The herald., 1898-12-18
Brings Borrower From Across
the Atlantic
MONOPOLY MAKES THE MlLLIONAIRES
Russia, Recognizing the Transo ceanc Plethora, Will Offer
Opportunity for the United States to Become for
the First Time Creditor Nation

them. This condition of great demand for
money Immediately reflected itself in Lon.
don and Paris, and, though much less so,
in New York. 1t is stated by those in po-
sition to know that the change is now for
the better, and though money is stilbwanted
in Berlin there will be no great stringency
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.
EFFECT OF PEACE
81 doubt if the definite announcement Of
the signing of the treaty of peace with Spain
has had much, if anything, to do with the
surprising advance in all characters of Sc.
curities. As a matter Of fact, all the effects
of such an act had long been discounted, as
had every step in the war in so far as busi-
ness was concerned. Much of the advance
is upon the basis of merit owing to general
ly improved conditions. Some, however, is
purely speculative and may be carried to
an extent that will cause a reaction. This
reaction, while it might be serious under
other monetary conditions, would have
less marked effect with the plethora Of
money on hand everywhere throughout the
country. So great is this that have heard
| it intimated from good sources that there
has been some real discussion of one of the
| foreign powers negotiating loan in New
| York.
GOOD MANAGEMENT
"All this is accentuated by the fact that
American interests are loaning abroad. The
force of economics in management and ex-
penditure is not the least of the reasons
| r., I~&t To- n, g.
thorough organization in carrying on great
enterprises. The reduction of prices in SO
many things is compelled to be met by bet
ter systems of administration and greater
volume of business. Necessarily is this SO
in all classes of industrials and railroads.
Gas for the banks, it is the greater volume
of business alone which enables them with
so great reduction in the pay after trans.
acting the business, to make a fair return
upon the capital invested"
"All this thing benefits more than anyone
else the great body of consumers. However
apparently on the face of things combina-
tions may seem to be at present for the ben.
eft of capital, an analysis of the real effect
of them will show that the consumer is the
largest gamer. The danger in such combina-
tions lies in their inviting more or less
speculation, thus affording opportunity to
managers to sacrifice the interests of the
eoL1ces vested in them tend to invite polit-
ical attack and cause participation in pol
itics by them.
However, these features can all be safe
guarded and in time combinations made
within the lines of laws and fairness, con-
Quoted upon legitimate business principles,
will be accepted here as much part of ev-
eryday commercial life as they are in other
countries, where this evolution was long
since fixture and an accepted benefit.
st is known that German institutions
have paid in the last five weeks as high IS
per cent for six-month loans made in Wall
and Lasale streets, which is not excessive
when it is recalled that the discount rate
OF the Reich bank is per cent.
money being dearer in France and in
England than in the United States, the in
ference is logical that the foreign representa-.
tives who are negotiating large loan in this
country are acting for the cars govern
ment."
NO DETAILS KNOWN
Late this evening Mr. Eckels was asked
by the Associated Press if he could give any
ntimation as to which of the European
powers had made overtures for loan. He
replied that he had no definite information
in the matter, but that the whole subject
had been suggested to him in conversation
in New York in the course Of which the
name of the applicant had not been men
toned.
''Of course the whole matter is as yet
hardly anything more than rumor," said
Mr.. Eckels. "If true, it would be of vast
significance as showing the tremendous
value that European countries are begin
ming to set upon the United States as
source of financial aid. Beyond this have
nothing to add to the interview printed in
the Daily News this afternoon"