The San Francisco call., 1897-10-31
Farmers Are Paying Interest
Promptly and Reducing
Their Debts.
MONEY LOOKING FOR INVESTMENT.
Wendell Easton and W. q. Mills
4 Show Why the Country Is About
to Prosper.

There are many evidences that pros
perity is upon California and that it will
not be long until many new enterprises
are under way, 1t is well known in COM
mercial circles that the first sign OF GOOD
times appeared some time ago and that
every symptom of prosperity, such as has
not been seen in many years, is now upon
the commercial horizon.
The first sign of approaching good times
was an easing up of the money market.
Interest is lower and money much more
plentiful than two years ago ano than a
year ago. Two years ago it was difficult
almost impossible-to borrow money on
country real estate but there is very little
difficulty now.
One of the best informed men in the
city on the condition OF the money mar
ket is Wendell Easton. Speaking of the
local situation last night he said:
You will not find IL difficult TO borrow
money at reasonable rate of interest on
country real estate to-day, whereas it was
almost impossible last year TO induce a
lender 10 look at such an app ication at
any rate of interest. You can get gilt
edge loans now at 61Z per cent, and the
owner of the mortgage will pay the taxes.
~
rate last year was per cent. Money is
now plentiful, and 1 predict that by the
first Of January you will see the bank
statements showing twice as much money
on hand as at the same time last year. All
of the country banks are now in good con-
dtion, and tney are getting money in all
the time. This is shown by the fact that
they are carrying lair credits in the city
4 % n rs in If haS-
they did last year. The problem that
fcapjtal will soon have to face is What TO do
with ITSELF Next TO the man who il in
debt and cannot pay the most miserable
person Is the man who has money ne can
not invest.
"A good story is told of Nicholas
Lunlng. He was coming down street one
time much exercised. Some one asked
him what wa the matter and he said:
L have 81 600, 900 10 invest and l do not
know what 10 40 with 1t. l cannot find a
place to invest it This illustrates the
condition that a mum ber OF capitalists
Will be in before long.
ut is generally understood that a re-
serve OF 25 per cent in the banks is rood
safe business, but you will find now that
the reserve is iully 80 per cent, and 1t viii
not be long until 5ankers are looking for
good safe loans and paying q commission
tor them. At present farmers are paying
principal. This is readily solved by the
fact that they got nearly twice as much
for their grain they got last year.
"It must not be forgotten that the CITY
banks are now making country loans.
This Is something they have not done be-
fore in two years. OF course, the absence
Of manufactures on this coast makes it
little difficult for US TO see prosperity as
they feel 1t In the East, but 1t is here all
tho same. There Is plenty of money in
the country and plenty in the city. As
result 1t will be easy for legitimate en-
terprlse to get cash now, whereas it was
almost impossible last year"
The following from the last Issue Of
Current Events gives good idea of the
condition of the building trades and
prospective Improvements in that line of
industry:
Reports which reach US from many quarters
OF the inquiry which is being made OF build
ing ana loan associations by prospective home
" iiders, point very clearly to the fact that re-
tpFnlng prosperity Is maniiestng itseifin this
branch of the building and loan business 1t
is not TO be expected That actual results win
be so quick obtained in this branch of busi-
hess, namely, house building, others which
involve less preliminary consideration ard
negotiation than DO the more rapid turns in
other lines, like the daily purchasers OF food
and clothing TOR immediate consumption
1t therefore is to be expected that a
space of two or three months will
be occupied by preliminary figuring before
the actual value OF house-bui ding is much in
creased, and inasmuch as the present business
activity does not antedat ninety days past il
IS barely more than time to expect a begin
eoing of greater house-buildi ng movement
Sand OF an increased demand for loans from
the building associations that viii be attend
ant thereon.
But the fact that inquiry has so greatly in
creased shows that the improvement win soon
reach this line of business and be therein
manifested. Increased activity in the mber