St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1891-01-25
BONDS ARE ALWAYS HANDY.
A Mature Opinion Based on Expe-


fience.
s'Merchants in leading branches of
trade" another remarked, ''are called
upon at certain seasons of the year to
provide for the wants OF their business
six months or year ahead. When the
wheat crop is ripe and ready for the
market Western millers have to look
after years supply. So it is with
corn and all other cereals. When the
cotton crop is ready for the market
dealers i'll cotton and manufacturers
who are large consumers have to look
after supply for six months or a year
ahead. The wool crop, amounting now
to 350.000,000 pounds, starts in Cal
ifornia. where buyers have to make ar
rangements to purchase. Then they go
to Texas and other points in the West
and Southwest, laying in supplies to
meet the wants of their business for a
year ahead. The hog crop is largely
packed in the winter season. and mer-
chants engaged in winter trade have TO
make calculations and provide supplies
for the future wants of their business.
"And SO you might go through nearly
all the leading staples. At certain sea-
sons of the year merchants require con-
siderable amounts of money. and they
now depend largely upon banks to meet
that demand, and, in consequence,
money becomes more stringent and
active at different periods when
large amounts are necessary to
move crops. and that is largely
the case at the present time. The cot
ton crop, for instance, which it was eX-
pected would be a failure under free
labor, has doubled, and this year
amounts to about s, 100000 bales. Not
only is the crop very large, but the de-
mand for manufacturing purposes is
such that every bale is wanted.
''The population and business of the
country have rapidly increased, and 1T is
questionable if our banking facilities
have increased cOrresp0ndingly j do
not look upon it as a bad omen that
money is in demand and active. 1t is
always an indication to me that there
must be corresponding amount OF bus
mess to bring it about. Money now
ranges from to per cent for bank ac-
commodations and Oh the street, but
do not really think the rates are very
extraordinary. We have had long
spell of abundance of money and low
rates of interest, and it appears to ME
that money for some time to come will
keep up at higher rate than III the
past few years.
DO l think it wise for merchants to
invest in stocks? No. do not. be-
lieve that tradesmen, when they have a
legitimate business, ought to cOnfine
themselves to that business. don't like
to see merchants visiting brokers' offices
every morning and examine the tlckers.
1t shows that they take more interest in
speculation than in their legitimate
transactions. l have always thought
and still think, that merchant could
invest his surplus funds in a way that
would assist him in obtaining large sums
of money to the best advantage when II
was required for his business at seasons
when he had to put out large sums. BY
investing his surplus funds III city, state
and other bonds on which money cal
always be borrowed at the lowest posi-
bic market rates, they would always bt
available for any emergency.
Instead of specializing in stocks,
would suggest, therefore, on experience
| have had with merchants who have
always stood very high in commercial
circles, that it would be better to inves
in bonds such surplus money as can bt
spared outside. the legitimate wants o.
business.
sit appears to me that. instead O
keeping ready money at hand drawing
no interest at the banks. marketable
bonds would be far more preferable be
cause they are drawing interest all th'
time, and are the best collateral you
can put out in a panic. and business
men could guard against any possible
Stringency better in this way than an.
other.