The herald., 1898-12-20
A GREAT DEAL OF CRY
WITH A SMALL SUPPLY OF
FINANCIAL WOOL
THE BIG FOREIGN BOND DEAL
SINNERS to Ten Million Loan Needed
by Some Unnamed Little
State
Associated Press Special Wire

| CHICAGO, Dec. ia number of Chi
cago bankers and financiers have been in
terviewed in relation to the reported appli-
cation of one of the European powers foi
heavy loan in the United States.
Isaac G. Lombard, president of the Amer
lean National Bank, said:
Il hardly think that this country will
make loan to Russia, at least, not large
one. There is a surplus Of money here, but
not enough to warrant large national for
eign loan America has made many for
eign loans, but not to governments. Rates
here are about as low as anywhere at
present"
Ernest A. Hamill, president of the Corn
Exchange National Bank, said
There is no question but that this coun-
try is becoming 80 rich that its surplus
money will seek investment abroad. The
balances in its favor are growing larger, and
it Is accumulatlng wealth at rate that
is unprecedented. Money, consequently, Is
easier here than elsewhere. For this reason,
though the proposition of making loan to
foreign government Is unprecedented IN
this country. it seems natural and altogether
probable. In case such loan is made, Chi
cago is in position to provide considerable
share of it,"
There is no doubt that if Russia wants
a loan, this would be the natural place to
seek it" said j. b. Forgan, vice-president
OF the First National Bank. The American
money market at present is the easiest in
the world. The New York banks last week
added Sl0O00,OO0 to their accumulated sur
plus and the Chicago banks S5000,0 600. Some
OF the Mexican States are now taking steps
to borrow in this country. have no knowl-
edge beyond the newspaper reports that
- oh 70 iAan n 4 u hAr %
and comment on probability of the truth OF
that report would be conjecture.
John c. Black, president of the Continen-
tai National Bank, said:
at is sure to come as tomorrow that
America will become great money lending
nation like England and the greater nations
Of the world. The United States is ac-
cumulatlng wealth twice as fast as any
other country. 1t would occasion no sur
prise shoul d 1t be found that Russia was
seeking loan in England or France and
should not in the case of this report that
Russia may seek loan in America
Elbridge &. Barth, of the Metropolitan
National Bank, said:
The idea OF the United States making a
loan to Russia does not seem possible,
chiefly because the American tinanciers are
not well enough acquainted with affairs in
Russia to ma Ike loan without great deal
OF caution. The financial relations have not
been close between the two countries and
the matter would appear in d different light
if England or Germany or France or Bel.
GUM, or any Of the countries with which we
have large trade should seek to make the
loan. Then, too, specie payment in Russia
Is new thing and there would be question
as to the stability of conditions there. But
America now has a large surplus to its
credit due to temporary conditions largely
IN Its favor, such as increased exports and
large foreign credit balances. But this couu-
try has lots of use for its money in develop
ing its own industries and resources and
though there is much American money
American capital would seek investment in
any large sums in Russia"
Chauncey j. Blair, president of the NIer.
chants National Bank, said:
Il know nothing about conditions in Rus
sia or the probability of that country trying
to negotiate a government loan in Amer
lea, but the conditions of the money market
are such as make the story CREDIBLE
John G.. Mitchell, president of the Illinois
Trust and Savings Bank, who has Just re-
turned from New York. said:
1T is true that Russia and japan are in
communication with leading financiers in
this country with a view to floating loans.
Two weeks ago | was communicated with
concerning the project by person of high
further. A prominent Boston house and
prominent New York house have been con.
siderng the matter for two weeks.
The Russian loan is for the Russian
Railway, guaranteed by the Russian gov
ernment, and is asked at three and one-half
per cent. 1t Is not especially surprising that
they come, to this country, for the United
States is the cheapest money market in the
world at present. Russian credit stands
high and that government will probably
get whatever loan it desires in America. For
a European nation to negotiate loan in
the United States is reversal of the usual
dition of affairs