The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1899-11-17
LOAk|NG MONEY
TO WALL STREET.
Continued from Page One.

received assurances that the Western
banks have funds in sufficient volume 10
meet all demands, and that SO far from re-
curing additional supplies. many OF the
institutions have money To loan in the
East. This. IL is unnecessary 10 repeat, IS
a remarkable state OF affairs, oae quite I'M
preeedented In the history Of the country.
IL goes TO prove what interior bankers OF
discernment have been saying for nearly a
year past that the West has accomplished
lis financial independence. and heneefor,h
Is to be regarded as a center of surplus
possibilities, rather than section which is
dependent on outside assistance
1t is not, however, considered strange that
this position of exceeding well-heing should
have been attained by the West. This coun-
try has been enjoying the fruits OF aband-
ant crops of all kinds for the last three
seasons. the farmers have been able TO pay
off their mortgages. the rush to Alaska
has been on and the resulting crop OF gold
coming back 10 the Seattle assay office,
until there has been established on the
basis OF the gradual development that has
continued for the last ten years a soiidty
that has put this city and state In such
first-class condition that 1t Is confidently
expected to continue ioaning money in the
wealthy financial center OF the East and in
such other localities as may be in need.
The actual ioaning OF these funds has
been going on for probably the last two
months. AS has been noted. The volume OF
business has been SO great and the prices
of many commodities so much higher than
in the past. that the Golfers of New York
banks rapidly becoming emptied there was
nothing to do but to come to the West.
Deposits In the Market.
Seattle and other Western banks to keep
large amounts Of their SURPRISES On de-
posit In New York and 1t was therefore
easy for the money TO be turned into the
channels of trade without protraeted ne
gotlations, The money was therefore SIM
ply placed in the market where 1t was
needed instead OF on deposit.
E. w. Andrews, president az the Seattle
National bank yesterday confirmed the
report circulated on the street that loans
were being made In the East. Yes. the
report Is true. although the loans have
probably not been more than $500 900 or
500 CO., he said. 1.-THE volume OF business
has been so large that there was a short
age OF money In New York, and the West
ern hanks had the opportunity OF making
some loans there. and did so. The security
Is giit-edged, and the rate Is so high. be-
Ing IN some instances s per cent. that II
was good investment.
This is, of course, an unusual condition
for Us, and although the transactions will
not aggregate much. the indication Is re-
assuring The whole matter win probably
be ended in a few weeks, az during that
time money Fsili be returning TO New York.
the market WIN be easier and there viii be
enough for all demands. The rate will.
Of course go down with the end OF the
necessity"
r r Spencer. of the National Bank of
Commerce. also said that loans were being
made in New York by the Seattle bankers,
bat that there they were merely call loans
on frss-ciass collateral 1.-The called rate
IN New York Is per cent. and higher he
said. "as.d as Il was possible TO make loans
on fine security the local banks simply
wired their correspondents TO do SO. The
New York banks are running close TO their
reserves, and did not care TO run shorter.
J. u. Hoge, jr.. president OF the FRS.
National bank. said 1.-The case is simply
this-the money market IS such that there
IL no demand here for money on approved
security. and II being possible TO make
call loans In New York on firss-class Sc
curly and at high rates Of interest. the
banks simply embraced the opportunity,
The amount loaned CUT Of Seattle In this
way must have amounted 10 <bv.ea to
81 DE dae but /; viii not last long, the
shortage I'm New York IS on account Of
the money being used TO handle the cotton
and wheat crops, which VIII be back prob
ably by December l."