad
building a road up the Lewis river and across to Yakima
if a suitable pass can be found over the Cascade moun
tains, which will connect with the line to Vancouver. The
company has a party of engineers in the mountains at
present looking for a suitable route, says the Kalama Bul
letin.
E le v a to rs .
W e e k ending
Oct. 3.
14,717
715,643
662,239
67,782
784,017
Saturday, October 17, 1903.
Chicago Great W estern Increase.
The gross earnings of the Chicago Great Western
Railway (Maple Leaf Route) for the first week of Octo
ber, IQ03 ,'•shows an increase of $ 20 ,922.34 over the corre
sponding week of last year. Total increase from the be
ginning of the fiscal year $ 310 , 350 .20 .
S T A IR , S E C R E T A R Y
J. V.
McHUGH, TREASURER
M IN N E S O T A A N D W E S T E R N G R A IN CO.
31 C h a m b e r of C o m m e r c e , M IN N E A P O L IS , M IN N .
OWNING AND OPERATING LINES OF COUNTRY ELEVATORS IN MINNESOTA, NO. DAKOTA. SO. DAKOTA & IOWA
L . R . FYFE.
L. H. MANSON.
‘ Sequel to the Fencing
Girl.”
STOCKS,
BONDS,
COFFEE,
Copyright, 1903, by
Chicago & Alton
Railway.
COTTON.
54-56 Board of Trade Bldg., CHICAGO.
MINNEAPOLIS,
ST. LOUIS,
MILWAUKEE.
Stock orders executed on New York Stock Exchange over Private Wires.
Members Chicago Board of Trade—Milwaukee Chamber of Commerce.
The P o st or Jo u rn a l, containing our Daily Market Letter, in which appears
Chicago Board of Trade continuous quotations from the opening to the close of
business, will be sent free upon application. Tel. Harrison 1925- 2189.
H. M. PA Y N T E R in Charge of Cash Grain Department.
BYRON
2 9 F IF T H
&
WILLARD,
STREET SOUTH
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
P r in t e r s
M IN N E A P O L IS , M IN N .
ART
CALENDAR
Four graceful poses from life; figures ten inches
high, reproduced in colors by a process far su
perior to last year’s calendar. Highest example
of lithographic art.
“THE O N LY W A Y ”
to own one of these beautiful calendars is to
send twenty-five cents with name of publication
in which you read this advertisement, to Geo .
J. C h a r l t o n , Gen’l Passenger Agent, Chicago
& Alton Railway, C h ic a g o , III.
The best railway line between C h i c a g o , St .
L o u i s , K a n s a s C i t y and P e o r i a . Take the
“ Alton” to the St. Louis W orld’s Fair, 1904.
THE COMMERCIAL WEST.
Saturday, October 17, 1903.
CO
ÍN3D "T
O
b iy d °)
O l O O o o O O o O o o f f i o O O O c O O O ?
I"-»
sj)
LO
CO
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—
37
The advance shown on the chart the last of July
was the result of buying caused by disappointing
threshing returns in the winter wheat states and
blight in spring wheat. During July, Chicago
ranged about 2c over Minneapolis; but in August,
the latter market took the lead, and advanced to
86jjc, high point, as compared with Sqjjc for
Chicago. Chicago was getting new wheat where
as the northwest was only harvesting. On this
advance, which terminated on Aug. 15, cash No.
1 northern wheat in Minneapolis sold at $1.02;
on the 14th, it sold at $1. This was largely a
sentimental price, however, as but little wheat
was sold. There were rains throughout the
northwest, which delayed harvesting, and a Sep
tember squeeze was feared.
There was a considerable short interest in
Minneapolis September wheat, as the chart for
the month of September shows. The sharp ad
vance, which carried the price to 91 Ac, was
caused by the shorts running, due to rains
throughout the northwest and snow in North
Dakota. Chicago high point during the month
of September was 82c, and low point 74^0. The
close, on the 30th, was 77c. On that day No. 2
red cash wheat in Chicago closed at 79AC, De
cember wheat at 77J J c and May at 78l/8c. The
strength in red was partly on buying by St.
Louis.
The close of the Minneapolis September op
tion was featureless. It passed out quietly at
84c. Cash No. 1 northern wheat closed at 79JJC,
December at 75T
/2c and May at 77c.
O
The Snow
Crop Report.
The Orange Judd
Farmer presen ts
its final report on
the wheat crop.
The winter wheat
yield is placed at
12.9 bushels, mak
ing a total of
444,000,000 bushels,
and spring wheat
yield at 12.8 bush
els, or 260,000,000
bushels. The total
whe at c r o p is
placed at 704,000,000 bushels. The
crop of Minnesota
and the Dakotas is
placed at 180,000,000 bnshels. This
is the Snow report.
fO
05
00
co
co
CO
\o
00
to
CO
TH E SEPTEM BER
W H E A T O PT IO N .
Minneapolis September
wheat had a range, from
low point, 66¿4c, the lat
ter part of March, to high
point, 9ij4c, on Sept. 16,
of 24HC. The high point
during its life as an “ac
tive option,” that is, before
Sept. 1, was 86%c, on Aug.
15.
The accompanying
chart shows the fluctua
tions of A c or greater,
from the commencement
of the option, on March
20, to Sept. 30.
The first basis formed
by Minneapolis Septem
ber wheat was at 67c,
while Chicago settled at
68c, never but once going
%c under that point. The
next basis was at 68Ac
for Minneapolis and 6gJ
/2c
for Chicago; and neither
option ever went below
these points again. There
were unlimited buying or
ders at these prices that
absorbed everything of
fered. Thus, step by step,
the price advanced with
out a decided reaction un
til 78c was passed in Min
neapolis and 80c in Chi
cago.
The June advance was
caused by floods in the
southwest, crop damage
reports, and dry weather
in the spring wheat states.
The latter part of June
there were rains in the
Northwest, which broke
the market and caused a
6c reaction. Good specu
lative buying quickly fol
lowed, and the market re
sponded.
Profit taking,
however, caused another
decline the middle of July.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
siw 35 rb
cottici co
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00
~
CD
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THE COMMERCIAL WEST.
38
Saturday, October 17, 1903.
COMMERCIAL WEST MARKET REVIEWS.
H. P oehler Co., M inneapolis, Oct. 14: T he situ ation is u n
changed. T he late ad van ce has been caused m ainly b y scared
sh orts w h o becam e afra id o f a squ eeze in D ecem b er w h eat o w
in g to the sm all am oun t o f 1° or co n tra ct grade w h eat in the
N orth w est this year. A lth ou g h C hicago con tin u es to talk
bearish traders in that m arket w ere the first ones to b ecom e
scared and to bu y D ecem b er in this m arket.
W e lo o k fo r m uch higher p rices ultim ately, but w e caution
our frien d s again st bu y in g on the present bulge. W in te r w h eat
receip ts continue large and N orth w estern receip ts are m ore apt
to increase than to decrease, so think it ad visable to w ait fo r a
m aterial declin e before load in g up again. On a g o o d break
w ou ld stron g ly ad v ise buying. Sooner or later w in ter w h eat
receip ts w ill drop off sharply, so w ill R u ssian shipm ents, and
then the real stren gth o f the situation w ill becom e so plain
that no one w ill w ait a n y longer but will bu y w h eat at alm ost
any prices.
R ollin E. Sm ith & Co., M inneapolis, Oct. 15: T he M in n e
ap olis m arket is nervous and v ery sen sative to bull influences.
Up to 80V2c D ecem b er w h eat held its lead o f 1c ov er C hicago
today, but w h en C h icago a d van ced over 79%c, M inneapolis b e
gan to lag. T h is bears out our su ggestion last w eek that
should C hicago have a qu ick advance, it w ou ld go fa ster than
M inneapolis. T he situ ation is v ery stron g. T he ten d en cy o f
C h icago D e ce m b e r is gradu ally upw ard, and a sudden ad vance
is probable. M ay w h eat sh ow ed stren gth to d a y fo r the first
tim e. C hicago M ay is h ea vily oversold, and is th erefore likely
to bulge up un expectedly. T he la ck o f export trade is b ecom in g
an old story, and the trade, ex ce p t som e bears in C hicago, are
a w a k en in g to the hom e situation. C hicago stock s are stead ily
bein g d raw n upon, and there is no p rosp ect o f replen ishin g
them from the N orth w est. T h resh in g can n ot be com p leted b e
fore the ground freezes, and then it w ill depend on the w eather.
