Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-02-17
A BUSINESS SURVEY.
The Salient Features of Local Trade
During the Past Week.
MONEY GOING OUT FIFTH AVENUE.
A Leading Banker Announces a Radical
Departure in Interest Charges.
THE DOLLAR OIL MEN GET A BLACK EYE


Local business the past week was only
moderately active. The principal event
was an effort on the part of the bulls in oil
to reach the dollar line, but they failed, the
highest point reached being 925s, on Friday.
Yesterday the bears got in their work, and
dragged the price down to 81 at the opening
and S9s4 at the close. The contest between
the opposing elements was sharp and excit-
ing and neither would admit defeat. The
market left off in good shape Tor renewal
of the fight. Stocks were without special
feature. Electric was higher at the close and
Philadelphia Gas weaker. Changes
in other local securities were of triiing i'm
portance. Real estate dealers and agents had
their hands full of business all week, and made
a large number of sales of small properties.
They reported some large deals under way. but
withheld particulars. This branch of business
led all others in point of activity. Money was
plenty and easy at the usual rates. The best
borrowers were oil men. There was no i'm
provement in the iron market, but manufac-
turers expressed confidence that trade would
pick up in short time. They were not dis
posed to cut prices to effect sales.
R*S
Capitalists are always on the lookout for'se-
cure and profitable investments. Just now
they seem to give real estate the preference.
Having bought up about all the available prop
erty on Penn avenue, Liberty and other streets,
they are turning their attention to Fifth ave-
nue., above the Court House, where several i'm
portant deals have been made within the past
few weeks Concerning this movement real
estate dealer said yesterday: "These men are
wise. ldon't know of better field for invest
ment. True. it is limited, but there are many
opportunities there for making large profits
Houses and lots in that part of town that now
sell for 5000 or $4,000 will, in my judgment,
be worth $4,000 or 1900 in ten years. / know
Of several recent transactions there that will
prove bonanza to the investors. One long
headed capitalist of my acquaintance has
placed great deal of money in that part Of
town within short time"
Has the talk of removing the hump any
thing to do with the boom out there?"
1.-The removal of the hump would certainly
enhance the value of property above the Court
House, but the investments l speak of were
not made in anticipation of such action. 1t is
a desirable part of the city-getting better
every year-and values there must increase,
hump or no hump. 1t has been under the ban
so long that propertyi is comparatively cheap.
Capitalists are beginning to see this, and are
striking while the iron is hot"
Have you had any applications for loans to-
day?' was asked of aFourth street banker yes
terday
"Very few" he replied 1.-The weather is too
bad for people to turn out"
Have you an established rate of interest
from which you never deviate, or do you make
exceptions according to the nature of the COL
lateral-the better the security the lower the
rate?"
'Six per cent-legal interests the only rate
we have-never more and never less. 1 don't
believe in variable rates. It's not the way to
do business When we have plenty of money
we keep it until we get our terms; when We
run short, which seldom happens, we distribute
it around at the same invarisble rate. This is
the -one-price system, which is becoming very
popular in other branches of business. / find
itpays IN the long run"
There has been considerable money loaned
lately at per cent"
~ know it, but think it's bad policy. On
its face 1t seems TO be in favor of the borrower,
but really 1t is nos. For Instance, man bor-
rows $4,000 to-day for four months at 8 or AZ
per cent. Pay day comes around and he finds
he has no money to meet the obligation. He
goes to the bank and asks for a renewal of the
note. The banker says: Certainly, sir, l will
renew your note, but can't do it on the same
terms. Money is scarce and higher. will
have to charge you Sper cent In this way he
gets more than legal interest for his money.
When a man borrows from US he has full
assurance that he can renew at the original
rate"
He added another objection to cheap money
that it was the parent of extravaganza and
frequently was the cause of financial disaster.
The statement that the bank in question never
deviates from its established rate of interest
that the rate is as interchangeable as a law of
the Medes and Persians-will be a surprise to
most readers. 1t is certainly a wide departure
from a venerable custom.
A Homewood citizen. whose wagon stuck in
the mud yesterday morning, vented his wrath
in fashion something like this: Il have lived
here for about ten years. and paid taxes during
all that time. What have we to show for this
money? Look at the roads. A goose would
mire in almost any of them. l suppose it will
take me two or three hours to get my wagon
on solid ground. This is great loss of time.
If it happened only once in a long while
wouldn't mind il so much, but it's a regular
thing out here. It's outrageous. Wewould do
better ont of the city, for then we could help
ourselves. When candidates come around to
solicit our votes they make all sorts of
promises-that the roads shall be repaired, that
we shall have ample police protection and
everything else we want-but when the elec-
tion is over they 90 back on their word, and we
hear no more about the improvements until the
time for the next election comes around. We
have spotted some of those fellows and they
may hear from us sometime"
Having unburdened his mind, he started of
in quest of help to get his wagon on terra
nrma. The picture he drew of the condition of
the roads is strictly true