, 1879-06-03
TIE HATER OF IHTEREar.

vatton and diversity tile Industries Of tho
State.
THE RATES OF INTEREST.
Tho abundance of money lonnable upon
good security WAS mover 40 great In this
country rs at this time. The City Of boston
recently mado Il lonu ut per cont. Au offor
las beon made In Philadelphia to tako tho
whole Of n municipal loan Of $40, 1000, 600 at
43 per cent. This county recently made a
loan ut & per cont, and the bonds are now
selling at 102. Vnrious towns aud counties
throughout this State which havo boon pny-
ing 10 per cont intereat on their railroad.aid
anl othor bonded indebtedness lnyo lad no
difficulty during tho Inst yoar In taking them
up with now bonds bearing 0, aud, IN soma
cases, per cent. Wo aro informed that the
City of Chicago could fund all her present
tlcbt ia now bonls at from 4 to II
per cont interest. The prosont dobt
paya Q per cent on part, but on tho
much larger portion Z por cent. So
with the mortgage indebtedness in Illinois.
These mortgages havo boon paying from Q
to 10 per cent intereat, not including the
"oommissions,' which perhaps averaged l
per cont additional. In all these oascs whore
tho debtors havo paid their interest, thoso
mortgages can bo removed now at rates, ac-
cortling to tho character Of tho security,
ranging from to 8 por cont. An 8, or oyon
7, per cont mortgage is at this time a
most valuable Investment. This reduction
Of al average Of 2} por cent in tho annual
intorost OIL tho municipal mud private in-
tlebtodnoss Of tho people Of this state ia
1nattsr Of great rolicf. As tho indebtedness
falls due. tho reduced rate of interest on tho
NOW contracts is Immediately felt. Estin1nt-
ing tho whole OF this kind ct in-
aobtednosa in Illinois at $3.50. 600 200, re-
duction of 81 por cont In the rate
Of interest will nuke difference to the
debtor class In this State Of $1,000, 900 n,l-
nually. This alono will bo relief to tho
State, and to those whose indebtedness waa
incurred In tho days of imitation, and WHO
hsss boon paying heavy taxation ever since.
Tho same rolief will bo FELT all over tho
country.
Tho prosonoa OF ench m abundance Of
money seeking Investment at rases not moro
than half those obtained ton years ago, and
oven down to a Inter date gives promise OF
the employment Of immense sums In various
branches Of productive industry. Tho report
recently published IN Tns TRIBUNE OF
tho iron production OF this country
shows the magnitude Of that industry,
and Of its Btenay, continuous incroaso. Tho
proaonco Of abundant and ohoap capital IL
made known by tho rorivnl of railroaa.bui1d-
Ing, mud by tho enlarged product OF various
kinds of manufacture, some OF thom COM
parativoly new. Tho sa1o md extraordinary
demand for the small bonds Of tito Goyern-
mont Indicate the vast amount Of money leld
by porsoua Of comparatively small 1neaus,
| which 1nonoyis tho saving from wagos, which
evidently moro than covor tho cost OF living.
It shows that labor Is now employed to a
groater extent, aud at more rop,uncrativo
wages, than at any time ainco tho panic.
We layo already pointed out tlat among
tho certain roanlts Of this largo addition to
the capital In tho hauds Of tho people seck-
Ing Investment Is tho purchase Of real estato
| iu the cities. For somo timo men with sur
plus money in tho Eastern cities, as we'll as
in Chicago, l,aye boon purchasing for cash
| such real ostase, improved aud uaimprovod,
Ms gave promise Of fair ro!urns upon lilo
sunas invested, Tho prices Mt which these
purchases havo been matto layo boon, Of
oourso, much less tAnn those Of 1872, but
tltoy hayo boon fully up to tho reduced yat-
uat!ons following a return from fictitious
and auotuating to real values, and to tho
substantial values on which all business
Is now douo. After all, rsal estate
in city like Chicago il far moro
promiHlng Investment than TINT Of tho
por cent Nationa. as,d other low ratio Of
intoroat bon.ls. The bonds may rlso in value,
but their yield viii ro'nain tho Same, whilo
tho holder Of roal estate enjoys tho inoroasod
iucomo from tho Increased yaluo Of his prop
erty.
It will be remembered TINT among the
many Aoroo objections urged to tho rotnrn
Of apec!o.paymouts was TINT tho rate OF inter-
est OH money would 60 higher, aud that
nothing could bo devised to mako money
abundant aud reduce Tho rasa Of interest,
unless tAo currency was doubled iu quality
and 60 reduced III galus as to DO cheap.
Hpocio.paymonss boga,t only five months
| ago. There was no rush to tho Troasury
fur tho coin, tho supply OF which OIL deposit
las continued to incroaso. Tho papor money
In circulation has attalned tho value OF
coin, aud las relnaino1 nuliu,luishel ils
quantity, though convertible on demand into
coin. Tho boarded MONEY Of the people has
boou drawn from, its hidiuy. .plaoos, aud Ia on
tho market seoking sonip employment; ou,