The herald., 1898-12-18
Associated Press Special Wire

CHlCAGO, Dec. I.-James II. EcKels,
president of the Commercial National bank,
said today: 81 am credibly informed that
great foreign power has sent representatives
to the United States, and they are now in
New York, for the purpose of negotiating
loan of immense proportions. If the source
of my information is reliable it is the first
case in the history of the United States of
foreign power borrowing here"
ASTARTLING STATEMENT
The Chicago Daily News says:
The statement may startle the general
public but in the financial world the report
will cause no astonshment, although the
action will be unprecedented in the mon
etary history of the country.
For nearly two months money has been
"the cheapest thing in America" in fnan-
ciers' phrase. For fortnight can loans
have been made in Wall street as low as k
per cent, while short time borrowers with
approved collateral are accommodated at
3Ls per cent in Chicago.
The board markets are absolutely bare of
first class securities bearing more than 3h
per cent. Today 5 per cent coupon issues
were bought on the exchange at 1877, and
high grade stocks paying dividends at the
rate of per cent per annum were quoted at
1872 Chicago and Northwestern common
was an instance.
Firms making a speciality of investment
securities acknowledge that the demand for
values has exceeded the supply three-fod.
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 in
creased $20,303, 722. This, following gain
Of $50,000000 for October, makes a total ex-
pansion of about $25 900, 900 for the last sixty
days Compared with year ago, the total
circulation of all kinds of money is $l65, 795,
OOO greater, and amounts in all to 81 1856, ,S0U-
900.
MORE MONEY IN SIGHT
The perspective reveals even more. On
the first of the year corporations will dis
| tribute about 500, 100000 in interest and
! dividends. Besides, exports are increas-
| ing 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 securities held
| abroad.
| 1t is this condition that has warranted a
foreign government in making tentative
overtures for big loan here The borrower
is supposed to be Russia. The representa-
tlves OF that country were negotiating with
French bankers some time ago for large
sum, but the transaction was not concluded
ECKELS' REMARKS
Ex-Comptroller of the Currency Eckek
has heard of the overtures made by for
eign power to raise money on this side.
''The monetary condition of the country
is today quite unlike anything we have
heretofore witnessed" he said. "Despite
the unusual activity in all characters Of
stocks and bonds and in general busines,
lines, deposits grow in the banks largely be-
yond the expansion of loans There GER
tainly is no present and but little future
prospect of change. There can hardly be
one with the amount of money flowing into
the country from abroad and the increasing
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 Germany has
now passed away
at seems that so far as German needs are
concerned London felt there might be trou
Bile in Berlin because the banks had not
been prudent in advancing to so great ar
extent on securities which the banks them
selves were really interested because they
| had not the means themselves to finance