The herald., 1898-01-14
OFFICE OF THE HERALD,
Los Angeles, Jan. Is, 1889


"There Is no better excess in the world
than the excess OF gratitude"
=
The regular annual meetings of the Ma
tional Bank stockholders were held 18th
instant. as provided by law. and directors
were elected. At the First National Bank
the old board was reelected without oppo-
sition, as was the case at the Los Angeles
National Bank. The only change at the
Merchants National was in the election of
Fred NJ. Lyon of the Tufts-Lyon Arms Co.
as director in place of Frank RAIDER, de-
ceased. At the National Bank Of Califor-
MIA several changes were made on account
Of death or retirement OF old members of
the board, and as now constituted the
members are: ]. M. C. Marble, John e.
Marble. o. II. Churchill, o. II. Johnson,
Fred o. Johnson, w. s. DeVan, II. M.
Lutz, N. w. Stowell, A. Hadley Il. e. New
lin. J. d. Radford, 8. c.. Hubbell and
Charles Monroe.
Referring to the decline in the rate of in
terest the American Banker says:
One of the most considerable of the life
insurance companies makes it known at
the income from its reserve will be cal
culated on per cent basis, instead of
L. as heretofore. A week or two ago sew
eral prominent savings bank officials ad-
verted to the probability OF a general 8
per cent deposit rate as about at hand.
And looking over the whole field of invest
ments though there are still large possi-
biities for the derivation of incomes in
excess of 3 per cent, yet there seems to
be decided gravitation toward that basis.
This leads experienced capitalists to the
conclusion that the day is not far off when
per cent will constitute the prevailing
rate on the best classes of corporate Sc
curities. The tendency toward that rate
Is observed in the current quotations for
the best kinds of stock market securities
The New York Times, in discussing this
matter. In a luminous and instructive
editorial, notes the Lake Shore G per cent
stock as an instance. This security is SELL
Ing at H. at which point the income Is
BIZ per cent: so. too, the West Shore Der
cent. bonds selling at III. yield 3Ja per cent.
The same tendency is observed in govern
ment bonds. and the basis upon which the
highest grades of municipal securities are
now ulSpOSeu OF TO investors.
The diminution of income from invested
capital appears to be a worldwide phe-
nomenon, and 1t was recently discussed by
the London Statist as not being peculiar
TO any particular part of the world. At the
samo time, 1t is surprising that a country
which presents still so large a field for
the investment OF capital should be subject
to phenomenon which seems to indicate
d relaxation in the use Of capital. A
striking indication of this is the present
situation with respect 10 our balance of
trade. 1t is well known that the amount
or nominal credit which we have abroad
at this time as the result of the last half
years foreign trade is unprecedented;
while, on the other hand. the amount of
gold which has been sent to us in liquida-
tion OK that balance is relatively small.
6o that the sum which is still due us has
peen placed by competent observers as
high as $6O,000,000, and this vast amount
of capital. which, under different circum-
stances, might constitute the amount of
gold which We might have imported, has
been loaned out in the English and con-
tinental markets. because the current rates |
for money are higher over there than here |
This certainly is one of the indications
that for some reason or other we have |
accumulated more capital than we are pre- |
pared to use in the extension of our own |
individual affairs. Some regard the fact |
that we are today able to loan money in |
the foreign markets as proof of our finan-
cial emancipation, and they speak of 1t |
In tone which betrays a certain amount
of satisfaction and pride. But whether
we should felicitate ourselves upon this /
point or whether we should more properly
deprecate 1t, are matters open to dispute
1t may mean that the development of our
resources is hereafter to follow the slower
processes noted in the older world: and
yet. considering the vastness of our terri
tory and the enterprsng genius of our
people, the retardation of the rate of de-
velopment would seem hardly to be ex-
pected, at least not for some time to come
The rapid settlement of the Western States
created a demand for capital which ena-
bled us to draw with great freedom upon
the accumulated stores abroad OF late
years the character of our immigration has
changed SO considerably that the move
ment of population to the farming lands
has been retarded, and this must have
helped in some measure to bring about a
diminished demand for capital such as the
present situation seems to indicate. On the
other hand, our resources are by no means
developed to Is-ch degree as to invite the
conclusion that as respects the rate of in
dustrial expansion we are now on an equal
footing with Europe.
Were this so, there could be no meaning
in the forebodings which foreign states
men have voiced respecting the progress
of this country as a producer of commodl-
ties. Then why is it that an eight per
cent nation such as the United States has
now apparently arrived at a three per cent
basis? The answer Is that want of con-
fidence checks the use of capital in in
dustrial enterprise and diminshes the
amount which people are willing to lend,
concentrating what remains upon the
highest classes OF securities.
The New York Life Insurance companv
made progress in 1897 in every department.
The company insured 63 900 of indiyidusls
covering the amount of $134. 900. 600. sta 000
900 more than in 1876. and for death losses
1t paid In the last twelve months the enor-
nous sum of 80 $4,000 paying besides to
living policy holders and on matured poli-
cies, etc., ss,10O,000. The company on De-
cember 81 had over 1876, 600, 900 of Insurance
in force, covering indemnity to 800 600 policv
holders.