The San Francisco call., 1898-12-18
CURRENCY THE CHEAPEST THING
 IN AMERICA Call Loans at Very Cheap Rates. CONDITION UNPRECEDENTED FOREIGNERS WILL FIGURE AS
 BORROWERS. Russla Particularly Is After Big Sum, and Financiers Are De-
 lighted With the
 Outlook
CONDITION UNPRECEDENTED
FOREIGNERS WILL FIGURE AS
 BORROWERS.
Special Dispatch to The Call.

CHICAGO, Dec. 1.-The Chicago Daily News says: The statement may startle the general public, but in the financial world the report will cause no astonishment, although the action will be unprecedented in the monetary his tory 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 one half per cent, while short time borrow CTS with approved collateral are accom- modated at 314 per cent in Chicago.
 The bond markets are absolutely bare of first-class securities yielding more than 311 per cent. To-day per cent coupon issues were bought on the ex- changes at 137, and high grade stocks paying dividends at the rate of per cent per annum were quoted at 132 Chicago and Northwestern common was an instance. Firms that make a speciality of investment securities ac- knowledge that the demand for values has exceeded the supply three fold Fairly safe issues have been absorbed and there is no diminution in the funds seeking placement.
 The national treasury states that for the current month money in circulation has increased $20. .303, ,722 This. follow ing a gain of $50,000,0O for October, makes total expansion of about $75,- 100000 for the last sixty days. Com pared with a year ago, the total circu- lation of all kinds of money is s165,- 795,000 greater, and amounts in all to NSS6, 500, 000 The perspective reveals even more money.
 On the first of the year corporations will distribute about $100 GOO, 900 in in terest and dividends. Besides, exports are increasing rapidly, while imports are decreasing quite as rapidly. 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.
 It is this condition that has war ranted foreign Government in making tentative overtures for big loan here. The borrower is supposed to be Rus sia. The representatives of that coun- try were negotiating with French bankers some time ago for a large sum, but the transaction was not con- cluded.
 x-Comptroller of the Currency Eek els has heard of the overtures made by a foreign power to raise money on this side.
 The monetary condition of the country is to-day quite unlike anything we have heretofore witnessed" he said. Despite the unusual activity in all character of stocks and bonds and in general business lines, deposits 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, and the increas- ing demand there for our products. Whatever discussion appeared some weeks since as to the raising of rates of the Bank of England and the Imperial Bank of England, has now passed away.
 Tt seems that so far as German con- ditions are concerned, London felt there might be trouble in Berlin be- cause 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 advances were made had not the means themselves to finance them This condition of great demand for money immediately reflected itself in London and Paris, and, though much less so, in New York. It 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 situation was faced in good time. AS a result, no further ad- vance is anticipated in the rate of the Bank of England.
 "I doubt If the definite announcement of the signing of the treaty of peace with Spain has had much, if anything. to do with the Surnrising advance in all characters of securities. As a mat ter of fact, all the effects of such an act had long been discounted, as had every step in the war insofar as busi- ness was concerned. Much of the ad- vance is upon the basis of merit ow- ing to generally 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 I have heard 1t intimated from good sources th:t