The Worcester spy. [volume] (Worcester, Mass.) 1898-1904, 1898-12-18
RUSSIA
Said to Want
Loan OF
BIG PROPORTIONS.


Chicago Dec. Thames II. Eckels,
president of the Commercial Bank of
this city, said today Il am credibly
Informed that a great foreign power
has sent representative to the United
States, and that they are now in New
York for the purpose Of negotiating a
loan Of immense proportions. If the
source of my Information is reliable. it
is the first instance in the history of
the United States of foreign power
borrowing here"
The Chicago Daily News says: The
statement may startle the general pub
lie, but in the financial world the re-
port will cause no astonishment. all
though the action will be unprecedent-
ed in the money history of the country.
For nearly two months money has been
the cheapest thing in America, as fl
nanciers phrase it.
Firms that make speciality of in
vestment securities acknowledge that
the demand for values has exceeded
the supply three-fold Fairly safe is
sues have been absorbed, and there is
no diminution in the funds seeking
placement
The national treasury states that
for the current month money in cicu-
lation has increased $40, 303, 722 This
following a gain of $4,000. 600 for Octo-
Der, makes a total expansion of about
$4,000, 900 for the past so days
Compared with year ago. the to-
tai circulation of all kinds Of money
is S165 1850 greater, and amounts in
ALL to Sl,SS6, 500, 900 The. prospective
reveals even more money.
The latest figures tell that the ex-
ports of merchandise from this coun-
try 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. 1t is this condition that
has warranted a foreign government in
making tentative oYertureS for a big
loan here. The borrower is supposed to
be Russia. The reports of that coun-
try had it that she was negotiating
with French bankers sometime ago for
large sum, but the transaction was
not concluded.
Comptroller Of the Currency Ec-
kels has heard of the overtures made
by foreign power TO raise money on
this side.
The monetary condition of this coun-
y
have heretofore witnessed" he said.
Despite the unusual activity in all
characters of stocks and bonds and in
general business lines, deposits grow in
the banks largely beyond the eNpan-
sion 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 in
gf5 nd fpr.
ducts. Whatever discussion appeared
some weeks since as to the rails
ing of rates of the Bank of England,
and the Imperial Bank of Germany has
now passed away.
1T seems that, so far as Germany s
conditions 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
securings, 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.
Il 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 III all
characters of securities As matter OF
fact. all the effects of such an act had
advance is upon the basis OF merit
owing to generally improved conditions.
Some, however, is purely speculative
and may be carried to an extent thal
viii cause a reaction.
80 great is this that | have heard it
intimated from good source that there
has been some real discussion or one
Of the foreign powers negotiating
loan in New York All this is accen-
tuated by the fact that American in
terests are loaning abroad.
"All these things benefit more imam
any one else the great body OF con
sumers. However, apparently, on lhe
face of things, combinations may seem
TO be at present for the benefit OF capl
tai an analysts of the real effect OF
them will show that the consumer is
the largest gamer. The danger in such
combinations lies in their inviting more
or less speculation, thus affording OPP
portunity to managers to sacrlnce the
interests of the great body of share
holders to their own personal gam.
Then, too, the very great resources m
vested in them tend to invite political
attacks and cause participation in
politics by them.
1t is known that German institutions
have paid in the last five weeks as hlgh
as per cent for siX-month loans MADE
in Wall and Laselle streets, when is
not excessive. when it is recalled that
The discount rate of the Reichsbank IS
6 per cent. Money being dearer IN
France and in England than IN the
United States, the inference is Ioglcal
that the foregoing representatives VINO
are negotiating a large loan i'll TINS
country are acting for the car gov
eminent.