Wheeling Sunday register. [volume] (Wheeling, W. Va.) 1882-1934, 1894-03-11
THEY MADE MONEY BY THE PANIC
How the Loan Makers Reaped a kich
Harvest During the Hard Times

Harvest during the haTu Aiihoa'
The men of New York who make
loans in Wall Street have reaped mar
vest since the hard times began, early
last summer. 1t was only necessary to
loan and be willing to loan and Tor
tune was yours. There was plenty OF
spare cash all through the panic, but It's
owners were nearly scared out OF their
senses and locked it up in safe deposit
vaults or bought gilt-edged bonds and
locked them up. They were afraid TO
take advantage Of the situation. They
were sure to increase their resources
very materially, for money was never
so badly needed and it never brought
such rates Of interest. Nobody thought
of usury. There was nothing OF the
Shylark about the current transactions
of last year. The man in need OF
money eagerly offered terms that even
Shakespeare's character would never
have dreamed Of demanding.
But all the men of means were not
frightened. Some Of them had been
through panlcs before and. knew how
the woes OF the many could become
bonanza for the few. These shrewd
dealers took advantage OF the situation.
They got together all the ready cash
they could and either put it out in loans
themselves or hired a loan broker TO
negotiate for them. OF course the loans
were only made for short time in most
cases. and the collateral had TO be the
best there was in the market AID 1t had
TO be In exorbitant quantities. a great
deal OF it was loaned to houses that had
to have it and give security worth i've
times the amount advanced. The secur-
ity, no matter how good it was, could
not be disposed of on the exchange ex-
cept at a ruinous sacrifice. II was
deemed better to pay for money and
retain the securities than sacrifice the
collateral for money and afterwards
lack both money and securities.
II would be hard TO tell just what
rates were paid for loans in the darkest
hours of the panic. For the use OF
money for a very few days, interest at
the rate OF one hundred per cent, year
was frequently given. 1t even ran
higher than that some times. Bankers
we're carrying valuable customers and
needed money. Their vaults were full
of first class collateral and they time
and again emptied their vaults in order
to retain their standing on the Stock
Exchange and save thems elves from
failure. 1t may seem an outrage that
money lenders should have secured
such tremendous rates, but as the cloud
of depression gradually lifts it discloses
hundreds OF concerns that would have
gone down with crash but for the help
OF the cash raised at such expensive ig-
ures.
OF the individuals on the street who
made fortunes, or rather added to the
fortunes already possessed, two stand
out prominently. Russell Sage and Mrs.
Hetty Green had millions on tap and
they turned their bank accounts over
and over again and every time increaS-
ed the figures in the bank books. Sage
spent the busiest summer Of his life.
While most of his loans were made d.
rectly by the shrewd old fnancier In his
coop-like offices on Broadway, he sever
al times allowed reliable brokers to act
for him. Brokers flocked around Sage's
Office every day and through every
business hour Of the day. 1t is not true
that Sage will not talk TO brokers. He
is ALWAYS ready TO make trade, but 1t
takes clever broker to meet him in
trade and come out whole. How much
Sage loaned when the sums were all
added up, is guSss work. He is reputed
to keep from S., 600, 600 to $4,000 900,
whore be can lay his hands on il at any
minute. Probably $40, O0O 600 would be
a fair estimate OF the amount he kept
shifting from loan 10 loan throughout
the panic. Now and Their the loan would
not be met at the period appointed.
Occasionally, owing TO the rich return
in the shape OF interest, the loan would
be renewed. But more often as the
clock struck the hour when the money
was to be repaid and it failed to appear,
the securities that were taken as collat-
eral passed into the possession and be-
came the property of Mr.. Sage. He
kept them and In fact mas maOy Of
them yet But their value has mostly
increased a hundred fold and one OF
these days the sagacious old manipula-
tor will dispose of them quietly at big
figures and rake another load Of shekels
into his private exchequer.
Mrs Hetty Green made fewer loans
than her male financial counterpart,
but she got higher rates on those she
made. This mysrious woman Of the
financial realm absolutely and actually
squeezed the rich men who had TO have
cash and have it at once. The tale Of
the way in which she cornered and COM
pressed Ex-JudEe Hilton is part Of
contemporaneou history. There are
some features of that transaction OF
which the public is ignorant however.
The firm Of Hilton, Hughes & Co., was
In straits. Business was dull. COllec-
tions was frightful Cash had TO be
used constantly for purchases and pay
rolls. Hilton could not make loan on
any securities he had. Government
bonds were refused as collternal. The
distress signal was about to be display
ed when Mrs. Green was applied to.
She had the money and she would loan
IL on certain conditions. The condi-
tons were something unheard Of. The
great marble building At the corner Of
Broadway and Chambe street, was
the only collateral she would take. She
loaned on less than one-tbird Of its panic
value and II the loan was not met
promptly in the instalments agreed
upon, the palace OF which Alexander
r. Stewart was so proud was 20 instant
IL mass into her hands She made Hill
ton pay the Title Guarantee Co. big