The record-union., 1898-12-18


for Big Loan.
CHICAGO, Dec 1.-THE Chicago
Daily News says: The statement
may startle the general public, but in
the financial world the report will cause
no astonishment, although the action
will be unprecedented in the monetary
history of the country. For nearly two
months money has been the cheapest
thing in America" as financiers phrase
1t. For a fortnight call loans have been
made in Wall Street as low as one-half
per cent, while short time borrowers
with approved collateral are accOmmo-
dated at 31a per cent in Chicago.
The bond markets are absolutely bare
of first-class securities yielding more
than 311a per cent. To-day five per cent
coupon issues were bought on the ex-
changes at 137, and high grade stocks
paying dividends at the rate of five per
cent per annum were quoted at 132.
Chicago and Northwestern common
was an instance.
Firms that make a speciality of in
vestment securities acknowledge that
the supply threefold Fairly safe issues
have been absorbed, and there is no d.
.ninution in the funds seking placement.
The national treasury states that for
the current month money in circulation
has increased 500, ,303. 122. This, follow
ing a gain of $50, 600, 600 for october,
makes total expansion of about So
100000 for the last sixty days. Com
pared with a year ago, the total cir
culatiOn of all kinds of money is Sl6o,-
195, GOO greater, and amounts in ali to
81 ,SS6, ,S00,0 The perspective reveals
even more money.
On the first of the year corporations
will distribute about 500, 100000 in in
terest and dividends. Besides, exports
are increasing rapidly, while imports
ere 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 posi-
ton of desiring to buy the American
stocks and bonds that are held abroad.
1t is this condition that has warrant
ed a foreign Government in making ten
tative overtures for big loan here.
The borrower is supposed to be Rus
sia. The representatives Of that coun-
try were negotiating with French bank
ers sometime ago for a large sum, but
the transaction was not concluded.
Ex-Comptroller of the Currency Eek
els has heard of the overtures made
by a foreign power to raise money on
this side.
The monetary condition of the coun-
try is to-day quite unlike anything We
have heretofore witnessed" he said.
Despite the usual activity in all char
acter of stocks and bonds and in Sen-
eral business lines, deposits grow in the
banks largely beyond the expansion 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 increasing
demand there for our products. What
ever 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.
1T seems that so far as German con-
ditions are concerned London felt that
1
the banks had not been prudent in ad-
vancing to so great an extent on Sc
curitfes 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. This condition of
great demand for money Immediately
reflected itself in London and Paris,
and though much less so in New York.
It is stated by those in a position to
know that the change is now for the
better. and though money is stin want
cd in Berlin, there will be no great
s+ringencv or any difficulty, because
the situation was faced in good time.
AS a result. no further advance is an
ticipated in the rate of the Bank Of
England"
Il doubt if the definite announce
ment of the signing of the treaty Of
peace with Spain has had much, il
ANYTHING, to do with the surprising
advance in all characters OF securi-
ties. AS a matter Of fact, ill the ef-
fects of such an 2ct had long been
discounted, as had every step Iii The
war. in so far as business was con-
cerned. Much of the advance is upon
the basis or merit, owing 10 SeneTaIlE
improved conditions SINE, however,
is purely speculative. and may be car
ried to an extent that viii cause a
reaction. This reaction, while it might
be serious under other monetary con-
ditions. would have less marked effect
with the plethora of money on hand
everywhere throughout the country
So great IS this that I have heard it
intimated from good sources that there
has been some real discussion of one
If the foreign Powers negotiating a
loan in New York. All this is ac-
ntuated Ly the fact that American
interests are leaning ABROAD.
1.-THE force of economics in manage
noent and expenditure is not the least
of the reasons for a betterment in
values of slow and more thorough
organization in carrying cn great en-
teI-prises. The reduction OF prices in
so many things is now compelled 10 be
met by better systems of administra-
tion and greater volume of business.
Necessarily is this so in all classes OF
industrials and railroads,