The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-11-30
EUROPE At OUR MERCY
LESSONS BUSINESS MEN COULD
TEACH ACADEMIC STATESMEN.
Withdrawal of Our Deposits Would
Seriously Disturb Conditions
Acknowledgement Situation.
New York Letter in Philadelphia Press.


ence, setting forth by rough estimate the
amount of American money which is now
loaned in Great Britain and upon the con-
tinent Of Europe, seems to have occasioned
some comment in business circles, and here
and there doubt Is expressed as to the ac-
curacy of the figures contained in the re-
port.
No claim was made OF accuracy 1t was.
In fact, stated that it seemed to be almost
impossible TO obtain any estimate that
might be regarded as approximately correct
OF the amount of money which our bankers
and capitalists have been recently lending
in European markets. but it was said that
the best opinion obtainable that the
amount was not far from $7O,OO0OO0.
1t so happens that it has been deemed
necessary by certain capitalists and bank
ers to obtain something better than mere
guess as to the amounts of funds now
loaned to Europe. and Mr.. Frederick W.
Happen. president of the Galatin Bank,
undertook a day or two ago to make an
nation in view.
The only manner in which il could be
learned ns riie. whether any and. If any how much
or Europe was by inquiring, first, of all OF
those whose business it is to draw bills OF
exchange or who deal in them, and second,
TO make inquiry of financial Institutions IS
to the extent of deposits of money which
they may have in European banks or In the
hands of European financers.
Mr.. Tappen's investigation required most
OF mis- time Tor two days. He visited every
one or the dealers In foreign exchange or
the drawers OF instruments of that kind.
Most of the business of this sort is done by
SIX or eight firms, whose reputation and
cred1t are high and whose places of BUSH
Church
Mr.. Happen found that there was no re-
Iuct2nC0 a
many of these bills had been drawn and
sold or how many of them had been hypothe-
Tire aggregate Of transactions of this kind
within vii in few weeks M Mr. Tappen found to be
run as high as $45 600.
Here then, IS authentic information OBJ
tanned from one of the highest authorities in
New York banking circles, and Mr.. Tap
pens report that we have in this manner
loaned Great Britain and Europe from $40.-
100000 to 900, some of it on bills due
in seventy-seven days, some of it in thirty
days, is accepted by all inanciers as sub
stantially correct
MILLIONS ON DEPOSIT ABROAD.
There is, of course. no means of knowing
whether any transactions of this kind have
been carried ON in other financial centers,
but there are some reasons for presuming
that Boston and Chicago have loaned money
to Europe in similar manner
This, however, does not represent all OF
the American money which is now on loan
in Europe. There are several banks in New
York city, perhaps two or three trust COM
panieS, which have amounts varying from
$5O0,OOO to as much as 100000 on deposit
in Great Britain and on the continent One
$40 100000 on deposit in Germany, and that
money was available for loans and dis
counts and was receiving interest just as
would have been the case had it been in
This city.
These sums must be added to the money
which has been loaned upon or which is
tod aF16
| LEGATIONS similar TO that which Mr.. Tappan
carried on results in establishing the fact
tn that do american an 5 money from
post abroad. Therefore, the total amount
of American cash which has been loaned
to Europe this tall cannot be very far from
$70O00,000. and these figures are not mere
guess work, but are authoritative as any
thing can be which is not stated under oath
and affirmed by seal
Mr.. Tappan was very greatly impressed
by the information he received. In speak
ing of it to-day, he said that the United
States Is passing through some marvellous
changes, mOmentous in their influence upon
our future prosperity and our relations TO
world AFFAIRS, and unparalleled since those
changes which were occasioned by the in
PRODUCTION of steam and the telegraph.
HOW ONE BANKER VIEWS 1T.
"Our people do not seem to realize the
tremendous nature of the forces which are
now irresistibly shaping the destiny of this
country" said Mr.. Happen. THE currents
flow so swiftly and we are carried along by
them so irresistibly that we do not perceive
how far we have advanced until we look
back and measure our present position to
the old landmarks, 1t is useless for a man
to talk about staying these influences. They
are irresistible, and the President and his
administration are doing no more than rec
ognizng them and attempting so to shape
the policy Of the United States with respect
to legislative and administrative acts as 10
obtain for u.s. as people, the best results
| that these influences can give"
Mr.. Tappen and others who, like him.
in the thick of these momentous affairs, ana
who have had in the past twelve months eX-
per1ence such the older men of Wall
street, of the Produce Exchange and the
Chamber Of Commerce would never have
dreamed possible, are of the opinion thar
some OF the academic statesmen who look
into the future and who gaze about them at
the present time, lighted only by their read
ing of history would do we'll before they
make up their mind as to the policy of the
administration to gain some knowledge Of
For Instance. one Of the wisest of the
citizens of New York, who has been
yesterday that If Mr.. Schurz would make
himself acquainted with the actual condi-
tons, he would learn, as Mr.. Tappen did,
that we are Lending millions OF dollars TO
Europe and will continue 10 lend; he should
visit those who are engaged in great manu-
featuring undertakings and hear from them
the amazing stories of the demand that
comes from abroad for American manu-
featured articles. or talk with men like
y j..
of st. Paul, and learn what the sentiment
in the far Northwest is and how swiftly the
people in that section have passed from the
condition of debtor TO creditor. should
call upon some bankers and hear from them
the amazing story of their experiences, or
learn that st. Louis, Chicago, Minneapolis
and even Omaha are seeking TO lend money
in New York.
In other words, if Mr.. Schurz would put
himself in touch with the irresistible in
fiuence of his time, he would find better
guide TO direct his opinion than his study
of history or his one-sided contemplation OF
the Constitution Of the United States.
CARNEGIE ALONE.
Andrew Carnegie is said here to be the
only man of eminent business reputation
who has spoken against expansion. and Mr.
Carnegie Is in opposition even to his own
business associates, none of whom agree
with him. and finds the arguments drawn
from his personal experience refuted by the
actual facts of which those who conduct his
business have good knowledge
In this sentence is to be found, il is safe
to say, the general businesses sentiment Of
this city, as 1t expresses itself in opposition
10 the views taken by Bishop Potter, Carl
SchurZ and Andrew Carnegie.
IT was said this morning by one finaneier
investigation that the United States in some
respects held Europe at its mercy quite as
much as the peace commissioners held
SPAIN
For, IL we were to demand immediate pay
ment of our debts or If were TO call OF
a sudden for our loans, Europe must Gamer
suffer the loss of credit and must face con-
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