BEGINNINGS OF THE NORTHWEST 



her so constituted, so controlled, and so armed 

 with absolute and irresponsible authority. 1 



Meanwhile, also, the great profits of the 

 milling interests were accruing as a financial 

 force. The millers owned, organized, or domi- 

 nated banks. Minneapolis became hardly 

 less of a money than of a wheat market. 

 Capital in great quantities was required to 

 develop and finance the country that was 

 always being settled toward the northwest, 

 and again every fall to perform the indispen- 

 sable function that is called "moving the 

 crops." Minneapolis was the natural pivot 

 for all these operations. In its rapidly de- 

 veloping financial institutions hundreds of 

 country banks through the Northwest had 

 their depositories when money was in light 

 demand and their well-springs of currency 

 w r hen the crops were to be moved and the 

 local elevators must have money literally in 

 stacks to pay for the wheat they were buying. 



This condition produced a concentration 

 of power no less than of capital; it always 

 does. The country banks were to a certain 

 extent at the mercy of the great Minneap- 

 olis bank, as in turn the farmer and small- 

 town tradesman w r ere at the mercy of the 

 country bank. The great Minneapolis bank 



1 The witness quoted above admitted that any member that paid 

 prices for grain not based on the Minneapolis market could be ex- 

 pelled from the Chamber, and without redress. 



17 



