The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1896-06-30
OUR MILLIONS
Produced In America "Aecum-
ulated" In England
Waiting Until We Get the
esPresent Gold Standard
When They viii Kindly Lend
Us the
MONEY STOLEN FROM US
By the Recent Decentralization
of Silver.
Britishers Eager For Invest
ment In America
HONEY STOLENFROMUS

New York. June 3O-The Journal pub
fishes the following special cable from
London: While the west Of the United
States is crying for free silver England
is suffering from a glut of money The
banks are full, cholzed with idle money
for which it is impossible to find any in
vestment that would even pay the cost
of the brokers' commission. So phe-
nomenally cheap is money in London
today that it is possible to borrow prac-
tically an unlimited amount at the rate
of % cents a day for every $50, 00O-
There is now on deposit in the Bank Of
England alone more than $3.50 GOO, 900
more money than was lying there nine
months ago, and the amount on deposit
has been steadily mounting UP during
that period and is stin increasing
There was in the bank last Thursday
s14OOO,OOO of public deposits that is
government money. The usual amount
thus on deposit is from e5,0oo,000 to
eS OO0 600. This money is largely made
UP of funds set aside for the redemp-
ton of consols. and of funds deposited
in the POstodice Savings bank for
which investment is desired. But there
is now no desirable investment to be
found the consOls have gone 50 high
that the government viii not buy them.
Private and joint stock banks have
g so 500 600 on deposit in the Bank of
England which is G12, 600, 600 more than
was So deposited last october and 917.-
900 600 more than at this time two years
ago. The Bank Of England's own re-
serve fund 10 days ago was Ell 500, 600
more than it amounted to nine months
ago, and the stock of gold and bullion
on hand was more than G12 coo, 900 in
excess of the amount on hand last Oc-
tober.
This condition of affairs in the Bank
of England is a fair sample Of the sit
uation throughout the country. Every
where there is a great giut Of idle mon
ey, for which no satisfactory use can
be found. There is thrown on the mar
ket here every year about &l20 100000
seeking investment. This vast sum of
money $500, 600 OO0) represents the an
nual surplus cash accumulated in the
country, saved from its income, and is
altogether apart from the income re-
invested in home Industries.
Tt is said that undoubtedly the whole
Of last years accumulation. and much
more. remains idle in the hands of its
owners. Unsatisfactory financial con-
ditiOns in various parts Of the world
where British capital has been invest
ed have stopped further investment in
those directions. and have also caused
a considera BILE withdrawal of capital
Transvaal last year brought a great
deal of money back to England. Par
ticularly have the many and various
troubles in South American countries,
the defaulting of some states and the
collapse of many much-boomed under
takings, brought back capital from that
continent and frightened capitalists
from further investment
But most of all is the British capt.
talist distrustful Of American invest
ment, and this, probably. is the most
important factor Of all in causing the
present phenomenal glut of money
here. Not only is money not seeking
Investment in the United States, but
the withdrawal from there has been
exceedingly heavy in the past nine
months, and particularly since the first
of this year.
If the financial policy and a peaceful
foreign policy in the United States We're
positively settled, very much if not
practically all, of this vast amount OF
money lying idle in England would
flow in immense volume across the At
lantic. One Of the heaviest financial
authorities in London said yesterday:
MONEY WOULD FLOW HERE
IF the United States viii only settle
its currency question and put the cur
rency on a stable and satisfactory bas-
is, there viii Immediately be an inn
mense flow Of capital into the country,
for I assure you that money would go
to the United States far more readily
than to anywhere else in the world
But now there is universal distrust Of
American Investments. not only in big
monetary centers, but among all classes
of people having a little money to in-
vest The latter have also lost heavily
lately in American railroads. and are
very shy Of that class of investment.
Another thing that is frightening the
European investor is the embarlzation
of the United States on the uncertain
sea Of European politics. 1t is a great
pity that these conditions exist ia the
United States, for if the way We're but
clear for Investment the present pie
thora Of money here would mean
great boom for everything American
MUSHROOM CONCERNS FORMED
The most interesting result of the
plethora of money has been the spring
ING UP OF an amazing crop of muSh-
room companies, exploiting almost any
thing and everything in the British
Isles. The small British investor has
grown so afraid of foreign investments
ana YET IS so anxious to make use of
his little capital that he is desperately
WllllnS 10 take stock and chances in
anything in the nature Of home IN
dustry that is put on the market The
greatest boom has been in cycling
npanies-cOncerns organized to build
cycles of all kinds. others formed to
manufacture some one appurtenance Of
cycle construction or equipment and
stiu others to make and market one
particular style of cycle
In the past two months about $50
100000 has been invested in England in
various cycle and cycle supply COM
panies- The greatest Of these com
panies is one organized solely to manu-
course, this S5o.OoO0o0 is but a drop in