The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1897-12-26
CAPITAL SEEKS INVESTMENT:
A PLETHORA OF MONEY.

NEW YORK. Nov Sit requires orly
oFIei conversation with those who are in
Nnateiy and inrusntiasiy associated with
the money market and commercial con6i-
tons 10 perceive that the commanding
question with them is not what congress
- gong 10 DO al the approaching session
or whether the currency reform plan OF
Secretary Gage or that which the none
tary commission will recommend is likely
10 receive any favorable attention or con-
siderable discussion.
The impression here is that there may
be some change that congress will &C
cept the brief recommendation which
President Mckinley is expected &c make.
which would bile the secretary of the
treasury 10 retain greenhacks until re-
deemed in gold ard not 10 reissue them
unless they are paid fer in gold. 1t IS be-
ueved that Law of that Kind would re-
move whatever apprehsnsions remain as
to the ability Of the government 10 re-
deem its obligations in gold.
The question which is far more earnest
ly discussed than the one which involves
the probability % congressional action
upon financial subjects is this: What Is
the real situation in our money markets.
in our commercial life, and what do ten
denotes which now are observed by every
man who has part in important affairs
portend2
We get various explanations. some OF
them tentative and some Of them made
with the emphasis of conviction. The
disagree ments of opinion themselves sug
sest that the influences which are pro-
ductive of these phenomenal conditions
are not clearly understood. and that the
abest minds cannot agree as TO the mean
iBg Of them.
During the past week the clearing
house reported banking operations
which. il allowances be made for the fact
that the week contained only five hnsi-
ness days, one being a holiday. makes
record of perhaps the largest transactions
ever reported by that association.
4 Plethora of Money.
One event of unusual interest was the
payment of thirteen and half millions
10 the government by the Union Pacific
syndicate. a transaction which is 10 he
repeated in a shor, time. 1t was ae-
complished with no more efSct than any
transfer of credit from one bank 10 an
other would have caused. 1t does not
affect the condition of the money market
in any way. and. Notwithstanding the fact
that bank exchanges are large, taat the
volume of business is very great, that
railways are earning more than they
have gained since 1892. nevertheless the
money market remains almost perfume
tory there being a plethora which has
not been disturbed for many months.
Even the railway corporations are re-
ceixing SO much money that they do not
know how TO put IL 70 immediate use.
and are entering the markets as compet-
tors of the banks TO secure borrowers
upon almost any terms.
Building operations in this city are
gong forward at pace unprecedented.
and millions Of dollars are being invested
in this way. Much of the money is hor-
'rowed from the savings banks. but in
spite of these vast operations the rate
FOR loans still remains low and undonht-
cdly is one of the chief temptations for
investment in this kind of property.
In little while in all probability, the
city of New York will go into the market
TO borrow some So G0o.o0o for the con-
struction of its underground rapid transit
sys em. and the expectation is that. as
the bonds viii carry per cent. they will
not only he quickly absorbed. bur without
any practical effect upon the money
market.
Europe borrower.
To what extent Europe has been a
borrower in this city and in Chicago il
Is impossihle 10 learn. but the impression
is that the amount is well up in the
millions representing for the most part
n transfer of credits by which the inn
portation of gold from Europe to this
country has been avoided for the pres
ent The Press has recently shown
how easily the United States absorbed
securities sent from Europe to pay IN
dchtedness here, and has done that with
out any OTHER effect apparently than In
creasng the money plerty.
II is certain that enormous exports or
hreadstuffs are 10 continue until the
next wheat crop is harvested. and. OF
course. this will be supple mented by the
az ~
will Internationally tend Ia increased I'M
nortations which were some what sus-
neraed because. of heavy transactions OF
that kind in the last months OF the life
Of the Wilson tariff law but no one can
figure in any other way than that our
exports must for the remainder of this
fiscal year greatly exceed our imports.
The puZzling question Is. how does II
hapnen that. in view of all these condi-
,iors money goes begging for Dor
rcwprs and the rates for 1t are the
lowest that have ever been known.
There are some men who declare That,
even had the government locked M the
thirteen millions paid 10 Il last week.
that would not have seriously contracted
the currency, while others believe that
such an effect would have been newt
able had The government retained that
money in it's own vaults.
some of the Explanations
Some Of the ablest tinanciers explain
this p,ethcra Of money by the assertion
hat the government has now for some
wears been paying out 70 The people
annually a good many more millions than
II received frern them. The assertion is
regarded as plausible, although few are
wiling 10 accept il as an accurate eN-
PLANTATION.
Many of those who have given this
.,.%t.rt ftcssrht IRE mel ned tu the GpiU-
ion that the apprehension lest the free
silver craze has not been overcome ana
lest shere be renewed attacks upon capt.
tai by PopuliStic legislatures has caused
fjrni5ity such as prevents large Use OF
capital for misunderstanding or other IN
dus rial underi 9kieES. such as would alb
sorb this money.
If apprehension does explain this con
4jilon. the impression Is tha, tte fact
vii 10 urovc,i n congress should adopt
the recommend 3tion which President
Mckinley has made 10 Il. S'ill
Others. believe that Notwithstanding the
depression of the four years OF t1eve-
lands administration. the wealth and 70
sources Of the United Ste'~S were 50 vast
" incrf aeel a.. sufficiently 20 account Ter
ne financial conditions that are observed
to-day
Those who have some familiarity with
he purposes Of capitalists believe that
one or two things will bappca in the
near future unless il be shown that the
pres mt condition - abnormql and I'M
healthy. and not he result OF new and
hesiThful Influences
MAY sect Foreign Entrrprise.
There Will either be g Vss' employment
Of money in ereat undertakings designed
70 Develop fke resources OF this coun-
Try and especlaljy IN the way Of semi