New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-01-06
AN EIGHT PER CENT COUNTRY.


IAN per cent nation on 3 per cent basis"
is the subject of a long and serious editorial
in 1.-THE New-York Times" which presents a
novel view Of American finances. 1t Is essen
TALLY an effort 10 explain the phenomena to
which The Tribune has repeatedly called at
tention, the accumulation of deferred exchange
and foreign balances which remain, TO all APP
pearance, entirely unliquidated, and the cheap
ness OF money at this compared with foreign
centres 1t is stated on the authority Of prom
inent banker that the exchange held over now
exceeds S60OOO,0O0 in amount which is not
improbable though no evidence appears TO Jus
tfy so large estimate; that this country is
now leaving unsettled merchandise balances
against Europe exceeding S30O,0O0,OOO, because
the money can be loaned in foreign markets at
better interest than in New-York; that Ameri-
cans have taken back during the last year enor-
nous amounts Of securities sold by foreigners,
at prices representing n rate Of interest which
Is considered dlsgracefuly low for a COMPARE
lively new and undeveloped country; and in
effect that the United States has turned from
progressive and vigorous application of cap
ital to the development OF its resources, and
gone into rivalry with aged and cautious money
lenders Of the Old World.
These views seem based upon some important
mistakes. Even while the phenomena occur
which are described there IS seen a remarkable
investment Of capital In new enterprises in
Guiding some OF highly adventurous character.
The formation Of vast combinations OF capital
to work important industries has attracted gen
eral attention as a noteworthy feature or the
times. The building Of new works and the ex-
tension and improvement Of old ones have gone
on of late at a rate which seems unprecedented.
Such operations as the drainage canal at Chi
cago and the electrical power development at
Buffalo, the building OF new and greatly i'm
proved fleets for transportation on the Lakes,
the pushing Of new railways into Northwest
ern mining regions, and the opening and de-
velopment Of new mines, the erection OF tower
ing structures for commercial use in all the
leading cites-ail have advanced more rapidly
than have similar Improvements at any previ-
GUS time Of which we have record, and have
required the outlay Of capital by the hundred
millions There IS no lack Of useful and red
blooded enterprise in these undertakings.
Yet at the same time another part of the Ma
tons capital has been waiting and finding tenn
porary at low rates Of interest. No one
should overlook the fact that capital IS held and
controlled by more than a million persons who
differ widely In habits OF mind and in charac-
ter Some have Astounding enterprise Others
have devoted themselves for many years to the
cautious investment and reinveStment Of funds.
part as managers OF fiduciary institutions who
feel in honor prohibited from enterprises in
volvlng risk, and others in obedience TO personal
traits which restrict their field Of activity. Just
as there may be found about the stock market
a body Of capital which Is ready for any vent
ure, and at the same time different body OF
capital which is not loaned except on call or for
very short time and In the most prudent man
ner, so the capital of the Nation Is Of different
classes, and by characteristics Of Its holders Is
devoted to different emplOyments
The capital held ready for lending with the
minimum OF risk has enormously increased of
lata The reason Is not hard to find Liquida-
ton Of past Indebtedness was the first task TO
which some millions Of Americans addressed
themselves when better times began TO make
debt-paylng possible. Probably the volume Of
commercial indebtedness alone has been re-
duced by several thousand millions within
half-year The Indebtedness Of farmers and
owners Of small homes, and OF large buildings
also to mortgage and loan and other monetary
institutions, to banks and capitalists, has been
enormously reduced This has thrown out Of
present employment vast sum usually held for
investment In such forms, and as the character
istics Of many holders and managers exclude