A Trip to the Rockies

by B. R. Corwin

“But while you have been growing the East has grown rapidly. Take, for instance, the increase in bank corporations and banking capital, as an example. The capital and surplus of the banks of the East during the last thirty years have greatly increased. The increase in their deposits in the last twenty years has been without parallel in any other country. There has been an enormous increase in the deposits of savings-banks, which are properly institutions conducted not for the benefit of the shareholders, but solely for the benefit of the depositors. The deposits of the New England States in savings-banks were but 43 millions of dollars in 1852; in 1860, but 148 millions; they are now more than 1,190 millions. The deposits of the savings-banks of the State of New York in 1852 were less than 28 millions; they are now 505 millions. The capital of the banks of New York City during the last thirty years has increased from 35 millions to 80 millions, and a surplus of 40 millions has been accumulated. The loans have increased many times, and the individual deposits more than seven times, while the bank balances have increased in much greater ratio. Thirty years ago there was no clearing-house. In the year 1854 the exchanges were 5,000 millions; they are now 31,000 millions. The daily exchanges were 19 millions; they are now 101 millions. In the month of October of last year, according to the comptroller’s report, there was an increase of 469 millions over the previous year in the exchanges at the clearing-houses of the United States, of which increase 215 millions was in New York, 84 millions in Boston, 35 millions in Philadelphia, and 56 millions in Chicago. From a slip cut from the Chicago Tribune on my way to this city, I find that the gross exchanges of the clearing-houses of the United States on September 21, 1889, was 1,044 millions, of which 663 millions was in the city of New York and 381 millions outside of New York. This slip contains returns from the clearing-houses of fifty different cities, including all the larger cities. The clearings of the city of Boston were $82,000,000, of Philadelphia $74,000,000, of Chicago $69,000,000, of St. Louis $20,000,000, and of Kansas City $9,000,000.

“In the year 1861 I compiled a table showing at a glance the total receipts of the national banks on two different days, and the proportion of these receipts by the banks in the various cities. These returns show that while the total receipts upon a certain day were $295,000,000, the receipts of forty-eight banks in the city of New York were $165,000,000, or nearly 56 per cent. of the whole. The receipts of the four great cities of New York, Philadelphia, Boston, and Chicago, comprised nearly four fifths of the total receipts on June 30, 1881, and nearly three fourths of the total on September 17, 1881; while the sixteen reserved cities on June 30th were more than 85 per cent., and on September 17th more than 82 per cent., of the whole amount.

“These facts show how closely connected is the business of the banks elsewhere with the great commercial cities of the East. Nearly every bank and banker located in all the principal cities and villages of the country have deposits subject to sight draft in New York. Every mail not only brings remittances from neighboring cities, but from the most inaccessible points in the country. To-day a single roadside tavern or outpost upon the great plains of the frontier; to-morrow a railroad is constructed, and in place of the tavern of the frontiersman or the military outpost, there is the city of Cheyenne in the embryo State of Wyoming, or the city of Bismarck in the new State of Dakota, or the city of Winnipeg in the Provinces of Manitoba. And almost on the day of the birth of these young cities or villages, banks are organized under the authority of the laws of the United States or Canada, which are almost immediately thereafter brought into close communication with some correspondent in New York.

“The East sympathizes with you in your growth, and receives substantial profit from that source. New York, as well as Chicago, is your market, and the effect of good crops in all sections of the West is felt in New York as surely as in your Western cities. The progress and prosperity of the West increases largely the progress and prosperity of the East. For more than a half century—for more than eighty years—the East has been sending a portion of its surplus here for investment. It had its early losses, but its gains have been large, which is evident from the fact that it has never for a single year ceased to send, not only its people here, to find homes in the new States, but it has increased its Western investments annually. A few years ago tables were made showing the distribution of national-bank stock throughout the country, from which it was found that a large portion—say about one eighth—of the stock of these new institutions in the West was held in the East. If it were possible it would be most interesting to obtain similar figures in reference to the holdings of the East in your railroad and other transportation companies, and in your industries of various kinds. It is known that the East in many instances holds a majority of the stock in your greatest companies, and annually elects the officers of such corporations. The interest upon the bonds, almost without exception, of all your Western corporations, is payable in New York, and to considerable extent to Eastern owners. You have grown rich; but we of the East are your co-partners in business, and notwithstanding your riches, we give notice that we do not intend there shall be any DISSOLUTION OF THE CO-PARTNERSHIP.

“So far from that being the case, we give notice that in those branches of business which we find most profitable, we intend from year to year to increase our holdings. Those of us who have been in the habit of visiting the growing West, know its resources, and propose, as heretofore, to continue to assist in its development—largely under your management.

“We do not care to prophesy where the centre of this great country will be a century hence. The important point is, that the country, as a whole, shall increase its power, its population, its wealth; that its people shall be intelligent and homogeneous in character; and, above all, that the country shall have a government that is good and strong. I lived in Minnesota when St. Paul had a population of about 5,000. At our social gatherings we frequently took a census, and always found that every State in the East was represented by persons present. The East is the father, and grandfather, and great-grandfather of the West. The telegraph, the railroad, the telephone, and the cable have made us all neighbors!

“Webster, in one of his great speeches, said of South Carolina and Massachusetts: ‘Shoulder to shoulder they went through the Revolution; hand in hand they stood around the Administration of Washington, and felt his strong arm lean upon them for support.’ We may paraphrase this expression, and say that with the rapid development of each section of the country, it is most important that the East and the West, the North and the South, shall, if necessary, march shoulder to shoulder in defence of the country, hand in hand stand around every good Administration in time of trouble, and rejoice if the strong arm of the Executive shall lean upon all for support!”

After we had enjoyed this treat and all expressed our appreciation of it, we looked out upon the beauties of a Kansas moonlight night. The charm was too much for us. In a moment we were upon the street.

Electric light was everywhere, making night almost as bright as day. The long line of beautifully decorated show windows of the large stores reminded us of home.

Mr. Blanchard had secured elegant rooms for our party at the Brunswick, but most of us preferred our cosy apartments on the “Dalmatia.”