C oun try m ills are w a itin g fo r a free m ovem ent. T here w ill be
no great am ou n t o f w h eat to com e upon the M inneapolis m a r
ket at any tim e. W ith a h ea v y sh ort interest in C hicago, and
no sou rce o f supply o f co n tra ct w heat, it seem s idle to talk
o f R ussian sh ipm ents and A rgen tin e acreage.
sfc *
*
v a te “ sta tisticia n ” that the crop exceeds 700,000,000. E ven if
they w ere n ot n ea rly the m ean, the W a sh in g ton figures m ust be
a ccep ted as the best w e have, and the great d ecrease in prim ary
receip ts on this crop thus fa r m ay be set dow n as p artly due to
delays caused b y bad w eather, and p rob ably in larger part caused
b y the ex traord in ary dem and to feed interior m ills, the c o u n
try outside the com m ercia l cen ters bein g ab solu tely bare of
w h eat three m onths ago. It m ay be that first holders are so m e
w h at less w illin g to m arket their w h eat freely than th ey have
been in other years, but there is no p ro o f that it is so, and w e
d ou bt it. W h a tev er the cause m ay be it is in con testible that,
n otw ith stan d in g the gain in the v isible supply fo r last w eek arid
the sm aller m illin g con su m p tion at M inneapolis due to the strike
there, cash w h eat still is so scarce that it com m an ds a sharp
prem ium here and at m ost other points. B uyers in this city
fa irly m ay be d escribed as “ h u ngry fo r it,” an d even in M in n e
ap olis our special corresp on d en t there qu otes a local seller as
sayin g, “ there is n ot enough on table to go roun d; it is a case
o f fa v orin g our frien d s.” A lso he n otes an ex p ecta tion o f only
m oderate receip ts there fo r the im m ediate future, and hints it
to be p ossible that the m illers do n ot w an t the strikers to call
the strik e off until receip ts increase, as th ey n ow have enough
trou ble in secu rin g the kind o f w h eat they w an t to m aintain the
present rate o f grinding, w h ich is ab ou t h a lf the norm al c a p a c
ity
W e observe that the receip ts reported there y esterd a y w ere
bu t ab ou t h a lf th ose of a year previou sly, though the w eath er
has been fine, and that the total prim ary receip ts fo r all points
reported sh ow s a m oderate d ecrease fo r last w eek.
H ulburd, W a rren & Co., C hicago, Oct. 14: W h e a t has been
fa irly active, b u t averaged easier, and the close this even in g
is ab ou t y2c d ow n from last night. St. L ou is sh ow s ab ou t the
sam e decline, and so does the N orth w est in ev eryth in g e x cep t
the cash w h eat a t M inneapolis, w h ich has ruled l c high er than
yesterd ay an d closed so. E n glish and F ren ch cables w ere a lit
tle higher, and A n tw erp w as unchanged. R eceip ts at p rim ary
m arkets w ere a b ou t the sam e as last year. F rom 6 to 25 loads
reported as taken at the seaboard fo r export, and 280,000 b u sh
els w h eat and flour, le ft there. A g ood dem and fo r our s o ft red
w h eat still continues, althou gh the prem ium , w h ich y esterd a y
w as 2c over D ecem b er in store, is tod a y reported as b ein g
on ly iy 2c. Our sto ck o f this w heat, w h ich is our only c o n tra ct
stock , is stead ily decreasing, and there is n oth in g at p resent
com in g in sig h t to replace it. T he w eath er is clear an d pleasan t
all over the sprin g w h eat region, and it is to be hoped that it
m ay con tin u e so, so that th ey m ay be able to secure the gram
still ou tstan d in g in the fields, and thresh ou t their stack s
Sam ple corn w as in good dem and today, an d reported % @ % c
higher. A g ood sh ipping d em and has d evelop ed fo r corn this
w eek, the reported sales o f y esterd a y and tod a y a g g reg a tin g
1 100,000 bushels. T he seaboard reported y esterd a y 47 boa t
loads as taken there fo r export, and the reports tod a y run all
the w a y from 18 to 40 loads. Our ad v ices from one of the best
corn coun ties in cen tra l Illinois state that the p ick in g o f corn
fo r feed, in som e of their best fields, sh ow s a great deal of
s o ft corn, and they look fo r no m ovem en t o f new corn until
D ecem ber.
T hom pson, Sons & Co., W in n ip eg , Canada, O ctober 10:
A calm er feelin g prevad ed the m arkets y esterd a y and as c o m
pared w ith a w eek a g o m arkets sh ow a slight d ecline in all
bu t M inneapolis D ecem b er w h ich is iy2c higher. T he situ a
tion o f the w o rld ’ s w h e a t m arket is general as com p ared w ith
the A m e rica n situ ation in p articu la r is w ell sh ow n in the a c
tion of the w o rld ’ s m arkets this w eek, fo r w h ile A m e rica n m a r
kets a d v a n ced on T h u rsd ay l @ 2 c per bushel, alll the response
cables m ade y esterd ay w as an ad van ce o f % d at L iverp ool
and 1A @ 1/2 c at P aris. T here seem s a con sid erable m easure of
u n certa in ty y e t as to the size and qu ality o f the A m erican crop,
and an a ctive cash dem and con tin u es on the part o f the m illers,
so that up to the p resent there is still a prem ium on early
d elivery as com pared w ith fu tu re delivery. U ntil the v isible
supply grow s con sid erably or d om estic flour dem and falls m uch
low er than a t present, it is quite probable that p rices in A m e r i
can m arkets w ill n ot declin e m uch. In the m eanw h ile E urope
is g ettin g w ell supplied from other coun tries, and the E uropean
m illers and public are b e co m in g used to other blends o f flour,
and are n ot likely to w o rry them selves ab ou t the A m erican
W . R. M u m ford Co., C hicago, Oct. 14.— T here w as early som e
m arket so lon g as plenty o f oth er supplies are pressed upon
g ood investm ent bu y in g o f w heat b y certain stron g parties, but
them . T he p rogress o f new crop s is v e ry sa tisfa cto ry . A u s
there w as also som e v ery hea v y selling of round lots. M ay and
tralia, A rgen tin a and India are p rom isin g their full share of the
D ecem b er w h ea t aroun d top points fo r the day, an d w h en it
w o rld ’ s bread fo r the first half o f 1904, and a large acreage
becam e kn ow n in the pit th at the cash m arket w as rather
of w in ter w h eat is b eg in n in g to g row in the states under f a
hea v y and that No. 2 red w as nom inally l c over D ecem ber,
vorable condition s. T he visible supply increased 2,250,000 b u sh
again st 2c yesterd ay, and that the ch oice articles of fou r hard
els during last w eek com p ared to an increase o f 1,312,000 b u sh
w in ter and fou r sp rin g w ere sellin g from 8c to 12c d iscou n t
els the p reviou s w eek and an increase o f 782,000 bushels last
under D ecem b er under m ore liberal offerin gs o f this class of
year. T he w o rld ’s sh ipm ents w ere 11,234,000 bushels again st | w h eat, the local talent w h o had. been bu lling turned sellers and
12,138,000 bushels the previou s w eek and 13,406,000 bushels fo r
the m arket sold off ys c to % c from high point, closin g easy.
sam e w eek a year ago. T he w o rld ’s visible supply, a ccord in g
T he light stock s o f w h eat in public houses w ill m ake the m arket
to B ra d street’s, increased b y the large q u an tity o f 12,928,000
an easy one to bull should there be any g ood sh ipping dem and,
bushels, com p ared to an increase o f 7,669,000 bushels thq
bu t on the other hand should receip ts sh ow a m arked increase
p reviou s w eek and an increase o f 8,663,000 bushels last year.
and offerin gs m ore liberal on the m arket o f the low er grades,
T he increase in the w o rld ’ s v isible supply fo r the p ast w eek
believe w e w ill have low er values in futures.
is p rob ably the largest increase on record fo r one w eek.
