The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1896-08-12
DECLINE IN INCOMES.
Returns from Investments Cat Down
Nearly Ons-HAif.

/
| Nearly Oas-HAlf.
The returns upon safe investments
pave fallen SO low as to become q Sc
rious matter to persons relying for
their income upon invested capital. In
the next ten or fifteen years most of
! the railroad bonds issued years ago a
and per cent. interest fall due, and,
as they are abundanuy secured, they
will be extended at greatly reduced
rate of interest. Two such cases are
before Philadelphia investors at the
present time. The first mortgage z
per cent. bonds of the North Pennsyl-
kania Railroad company. a perfectly
safe investment, are being extended at
per cent. The first mortgage per
cent bonds of the Pennsylvania &
New York Canal and Railroad company
are being replaced at 4h per cent
Both these issues were put out 80 years
ago, and now the new holders have
their income cut down from So to 43
per cent. Other instances can readily
be found. Twenty years ago the con-
solidated mortgage 6 per cent. bonds
OF the Pennsylvania railroad sold at
par; within a few months the company
had sold bonds secured by the same
mortgage at 3H per cent,
The condition is world wide. British
consols have lately sold up TO ia per
cent They bear 2A per cent interest,
which is to be reduced to 2K per cent.
In 1903, while the bonds are absolutely
payable 20 years thereafter. The rate
OF interest is falling throughout the
civilized world. This has been its course
suppose there will be any change. The
wealth of the world is increasing every
year at a most wonderful rate. Every
invention that tends to conserve ener-
gy, to augment production and to ia
cilitate business is one more influences
that aids in the creation of wealth.
Never was the human intellect so busy
as now, so ingenious, SO well supported
And with every year the pressure foi
good investments increases. The sup
ply is not at all equal to the demand
Tor can it be. It is still possible to Sc.
cure investments that yield per cent
interest but they are not ordinarily
such as a trustee would select for his
benefciaries. A risk must be taken.
And even these opportunities are not
as numerous as they were a few years
ago. The truth must be recognized
that We have no longer a frontier. our
country is developed, all the best ia.
vored spots are occupied, and there is
no longer necessity for good borrow.
ers to pay per cent. for money.
From these conditions it seems that
a further fall in interest rates is in.
evitable. Railroads that now borrow
money at 3ih per cent. Will be able to
borrow at before long. The stocks
of sound dividend corporations will rise
in price. But there will be one impor.
tant result from this condition that
will affect our career as q nation. As
the pressure for good investments in
creases our capitalists will reach out
for foreign countries just as England
has done. We have Cuba and Sou.l
America a. our tioCrs. and we have r.
ca frying trade Of III '-c-,1 be-o-e Il. .
It is molly certt; n that our sdveu-
turous capitalists will reach out FOE |
these new fields. They will retard thu |
declining tendency OF inoome for
time, but they cannot stop the inex-
orable law of commerce. A generation
hence the rates of interest new paid,
which we consider extraordinarily low,
will seem to our SUCCESSORS TO be excep-
tionaIly high--Philadelphia Inquirer