St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-02-19
OPEN LETTER TO BANKERS
III. s. Fairchild Gives Handlers of
Our Money n Tin

Gentlemen: In 1887 you came to the
conclusion that prices of real estate had
become inflated, so that neither realty
nor the paper taken for deferred pay.
mentS on it were safe investments. MOI
the latter good collateral for loans
Events proved that you were correct in
your Judgment, but conditions have
changed: yet your convictions appear t.
remain unchanged The city has grown
steadily, if less rapidly; a large per-
centage of the best buildings in the city
have been erected since 1887; our rail
ways have been extended, giving us two
new connections with the Pacific; many
new and large industries have been
secured; the tributary country has been
SETTLING up;" new FARMS have been
opened and old ones enlarged, and the
vast mineral wealth of the .atate dis
covered and partly developed. and
many men OF large wealth, enterprising
and energetic, have made their homes
IN st: Paul in the last few years; more
than in all its past history combined.
Meanwhile bubbles have been
prlcked, fraudulent corporations ex-
posed and exploded. weak concerns
have gone TO the wall, liquidation in
good part taken place, and rigid econ
omy practiced by all.
Stocks of merchandise and products
or factories have been reduced 10 a low
point; and now, with necessity for
greater production and greater con-
sumption, and an easy money market.
1t Is not unreasonable to expect an early
resumption of normal conditions: of in.
creased employment for labor, and so of
greater ability to purchase and to pay
Inc gorged money centers will seek
profitable use for their hoardings. AL
ready long-suspended industries are
starting up, ana good commercial paper
is sought at low rates; stocks anu bonds
may be taken, and rapid advance re-.
suit, but capitalists will hesitate 10 take
any but the best for permanent invest
ment. after recent experiences.
mortgage loans cannot absorb the
vast surplus, for most realty is now en-
cuinbered. and if seeking new loans to
pay THIS OF, reduced valuations and bad
records as to prompt payment of interest
would deDar; and so, next III order, see
ing how, despite all this growth and all
these auguries for better future, prices
have greatly declined, money VIII
naturally seek what is always under
Such circumstances the safest and most
profitable inveStment-real estate.
Some OF US are labOrIng now to attract
the attention OF capitalists to our city
as good field for investment, and with
prospects of success.
Shall we have the aid of our bankers
ana business men generally in this
movement?
Your vaults are not now depleted, nor
want OF public confidence Ill your
strength.
All classes hold real estate and manv
need to sell and are ready to sell at
greatly reduced prices, so low that with
renewed business activity they would
prove extremely profitable Investments.
Every sale of real estate enables the
seller to pay his balances to the banks,
10 pay the merchants. who in turn paw
the banks. to purchase and so help the
retail trade.
There is not business man in St.
Paui that Is not directly or indirectly
interested in renewed activity in real
estate. The assessors books show that
the valuation of the realty in the city is
ABOUT seven times that of the per
sonalty, and without market for realty
we are doing business on only mere
traction OF our assets.
Millions of dollars are withdrawn
from the channels of trade and locked up
In safe deposit vaults or hidden away
IN the homes OF the people, unsafe, draw
ing no Interest, and doing no possible
good.
1t will stay there just as long as lead
ing business men diSparage investments
IN realty and while the 'whangdoodle''
mourneth in the streets.
There never was better time for the