T h is cereal tried hard to keep up its a p p earan ce of a buli
T here is n ot m u ch chan ge in the M anitoba w h eat situation.
m arket, but the m agn ificen t w eather and the fa ct that an y n u m
T he w o rk o f finishing h a rv est and threshin g p rogresses slow ly
ber o f letters are bein g receiv ed from the W e s t ad v isin g that
am id w eath er n o t en tirely favorable, and in the car in sp ec
corn that th ey did n ot think w ould am ou n t to an yth in g at all,
tions 2 northern and 3 northern runs to about 75 p er cen t of
has m ade rapid g row th the last tw o w eeks, and is either a
the w hole. T ra de during the w eek in the W in n ip e g m arket
g ood roa stin g ear n ow or com m en cin g to dent. T his w ould
has been m oderately active and there is a fa ir dem and fo r 1
indicate that the gov ern m en t report next m on th w ould sh ow an
northern, 2 northern and 3 north ern at prices K e l l i e higher
increase in corn, an d if this w eather lasts a sh ort tim e longer,
than a w e e k ago. A t the close o f bu siness y esterd a y spot,
it will have a m ost depressin g effect on values, especially fo r
en route p a st W in n ip e g and O ctob er delivery w ere all the
the M ay. A c co r d in g to the old saying, w e should have an open
sam e prices, viz., 1 n orthern 83c, 2 northern 77c, 3 north ern
w in ter this year, w e refer to the leaves on the trees and their
73c, all in store F o rt W illia m and P o rt A rthur.
con d ition at the present tim e o f the year. A s fa r as the D e
* * *
cem b er corn goes, w e have been, and are still inclined to the
bullish
side, or let the m onth alone, for it is old corn and the
Irw in, Green & Co., C hicago, O ctober 13.— Since the close of
w a y the cash corn is bein g shipped out th ey are liable to squeeze
tra din g last w eek the com m ercia l w orld has had tw o im porta n t
the D ecem b er shorts. A s stated in our letter yesterd ay, w e see
item s o f new s. One is the govern m en t crop report fo r O ctober,
n oth in g in the situation or con d ition s at p resent to m ake ua
w h ich generally is regarded as n ot fa v o rin g the bulls. T he
feel an yth in g bu t bearish on the M ay corn an d believe it will
oth er is the new s o f the w ar p rosp ect in the Orient. T he latter
sell around 40c, w h ich w ill be a g ood p rice fo r it, if crop con
w as d istin ctly depressin g outside o f prod uce circles, and they
dition s continue to im prove, and the yield of m ercan table corn
sym path ised m ildly w ith w eakn ess in stock s here and a fu rth er
increase.
T he closin g ton ig h t sh ow s M ay corn off little ov er % c
fa llin g off in the already unusually low qu ota tion s fo r B ritish
and D ecem b er up y8c from yesterday.
Consols. A t present it is ex ceed in gly difficult to m ake an in
T
ake
corn,
y esterd a y it declined y2c and oats ab ou t lc , f u
telligen t guess at the e ffe ct w ar betw een R u ssia and Japan, w ith
tures are fu lly l c high er than th ey w ere w hen cash corn w as
an alm ost inevitable jo in in g o f other R ow ers in the struggle,
sold
yesterday,
and cash corn is on ly ab ou t y2c high er than
w ou ld have on the ex p ort m ovem en t o f breadstuffs and p r o
yesterd ay. M ain stren g th in D ecem b er corn toda y cam e from
vision s fro m this coun try. It even m igh t interru pt it to an im
the
bu
y
in
g
of
sam
e b y shippers w h o had sold y esterd a y and this
p ortan t exten t, though that is n ot m ost lik ely ; an d if it should
m orning. T h is m orn in g ’ s sales ag g rega tin g ab ou t 400,000 b u sh
be fou n d that the D an ubian ports have parted w ith m ost o f their
els.
available surplus, in an ticip a tio n o f a w ar em bargo, the fa c t
w ou ld fa v o r d ecid ed ly high er p rices here in spite o f the greater
c o st o f tra n sp ortation in cid en t to w ar risks.
In w heat, the official report p ra ctica lly m akes out the total
crop to be a trifle less than 660,000,000 bushels, the deficiency
o f w h ich from the officially estim ated crop o f la st y ear is less
than the d ecrease o f 28,000,000 in exports sin ce the close o f
June. It does n o t agree w ith the estim ate o f 147,000,000 m ade
b y the “ C om m ercial W e s t ” fo r M innesota and the D akotas, but
M anufacturers o f
neither does it su sta in the am bitious con ten tion b y a s e m i-p ri
R . H. G O O D E L L
W . L. F O L D S
R. H . G O O D E L L & C O .
B R O K E R S IN
COLLATERAL
PAPER
2 1 8 LA S A L L E S T R E E T , C H I C A G O
N E G O T IA T E LO ANS ON S T O C K S , B O N D S AND
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Federal Reserve Bank of St. Louis
L e a th e r Belting. R u b b e r B e ltin g ;,
M echanical R ubber G ood s, Packing.,
Garden H ose, Fire Hose»"'1Apparatus^
R G h b e r B ootB retb s e te s.
G R A IN
THE COMM ERCIAL WEST.
Saturday, October 17, 1903.
M ilwaukee Grain M arket.
39
W . H. L A I D L E Y & CO.
(S p ecia l C orresp on den ce to T he C om m ercial W e s t.)
Milwaukee, Oct. 14.—A stronger undertone in the
wheat and flour markets was apparent during the past
week and wheat advanced 2c, while local millers advanced
their prices of flour Sc per barrel to the basis of $4-55 to
$4.65 for spring patents. Millers were free buyers of
sound wheat and practically took everything offered here
at prices fully 2c higher than were realized the week be
fore, and shippers and warehousemen also played prom
inent parts in the role of buyers. There was a tendency
on the part of all of them to leave the smutty and tough
wheat alone except where the sellers made the prices
within their limits. Winter grades, and particularly hard
Kansas, sold readily, millers being the chief buyers. Sales
of No. 1 northern were made at 84c to 8s^c, No. 2 north
ern at 81c to 83^20, No. 2 spring at 80c, No. 3 spring at
70c to 80c, No. 4 spring at 67c to 75c, and No. 2 hard
winter at 79c to 80c.
Barley was steadier and prices advanced about ic with
a more active demand for all grades. The best malting
sold readily at the advance, but the medium dragged and
the low grades were very dull, with liberal offerings. No.
2 ranged at 64c to 65c, standard at 59c to 61c, extra No. 3
at 50c to 61c, No. 3 at 41c to 53c, No. 4 at 40c to 42c and
screenings at 37c to 39c.
Rye is weak and L
/2c lower, with buyers less anxious
and the receipts increasing. Receipts are increasing, but
the quality shows no improvement, and buyers do not
'take much of the musty and tough grades. Sales of No.
1 were made at 56c to 57c, No. 2 at 54c to 55c and No. 3
at 50c to 53c. ■
Oats are firmer and about ic higher for the choice
grades, while the light weight samples are only y2c higher
or perhaps unchanged. Receipts are only small as com
pared with previous years and not sufficient to supply
the wants of the trade. No. 3 white sold at 37c to 38RK,
No. 3 at 35J/2C to 37^c and No. 4 at 32c to 34c.
Corn changed very little and business was on a mod
erate scale only, with light receipts and the demand
limited to taking care of local feed dealers and occasional
ly a shipper. Sales of No. 3 were made at 47c to 48c, No.
3 yellow at 48c to 48^0 and No. 4 at 45c to 46c.
There was an active demand for flour reported during
the entire week by millers, who advanced their prices 5c
all round. Their business was almost entirely confined
to domestic markets, but occasionally a sale of low grade
would be made for export. Five of the mills ran on
full time all of the week, while two were idle. Millstuffs
were steady, bran ranging at $15.00 to $15.50, fine mid
dlings at $17.00 to $17.25 and white middlings at $21.00 to
$21.25.
