The herald., 1893-02-03

Money.lenders there complain that two
or three of the San Francisco savings
banks have invaded that field. In this
way portion of the surplus money of
the banks is being employed, and a
much-needed reduction of rates in the
city at leas. temporarily STAYED off.
Our city savings banks now hold de-
posits amounting to over $107 900, 900.
Their deposits increased nearly $40, ,000,.
600 in 1892, If this increase OF last year
represented the aggregate small savings
OF mechanics, laborers, servant girls and
clerks-for the receipt of whose savings
these banks were established-ther
would be great cause tor congratulation,
because it would be indicative of most
prosperous times for these classes; but
1t does not. Three-fourths of this in
crease, we judge, came from people OF
means, who find that, by placing their
money on term deposit with these
banks, they can get to 51s per cent for
their money. Rather. than take any
risk in building railroads or in any
other work of development, in either
away in banks which were never created
for their use, and do nothing but draw
the interest. These people of wealth.
meanwhile, complain loudly OF hard
times, of the dullness of city real estate,
of the exactions of the railroad monop-
oily, etc.; but, so far as anything useful
or practical is concerned, the great ma
jority Of them are deau weights. This
condition of affairs is one OF the promi-
nenE causes of hard times. We, of
course, recognize the immense value of
our savings banks to both depositors
and borrowers, and the aid they have
given in their loans to the interior for
the development OF the state. They are
the very sheet anchor of city real es-
tate, too; but both the city and state
would now be vastly benefited ii the
large sums being deposited in these
banks were scattered in the work of
other developments than loaning them
out on landed values.
Money is much cheaper in San Fran
cisco now than it was some years ago,
but it is still inordinately high. The
fact that it can be placed in Portland
and other cities up north at from 10 per
cent upward is great drawback to the
coast. A high rate of interest has done
much to retard the development of Cal
ifornia. There are men ia Los Angeles
county who, if they could get back all
they have paid in interest a figure
above one per cent month, would be
rolling in money. 1t is not go long ago
that one and half and sometimes two
per cent month we're paid by the most
enterprising people in Los Angeles.
Men who, like L. J. Rose, have been
foremost in the development OF our re-
sources, have paid enough money in
interest to make them very rich indeed
could they gather it into their bank ac-
counts in a lump sum.
The present is the time for investment
IN real estate in Los Angeles and vicin-
ity. 1t will never be cheaper than it is
now. That is the cardinal fact govern
ing the situation. Much of it can now
be had at a bargain. As an Investment
proposition it is desirable because it can
be made to yield large return on the
prices at which it is selling. and this
applies both to city and country prop
erty. Such men as Mr. 7. D. Stimson
understand the trend of things in cities
new and old. and the large gums they
are putting in Los Angeles real estate and
buildings show very conclusively that
they have an abounding- confidence in
the outcome of the place. They are but
the auant couriers of an army OF invest
ors and progressive business men that
are already on their way to Los Angeles,
and whose abundant capital will be sure
to reduce the interest on money and en-
hance the price Of real estate.