Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-05-17
AN ORACLE SPEAKS.
Views of an Expert on the Business
Situation and Outlook.
NO GOOD CAUSE FOR COMPLAINT.
Borrowed Money Put to Uses That Will
Ultimately Bring Rich Reward.
THE MOVEMENT TOWARD THE EAST END

That business, as a whole, is in good
shape is proved by the scarcity of idlers in
the ranks Of the laboring class, by the
steady accumulation of funds in the savings
institutions and by the increased and in
creasing demand for money at the banks.
That some lines of trade are dull-iron and
glass for instance-there is no denying, but,
taken altogether, there have been few sum-
mers, even in booming times, when results
showed larger aggregate or the situation
was more satisfactory. This conclusion is
borne out by the statement of the cashier of
one of the leading banks yesterday. He said
Ever since the declaration of our dividend
a couple of weeks ago we have been discount
ing about as much paper as we care to take.
We declined number of good offers for the
reason that it is and always has been the policy
of this bank to keep a sufficient amount of
funds on hand to meet any emergency that
might arise know of several other banks
that are similarly situated; but there are others
that are still complaining of surfeit of idle
money. Capital Is undoubtedly scarcer than it
was month ago. This is shown in the harden
ing tendency of rates. Then loans were fire.
quently made at 6per cent, including State
tax; now it is difficult to get accommodations
at less than 6per cent The interest rate is an
unerring indication of the state of the money
market"
"What are borrowers doing with the money!"
THAT question has been asked of me before.
A good deal of it has been, or will be, used in
the betterment Of manufacturing plants. If
you will look around you will see that aim ost
every mill and factory is undergoing some kind
of change or Improvement. Some are
being enlarged; Others are receiving new
machinery; here a furnace is going up;
there a new stack is being built. New methods
of manufacturing new styles of products to
supply special wants are continually coming
forward, and to meet these demands and keep
abreast of the times mill men are compelled to
make frequent changes in machinery as well as
expand their works. This is expensive to the
owners, but is good for the banks Then, again,
there is an impression that real estate will soon
be advanced, and great many people are in
vesting in it while prices are down. Probably
one-half of the money that is obtained from us
is put into lands and houses, either for private
use or speculation. In either case l think the
investment the best that could be made. Pitts
burg has just fairly commenced to grow. 1t
has great future before it"
K&#
'.Is there much doing in the speculative mar
kats that does not appear upon the surfacer'
81 do not think so. Pittsburg people are not
much given to that sort of trading. 1t is con-
fined. for the most part, to small professional
element and is within narrow limits. Our
local securities are safe enough, but the de-
mand is too restricted and the fluctuations too
narrow to make trading in them attractive to
the public. As for petroleum, it is so COM
pletely under the control of the Standard Com
popv fhaf ayan Ynouhnrs of the EYchanOa ara
discouraged, and many of them would get out
of the business if they had anything else to
do"
The great movement of population toward
the East End is one of the significant signs of
the times. On this subject Fourth avenue
real estate dealer said yesterday: 'If man
who left the city year ago would return to-
day and visit the East End he would hardly
recognize the place. Blank spaces have been
cleared, beautifed and covered with handsome
houses, surrounded in most cases by tastefully
laid out grounds. This change is especially
noticeable at Ben Venue, Shadyside, Roup,
Dallas and Williamsburg; but almost every
other locality at that end Of the city has under
gone more or less change for the better. Of
course this stampede-this creation of beauti-
full hamlets and villages-has had the effect of
advancing prices, but they are not unreason-
able considering the benefits which purchaser
buys with the land Rapid transt-increased
and increasing facilities for passing to and fro
at all hours at small COSTS at the bottom of
this wonderful growth. Where it will end do
not know, but l look for it to continue until the
entire East Liberty valley is compact mass of
houses containing as large population as the
old city,