The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-12-18
Interest Rates Lower Here than in
Great Britain, France, Ger
many or Elsewhere.
VIEWS OF JAMES H. ECKELS
WHO THINKS RUSSIA Is THE WOULD
BE BORROWER.
Present Monetary Condition of the
Country, He Says, Is Unlike Any
thing Ever Witnessed.

| CHICAGO, Dec. Thames II. Eckels,
president of the Commercial National Bank,
| said to-day: II am credibly informed that
a great foreign power has sent representa-
tives TO the United States, and that they
are now in New York for the purpose of
negotiating a loan of immense proportions.
| If the source of my Information is reliable,
it is the first time in the history of the
United States Of a foreign power borrowing
| here"
The Daily News says: 1.-THE statement
may startle the general public, but in the
financial world the report will cause no
| establishment, 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 financiers phrase it. For a fortnight call
loans have been made in Wall street as low
as 1l5 per cent, while short-time borrowers.
with approved collateral are accommodated
at 312 per cent. in Chicago. The bond mar
kets are absolutely bare of first-class securi-
| ties yielding more than 3l2 per cent. Five
| percent. coupon issues were bought on the
exchange at 137. and the high grade stocks
| paying dividends at the rate of per cent.
per annum were quoted at 132. Chicago &
| Northwestern common was instance.
Early in the week Cook county bonds were
purchased on a 3.22 per cent. level Indian
| apois sold 315-per-cent. ten-year munich
pal security on a 3.22 per cent. level. The
| buyers were local investors, which means
that bonds now command as high premium
In the West as in the East.
1.-THE national treasury states that for the
current month money in circulation has in
400
$50, 100000 for October, makes a total expan-
sion of about $75OOO,OOO for the last sixty
days. Compared with year ago, the total
circulation of all kinds of money is $165, 1885,
eco greater, and amounts, in all. to 81 $685.
100000. The perspective reveals even money.
On the first of the year corporations will
distribute about 800 100000 interest dividends.
Besides, exports are increasing rapidly,
while imports are decreasing quite as speed
| fly. 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. 1t is this condition that
has warranted a foreign government in
making tentative overtures for a big loan
here The borrower is supposed to be Rus
were negotiating with French bankers some
time ago for a large sum, but the transac-
ton was not concluded
WHAT MIR. ECKELS SAYS.
"Ex-Controller of the Currency Eckels
has heard of the overtures made by for
eign power to raise money on this side.
The monetary condition of the country is
to-day quite unlike anything we have here
tofore Witnessed he said. Despite the un-
usual activity in all characters of stocks
and bonds and in general business lines de-
posits 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 hardly be one with the
amount of money flowing into the country
from abroad ana the increasing demand
there for our products Whatever discussion
appeared some weeks since as to the rails
ing of rates of the Bank of England and
the Imperial Bank of Germany has now
passed away. 1t seems that so far as Ger
man conditions are concerned London felt
there must be trouble in Berlin because the
banks had not been prudent in advancing
to so great an extent on securities which
the banks themselves were really interested
in because the customers to whom the ad-
vances were made had not the means them
mand for money has reflected itself in
London and Paris and, though much less
| so, in New York. 1t is stated by those in
a position to know that the change is now
| for the better and though money is still
wanted in Berlin, there will be no great
stringency or any difficulty, because the sit
uation was faced in good time. AS a result
no further advance is anticipated in the
rate of the Bank of England
" doubt If the definite announcement OF
| the signing of the treaty of peace with
! Spain has much, If anything, to do with the
surprising advance in all characters of Sc
curities AS matter Of fact, all the effects
! of such event had long been discount
ed, as had every step in the war, in so far
as 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 reac-
tion This reaction, while it might be Sc
rious under other monetary conditions,
would have less marked effect with the pie
thora of money OH hand everywhere
throughout the country. So great is this
that / have heard it intimated from good
sources that there has been some real dis
cussion of one of the foreign powers nego-
tiating a loan in New York All this is
actuated by the fact that American inter-
ests are loaning abroad. The force of econ
omies in management and expenditures
are not the least of reasons for a better
ment in values of stocks and more thor
ough organization in carrying on great en-
terprises. The reduction of prices in SO
many things is now compelled TO be met by
better system of administration and great
er volume of business Necessarily Is this
so. in all classes Of industrials and rail-