The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-02-09

The statement, referring especially
to the funds in the New York banks
and trust companies of that city, alone
makes 1t clear that the amount of $780,
100000, given above, was independent
Of the reserves in the associated banks
of the metropolis, amounting to $751;
ASP, SIS; thus, when the further state
ment Is made that the actual reserve
is $257, Ass, 800. which naturally includes
the regular legal reserve, 1t is appar-
emf that the figures given are conServ-
alive, rather than extravaganza 1t Is
to be assumed, therefore, that the same
reservation applies to the figures named
for the other cities.
John Harson Rhodes, president Of
the Greenwich Savings bank, Of
New York, one of the most
substantial institutions of the kind
in the United States, and himself
we'll known f1nancier whose judg-
ment is held in the highest respect,
says in explanation and comment upon
the existing condition of things:
81 think it Is rather oyerstating 1t to say
that there is a deadlock between money
lenders and borrowers because of the low in
terest rates prevailing I should rather put it
that money is hesitatng and that 1t is but
slowly accommodating itself to changed con-
ditions and lower rates of remuneration The
plentitude of money has made it so cheap
and its return so small that the people are
embarking in enterprises where the risk is
great, too great In many instances. The
danger lies in overspeculation. 1t extends to
every hamlet in the United States.''
These are wholesome words Of warn
ing delivered by one who is regarded
as an expert. There must be a turn
ing point. just as it came to Germany
when she began. in the era of plethora
of money existing there in 1897, to float
everything conceivable in the line of
industrial schemes. This process con-
tinued well along into 1885, Then came
the check. The attractiveness of the
schemes was SO strong that the peo-
pie of Germany became large barrow
erS of their old enemies Of France The
rate of discount was suddenly raised
by the Bank of Berlin. 1t is conceded
that finally it was by American money,
advanced to adjust the German loans
called in by the Bank of France at a.
critical period. that most far-reaoh-
Ing panic was averted. Fortunately
the United States was in a sound con-
dition and able to extend the succor
at the critical moment.
And what shall be the signs Of
the beginning Of the turn In our
own affairs which shall put A.
curb upon the spirit Of wild
speculation now existing among our
own people? Is there not something
shadowy In the return of American
securities to New York for deliveries
on account Of sales made during Janu
airy in that market by former foreign
holders? The steamer Majestic brought
to Wall street bankers some SIS. 900. 900
to $10,000,000 Of such securities last
week, and other European steamers
carried many large blocks of stocks.
the total being estimated at some 30O.
600 shares. OF course large credit
balance existed in London and other
European centers, out of which settle
ments We're adjusted. This sum is es-
tlmated>yariously at between STE. O0O.-
600 and s1OO,0O0,00O. Of course, in these
conditions, shipments Of gold were I'M
necessary: but the continued high
prices of securities in the Eastern stock
exchanges must sooner or later cause
liquidation. This will compel the tide