The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1890-06-06

t1p.1n ~ qoc1 a1nonnt - ~ lazines
81 ~ as<fvi1y r - se1n1e + 1osenber
hsuoeht ~ lgnrus ~ = hfgA = 3k.6004,
but VIII - exoDp<fnn - - ortuo ueo1s,
wh1n ~ natural nuetuaf5ons - - -
son's tsaAe m apparent, - eafn b. hesn
s1endy.
Investnenf i essusiy sought q q low =
pr cent bus considerable business =
doue b tocai brokers and syndicsts aGsnfs,
who borrow m0ney h Tie Eass - md
sven pr cent. osd rerinsessit ~ 3 nd 10
pr cent short 1oans are pancod - Pr
cent month
Eesidss the usual rea1 ests4e mortnness
and commsfcsai paper transactions largs
sums Of money have besn placed In local
enterprises Money Is waiting 70 b
loaned on The city vatsr bonds
1t per csnk, the grain essvstOe
has attracted capital, projected cahls
and electric Iiues ind capital cosy to com
mand new steamers On the Sound, the
Crest Northern railrosd. and The transcon-
tinertal road have brought money into the
city which does not enter into any Of the
compilations made In this article, and the
advent OF the Union Pacific win set
thousands Of dollars al foreign capital
flowing into the local avenues Of trsds-
A subject 20 prolific Of fascinating deduc-
tions cannot b. exhausted within narrow
limits, and only SUFFICIENT data are given to
afford suggestive calculations for business
men dealing in unadorned statements Of
incontr0vertible fact
Mr.. Jacob Furth, cashier of the Puget
Sound National bank, said Il seemed like
stating ssif-evident proposition to say
thst the financial condition Of Seattle had
wonderfully improved since the IRE.
I'm June, 1873. the taxable property Of the
city vas $1s 600. nov il b 50. O00, 900.
That Is . very considerable increase Of
value within one year. But what ID even
more significant II that In 1s60 the total
amount Of mortgages on real estate was
1886. 90 or 80. this year We have no moro
than "a, 5000 or fraction less. although
the additional buildings are probably worth
100000. This Is evidence that the large
amount Of building has been ct the ex-
pense Of property owners and not on bor-
rowed money. Owners Of land have sold
portion and used the money to put up
structures.
This fact alone dissipates any fear that
there can be serious depression. The
foreign capital brought into the city and Of
which SC much has been said has gone
directly into investment and not in the
shape Of loans. This has greatly stimulated
business in the city, and II any reaction
comes IL will b . natural consequence Of
the ebb and how Of trade. and not due TO
any run upon property or foreclosure Of
mortgages.
The banking capital OF the city has
grown from soc. 600 about June, 1859, 70 it
present proportions OF 81 10000. Deposits
in all the hanks amounted in 1859 to
5000 600. new they are fully s. 900 co.,
Mr.. G. H. Hebron. manager Of the
Guarantee Loan and Trust Company. said
there was no doubt of the immense fnan.
cial improvement In the condition Of Seat
tie. So much outside capital has bean in
vested that it, growth cannot fan 70 b
substantial.
The only doubt that Was ever raised, !"
said Mr.. Heiibron, "wAs that . tine az
stzineency might come when mortgage
loans begun TO mature; but the wonderful
development Of the back country has
already anticipated such call. The build
ing Of new lines Of railroad, wheat eleva.
tor. the iron works ct Kirkland,
and other enterprises, have pro-
gressed so rapidly that capital asks
NO better security than Seattle property.
The new charter. the issue Of city bonds
and the extension Of the cable systems will
aid in securing investment Of more money
from abroad: and instead Of mortgages
being fsreclosed they will be gladly re-
newcd. No doubt individuals suffered loss
BY tho IRE; bdt the stimulus given 70 BUSH
ness has made Il public gain, and the
city has considerably more wealth than Il
had. The character Of the new buildings,
the high class Of Improvements and In
creased facilities for transportation are also
matters Of great importance in establishing
sound financial prosperity.
III the city had gone ahead too rapidly,
and relapse succeeded. so that in any way
the credit OF the city became impaired,
there might have been some fear Of seri :
Gus stringency. but the Influx Of money
has been coming for some time and there
Is no sign OF shyness. On the contrary,
the rate OF interest is irmer and lower than
ever and money is seeking investment.
Nobody with good security need be in
want OF money at reasonable rates. Be-
tore the ire the prevailing rate for loans on
business property might be put at per
cent. now IL Is nearing 8. All this proves
conhdence that in my opinion is amply
justified. cannot give you figures ut the
moment to bear me out. but the increase in
the volume Of monetary transactions
within the past twelve months is very
large"
Mr.. Herman Chaplin. president Of the
Boston National Bank, said that among
the thousands who came into Seattle after
the IRE were many skeptics who predicted
disaster when the mortgages closed or the
interest became due. Ii was not justified
then and events have shown IL TO have
| been absurd The loans made on buildings
were all for long time, five to ten years.
| The confidence In the security is shown by
the rate Of interest. which il very low for I
| Western city. The buildings are al renting
| for good prices. many OF them on long
| leases and there will be no trouble in re.
1 newing loans should il become necessary
The amount ous on loans has been very
much exaggerated. By far the largest part
! OF the capital put into building Is that oil
/ the owners of the land. II there is any
stringency at all my opinion is that it may
come when ali this enormous building /.
| over and there is . elimination in work. The
| proposed railroads viii take up . large
uumher OF the unskilled labor
bat there will probably fos
time be a scarcity OF work for mechanics
but the rate at which the whole Sound
! county is bailding up VIII insure employ
nent 10 eriekiayers. masons and carpenter.
and the allied trades
Capital is notoriously sensitive and