The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1896-06-23
Local, Eastern and Foreign
Commercial Dealings
WALL STREET SPECULATION
The Debts Of the Country, Public and
Private
How They Are Divided and the Ratio OF
Debts to Value In Many Branches
Of Industry

The minimum private and public debt OF
the United States in the year 1890 was $2''-
227.17O,546. OF this sum 81, 200 100000 repre-
sents the debt of quasi-public corporations.
under which head are included railroad
companies. street railways, telegraph. pub
lie water, electric and gas companies, ETC.,
1914 per cent of this. or Sc, sos. 431, ia. being
the debt of the railroad companies alone.
The debts of individuals and private
corporations reach u total Of 1900, 600 600.
divided as follows:
Real estate mortgages .........$ 19,6l9' oS5
Crop liens in South ............ 300. wv Ivy
National banks, loans, etc.,. 1,904, DOL
Other banks, loans and over .,o,o ,.-
National state and local taxes l,O4O,47Sols
Other net private debt (esti- ~. -, ~.
mateQ) .......................... l,<lI, 'oi 90"
Total private debt ............ SIP 0OO, 900, 900
Total FOR public corporations
las above) .................... ozoo'ooV'Voo
Grand Total ..................s1s , 200, 900. 900
The public debt, less sinking fund, In
which debt is included that Of the United
States. states, counties. municipalities and
school districts is SO. 027. 17o546. which, added
to the private debt, makes total of all
kinds for the country of over twenty bill
lions. 1t is q significant fact that over
fifty-eight per cent Of the combined debt on
farms and homes occupied by owners was
incurred for the purpose of the purchase of
real estate. The crop liens of the South are
a legacy of the civil war. The loans from
banks are obtained on the understanding
the public debt are Incurred for the main
tenance Of Justice, the promotion Of public
works and for education. From the above
debt that go to make up the total for the
country, 1t is seen that fully ninestenths
orty and capital. Less than one-tenth
represents debt necessitated by. misfor~
tune Next in Importance to. the ques-
ton Of the amount of debt Of the country
Is the question Of the rate of interest on
which the various loans were granted. The
average rate of interest on railroad debts
s Is pef 9a oen estate
mortgages $50 per cent: bank loans and
over drafts, $50 per cent crop liens outside
Sou per e Per ee Grop In r afe
on private debts Of 6.97 per cent. The rate
on the United States public debt is 4.OS per
palities. 5Ss per cent. The e. average Yer rate
of interest on the total indebtedness of the
country Is GA per cetn.
Railway companies. 67.4s per cent; street
railways and telephone companies, SO. GO
per cent: incumbered farms occupied by
owners. $685. per cent; taxed real estate
and untaxed mines 1871 per cent; the whole
United States, 81. 0'pcr cent: incumbered
homes occupied by owners. 3977 per cent.
The total wealth of the United States cor
responding to the total debt of over twen-
ty billion dollars is about sixty-fve billion
dollars. The total per capita debt, includ
or 1854 per family of 4.93 persons. as per
the census of 1890. In connection with the
above classification of the various forms Of
indebtedness, public and private. 1t seems
satisfactory to learn that there was total
increase, Of wealth during the ten years
from 1880 to 1890 of s21, 49,. 091. 1877 the in
crease for the year 1889 to 1890 being nearly
three billion dollars.