STOCKS, BONDS,
GRAINS, PROVISIONS
BANK STOCKS AND INVESTMENT SECURITIES
S E N D F O R O U R D A IL Y M A R K E T L E T T E R
Member Chicago Board of Trade
T e l e p h o n e , ITO M a in , P r iv a t e E x c h a n g e
1 8 6 -T 9 0
14a S a lle
S t .,
C H IC A G O ,
L. BARTLETT $c SON
COMPANY
Commission Merchants
23 Chamber of Commerce
MILWAUKEE
Branches: Minneapolis, St. Louis,
Kansas City, Chicago.
MILMINE, BODMAN 6 CO.
GRAIN. PROVISIONS, STOCKS, BONDS, COTTON
Invites Correspondence Regarding Unlisted Securities
CHICAGO, 5 and 7 Board of Trade
N EW YORK, 401 Produce Exchange
MINNEAPOLIS OFFICE:
-
-
-
J . C. VERH OEFF, Manager
E. S. WOODWORTH & CO.
G E N E R A L STATISTICS.
V is ib le
In Store at—
.
B altim ore ........
B oston ..............
,
B uffalo
.
............
C hicago
D etroit ............ ..
D uluth ..............
F t. W illiam , O n t..........
G alveston ........
Ind ian apolis . . .
K an sas C ity .. .
M ilw aukee . . . .
,
M inneapolis
M ontreal ..........
N ew O rleans ..
N ew Y o rk ........
do. afloat .. . .
S u p p ly
576,000
16,000
T oledo
................
On Canals . . . .
On L akes ........
233,000
30,000
158,000
W e e k ending
Oct. 3,
Corn,
W h eat,
bu.
bu.
464,000
859,000
7,000
122,000
985,000
484,000
2,924,000
2,715,000
158,000
65,000
1,000
1,016,000
537,000
121,000
1,354,000
65,000
545,000
113,000
1,085,000
112,000
86.000
COMMISSION.
Minneapolis, Duluth, Milwaukee and Chicago.
ORDERS FOR FUTURES EXECUTED IN ALL MARKETS.
E . S. W o o d w o r t h ,
G . P . H a r d in g ,
B. H. WOODWORTH,
President.
E. S. WOODWORTH.
Vice Pres.
President.
96,000
M IN N E A P O L IS , M IN N E S O T A .
501.000
538,000
104,000
1,500,000
464,000
2,747,000
232,84)0
1,321,01)0
473,000
2,492,000
8,398,000
2,541,000
R. P. WOODWORTH,
Sec. and Treas.
W o o d w o rth
EJevator Com pany,
474,000
26,111,000
Sec. and T reas.
225,000
26,000
54,000
145.000
495,000
20,868,000
W . S. W o o d w o r t h ,
458,000
32,000
G R E G O R Y , J E N N IS O N
M
T ota l .............
L ast year ........
Vice-Pres.
15,000
60,000
42,000
308,000
150,000
3,314,000
1 000
AIVD
3,506,000
75,000
725,000
86.000
288,000
P hilad elp hia . . .
175.000
P ort A rthur, O n t.........
3,311,000
St. L ou is .........
SHIPPING
o f G r a in .
W e e k ending
■Oct. 10,
Corn,
W h eat,
bu.
bu.
464,000
779,000
110,000
159,000
1,274,000
982,000
1,718,000
2,428,000
126.000
57,000
1.470,000
1,000
770,000
121,000
1,325,000
64,000
325,000
1,007,000
86,000
110,000
197,000
13,000
4,169,000
59,000
69,000
39,000
659,000
19.489,000
25,624,000
9,090,000
3,075,000
&
CO.
I X N J 5A I» < )U IS .
G r a i n
E l e v a t o r
*8.
Term inal 1,300,000 Bushels. Country 300,000 Bushels.
Shippers of Oats and Rye.
Write for Quotations.
Storage Capacity:
G ra in T o n n a g e S ta tis tic s .
F ollow in g are receip ts o f various grains and flour b y lead ing- railroads at C hicago fo r the w eek ending Oct. 3, 1903, and
the corresp on d in g p eriod in tw o p reced in g y ears:
Oats,
W heat ,
Corn,
F lour,
bush.
bush.
bush.
bbls.
362,000
37,000
93.000
. . . . 17,800
C. N. W „ 1903..
545,100
134,125
. . . . 16,800
141,525
C. N. W ., 1902..
235,050
123,945
. . . . 25,600
80,470
C. N. W ., 1901..
128,000
4,000
523,000
10,613
Illinois Central, 1903. ___
98,975
130.500
7,662
22,200
Illinois Central, 1902. ___
279,450
14,800
314,500
11,200
Illinois Central. 1901. ___
457,000
194,000
84,000
8,650
R o c k Island, 1903 . . .. ___
97,125
181,300
207,350
R o c k Island, 1902. . . . , . . . . 20,200
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Federal Reserve Bank of St. Louis
D u lu th
M ilw a u k e e
C h ica g o
E. A. BROWN * CO.
Wholesale Coal, Grain Commission Merchants
923 Chamber of Commerce
-
Minneapolis, Minn,
Liberal Advances made on Consignment
TH E COM M ERCIAL WEST.
40
R o c k Ifeland, 1901...............
C. B . & Q ., 1903..................
C. B . & Q ., 1902.................
C. B . & Q ., 1901..................
C. & A ., 1903........................
C. & A ., 1902........................
C & A ., 1901........................
C. & E . I., 1903....................
C. & E . I., 1902....................
C. & E , I., 1901....................
S t. P a u l, 1903........................
St. P a u l, 1902........................
S t. P a u l, 1901........................
W a b a s h , 1903 ........................
W a b a s h , 1902 ........................
W a b a s h , 1901 ........................
G r e a t W e s t e r n , 1903...........
G r e a t W e s t e r n , 1902...........
G r e a t W e s t e r n , 1901...........
A t c h is o n , 1903 ......................
A t c h is o n , 1902 ......................
A t c h is o n . 1901 ......................
W i s c o n s i n C e n tra l, 1 90 3 ..
W is c o n s in C e n tra l, 1 9 0 2 ..
W i s c o n s i n C e n tra l, 190 1 ..
4,400
25,800
10,200
31,400
16,200
2,000
2,800
84,175
73.000
163,805
117,475
9,000
147,045
28,675
23,200
20,600
56,800
2,400
1,800
600
16,600
21,600
69,800
20,001
8,760
20,512
25,355
10,261
14,451
109,000
187,775
310,800
8,000
86,700
925
36.000
25,900
172,000
114,000
134,200
58,975
8,325
247,296
1,215,000
248,000
385,925
135,000
143,375
72,150
62,000
54,525
38,850
118,000
26,825
155,400
197,000
42,675
43,800
36,000
8,800
33,700
193,000
80,200
80,000
253,000
191,000
101,500
457,650
64,000
240,700
44,550
86,000
98,450
94,850
236.000
245,050
284,900
38,000
33,350
41,850
93,000
76,050
54,250
43,000
27,550
50,350
3,000
2,900
6,000
1901.
3,787,639
5,016,149
5,221,880
6,974,526
6,463,391
8,831,199
9,030,701
6,606,989
6,607,611
4,406,064
6,648,609
3,840,574
4,470,352
6.195,749
4,719,898
1900.
3,018,832
2 829,910
3,029,381
2,363,743
3,327,003
3,318,760
3,113,641
2,695,168
3,248,313
3,373,100
4,665,982
3.535,857
3,242,810
4,450,167
4,292,855
W h e a t a n d F lo u r E x p o rts .
W e e k ending—
July 2 ...............................
July 9 ...............................
Ju ly 16 ..............................
July 23 .............................
Ju ly 30 ............................
A u g u st 6
....................
A u g u st 13
....................
A u g u st 20
....................
A u g u st 27
....................
S eptem ber 3 ..................
Septem ber 10 .................
S eptem ber 17 ..................
Septem ber 24 .................
O ctob er 1
.....................
O ctober 8
.....................
B ra d stre e t’ s.
1902.
1903.
2,966,682 3,211,215
4,404,115
2,380,410
3,652,784 3,775,222
2,781,988 3,980,969
3,191,442 4,388,534
3,040,629 4,244,363
3,413,191 4,591,805
3,372,789 5,954,759
3,245,056 5,436,530
3,131,839 6,276,299
3,045,040 5,444,046
1,909,083 5,435,323
3,050,430 5,077,070
4,082,681 6,870,578
2,378,722 5,645,779
In d ia n C o rn
W e e k ending—
July 2 ..............................
