The times. [volume] (Washington [D.C.]) 1897-1901, 1900-09-17

IL VIII be seen th&t very few OF the last
fifteen years show anything near the sur
plus now held by the banks, whls in
1880 there was deficit of SO, 500 925 tel NV
the legal limit. It would look, there
fore, as if the financial condition of New
York was copper fastened and tree
nailed through"
The most important event of the week
from the standpoint of Wall Street as
the announcement of the iotatiol here
of a large German loan, the details of
which are officially announced as FL
lows:
The negotiations cover purchase by
Kuhn, Loeb & Co. and the National City
Bank Of so eco, 000 marks per cent treas
ury notes of the German Empire, ma.fr-
ing in equal proportions in 1874 ami IS ;.
There is no syndicate. the purchasing
bankers taking over the loan, upon their
own initiative, from the German Reiehs-
bank 1.-THE Imperial German Bank
through the Disconto- Geselschaft, of
Berlin. and Messrs. NJ NJ Warburg &
Co, CT Hamburg. An issue of the loan
Will shortly be made both in the United
States and in Germany; preference in
ailotmeDts is TO be given to American
subscriptions. Payments for the loan
will be distributed over cons dsrahle
parted and will be made entirely in b lis
OF exchange, no gold shipments being
contemplated; the money market is,
therefore not likely to become Affected
through payments for the loan.
The opportunity TO subscribe for
per cent obligation of the German Empire
appears an exceptional one. II is a we'll
known fact that nowhere are public obliga-
tons held more sacred and inviolable than
throughout Germany. While the wealth
Of the German Empire is very great, It's
debt is ineonsiderable; under its laws any
deduction for taxes upon its obligations Is
excluded
The fact that foreign loans aggregating
S21S,o00,000 have been taken il great part
in Wall Street since last February is a
striking Illustration of the growing
strength of New York as a financial centre.
though ii Is a direc; result of the larss
excess Of exports over imports the last two
years. which has put the whole world in
the position CT debtor 10 the United States.
As matter Of fact, the bond transaction
means that Germany has adopted this
measure Of paying the Standard Oil Com
pany debt Of 500 COO 600. which II owes
for petroleum, and the payment OF which
has been delayed for several months By
the shrewd expediants of the bankers of
Berlin and OF Frankfort-on-the-M Main,
which Is known as the home OF foreign ex-
change. There is a ifnit. however. 10
international credit. as there is to the tins
your tailor will allow you TO pay Cor your
suit Of clothes. As a rule, international
credits are not extended beyond sixty or
ninety days. Foreign bankers have been
doing everything possible to prevent the
shipment OF gold from Berlin TO the Unit
ed States in payment Of the international
debt. The local bankers at last refused
20 delay the collection OF these foreign
bills any longer and so the Berlin bankers
were forced TO put their heads together
and arrange for the payment of the debt.
The shipment OF $4,000. 600 OF gold from
Germany TO the United States at this
time would have demoralized the money
marRet in Berlin. and would probably
have caused a panic which would have
been widespread in its consequences In
order to keep the money at home and at
the same time supply the German Gov
eminent with the funds IL needs for the
conducting OF q campaign in China the
bankers and the Government have there
fore arranged the loan which they are
about to float In the United States.
The debt to the Standard Oil Company
will thereby be cancelled. and the money
VIII remain in Berlin. 1t was a great
piece Of finfnciering according 10 the
foreign exchange experts in Wall Street
and at the same time is { striking illus
tration OF the power Of the Standard
Oil Company, as well as of the shrewd-
II is understood that the loan is 10 be
taken 20 a great extent by Standard Oil
institutions. II is said that the Mutual
Life Insurance Company and the New
York Life Insurance Company VIII each
take 5000. 900 OF the bonds, and that other
Standard oil institutions in this city
win take the greater part Of the remain
der. These Institutions are the National
City Bank, the Hanover National Bank
The National Park Bank, the Second
National Bank, the Bank OF theMetropolis,
the Lincoln National Bank, the United
States Trust Company, the Farmers Loan
and Trust Company, and the Central Trust
Company.
The feature OF the loan which attracted
good deal of comment was the fact that
hone OF the bankers who participated in
ethe recent fetation of the enormous loan
here have part in the Berlin syndicate.