The herald., 1898-10-28
VIEWS OF A NEW YORK BANKER
ON INVESTMENTS
PULLMAN PALACE DIVIDENDS
Australian Trade Outlook-Alaskan
Bank-Recent Stock and
Bond Sales
OFFICE OF THE HERALD,
LOS ANGELES, Oct. 27, 1893.

Rudolph Kleybolte of the firm of Rudolph
Kieybolte g. Co. predicts that the continued
development of the country's resources and
the expansion of foreign trade will prove
potent factors in controlling the interest
rate on investment securities. Never IN the
history Of the country, says Mr.. Kleybolte
In an interview with the representative of
the New York Financier, have such exor-
bitant prices been paid for bonds. There
appears to be scramble OH the part Of
bond houses to get possession OF these Sc
curities, but ! think the best policy is to
move cautiously. The demand is not con-
fined to few states or districts, but is gen.
eral. Dayton (Ohio) bonds are selling on
$40 per cent basis, a rate unprecedented.
Investors are awakening to the fact that
municipal bonds are the safest kind Of se-
curities. For illustration, take city with
an assessed valuation Of say, $l,OOO,OOO, on
which there is debt of 100000. A holder
of these securities realizes that he has q
good investment, for the reason that, with
debt representing only one-tenth of the
total valuation, there can be no danger of
the municipalities going into insolvency. In
many other classes of investment securities
investors are not SO confident Of their hold
ings, and, besides, are not SO amply protect
ed by the courts.
DO you think, was asked, that the United
States will ever reach the prevailing interest
rate basis of England!
All indications point that way. In fact, I
firmly believe that we will be on the same
basis with England within the next five or
six years. If conditions continue as they
have done in the last few years, there is
nothing that can prevent it, The resources
OF this country are unlimited. 1t is in the
first stage, you might say, of its actual de-
velopment. In the eyes of the world, it has
only recently been regarded rs nation des-
tined to outclass Germany, England, France
and other European manufacturing coun-
tries in commerce and industry. Our ex-
ports Of agricultural and manufactured prod
ucts are increasing at II wonderful rate, and
there is nothing that can check this expan-
sion. The fiscal year 1898 was record
breaker in point of exports, but il our for
eign trade continues to increase as it has
done during the last three months the fiscal
year 1899 will disclose an increase even larg-
er than the preceding year. The develop
ment Of new territory acquired by conquest
will also aid materially in expanding our
country's wealth. Our exports of cereals
are bound to increase, it being well under
stood that European nations have about
reached the limit of their agricultural re-
sources. We have millions of acres of unde-
veloped land to depend upon, and there is
no apprehension felt as to our being able to
supply this increased foreign demand. Only
within the last year or two have organiza-
tions and individuals taken any definite
steps to invade the markets of foreign
lands. That their efforts have been success
full is evident from the growth of our export
trade. All these facts combine to show that
the trade balance of the country will con-
tinue to grow with each succeeding year,
and that the expansion of our wealth means
q lower interest rate.
1t is possible that the opening of the coun-
try's limitless resources, the increased for.
eign demand for our products and the
growth Of home consumption will divert the
attention of capitalists to other channels of
investment, but this is problem that re-
mains for the future to solve. 1t is doubt
full if a per cent interest rate will ever be
reached again, unless something unforeseen
happens,