Ju ly 9 ..............................
July 16 ............................
July 23 ............................
July 30 ............................
A u g u st 6
...................
A u g u st 13
...................
...................
A u g u st 20
A u g u st 27
...................
S ep tem ber 3 .................
Septem ber -10 ...............
S eptem ber 17 ................
S eptem ber 24 ................
O ctober 1
...................
O ctob er 8
...................
E x p o rts , in
B u s h e ls .
B ra d stre e t’ s.
1902.
1903.
127,969
1,420,172
185,131
1,525,084
130,679
1,402,404
79,611
1,501,338
28,405
928,839
70,611
884,428
93,423
707,387
51,649
509,495
115,150
866,320
21,196
868,741
91,512
844,818
49,508
787,167
74,952
779,230
141,423
1,123,871
180,358
1,101,118
1901.
2,240,933
2,800,738
1,714,081
1,155,276
563,604
990,714
508,807
523,883
441,918
550,876
777,831
611,258
585,706
907,924
678,246
1900.
3,614,294
4,022,068
4,182,159
3,264,745
3,890,005
2,890,754
3,017,089
3,493,375
3,717,490
3,162,271
2,402,786
2,134,205
2,156,171
2,364,249
2,896,037
Saturday, October 17, 1903.
Tie Van Disen-Hammton Co.
Commission Merchants
G R A IN
L IV E S T O C K
Minneapolis and Duluth
South
Saint
Paul
W. R. MUMFORD CO.
G R A IN C O M M IS S IO N
STOCK AND BOND BROKERS
Special Private W ire to New York
Chicago 428=430 Rialto Building
M inneapolis 79 C h am ber o f C om m erce
K a n s a s City===St. L o u is= = = M ilw a u K e e
Liberal Advances on Consignments. Orders in Futures Solicited.
Cash and Future Market Letter Mailed Free on Application.
Members Different Exchanges
THE ST. ANTHONY ELEVATOR CO.
Capacity,
3, 250,000 Bushels
GRAIN MERCHANTS AND WAREHOUSEMEN
MINNEAPOLIS. MINN.
71 Chamber of Commerce
M IN N E APO LIS
CH ICAG O
E d w a rd s , W o o d & C o .
Room A , Manhattan Building,
Wm. H. Dunwoody, Pres.
Chas. J. Martin, Sec’y and Treas.
John W ashburn, Vice-Pres.
W. G. Ainsworth, Gen’l Manager
BARNUM GRAIN COMPANY
St. Paul. Minn.
M
i n
n
e
(1 1 1 (1
GKAIN
STOCKS—BONDS—GRAIN
PROVISIONS
u
AND
C l i n t o n M o r r i s o n , P res.
L . C. M i t c h e l l , V Pres.
o
l u
t t i
COMMISSION
D . L . R a y m o n d , Secy.
H. F . D o u g l a s , T reas. and Gen. Man.
.
.
.
M IN N E S O T A
R. G. CHANDLER
&
GO.
Grain and Provision.
6 S h er ma n St.
Best Facilities
l i s
Great W e ste rn
Elevator C om pany
M IN N E A P O L IS,
Ship Your Grain to Us
D
i p
MERCHANTS
Members Important Exchanges
Private Wires
a
CHICA G O
Liberal Advances
THOMAS
Prompt Returns
DULUTH
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
& DUN NETT,
C R AIN C O M M IS S IO N .
W IN N IPE G
D aily M a r k e t L e tte r F re e on A p p lic a tio n .
Chamber
of
Commerce,
-
M inneapolis.
THE COMMERCIAL WEST.
Saturday, October 17, 1903.
41
C e re s o ta F lo u r
■M aK es the "Best 'Bread_____
A million housekeepers say so by using it in prefer
ence to any other, but we don’t ask you to believe
without the proof. Try C E R E S O T A F L O U R
in your next baking and then decide for yourself.
Every Sack Warranted
Money back if you are not satisfied
M a n u fa c tu r ed b y
■
■— ■ —
The Northwestern Consolidated Milling Co.
Minneapolis, Minnesota.
UPDIKE COMMISSION CO
O .
G rain and Provisions
Members Chicago Board of Trade
6 4 0-41-42 Rialto Bldg.,
CHICAGO
w
.
2 0 6 Flour Exchange
MINNEAPOLIS,
Branch Offices:
550 Bee Bldg., Omaha, Neb., M issouri
Valley, la , So. Omaha, Neb.
A .
H IC K O K
GRAIN ELEVATOR BUILDER
(IN C O R P O R A T E D )
G A R D N E R
S u c o e is s o r s
Commission Merchants.
to
-
Long D is ta n c e ’Phone Main 1466.
respondence Solicited.
C o b b
«Sto G
3
MINNESOTA
Over thirty years’ experience.
«&
C O .
a r d n e r
Grain, Provisions, Cotton and Stocks.
317 C H A M B E R O F CO M M E R C E , ST. LO U IS
L eased
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
W ires
Cor
to
a ll
P rincipal
M «a*
•Is: e
*t »
T H E CO M M ER CIA L W EST.
42
W illiam Commons
Frank W . Commons
Grain Commission flerch an ts
M i n n e a p o l i s and
Duluth.
Receivers and Shippers of Wheat,
Coarse Grains and Flaxseed. Or
ders for Future Delivery Executed
in all Markets.
CHICAGO CORRESPONDENTS:
ARMOUR
GRAIN
Pacific N orthw est W heat.
Howard W . Commons
COMMONS & COMPANY
COMPANY.
George W . Peavey
Frank T . Hcffelfinger
Frederick B. Wells
Charles F . Deaver
Saturday, October 17, 1903.
The Portland Commercial Review submits its crop es
timate of wheat for the season of 1903 as follows:
O re g o n
C o u n tie s .
Bushels.
450.000
550.000
300.000
450.000
450.000
500.000
300.000
80,000
650.000
800.000
450.000
2,000,000
2,500,000
700.000
150.000
250.000
M a rion ...........
Linn ..............
L a n e ..............
Polk ..............
Benton .........
Yamhill .........
Washington . .
Clackamas . . .
Wasco ...........
Gilliam ...........
Morrow .........
Sherman .......
Umatilla .......
U n io n .............
B aker ...............
Other counties
The Peavey
Total ....................................................................10,580,000
System of Grain Elevators
Embraces the greatest number of Grain Elevators with the largest
aggregate storage capacity of any Elevator System in the world.
Total capacity in eight states, 3 5 ,8 0 0 ,0 0 0 bushels.
.'.
HEADQUARTERS:
MINNEAPOLIS
Branch Offices:
Chicago
Duluth
Kansas City
Omaha
C. E . Thayer
Sec. & Treas.
Geo. M Gillette
Vice-Pres
L,. S. Gillette
President
Electric Steel Elevator Co.
C A P A C IT Y 2, 200,000 BU SH ELS.
W H EA T , F L A X A N D B A R L E Y .
J. F . Whallon
Geo. P. Cam
MINNEAPOLIS.
Geo. C. Bagley
Chas. M , Case
W H A L L O N , CASE & CO.
STOCKS, BONDS^ GRAIN and PROVISIONS
58 Chamber of Commerce,
Up
town Office, 315 1st Ave. So.
MINNEAPOLIS
M EM BER S: New York Stock Exchange, Chicago Board of Trade, Minneapolis
Chamber of Commerce.
CARGILL COMMISSION CO.
DULUTH AND MINNEAPOLIS
Grain and Commission Merchants
E.
L . W ELCH
C. A . MALMQUIST
E. L . We l c h & Co.
GRAIN COMMISSION
1011 Chamber of Commerce
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
C o u n tie s .
Whitman .................................................................
Lincoln .............................................................
Walla Walla ..........................................................
Adams ......................................................................
Klickitat ...................................................................
Spokane ...................................................................
Douglas ....................................................................
Franklin ...................................................................
Garfield ....................................................................
Yakima ....................................................................
Asotin ......................................................................
Kittitas ......................................................................
Columbia .................................................................
Other counties .........................
Bushels.
