The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1898-12-18
WE'VE DUCATS TO BURN
MONEY NOW THE CHEAPEST
THING IN AMERICA.
GREAT tx0ANsloN IN CIRCULATION
National Treasury Says the Increase Within
the Last Sixty Days is Seventy Five Mil
lion Dollars Yet Russia's Encourage
ment to Sorrow Sc ms Meagce,

Chicago, Ill.,, Dec Thames Fl. Eckles,
president of the Commercial National
Bank, said to-day:
Il am creditably informed that a
great foreign power has sent represen-
tatives to the United States, and that
they are now in New York for the pur-
pose of negotiating loan of immense
proportions. If the source of my infor-
nation is reliable it is the first instance
in the history of the United States of
foreign power borrowing here"
The Chicago Daily News says:
THE statement may startle the general
public, but in the financial world the re-
port will cause no astOnishment, although
the action will be unprecedented in the
monetary history of the country.
For nearly two months money has
been the cheapest thing in America as
iinanciers phrase it. For a fortnight call
loans have been made in Wall street as
low as 1h per cent, while short bor-
rowers with approved collateral are ac-
commodated at 315 per cent in Chicago.
The bond markets are absolutely bare
of first class securities yielding more
than 31a per cent. To-day per cent
coupon issues were bought on the eX-
changes at 137 and high grade stocks
paying dividends ut the rate Of per
cent per annum were quoted at 132.
Firms that make a speciality of invest
ment securities acknowledge that the de-
mand for values has exceeded the sup
ply three fold.
"Fairly safe isues have been absorbed
and there is no diminution in the funds
seeking placement
"The National Trweasury states that
for the current month money in circula
ton has increased S2O,3O3. 722. This,
following a gain OF $50,000,00O for Oc-
tober. makes a total expansion of about
$l5,000,000 for the last go days.
Compared Wilh year ago the total
circulation of all kinds of money is $780,
795,O00 greater and amounts i'll all to
$1,SS6, 100000 The perspective reveals
even more money.
"On the first of the year corporations
will distribute about $100,000,000 in in
terest and dividends. Besides. exports
are increasing quite as speedily. The
latest figures tell that the exports of
merchandise from this country exceed
those of Great Britain for the first time
in the history of the two countries The
United States is in the unique position
of desiring to buy the American stocks
and bonds that are held abroad.
''It is this condition that has war
ranted foreign Government in making
tentative overtures for big loan here.
The borrower is supposed to be Russia.
The representatives of that country were
negotiating with French bankers some
time ago for large sum, but the trans
action was not concluded"
NO ANXIETY TO. LEND.
New York. Dec. 17.-Emissaries Of
Russia have made careful~survey of
the situation in this city and have sound
ed nearly all of the leading concerns.
Their business has been conducted
quietly and so far nothing seems to show
that their Overtures have met with much
encouragement.
Jacob II. Schiff, of Kuhn, Loeb q
Company, when shown the statement of
Mr.. Eckels, said:
II understand that about two or three
weeks ago several firms in this city,
including my own, were sounded by
persons who claimed to be acting for
the Russian Government as to the feast
bility of floating Russian 3 per cent
or 31a per cent loan. l don't think such
a negotiation feasible in the United
States"
Henry Speyer refused 20 make any
comment on Mr.. Eckels' statement. An
effort was made to see j. Pierpont Nor
gan and other financiers tonight, but
they could not be found.