[Volume XXVII
THE CHICAGO BANKER
16
Pekin, 111., June 25, 1909
Mr. Geo. L. Colburn, President
The Pioneer Life Insurance Co., City Dear Sir: I want you to know how very much I appreciate the promptness with which your company settled the $2,000 of Insurance carried by you on the life of my late husband, Cornelius R. Rust, which was within a few hours after I had filed the necessary papers. The characteristic promptness of the Pioneer Life Insurance Co., and the courtesy of your representatives, must surely endear your company to the policyholder and result in the further attainment of a magnificent growth in prestige and usefulness.
Yours very sincerely,
LENA RUST
Operating the Savings Bank System whereby the carrying of Life Insurance becomes a means of saving money, and not an expense.
PIONEER LIFE INSURANCE CO.
PEKIN, ILLINOIS
Geo. L. Colburn
President
WE HAVE VALUABLE PAR POINTS
also a large volume of items to be collected. Our collection facilities are excellent.
Correspondence Invited
The National City Bank of Chicago
Capital, Surplus and Undivided Profits $2,000,000
OFFICERS
David R. Forgan, President	L. H. Grimme, Cashier	Alfred L. Baker, Vice-Pres.
F. A. Crandall, Asst. Cashier	H. E. Otte, Vice-President	W. D. Dickey, Asst. Cashier
R. U. Lansing, Manager Bond Department
Commercial National Issues Its Annual Crop Summary
bushels more than was indicated in the government report.
The winter wheat yield is estimated at 444,-000,000 bushels, or about $6,000,000 bushels more than last year from an area about 6 per cent less than last year.
The spring wheat crop figures are just a trifle, about 1,000,000 bushels, less than the government estimate.
The winter wheat results are counted surprising in view of the poor start when the crop was seeded in the dust. The only drawback, and this slight, in the spring wheat promise was from rapid ripening which slightly reduced the total yield.
Optimistic as to Corn
Of corn the bank’s summarized report says: “The period of pollinization has been safely passed over the entire belt, the period of hot winds is closing, and the corn has only the cut-ing down of frost to fear. The plant is late in the upper section, but not late enough to entertain fears of not ripening, should frosts observe their due seasons.”
Drought in Texas and part of Oklahoma and a small drought in the East have been the only drawbacks from a fine summer for corn. The drought cut the Texas promise down about half and did almost similar damage in western Oklahoma, but the eastern and northern part held its own. The position of Texas as a coming corn grower, however, is counted very good. The report says:
“Texas has been coming forward as a great corn state for some years. The western lands, rich and favored by excellent climate, are ideal for corn. Had not the drought developed early last fall and made breaking of ground difficult, her acreage would have been second, if not first, instead of being third to Illinois and Iowa. Yet with her great acreage the plant has had a losing fight against drought and heat, and a half crop is the best that she can do, for the ripening period is now at hand.”
The estimate of an oats crop of 940,000,000 bushels is about 60,000,000 bushels less than was indicated by the government August figures. The indicated yield this year is 100,000,000 bushels larger than the bank’s returns indicated last year.
Ohio and Indiana are credited with having gained more both in bushels and value from oats than they lost by diminished area of wheat.
maturing, may safely consider them as effective re-enforcement to the cash reserve.”
Several Oklahoma bankers were asked their opinion of the working of the guaranty deposit, law. One letter is quoted in which the writer says:
“I have your letter of the 26th in regard to guaranty bank deposits. It has been one of the greatest things that could have happened to the state of Oklahoma, and I am in favor of it. We get deposits from all over the country, and the report of the bank commissioners will show what it is doing in Oklahoma better than I can say.”
The comment on this is that the report of the bank commissioner shows that ninety national banks have been converted into state banks, and that the latter are gaining rapidly over the former in deposits.
The opposition to the law is summed up by one correspondent, who says:
“It has increased the number of banks beyond the proportion of the increase in deposits.
“It has enabled incompetent and unscrupulous men to get into the banking business, and in many cases such men are handling large sums of money.
Apprehensive of Panic
“It demoralizes business for the reason that the banker who pays the highest rates of interest and loans at the lowest rate on the least security and is an all-around good fellow gets the deposits. It has forced seventy-five good national banks out of business and in most cases replaced them with banks of smaller capital. We are in an unsettled condition, as a failure of a big bank in the state would knock the guaranty law into a cocked hat, and make the worst panic we ever had.”
The bank’s annual crop report is made up from answers to inquiries from over 4,000 bankers, business houses and crop authorities in all of the states of the central West, West and South and from additional inquiries from banks and business houses in all of the large cities of the East. It indicates crops of 735,000,000 bushels wheat, 2,974,000,000 bushels corn, 940,000,000 bushels oats, 183,000,000 bushels barley and 35,000,000 bushels rye, or a total of 4,867,000,000 bushels for the five leading grain crops, as compared with the government indications of 4,878,000,000 bushels deduced from the August report.
The bank’s report on wheat is about 11,000,000
The Commercial National Bank of Chicago issues annually the most valued, most looked for private crop report and business summary issued in this country.
In summarizing the replies from banking houses the report says, concerning general business conditions:
“All of the signs that denote rising prosperity and all the conditions precedent are at hand. The wreckage of the panic has been cleared away; the apprehensions which it aroused have disappeared and we are facing the future with an optimism and courage born of the knowledge of the wonderful resources of this country. Shelves are bare of surplus goods and the country has grown up to its facilities and equipment. At this opportune time to inaugurate a new era of prosperity comes the best all-around crop ever produced in this country.”
Concerning Chicago’s progress the report says:
“The past year has been one of the best in the progress of Chicago. Its bank deposits and clearings have surpassed all previous records, its trade has grown and its industries extended and multiplied at a rate which in view of general industrial conditions elsewhere must be regarded as extraordinary. A detailed estimate has been made indicating that $200,000,000 was invested in new industries, and the enlargement of old ones in Chicago and the Chicago factory district last year. Important new territory was made accessible by improved railway facilities and there is full warrant for saying that the prestige of Chicago was never more secure than to-day.”
The report touches on financial conditions since the passing of the panic and refers to the uses of commercial paper as being practically a banking reserve. The report continues:
Surplus Reserve Substitute
“It is common criticism made by foreign economists against the bankers of the United States that they carry no surplus reserve. They aim to carry what the law requires and no more, but they endeavor to supplement their cash reserves with a considerable supply of high-class bills receivable bought in the open market with maturities selected to meet the probable demand upon them for money. This paper when taken from brokers, unlike the loans made to their own regular customers, is certain to be paid when due without requests for renewal and the bank carrying a good volume of these receivables, constantly