5,500,000
4,000,000
1,750,000
1,750,000
800,000
800,000
750,000
600*000
600,000
300,000
300,000
275,00
300,000
300,000
Total ....................................................................18,025,000
Id a h o
C o u n tie s .
Bushels.
Latah ........................................................................ 1,750,000
1,900,000
Nez P e r c e ............
Total .................................................................... 3,650,000
GRAIN DEALERS AND WAREHOUSEMEN.
OFFICE 75 CHAMBER OF COMMERCE
W a s h in g to n
MINNEAPOLIS, MINN.
R e c a p itu la tio n .
Bushels.
Oregon ..................................................................... 10,580,000
Washington .............................................................. 18,025,000
Idaho ......................................................................... 3,650,000
Total crop ..........................................................32,255,000
Carry over July 1, 1903........................................... 2,021,381
Total ................................................................... 34,276,381
Deduct from this—
Home consumption ......................... 6,500,000
Seed ...................................................... 3,500,000— 10,000,000
Available for export flour and wheat.............. 24,276,381
M illing Im provem ents In Canada.
Winnipeg Commercial: “Among the prominent busi
ness people arriving in Winnipeg last week, one of the
most conspicuous was F. W. Thompson, head of the Ogilvie Flour Mills Co. Mr. Thompson came direct from
Montreal and landed here on Friday morning. His trip
is for the purpose of looking over the Ogilvie interests
here, viewing the crops, and making arrangements for
pending increases in the capacity of the company’s west
ern mills. His cnief concern will be the plans for con
structing the new mill at Fort William. This is to be com
pleted and in running order by October 1, 190a. The foun
dations are now being laid and work on the superstructure
will commence as early as possible next year. Already the
orders for machinery have been placed and everything is
being so planned that the work will go on without a mo
ment’s delay. The capacity will at first be 3,000 barrels,
but the buildings will be so constructed that this can ulti
mately be increased to 4,000 barrels. For Winnipeg Mr.
Thompson has already planned a 500 barrel increase in
capacity, and the new machinery is all in place now. This
gives the mill here an output of 3,500 barrels. At Mon
treal the Ogilvie company has now the enormous capacity
of 9,000 barrels per day, and the mills there have been so
modernized since their control passed into Mr. Thomp
son’s hands that they are now co’nceded to be among the
finest in the world. They are certainly the nnest owned
by anv individual company. Wheat is now regularly car
ried direct from Fort William to the company s own docks
at Montreal, and there delivered to these mills without
breaking bulk. This is the first year in which this has
been done to any extent, and there will be a large increase
Saturday, October 17, 1903.
TH E COM M ERCIAL WEST.
in these shipments next year. The trade has been found
very profitable by the vessel owners, as they are able to get
full cargoes of package freignt at Montreal for the re
turn trip to Fort William. More vessels are to be added
to the fleet next year.”
A ugust Grain E x p o rts— M ontreal and Galveston
Bartlett, fmm & (¡amnijtoii
S T O C K S and B O N D S
G R A IN and P R O V IS IO N S
Lead.
Montreal leads in August exports of corn and oats, but
yields first place in export of wheat to Galveston.
Year to
Philadelphia :
August.
Aug. 29.
Wheat ..................
440,000 2,537,543
Corn .....................
338,016 7,592,044
Oats ......................
360
Baltimore :
Wheat ..................
742,415
2,321,943
Corn ....................
240,525 15.395,804
Oats ......................
60
161,838
Boston :
Wheat ..................
146,633
4,626,615
Corn .....................
182,178 5,289,659
Oats .....................
47,636
4,346
New York:
Wheat ..................
637,905 12,679,798
Corn ....................
1,008,069 15,770,666
Oats .....................
188,737
1,813,565
Montreal :
Wheat ..................
1,883,607 11,481,209
Corn ....................
1,024,587 4,967,616
Oats .....................
250,638
757,524
Galveston :
Wheat ..................
2,842,800 9,786,727
Corn .....................
3,271,221
Oats .....................
250
New Orleans:
Wheat ..................
831,270 8,305,974
Corn .....................
40,720
735,420
Oats .....................
29,201
L455
Newport News:
Wheat ..................
152,000
326,448
Corn .....................
85,714 2,910,948
Oats .....................
All ports:
Wheat ..................
7,845,630 63,495,141
Corn .....................
3,458,409 71,572.500
Oats ......................
484,236
5,301,198
Western Union Building, CHICAGO.
MINNEAPOLIS
Chicago Board of Trade, New Y o rk Sto ck Exchange, New York
Produce Exchange, New Y o rk Coffee Exchange, Chicago Stock Exchange,
Liverpool Corn T rade Association, New Y ork Cotton Exchange, M il
waukee Chamber of Commerce.
P R I V A T E , W I R E S T O A L L P O IN T S
WANTED MQRE CUSTQMERS
Why not get into the “ Shipping to us habit;”
we know it will grow on you.
L A S IE R & HOOPER,
GRAIN
RECEIVERS
102-103 R ialto
AND S H I P P E R S .
Building, C H IC A G O .
A R M O U R G R A I N CO.
GRAIN D E A L E R S
205 L a Salle S treet
CHICAGO
Milwaukee Elevator Co.
GRAIN D E A L E R S
Vessels carrying grain cleared for foreign ports dur
ing the month of September, 1903:
Ships—
Port of Destination. Wheat,
Corn,
Bushels.
Bushels.
135,600
.............
Westgate ........................ Antwerp
Penrith Castle ............... Antwerp
172,000
.............
Cassel ................................Bremen
24,800
60,857
Edderton .......................... Bremen
75,600
.............
Glenarm Head ................. Dublin
122,000
.............
Lord Roberts .....................Dublin
56,000
60,000
Inchulva ........................ Hamburg
234,400
.............
Scotia ............................ Hamburg
33,600
54,000
Manchester Spinner ...Ham burg
136,000
.............
Hispania ........................ Hamburg
32,000
.............
Lady Armstrong ....... Hamburg
132,000
.............
Iran ..................................... Havre
64,000
.............
Swanley ..............................Havre
72,000
.............
Adra* ..................................... Hull
142,080
.............
Madawaska ............................ Hull
156,800
.............
Yola .......................................Hull
90,000
.............
Mora* ..................................... Hull
84,000
.............
Blue Cross ............................ Leith
144,480
.............
Traveller .......................Liverpool
105,251
.............
Irada ..............................Liverpool
199,000
.............
Ikbal ..............................Liverpool
65,000
.............
Benedict ............................ London
147,600
.............
Alba* ................................London
212,400
.............
Cayo Mono ...................... London
24,000
.............
Domingo de Larrinaga Manchester136,000
.............
Mohawk ...................... Newcastle
64,000
.............
Iran ..............................Newcastle
88,000
34,286
Bechuana .....................Rotterdam
201,200
.............
Mora* ..............................Stockton
76,000
.............
Specialty, B arley
1854.
IRWIN, GREEN «S CO.
GRAIN— PROVISIONS— STOCKS-BONDS.
128-T31 Rialto Bldg:., CIIICAGO.
M a r k e t L e tte r M a ile d on A p p lic a tio n .
L ib r a r y , B u ff e t ,
S m o k in g C a r s
On Burlington Route Limited trains afford the
traveler all the comforts of a good club. Easy
chairs, a writing desk, current periodicals and
duplicate whist are provided,
People of the kind you like to meet are the
patrons of these cars. That means a pleasant
evening before retiring to the sleeping car.
A competent attendant serves light lunches and
refreshments from a well-stocked buffet at
moderate prices,
¿ I jt
209,143
.............
Winona, Minn.—Next spring a fire proof building will
be constructed by the Tri-State Telephone Co. where the
general offices will be located and through this building
will pass all the toll lines to Duluth, Superior, Ashand,
LaCrosse, Hastings, Austin, Mankato, Sioux Falls, Fergus
Falls, Fargo, Grand Forks and other towns in North Da
kota.
M IL W A U K E E , W IS .
E S T A B L IS H E D
Increase ......... ................................ 226,811
209,143^
Reported by C. McD. Robinson, Chief Inspector.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
No. 7 New Street, NEW YORK.
M ILW AU KEE
M em bers:
G a lv e s to n .
