Minnesota weekly times. [volume] (St. Paul, Minn.) 1854-1859, 1856-05-31
MONETARY.
MONETARY.
We clip the following from the Financial Ad-

VertiSer. Inc Euit0r appears 10 think that the
rates of interest for money in this Territory, will
continue at from 2 to per cent. per month. We
cannot come to any such conclusion, for from the
great amount of money which is being and will
continue to be sent into this Territory for the next
SIX months to come, the tendency must be to
bring down the rates of interest. Two per cent.
per month is "a per cent. per annum three
times the legal rates of interest at the East.
Four per cent. per month is 4S per cent. per an
mum, just Al per ct. more than the legal and
36per ct. more than the highest illegal rates. Now
it a man can make just tDice the amount of inter-
est on money loaned in this Territory, that he can
at the East, will he not send it along? Will not
others send it along? and will they not be salts
fed with interest at 1-2 and per cent. per
month, than a much less rate of interest? Reduce
the rates ofinterest and more money will be bor-
rowed. IT more money is borrowed, more i'm
provements will be made-if less is borrowed less
improvements will be made-which is best, to
keep interest up or down Is this mere ''fancy' -
ED TINES. Read the article from the Adyer-
tiser
The demand for money has been somewhat ac-
tive, and several important transactions have been
closed at previous quotations. 1t is true that
there have been loans negotiated at lower rates,
but they were large in amount, running for term
of years and well secured by real estate, and are
to be ranked among the exceptions to the ruling
rates. We have no confidence in the opinions ad-
vanced by some, that there is to be decided
change in the rates of interest this season in ia
vor of the borrower. All such ideas are simply
fanciful based more upon the desire of the orig
lnator for cheaper rates of interest than upon any
comprehensive analysis of the commercial condi-
ton OF our Territory, of the natural laws of
supply and demand, by which that commerce is
regulated it seems to be overlooked that we are
a consuming and not a producing community,
that our importations are in excess of our expor-
tations and that the balance of trade is largely
against us. Atpresent, we have bat few resources
from which to draw our supply, and they are SUBJ
Ject to yearly fluctuations, unfavorable in their
character to the general prosperity of the people.
They consist, first, of the money sent here by the
General Government, for the support of the Lo-
cal Government, and distribution through the In
dian Department. Second, money brought by en-
igrants. Third, capital brought here by parties
for the sole purpose Of investing at high rates.
Fourth, the receipts grown out of the lumber
trade. The tribute yielded by the first three of
the resources mentioned is not equal to the ex-
actions of industry aud commerce. There are
still unrelieved necessities, that must be met
through the operations of the fourth.
Now it is obvious to rejecting minds that in Or
der to bring capital here with which to supply the
market, superior inducements must be held out
rates OF interest must range higher than in the
localities whence it comes, and when by super
abundance the money market is flush, CONNER
ca necessities relieved rates Of interest fall
the equilibrium is restored, and capital ceases to
fow from old to new territories per force of that
excessive caution on the part of capitalists which
induces them to invest in New York at per cent.
where the securities are tangible, rather than in
the West with almost certainty of realizing 36
per cent. per annum.
The causes that are at work to induce higher
rate OF interest are few, vet entirely efectual
and we have only to reflect that the usury laws
are abolished in Wisconsin, where 26 per cent.
interest per annum is readily obtained, that l-2
and per cent. is taken almost every where in the
North in violation of law. That throughout the
new territories and western settlements, the rates
are from to per cent. per month, that in this
Territory, outside of st. Paul and ST. Anthony.
the latter rates prevail-that the people are con-
stantly creating new necessities by plungLg into
new enterprises, and by a general expansion in
every thing material, to be forced to the conclu-
sion that rates will rule high for this season at
least; and however much we may desire and the
territory may need lower rate of interest. it is
unwise 10 shut our eyes against facts, or delude
ourselves by adopting conclusions not founded
upon natural laws.
The fact is, that notwithstanding the large
amount of money brought into the country this
spring. there is now but little in bank or private
hands to loan.
Call Loans, per month, 2,2 l-2 pr ct.
| to mo- paper, lst class, do 2l-2a3 do
to4 do md do do 4a5 do
Real Estate Loans, to 2 years, pr mo
2l-2 per cent-Fim"nciai AdU.