Kansas City journal. [volume] (Kansas City, Mo.) 1897-1928, 1898-01-18
HOW FACTS CONTRovERT THEoRIE,

mol enough money VIII WHICH 10 transact
the business of the country is constantly
receiving Knockout blows from the new
conditions which have arisen under return
ing prosperity. As II by magic. great sums
of money have made their appearance at
the banking and commercial centers. and
the puzzle now is how to find business
enough to occupy the money rather than
how to find money enough to do the BUSH
ness. This %plethoric condition OF the
money supply is well illustrated by the fact
that Chicago bankers are loaning large
sums in Berlin. TIT business is being done
by cable. and the German banks to which
the remittances are directed guarantee stip-
ulated interest at about AZ per cent on
credit funds. which they forthwith proceed
TO lend on their own account to local Gus
toners. The profit to the German bankers
in lending this Chicago capital is said TO
be from u to ~ per cent. which shows that
money is easier in America than in Ger
many. In Chicago it Is now impossible to
place loans on first-class security at more
than 3 or 3s per cent. and the demand at
this rate does not begin TO equal the sup
ply. A recent dispatch stated that Chicago
was about to place loans in the London
market. though this is not so proba Bile. in
view Of the fact that rates in England and
America are about the same.
TIL plentitude of money is perhaps more
marked in the West than in the East. In
Kansas. for example. there is great COM
plant among the ankers that good invest
ments for deposits cannot be found. Shortly
after harvest a call by the state bank COM
missioner revealed hat the banks were
overlooking with money. A few days ago
a second call was made, with the expecta-
ton that 1t would show a decrease of the
SURPRISES which had been swelled by har-
vest returns. But, TO the surprise of every
one. the surpluses had increased instead of
diminishing, and the bankers are at their
wits ends to know what to do to make a
profit of some kind on the money lying idle
in their vaults.
On Saturday morning it was related In
our Kansas, department that a bank at
Topeka was ov%ercautious because II held
81 per cent cash reserve. This item has
called out two interesting letters 10 the
SeA OAS 10 AAoi iAc lODthd D1nk In
question which resents the charge OF being
overcautious. 1t says It has acquired this
unusual reserve because IL is unable IN find
borrowers for the money. 1t has gone ont
over the state in search of cattle paper.
and even entered Missouri in quest of in.
vestments, without being able to reduce
its surplus TO the limit of good banking,
1t declares that the people nave money
which they are forcing on the banks. and
that the borrowing class-that is. the bor.
rowing class with good security-has ceased
to exist.
The second letter comes from a banker
at Atchison. who declares that 81 the To.
peka bank is 10 be convicted of oyercau.
tiousness. he tremhles at the sentence
which will be passed upon himself. as his
bank now holds 81 per cent of its deposits
IN cash reserve. He adds that he has ex.
plored Kansas In quest of good securities
at any rate of interest, without finding
them. TIL people nave so much money
that they do not need to borrow. In fact
like the bankers. they are in search of GOOD
investments for their surplusage, and arr
unable to find them.
All OF this must bring confusion to those
misguided popocrats who have campaienef
upon the theory that there was not none,
enough with which TO transact the bushes.
OF the country. Kansas has done NOR,
business in the last year than In any otbe,
never 20 pleattful and 30 easy. or course