The Durham daily globe. (Durham, N.C.) 1889-1894, 1893-12-21
NO MONEY TO LEND |
Talk About lnfati0n in New York
All MOOnshine.
A Prominent Ohio Banker Makes IN
Actual Test.
FINDS MONEY TIGHTER THAN EVER
He Saws There Is No Truth In the News
paper Reports as to Confidence
Being Restored.
FINDS MONEY TIGHTER THAN EvEI

He SAYS There Is NO truth In the news
paper Reports as to Confidence
Being Restored.
WASHINGTON, Dec. 20-fSpecial j
A well known Ohio banker, who gave TO
the country during the acute stage Of the
recent panic much valuable information,
has been In Washington a few days on
his way home from New York. Com
men,ing upon the message of the Colo
RADIO citizen TO President Cleveland this
banker said:
IT had supposed from what I read i L
the newspapers that confidence had re-
ally been restored in New York and that
money was as plentiful for the legitimate
borrower as press reports had repre-
sented. I know what 1 am talking about,
for l have just been making the practi
cal test, when l say that it is almost as
hard to borrow money in New York to-
day as 1t was at any time during the re-
cent panic.
when newspaper reports state that
money on call in New York is easy at !
II or 2 per cent they mislead the public.
It is possible that a well known New
York broker may be able to secure call
money at those rates by depositing ia
vorite securities and through friend
ships, but I know full well that any re-
putable western man would fail to Sc
cure call money in New York at double
those rates, despite the contrary state
ments by New York bankers. l see that
the regular Wall street reports to-day
quote prime mercantile paper at from
81 to Al per cent, but when l left at n
Of the banks in New York a lot of gilt
edge commercial paper, properly en-
dorsed by my bank, for discount, l was
cody Informed that the discount would
be 7 per cent. When I asked the banker
why it was that prime mercantile paper,
such as | had presented to him, was
quoted in the streets at an average Of 4
per cent and the banks were cutting it :
per cent, 1 received the reply: "You
know those are the street rates, the quo
~tations, and when it comes to discounts
through the regular way they are much
higher"
81 made further investigation as to this
disparity in figures, and I was convinced
Of the correctness of the statement l made
during the last panic as to what had
created the existing trouble. The lack
of confidence continues. 1t grows out
of no lack of faith in the quality of our
money, but the ability of debtors to meet
their obligations. 1t was a good thing
that the silver law was repealed without
condition, as it removed the bugaboo and
the excuse which capitalists were making
against loans. But the lack of confidence
now Is deeperseated and more serious,
because it is based upon the real founda-
ton for our recent trouble. Eastern CAPT.
talists are afraid of the effect of the Will
son tariff law. Democrats as we'll as re-
publicans, who have money to lend really
believe that the Wilson theory Is going
10 strike down a great many of our solid
institutions, and they don't propose to
put out their money with any risk. They
prefer to hold it until they see what is
going to be done. When o corner any
intelligent capitalist in the east now he
will frankly acknowledge that he doesn't
like to lend his money at this time be-
cause lie does not know what the condi.
tions will be six months hence. That
tells the story"
1t Is reported that Senator Mcpherson,
of New Jersey, one Of the leading and
most influential democrats in congress
and a member OF the finance committee,
Is not certain az this time that he will
support the tariff bill. He Is greatly dis
pleased with some of the features of the
bill, which strike hesvY blows at the in
dusiries in his state, and will submit.
amendments intended TO modify the pro-
visions so as TO favor 10 some extent those
interested. II his amendments fail, II il
said, he will vote against the bill. II has
been suggested that Chairman VOORHEES,.
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