St. Paul daily globe., 1891-06-07
might excite suspicion that there had
been a run on the bank.


been run on the bank.
For another thing, by doing business
with single bank Mr.. Sage would dis
close the extent of his transactions, and
that would not be wise thing to do.
Financial operations must be conducted
with secrecy in order to maintain credit.
Men worth millions are often compelled
10 borrow money by reason of their own
funds being locked up in investments.
If it were known that they
were borrowers their competitors
In business or in financial operations
would take advantage of the knowledge.
The responsibility of the borrowers
might be asSailed with seeming war
rant and great loss, and, possibly, in
some cases bankruptcy might follow.
There Was an Instance
very recently where an extensive man.
nfacturing concern had occasion to bor-
row S1,2O0.000. The concern made out
twelve notes for 100000 each. Mr..
Sage discounted three of these notes.
The concern Mr.. Sage knew to be per-
fectly solvent, but he applied business
principles in this case, az In all others,
and refused to take more of the notes.
1t is a favorite piece of advice of his
not to put all your eggs in one basket.
Mr.. Sage makes no loans unless col
lateral is furnished. He takes note as
the evidence of debt. 1t is what is called
an ''ironclad'' note, which gives him the
power to sell out the collateral when
The loan is called Gf it is call loan) and
IL is not paid, or when it falls due, if it
Is time note. 1t is the same form of
note as is used by the banks in Wall
street, whose chief business is in loan
Ing on stocks and bonds, and is consid-
cred the only safe one.
Mr.. Sage conducts his vast dealings in
money wholly on an Old-fashiOned fiat
top desk. To the observer this desk ap-
pears i'll the widest confusion. 1t is
piled high with papers, and the draw
ers are also bulging with letters and
documents. IneXtricable as the mass
seems. Mr.. Sage can instantly put his
hand on any paper in it that he desires.
To him the order is perfect.
He has habit of keeping letters In
the envelopes in which they are re-
to instantly select the one he requires
frOm among hundred or more.
He is a very methodical man. He has
aplace for everything, and his memory
Is so wonderful that he never forgets
where he puts thing. About all that
his clerks have to do is to keep his
books, make his deposits in the banks,
and carry his securities back and forth
between his Office and the vaults Of the
safe deposit companies.
Where Mr.. Sage has an advantage
over bank is in being able to obtain
interest on his money at all times.
Whether lying in the banks or advanced
Dn notes, it IS earning percentage.
Jay Gould calls Mr.. Sage the wheel
horse of finance. There is not a more
solid financier in New York, or any
where else, as far as that goes. His
money has undoubtedly more than once
averted serious financial trouble. There
are times when money cannot be OBJ
tained in large amounts even with the
best security. In emergencies like
these Mf. Sage has come forward and
done what the banks could not do.
Mr. Sage's money did great deal
toward relieving the panic of Novem-
ber last, when the banks were obliged
to refuse aid on account of their de-
pleted deposits. When Mr.. Gould was
speculating on an extensive scale it was
for anywhere from $1,000, 900 to 50, 2,O0O,-
600, and even for greater sum.
The close business relations existing
between Mr.. Sage and Mr.. Gould were
established, it is said. by Mr.. Sage
making loan which saved Mr.. Gould
from possible ruin. That was long be-
fore Mr.. Gould was the great power in
Wall street. Mr.. Sage may have taken
some chance in advancing the money,
but his judgment showed that he had
not underestimated Mr.. Gould's busl.
ness capacity.
For twenty years or more Mr.. Sage
and Mr.. Gould have been financial al.
lies. Each has unquestionably profted
immensely by his relations with the
other. The two men meet daily when
they are in Town, although their Offices