New-York tribune., 1898-12-18
AMERICAN MONEY WANTED.
RUSSIA SEEKING TO NEGOTIATE AN I'M
MENSE LOAN.

| kEsENTAT1VES-F1RST INSTANCE OF FOR
ErGN POWER ATTEMPTING TO BORROW
MONEY IN THE UNITED sTATEs-sTArE-
MENr OF Ex-coNTRoILER EcKELs.
Chicago. Dec. Thames H. Eckels. president
of the Commercial National Bank and formerly
Controller Of the Currency. said to-day: Il am
credibly informed that great foreign Power
has sent representatives to the United States
and that they are now in New-York for the
purpose Of negotiating a loan Of immense pro-
| portions. If the source Of my information is
trustworthy. it is the first instance in the his
! tory Of the United States of foreign Power
| borrowing here
ABUNDANCE OF MONEY HERE.
The monetary condition OF the country Is
to-day quite unlike anything We have hereto
fore witnessed. Despite the unusual activity
in all characters OF stocks and bonds and in
general business lines. deposits grow in the
banks largely beyond the expansion Of loans.
There certainly is no present and but little
future prospect OF a change. There can hard
| ly be one with the amount OF money how-
| ing into the country from abroad and the
increasing demand there for our products.
Whatever discussion appeared some weeks since
to the raising OF rates OF the Bank of Eng
| land and the Imperial Bank OF Germany has
now passed away.
1T seems that so far as German conditions
are concerned. London felt there might be trou-
bic in Berlin because the banks had not been
prudent in advancing to SO great extent on
securities which the banks themselves were
really interested in. because the customers to
whom the advances were made had not the
means themselves to finance them. This con-
dtion OF great demand for money Immediately
| raNa ed ifceIp IN md rie and lch
much less So in New-York. 1t is stated BY
those in position to know that the change Is
now for the better, and though money is still
wanted in Berlin there will be no great strin
gency or any difficulty, because the situation
was faced in good time AS result. no further
advance is anticipated in the rate OF the Bank
of England.
GENERALLY IMPROVED CONDITIONS.
Il doubt II the definite announcement of the
signing OF the treaty Of peace with Spain has
had much II anything TO do with the surprising
advance in all characters of securities AS
matter Of fact all the effects Of such act
had long been discounted, had every step In
the In far business was concerned.
Much Of the advance is upon the basis OF merit
owing TO generally improved conditions. Some,
however. is purely speculative, and may be
carried to an extent that will cause a reaction.
This reaction while II might be serious under
other monetary conditions would have less
marked effect with the plethora Of money on
nand everywhere throughout the country.
80 great is this that have heard ii inti-
mated from good sources that there has been
some real discussion of one Of the foreign Pow
ers negotiating a loan in New-York All this
is accentuated by the fact that American In
terests are oaning abroad. The force Of econo-
mics in management and expenditure is not the
least Of the reasons for betterment in values
of stocks and more thorough organizations in
carrying on great enterprises. The reduction Of
prices In 80 many things is now compelled to
be met by better systems OF administration and
greater volume OF business Necessarily Is this
so In all classes OF industrials and railroads.
PROSPERITY OF THE BANKS
"As for the banks. it Is the greater volume OF
business alone which enables them, with so
great a reduction in the payment for transact
ing the business to make fair return upon the
capital invested.
"An these things benefit more than any one
else the great body Of consumers. However ap-
parently on the face Of things combinations may
seem 70 be at present for the benefit Of cap
ital an analysis Of the real effect OF them VIII
show that the consumer is the largest gamer.
The danger In such combinations lies In their
inviting more or less speculation. thus afford
ing opportunity 10 managers to sacrifice the In
terests Of the great body Of shareholders TO their
own personal gain. Then too. the very great
resources vested in them tend to invite politi-
cal attack and cause participation IN politics
by them.
However. these features can all be safe
guarded. and in time combinations made WITHIN
the lines Of law and fairness, conducted upon
,,.fn tod
here as being as much a part Of everyday COM
mercial life as they in other countries. where
this evolution was long since a fixture and an
accepted benefit
1T is known that German institutions nave
paid in the last five weeks as high as 4 per cent
for six months loans made In Wall and La Sale
streets. which is not excessive when 1t is re-
called that the discount rate Of the Reichsbank
is per cent.
Money being dearer in France and in England
than in the United States. the inference is logi-
cal that the foreign representatives, who are ne
gotlating a large loan in this country are acting
for the Cars Government"
SUCH ACTION UNPRECEDENTED.
The Chicago Daily News" says; THE state
ment may startle the general public. but IN
the financial world he report Will cause no
establishment. although the action will be un-
precedented in the monetary history OF the
country.
For nearly two months money has been the
cheapest thing in America as fnanciers phrase
H. For a fortnight call loans have been made
in Wall Street as low 1l2 per cent. while
short time borrowers with approved collateral
are accommodated at 3l2 per cent in Chicago
The bond markets are absolutely bare OF nrst-
class securities yielding more than 3's per cent
To-day ) per cent coupon issues were bought
on the exchanges at 13I. and high grade stocks
paying dividends at the rate Of . per cent per
annum, we"A quoted at l32. Chicago ana
Northwestern common was an instance
..i.. In tho aak