Total for September, 1903.................. 3,225,811
Total for September, 1902 ................ 2,999,000
43
T I C K E T O F F IC E S :
400
R obert
ST. PAUL.
S t .,
4 1 4 N ic o lle t A v e .,
M IN N E A P O L IS .
THE COMMERCIAL WEST.
44
Saturday, October 17, 1903.
P IL L S B U R Y ’ S B E S T F L O U R
Made in the largest mills in the world, with 3 0 , 0 0 0 Barrels Daily Capacity.
W e have had so much experience making
FLOUR
FOR
ALL
N A T IO N S
that we know how to make the quality desired. Our large and grow ing
trade in Australia, South Africa and other foreign countries indicates that
PILLSBURY’S BEST is popular in all parts of the globe, and substantiates
the claim that
W E
FEED
T H E
W O R LD
W e solicit correspondence with buyers in China, Japan, the Philippines and
the Orient in general. Our facilities insure prompt attention to orders.
3illsbury-Washburn Flour Mills CoM
M I N N E A P O L I S ,
M IN N .,
U .
S .
A .
M em b e rs A n ti-A d u lte ra tio n L e a g u e .
THE BARNETT & RECORD COMPANY
M IN N E A P O L IS , M IN N .
E le v a t o r
B u ild e r s
and
G en eral
C o n tra c to rs.
W e design and buiid Grain Elevators of every Type:
T ils , S te e l, C o n c re te and Wood.
Dock Work and Heavy Construction a Specialty.
W IL L F O R D M A N U F A C T U R IN G CO.
Bail |
ngiii n r n O
AND DEALERS IN FLOUR HILL AND
d U I L U l Ii u
e l e v a t o r m a c h in e r y a n d s u p p l i e s
Special attention given to Roll Grinding and Corrugating.
MILL
General Agents for Barnard & Leas M anufacturing Co.
O ffic e :
3 0 3
T h ir d
S tre e t
S o u th ,
Valuable Mill Sites
for
A /l I IN IN 1C A O O L , I S
Accessible to excellent rail and water facilities
and ajacent to 18 BILLION Feet of Fir and
Cedar timber, can be secured by the erection
and operation of
Saw and Shingle m ils at Everett, Washington.
.N F O R M A T .O N EVERETT
inPROVEHENT COHPANY.
furth er
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
THE COMMERCIAL WEST.
Saturday, October 17, 1903.
Hulburd, Warren
Capital, $250,000.
C O M M IS S IO N
M ERCHANTS,
&
C o .
Surplus, $50,000.
G R A IN
45
MARFIELD-GRIFFITHS CO.
GRAIN COMMISSION
A N D P R O V IS IO N S .
Chicago, A u S w S e e ,
D uluth
M
î U I le a p O Ü S
B u s in e s s S o lic ite d in A n y D e p a r t m e n t ,
R E C E IV IN G —S H IP P IN G —F U T U R E S .
L .
T .
O F F IC E R S : W. S. W arren, P res.; A. C. D avis, Vice P res.; Charles H.
Hulburd, T reas.; C. J . Northup, Sec.; John Gillies, Asst. Treas.
E S T A B L IS H E D
Board of T rad e , CHICAGO.
RANDALL, GEE
a n d
MITCHELL
G R A I N
C O M M IS S IO N
MERCHANTS
Minneapolis, 206-210 Corn Exchange
21 Chamber of Commerce, MINNEAPOLIS.
W. S. M c L a u g h l i n , P res.
M IN N E A P O LIS ,
McLAUGHLIN
means extra money f o r meals and
incidentals, and a waste o f valu
able time en route : : : : : : : :
necessary e x
W h y incur unin travelin g via
pense and delay
rou tes w h en
circuitous
in t h e f i n e s t
y o u can rid e
fectly ballasted
trains on ap erdirect route?
track over a
5 pictorW
trains of the
T h e fast
U N I O N P A C I F I C v ia Omaha reach
S alt L a k e C ity 12 hours ahead,
and S a n F ran c isco and P o r t
land 16 hours ahead of all
competitors.
E L E C T R I C -L I G H T E D T R A I N S .
Accommodations provided for all classes of passengers.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
NEB.
A. B. E l l i s , Secy.
A M E R IC A N C R A IN CO.
Grain Commi ssi on
* L ong
OMAHA,
SONS
Members Chicago Board of Trade and Minneapolis Chamber of Commerce.
Duluth, 514 Board of Trade
E . L . L O M A X G . P . & T . A .,
&
1884
CRAIN, P R O V IS IO N S ,
S T O C K S AND BO N D S,
D IR E C T O R S : C harles H. Hulburd, W. S. W arren, A. C. D avis, 0 . T
Hulburd, C. J . Northup.
47
SOW LE
&
-
-
M IN N E S O TA
ELLIS, Winnipeg, Canada
T H E C O M M E R C IA L W EST.
46
Saturday, October 17, 1903.
Low Rates West
A bright future awaits you in the wonderful
west.
Free lands and low priced lands offer
opportunities for you to own your own home.
W e want you to see for yourself, and learn
from the home owners and home builders the
chance there is for you.
T h e following low rates will be in effect September 15th to November 30th:
S A I N T
P A U L
T o Great Falls, M ontana
.
.
.
.
)
T o K alispell, Montana
.
.
.
,
)
Spokane, W a s h i n g t o n .................................................
W enatchee, Washington
.
.
.
)
Pacific Coast Points
\
.
.
.
.
$ 20.00
$22.50
.
Everett and Seattle, Washington, and all North
.
$25.00
Address any agent of the Great Northern Ry., or
M A X
General
B A S S
Im m ig ratio n
Agent
2 2 0 S . Clark St., Chicago, 111.
ST. LOUIS
EQUIPMENT
Buftet Library Cars.
On the
Great Northern R ailw ay
F R O M
KANSAS CITY
F. I. W H I T N E Y
G e n ’l Pass, and Ticket Agent
SA IN T
PAUL,
Reclining Chair Cars, Coaches.
Compartment and Standard
Sleepers, also Dining Cars,
All Broad Vestibuled,
Pullman's Latest and Best Models
L e a v e M in n e a p o lis ...7 :4 5 p . m .
L e a v e S t. P a u l ................... 7 :1 0 p . m .
A rriv e D u b u q u e .......... 4 .3 5 a . m .
A rriv e R o c k f o r d ..........7 :2 6 a. m .
A R R IV E
Chicago 9:30 a. m.
ARRIVE
St. Louis 2:00 p.m.
R e tu r n in g ,le a v e Chicago 6 :1 0
p . m .; a rriv e M in n e a p o lis 8 :0 0 ,
S t . P a u l 8 :4 0 a . m .
J. 0. RICKEL, C. T . A ., St. Paul.
W . L. H A TH A W A Y, C. T . A., M ’p’ls.
A. B. CUTTS, 0. P.& T . A.. Minneapolis
& S t.Louis R. R., Minneapolis, Minn.
M INN.
3 X S 3C
Sunshine in California
From now on through the winter season there is no
place so comfortably warm and attractive as California.
The rates are low. Until November 30th only.
$ 32.90
Via the Sunshine Route
Through tourist car service every Tuesday morning
from St. Paul and Minneapolis. The berth rate is $6.
Route is via the
Chicago,
Milwaukee & St. Paul R y.
AND
THE
Chicago’s
Mayor
Says:
“ If under 30 years of age I would
settle in Oklahoma.
I advise
young men to go there. The
country is inspiring and most al
luring, with a future full of prom
ise. Every one is making money.”
The way to go is over the Santa
Fe—most directly reaches richest
sections of Oklahoma. Cheap ex
cursion rates to Great Southwest,
one way or round trip, first and
third Tuesdays monthly.
The
Santa Fe is building a new line in
Eastern Oklahoma. Ask for Ok
lahoma Booklet.
SANTA FE ROUTE
Ticket office A. T. & S. F. Ry.,
503 Guaranty Bldg., Minneapolis.
For Additional Information Write to
Santa Fe
W . B. DIXON, N. W . P. A ., 365 Robert St., St. Paul
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
.Saturday, October 17, 1903.
TH E COM M ERCIAL WEST.
Like a
Welcome Guest.
