The herald., 1897-09-22
OFFICE OF THE HERALD,
Los Angeles, Sept. 21.

OFFICE OF THE HERALD,
Los Angeles, Sept. 21.
As an illustration of the prevailing ten
dency towards a decline in the rate of in
terest we quote the American Banker,
which says:
Eight of the banks at Detroit. Mich.
have at last combined for lower rate of
interest on deposits. The reduced rate be-
came effective September 1st. From that
date all new deposits will draw 31s per cent
interest, while old accounts will continue
to draw 4 per cent until the next COM
putting date. The majority of the banks
which have entered into this agreement
desired a per cent rate, but they were
unable to win over the minority. In con-
nection with this 1t should be recalled that
one Of the banks not a party to the pres
ent agreement reduced its rate to 8 per
cent several months ago and persisted in
its course to the present time The bank
referred to is the State Savings bank, and
1t is now proposed to induce that institu-
tion to advance it's present rate to that
agreed upon by the others. This, however,
the bank is not likely to do. 1t acted upon
correct principles in the first place, and if
it's policy has been successful no change
Is necessary. And, besides, the present
agreement appears to have ben SO loosely
drawn that any party to 1t wishing to do
so may find means of evading it. Finally.
it is difficult to understand why the banks
should not have come down to per cent
while they were at it.
The money in circulation showed a net
increase for the month Of August amount
ing to $19,20S959. There were only two
items showing a decrease. namely. subsid-
larry silver, in which the decline amounted
to $194, 800, and gold certificates. in which
there was falling off of s20909O. The
increases comprised s2,774,261 in gold
coin. $1,42s,942 in standard silver dollars,
$9924,6S7 in silver certificates. $1,5S1. .425 in
treasury notes of $780, 81, ,042. 1862 in United
States notes. $4,000 in currency certifi-
Gates of 1872 and $92O362 in national bank
notes.
AS compared with the corresponding date
last year the gold coin in circulation shows
an increase of over $57, $4,000, silver certfi-
Gates show an increase of over s22. 100, 900,
United States notes a gain of over s22, AGO.
90, currency certificates of 1872 an increase
of 900 and national bank notes an
increase of over $40, O0O The decreases
comprised over $3.50, 900 in standard silver
nearly 81, $4,000 in gold certificates and
over $S,1OO,0OO in treasury notes of $780,
The total amount of money in ciruclation
on September 1st amounted to $1,665, $780,
09S. which represents an increase of over
$126, 900 as compared with the corre-
spending date last year. On the basis of
population estimated by the treasury ex-
perts at 73, $4,000, the circulation per capita
is put by them at $2276 This is an increase
Of % cents per capita for the month and
Of SIPS as compared with the correspond
ing date last year.
The regular monthly statemei.s of the
comptroller of the currency regarding ma
tional bank circulation shows total out
standing on July 31st amounting to $780,
e0S,524 This represents a decrease of $780,
4l2 for the month, but an increase of $685.
075 for the twelve months ending there
with The portion of the circulation based
on the deposit of bonds amounted to $685.
765.976, decrease of $742,9SO for the month
and of $4,537,5SS for the year ending there
with The portion of the circulation Sc
cured by the deposit of money amounted to
$24, 2,54S. an increase of 1892 56S for the
month and Of Sc, 529, ,673 for the year ending
Herewith.
Secretary Hester's New Orleans Cotton
Exchange annual report, just issued puts
the average commercial value of the crop
at 1876 per bale, against s41.09 last year.
and $50 in 1915, and the total value at
1921 s25,O OOO against s294, O45 900 last year. The
present crop cost growers less than any
yet produced. The total number of spin
dies in the south is 1851 991, an increase of
15S.753 The total number of mills is 4S2
an increase of seven.
4 + 4
The Morning Call which is considered
the official organ of the San Joaquin VAL
ley Railroad company, announces that the
$s.00o,0O0 per cent bond issue has been
taken by local syndicate. This insures
not only the completion of the road from
San Francisco to Bakersfield, as the sale
Of the bonds to eastern or foreign parties
would have done, but it secures also an in
dependent road. Should the time come
when 1t shall be deemed for the interest of
the road to form a connection with an
eastern road the Valley Road company
will be in position of equality with what
ever corporation may desire such connec-
ton. Had the bonds been taken by an
eastern railroad corporation the local road
would necessarily have to conduct such
negotiations at disadvantage.
The Call intimates that when the Valley
road is completed from San Francisco to
Bakersfield it will be open to propositions
to connect with an eastern system of roads,
The important point is that the California
end of the road shall not be made con-
venience of the longer eastern system.
The industries of the state depend largely
upon a friendly schedule of freight rates
AS we export largely raw material and i'm
port finished goods, a discrimination of
rates in our favor is not unjust. The
weight and bulk of the raw material is
80 much greater in proportion to value
than of finished goods that the exporter of
raw material may be taxed out of business
by an unfriendly transportation company.
THE men who are named as the syndicate
to purchase the bonds have large property
interests In the state and are as deeply
Interested in it's varied Industries as any
equal number of men who could be named
That the interest on the bonds will be dis
tributed in the state is a consideration
hIlt second in ivnn tn Fri lxy