New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-09-04
TIE FINANCIAL OUTLOOK BRIGHT
ACTING CONTROLLER COFFIN THINKS THE
UNITED STATES WILL. SOON BECOME
CREDITOR NATION


Washington. Sept. 3 (SpeciaD.-George NJ. Coffin.
the acting Controller Of the Currency, who keeps
In constant touch with the financial men of the
country through the official reports made TO him
by the National banks. is confident OF most pros
porous financial season for the United States.
There IL every evidence that the United States
is accommodating a amount OF capital of its
own" said Mr.. Coffin to-day land this goes 10
show that or later. II It is not already so.
this country will be financially Independent OF
Great Britain or any other Nation. This financial
independence was the war cry OF the free silver
ties Through the workings Of natural causes how
ever. we are now achieving what the frec-silver
men would have endeavored to accomplish by a
plan which would have resulted only in the depre-
citation Of our currency. The current rate for de-
mand loans in New-York to-day is Ia per cent.
against slightly higher rate In London. and 1t Is
not at all improbable that under these circum-
stances NewYork bankers are loaning money In
London Having trade balances abroad. and with
the interest higher in England than here, II IL not
to be supposed that they will lose the opportunity
for getting more for their money by letting ii re-
main there instead of bringing 1t home.
I'm spite of the enormous loss and depreciation
in values sustained by the United States during
the last four years the latest bank statistics snow
that there has been large accumulation OF capt
tai in this country much OF which Is lying IDLE III
bank awaiting favorable opportunity for invest
ment. The National banks of this country now
mold about s1G0O0o 900 over and above the sum re-
CURED by law legal reserve. This same con-
diton OF affairs undoubtedly exists in the savings
banks the trust companies and other banking in
stitutors throughout the States of the Union. There
has been a wonderful accumulation OF caplal III
the savings banks. In 1894 they held deposits 10
the amount OF sl7i COOOOo In 1896 this sum had in,
creased to the extent of nearly S1."oW. ana
there is no doubt that the figures for 1881 VIII
show a further upward movement -.
zone result Of ;his enormous acCunuuidttoin W
capta will he lower rates of interest for the iuture
] am sure that this will come. and my OPINION Is
do not believe that We vii again as high rates
OF interest as have prevailed in recent Years Viii
lenders II will be a great boon to the manufactur-
ers, the merchants contractors ana o,ner
OF money II will give the American manu-
facturers the great advantages enjoyed ny .heir
English and European competitors In the low ra,ct
OF interest upon the money borrowed 10 coHduct
their business enterprises. This low Interest rate
manufacturers to control the foreign markets for
their exports and OF which markets Hi'', iei
II Am.riC1n uanufactmrers could secure as low
rates OF interest rs those paid by thelr brlSn coi
petiiors. "A very large part Of the &Nlwwp worth
Of raw cotton annually exported to British mills
could be manufactured in the United states 10 the
mil enterprises More than tits the Americans
would have better chance at tnG markets Oh Zen
markets that be.orR 10 them naturally, but Will n
are mainly absorbed by the Germans ana BRUSH
With this prospect Of easy and pIen,,fH, none
the situation. 1t Is the danger Of rash invest mcnt
and speculation. With money comparatively 50
easy TO obtain there will be a natural inclination
rush into speculation OF all kinds and the pcop
may bo swept on their feet In the booms which
would follow for short time. The god discoveries
may also affect the situation. II has been demon
strated that the great panic 81 10. was lrgcly due
to the speculatoUs arising from IN" gold dscov-
cries IN California and Australia Of IN" preceding
years. There is danger OF history repeating itself
at this time, and every newspaper that warns the
people against indulgng IN speculation and care
less Investment VIII be- comforting public bcnefac-
ton"