47
uIn the Heart o f the Continent.”
1 1 ,1 2 6 M IL E S
“ It is doubtful if such kind
ness and courtesy can be met
anywhere else as is shown by
the railroad employes on the through
trains west of Chicago. They are all
mind readers. All you have to do is
to look a little anxious and somebody
will immediately volunteer the exact
information you need. You are looked
after like a welcome guest. You have
ever-r convenience that a first-class
apartment home affords except a bath
tub, and I presume the porter could
have produced that if necessary.”
of railway east of Chicago,
St. Louis and the Mississ
ippi River, with eastern
terminals at New York,
B o s t o n , and Montreal
are
Thi* letter was written by a lady who made the trip to
California in a Rock Island tourist sleeping car. It tells its
own story. All that it is necessary to add is that Rock Island tourist cars
leave St. Paul and Minneapolis four times a week for San Francisco and
Los Angeles.
Choice o f routes — “ Scenic” or
‘‘ Southern.”
Call or write for folder giving full information.
embraced
in
the
N ew Y ork Central Lines.
For No. 3 of the Four-Track Series, containing
a map showing this Central Railway System of Amer
ica, send a two cent stamp to George H. Daniels
General Passenger Agent, New York Central R. R.,
Grand Central Station, New York.
F. W. C a l d w e l l , C. P. A.,
32a Nicollet A vi., Minneapolis.
i Sport for Hunters in Northern W isTl
There will be more deer this fall in Northern Wisconsin than in many
years, because of the second growths of brush and young trees which have
afforded protection.
The best field now
offered for hunting
is around Radisson
on the new branch
of the “ Omaha
Road” which opens
up a country here
tofore visited only
by lumbermen and
loggers, and at the
present time the
waters are literally alive with fish, and the woods are full of game. For
map and game laws, address,
I___
T. W . TEASDALE, Gen’l Pass. Agent,
ST. PAUL, MINN.
CHICAGO
Gr e a t
___ WESTERN RY.
P a la c e
on
W heels
T h e n e w E lectric Lighted
F ree C h a ir Cars of th e
“ G reat W estern L im ited ”
ITS ERIE RAILROAD
ALL THE WAY
CHICAGO
to Akron, Youngstown, Cambridge
Springs, Corry, Chautauqua Lake,
Buffalo, Niagara Falls and
NEW
YO KK
Through vestibuledtrainsleave
Chicago daily, 10:30 a. m., 5:15
p. m., ro:oo p. m. Through
sleepers to Boston and Colum
bus. E rie dining or cafe cars
serve all meals.
::
::
::
W rite
road, St.
W estern
Chicago,
H. B . Smith, T . P. A., E rie Rail
Paul or D. M. Bowman, General
Passenger Agent, E rie Railroad,
for further particulars.
___ |
EFFICIENTLY
SERVES
A VAST
TERRITORY
by through service to and
from the following cities:
CHICAGO, ILL.
OMAHA, NEB.
MINNEAPOLIS, MINN.
ST. PAUL, MINN.
KANSAS CITY. MO.
PEORIA, ILL.
EVANSVILLE, IND.
ST. LOUIS, MO.
CINCINNATI,OHIO.
NEW ORLEANS, LA.
MEMPHIS, TENN.
HOTSPRINGS.ARK.
LOUISVILLE, KY.
NASHVILLE, TENN.
ATLANTA, GA.
JACKSONVILLE, FLA.
Through excursion sleeping-car service between
Chicago and between Cincinnati
AND T H E PACIFIC COAST.
R u n n i n g e v e r y rv ig h t b e t w e e n
C h icago, St. Paul an d M in n e a p o lis .
T h e s e cars are jvist out of the shops
and are built for com fort and beauty.
5 5 5
J . P . E L M E R ., G en eral P assen ger A g e n t
C H IC A G O ,
IL L .
Connections at above terminals for the
EAST, SOUTH, WEST. NORTH.
Fast and Handsomely Equipped Steam-Heated
Trains—Dining C ars—Buffet-Library Cars—
Sleeping Cars—Free Reclining Chair Cars.
Particulars of agents of the Illinois Central and
connecting lines.
A. H. HANSON. Gen’l PassT Agent, CHICAGO
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
T H E C O M M E R C IA L W EST,
48
Henry Poehler
Alvin H. Poehler
Chas. F. Poehler
George A. Duvlgneaud
W alter C. Poehler
CO RW IN
Saturday, October 17, 1903.
H. S P E N C E R
U. R . D E N N I S T O N
H. POEHLER COMPANY, S p en cer Ô D enniston,
ESTABLISHED
1855.
IN CORPO RATED
G R A IN
189 3.
C O n n iS S I O N
C O M M ISSIO N
M ERCHANTS,
G R A IN A N D P R O V IS IO N S ,
b o a r d OF t r a d e : Duluth, Minn.
C HAM BER OF COM.: M ilw au kee ,W is.
BOARD OF TRADE: Chicago III.
8 16-19 Chamber of Commerce
MINNEAPOLIS
4 0 7 = 4 0 8 H o m e I n s u r a n c e B u ild in g ,
Buying for Country M illin g Trade a Specialty.
Orders in Futures Executed in any Market.
W . B. BOGERT & CO.
G r a in — P r o v is io n s
TEL. CENT. 4643.
C H IC A G O .
203 r hamber ot Commerce, St. Louis.
Produce Exchange, New York.
348
HOIT G R A IN CO.
R EC EIV ER S AND SH IPPERS
OATS,
BARLEY,
CORY
Correspondence and Business Solicited
106-107-108 Rialto Building,
CHICAGO.
JOHN H. WRENN & CO.
THE ROOKERY,
10 12 Cham ber of Com m erce
M IN N EA PO LIS
JAMES DORAN & CO.
225 La Salle Street,
We give special attention to out-of-town investments
C H I C A G O .
and speculative accounts.
Our private wires and our
connections with all the principal exchanges enable us
Stocks, Bonds, Grain, Provisions,
Coffee, Cotton.
PRIVATE WIRES TO NEW YORK AND MINNEAPOLIS.
to give prompt and accurate service.
invited.
Correspondence
::
QERMAN-AMERICAN
BANK BUILDING
S T . P A U L , n IN N .
A merican Linseed C o.
M a n h a tta n B u ild in g-, C h ic a g o , 111.
100 W illia m St., N ew Y o r k , N. Y .
Manufacturers and Refiners of
Linseed Oil, Oil Cake, Ground Linseed
C a k e , and Ground F l a x s e e d - P U R E udseed oil soap,
S P E C IA L B R A N D S :
A R C H E R & C O ......................................................................................................................... S t . P a u l , M i n n .
D O U G L A S & C O . . . ...................................................................................... ..
M in n ea p o lis , M in n .
C R O W N L I N S E E D O I L W O R K S .................................................................................... S t . Louis, M o .
C L O S E L I N S E E D O I L W O R K S .................................................................................. I o w a C ity, Io w a .
D E S M O I N E S L I N S E E D O I L W O R K S ............................... ......................... D e s M o i n e s , I o w a .
H A W K E Y E L I N S E E D O I L W O R K S ................................................................. M a r s h a l l t o w n , Io w a .
S I O U X C I T Y L I N S E E D O I L W O R K S ............................................................. . . . S i o u x C ity, I o w a .
W O O D M A N L I N S E E D O I L W O R K S ................................................................................ O m a h a , N e b .
K A N S A S C I T Y L E A D A N D O I L W O R K S .......................................................... K a n s a s C ity, M o .
T O P E K A L I N S E E D O I L W O R K S ................................................................................ T o p e k a , K a n s a s .
M E T Z G E R L I N S E E D O I L W O R K S .................................................................................... C h i c a g o , I I I .
W R I G H T & H I L L S L I N S E E D O I L W O R K S .................................................................C h ic a g o , III.
W R I G H T & L A W T H E R L I N S E E D O I L W O R K S ................... ................................C h i c a g o , I I I .
C L E V E L A N D L I N S E E D O I L W O R K S ................................................................................ C h ic a g o , III.
WE MAKE A SPECIALTY OF BLEACHED, REFINED AND. HIGH GRADE VARNISH OILS.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
@FedFRASER