The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-08-22

Financial conditions in Utah are re-
versing themselves. There is now
plenty of cheap money for investment
as loans, with no takers. Loan agents
are sending UP howl of absolute pain
on account of their inability to unload
tie sums intrusted to their care for
distribution among the property-hold-
ers. 1t is very true that the security
offered for loans must be Of the very
best; the days Of loaning upon dung
hills is a matter of history only. Any
property-owner with security which is
unquestioned can secure all the money
he desires at rates of interest ranging
from 10 per cent to per cent, and one
prominent banker has made an invest
|. ment company a proposition to loan
100000 on State street property at D
per cent. The land is at present unen-
cunnbered with buildings but in case
the loan is made the intention is TO
put considerably of the money into
handsome structures.
The majority Of the money which is
now offered below 10 per cent is from
the east, although there is considerable
local capital for rent at s per cent and
light loans are being made almost
daily. 1t is very plain that the tide Of
idle eastern capital is turning toward
the future state of Utah for investment
and the knowing ones in financial cir
Giles are of the opinion that it is but the
matter of a few months when the in
vestments will not be made in loans
exclusively, as at present, but in real
|, estate and improvements. Many are
the inquiries being received by local
people from capitalists in the east re-
garding the outlook for the future.
The tone of the inquiries plainly tells
that the owners of idle capital are
turning their attention to Utah and her
securities. Several agents in this city
have received large sums of money
within the past few days for invest
rnent in Utah stocks and bonds, espe-
cially the latter.
This influx of cheap money has
caused some CONSERVATION among the
savings banks of this city, and for
some time past negotiations have been
on looking to a decrease in the amount
of interest paid annually to depositors.
The present rate is 5 per cent COM
pounded quarterly and the proposition
fds to reduce to 4 per cent, compounded
semi-annually. a considerable of a cut.
The arguments used are to the effect
that the influx of eastern money has
cut off many of the avenues Of good
loans and the financial condition of the
people generally makes it extremely
hazardous to place money, even with
the best of security, the difficulty being
in turning the real estate into money
on a pinch. All of the savings institu-
lions, but one or two, lions Savings
Bank and Trust company being one,
are said to have agreed to the PROPOSE
tion, but the refusal Of the others has
thrown a gigantic block in the wheel
and it is hardly probable that the
change viii be inaugurated. When
questioned regarding the matter yes
terday, Cashier George NJ. Cannon. of
lions Savings Bank and Trust COM
pany, said their directors had been ap-
preached upon the matter. but had re-
fused to enter the combination, for the
reason that the institution was adverse
to changes of that nature. 1t had
maintained its old rate Of interest dur
ing the panic and now declined to cut
down the earnings of its depositors.