The Topeka state journal., 1900-03-14
A VIEW OF The
MONEY MARKET.
Approved by Russell Sage.

said Mr.. Sage, was never more legiti-
mate and sound than it is to-day. The
only cloud on the horizon is the pres
ent war between Great Britain and
the Beers. If by clever states
manship international trouble is avert
ed, there is no reason why good busi-
ness should not have plain sailing in
the United States for a long time. If
the war should be confined exclusively
to themselves, the effect would not be
disastrous in any way to American f.
nances, for now, after the first shock
our affairs here will run on smoothly
and normally. and a considerable stim-
ulation in the prices of our products
will ensue. The great danger is that
as one spark may put a city in flames,
SO war comparatively insignificant
in itself may involve several of the
first class powers. The keenest states
men cannot foresee the results.
The money question here has dis
turbed public sentiment for thirty or
forty days. The great demand upon the
city banks for loans has come from all
parts of the country, as well as from
large dealers who are making appHca-
tions for great sums of money for bus
mess purposes. That the country at
large is in very prosperous condition
commercially is indicated by the de-
mand upon New York banks from Chi
cago, ST. Louis, Minneapolis, ST. Paul.
and in fact from almost all the big
cities of the United States.
THAT business men are preparing for
a greatly increased volume of business
in the immediate future is shown by
the fact that they are willing to pay
full rates and a premium for money in
order to be in readiness for any tax
which new enterprises may put upon
their financial resources. There is lit
tie chance of any relaxation in the
price Of money in the near future, as it
is now Ioanlng at full rates and pre-
plum of from one tC one and a half per
cent. for thirty days, three or six
months. This is the strongest kind Of
an indication of the way in which bus
mess men regard money prospects.
THE offer of the Government to an
ticipate interest on bonds will help to
ease the money situation temporarily
but high prices of money are legiti-
mately due in consequence of vastly in
creased demands for industrial pur-
poSeS- Our cotton and wheat have
great market, and at high prices will
bring vast sums of money from abroad.
For we are spreading out and develop
ing markets all over the world, many
of which are greater than we can sup
ply a present. OF course, all of this is
a great stimulus to money. On the
other hand, the very high price of iron
mas fGldIQGQ Tie entering 1UlO COnlIdClS
for the building of steam roads, troll
ley lines, bridges, and the great build
ings which are to-day constructed so
largely of iron and steel. This has had
the effect of restricting to a limited ex-
tent the employment of labor.
Apart from this question of war and
its many complications and uncertain
ties, the business prospects of the
United States are infinitely brighter
than ever before in the history of the
with keen
and good digestion can See-
"Industrials have got to take a back
seat, that is most of them. There have
been forced upon an ill-advised public
great amounts of stock of over capital
lied concerns of this character. OF
course, have no reference to first class
properties. There was a time during
the recent advance in prices all along
the line when many industrials of ques-
tionable value were advanced in price
artificially in sympathy with the gen
eral market. The banks were prevailed
upon to loan money on some of these
securities, and I was afraid that this
indiscretion might lead to a panic. But
that danger is happily passed. A high
rate is now demanded for money ad-
vanced on the majority of industrials,
and even then it is insisted that they
be put in at low prices The rejection
of these stocks by the banks of late has
tended to increase public confidence in
The integrity of our financial institu-
tionS.
Naturally, high rates for money will
cause the holders of gilt-edged securi-
ties that pay small dividends to sell
out and loan their money at higher
rates The rates on mortgages will no
doubt be advanced. but this will not
hurt real estate, as the higher salaries
paid to working people will enable them
in turn to pay higher rent. The people
in this country should remember one
thing; that is, they are not living upon
themselves, but upon the world at
large, which they have made their mar
ket, through industry and moral in
tegrity.
In this war between England and
the Beers we should as say, unques-
tionably support England, not only be-
cause she stood beside US during our
recent war, but because England and
America combined would be more pow
erful, morally, intellectually and 1nan-
cially, than all the rest of the world
Without sitting a finger we can, by our
attitude, compel all other nations to
keep their hands off. This will have
the effect of not only shortening the war
with the Beers, but preventing the dis
organization of business and finance
throughout the whole civilized world"
Approved, RUSSELL SAGE.