The Winslow mail., 1899-08-24
THE MONEY SITUATION.
The Money Trust i'm New York Can
Control Ready Cash in TTe-
mendous Amounts.


Wall Street Journal: We understand that
the money situation has been carefully
| canvassed by bankers, with the result of
establishing the fact that there is not the
! slightest reason to fear any disturbance in
money rates for some time to come. We
are told that some very prominent financial
! interests find that they can render avail
able to the local money market some very
large sums in addition to those now at its
control should they be needed. These re-
sources are large enough to place 1t out oil
the power of any single money lender to
disturb the situation to any single money
lender to disturb the situation to any
marked extent even if he so desired. Bank
ers have satisfied themselves that money
will rule easy all summer.
The above, says the Peoria Journal
(rep.), is simply confirmation of what
has been predicted all along in these
columns that sooner or later money
trust would be formed in New York
that would not only fix the price of all
securities, such as stocks, bonds,
mortgages, ETC., but also fix the price
of any marketable commodity in the
country. Nothing, in fact is simpler.
Here is the modus operandi as de-
scribed by our Peoria contemporary:
stock exchange are men who are in
the main identified with nearly, if not
quite, all the large life associations of
the country. The five leading life as
sociations can control something like
a thousand million of ready money
at almost moments notice. The man
who desires to borrow any consider
able sum of money, as, for instance, a
quarter Of million dollars, on any of
the leading railroad securities or in
dustrial trust stocks makes his appli-
cation for loan. The board of
audit recently appointed by the
"board of governors of the New York
stock exchange. from among their own
number, fixes the price of the secur-
tiles offered as collateral. For exam
pie, let these collaterals be c. B. q
the stock of any other first-class road.
The stock is quoted to-day at $1.35 or
similar figure. The board of audit"
fixes the price of the stock upon which
money is to be loaned at two-thirds the
value quoted on the open board. For
every 81 600 worth of such stock the
borrower possibly receives $3.50. An
absolute bill of sale is made of the
same and the borrower gives a mem
orandum that he can have The securi-
ties when he pays $3.50. Instead, how
ever, of receiving $3.50 he is paid that
amount less the interest, which is de-
Quoted from the loan at the time it is
made. The interest ranges all the
way from 2@3 per cent. to 1917 per
cent. per diem. The day after Ros-
we'll p. Flowers death it is said that
money actually brought as high as
121a per cent. per diem in New York,
and this is said to be full explana-
ton of the notable fact that there was
no panic. Men who speculate in stocks
are forced to have quick loans in or
der to make both ends meet and quick
loans mean high rate of interest. The
money situation has been carefully
canvassed, as the Wall Street Journal
says. With a total volume of $780,
OO0,OO0 in circulation it is now difficult
to control the market when 81 ,0OO, ,OOO,-
coo of that volume is under the control
of five or six large corporations. From
now on lively game Of tag will be
played with trust securities.-Illinois
State Register