The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1898-08-07
MONEY IS COMING WEST
More in the East Than They Know
What to Do With.
A CHANCE FOR MONTANA
A Remarkable Interest Is Being Mani
tested In Mining Investments-A
Period of Immense Ma
tional Development.

Great Falls, Aug. 6.-Frederick II.
Ertel, who publishes the paper in Chi
cago called Bonds and Mortgages, is in
the city for a short visit. He speaks
very ~encouragingly of the feeling which
Eastern people have toward Montana
real estate and securities, and predicts
that there will within a yea be a large
amount of money placed in this and
other Western states.
The East is fairly overloaded with
money" sale Mr.. Ertel. This surplus
age OF money has been felt for some
time, but it is at its highest point right
now. 1t began more h Is months
ago., when the Vanderbilt lines began
to refund their obligations carrying s
and z per cent. to 315 per cent, thereby
reducing their interest charges one
half. That meant a loosening up of a
large volume of the trust funds and
capital of individuals that was thrown
upon the market for new investments,
and sections that were formerly ignored
by them are receiving their attention.
The change is apparent in the mort
age loan field. The immense crops
and big prices of last year have made
1t difficult to find any desirable farm
loans in Iowa, Illinois, Missouri and
other m states, where farmers
have l~iquidated as never before. In
Chicago, for instance, 1ot more han a
year ago, we were much surprised when
we GUN the rate for desirable city
loans reduced to Az per cent, and since
then several large loans have been
made at 3s and 3A per cent. This con-
dition of affairs is forcing a good deal
of the available mortgage oar funds
into Colorado, Utah and Montana,
where tn-dav tho rnafprino nhliootfang
bear all the way from 8 to 10 per cent.
per annum. Nearly all of these ma
turing obligations which will remain
unpaid will doubtless be refunded at a
much lower rate of interest on account
of this cheaper money becoming avail
able.
I'm relation to bonds. the conditions
are still more abnormal. Since the be-
ginning of this refunding era, with its
attendant plethora of money, every
municipality from Maine to California
has refunded whatever obligations they
could get into proper shape for such
purpose, until bonds to-day seldom
command a higher rate of interest than
4 per cent. The any desirable
bond issue appears it is instantly alb
sorbed by some large trust company or
savings bank, leaving the private in
vestors barred of these securities, which
forces them to look for other fields of
investment. This condition., coupled
with the excitement of the extra haz-
ardous development of the Klondike,
has brought about an eager inquiry
into mining Investments. There is un-
doubted evidence that Eastern people
are beginning to realize that mining
investments can be made as intelligent
ly as entering into manufacturing in
New England. Montana mining invest
ments are sure to receive a tremendous
impetus from the conditions now pre-
vailing in the financial world. There
viii be no more money, of course, for
the purchase of mining stocks, but leg
Ultimate mining will receive greater rec
ignition than ever before. With the
war cloud eliminated, we are now
standing on the eve of the greatest
period of material development the
Western country has ever seen. With
all due respect TO the American invest
or, he still remains as before, an erratic
animal, all going in the same direction
at the same time, and as he happens
TO be going into mines just now, Mon
tana will be benefited by il. What
Montana needs is a greater population.
There should he put forth every effort
to increase the number of producers in
this state. for in that will lie largely
the secret of the final prosperity of
Montana. There is such an infnity of
room for men here, homes for many
thousands who as yet know nothing of
the stare, and natural that
are amazing in their character and ex-
tent"