Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-06-11
NEW ERA IN FINANCE
Treasurer Roberts on the Effect of
the Act Of March IA, 1900.
GIVES PARITY TO ALL OUR CURRENCY
The Pledge Of Gold Interest
Abroad and at Home.
INTERESTING STATISTICS

Ellis H. Roberts. treasurer of the United
States. speaking today on the new era in
our finances and currency. as established
by the act Of March IA, 1900. said:
This law makes a unique rate of inter-
est on government bonds, and affects
the earnings of capital in all uses. 1t
fixes. except for a small per cent, the de-
nominations of silver certificates at $40 and
below, and of United States notes at $40
and above, while 1t does away gradually
with treasury notes and puts silver cert1h-
Gates in their place. 1t opens the door wide
for increase in the notes of national banks
1t gives parity to all our currency. On the
face Of all our money, paper and CON-
white and yellow. all our bonds, all
wages, all trade, all banking. all business
it brands deep and sure, to be read of all
men for all time the pledge of gold inter-
est abroad and at home.
Interest on Foreign EOnds.
1.-The lowest rate of interest borne by
the bonds Of any foreign nation is two and
three-quarters per cent on British consols
This is to run until 1903, and then to be
two and half per cent. On only a part of
the debt of Germany, France and Russia
is the rate as low three per cent. Den
mark borrows at the same rate. Austria
no less than five.
THE average bank rate for money in the
European centers, in the year ending with
June last, was 90 per cent in Amsterdam
81 in Paris. 3.17 in London, 4.59 in Ham
burg and Berlin. From July 1, 1899. to
March 2. 1900, the average in Paris was
3.24, in London. 40: in Berlin and Ham
burg, 5.E. In the year ending with June
last the average for call money in New
York was 2'6 to 1865. and for prime paper.
3.34 to 4.2O. For the months from July !,
last. to March .. the average in New York
was for call money 3.52 to 6.5l. and for
prime paper. 4.75 to 5.S7.
THE changes every day in New York are
greater than elsewhere; but the records
show that the rate for money Is less In
our country than in any point in Europe.
except Paris, and often lower than on that
bourse.
Earnings to Investors.
cat the market price. during March last.
our per cent bonds of 1925 earned to the
investor an average of 2149 per cent
year; the As of 1907 earned 1.543 per cent;
the 3s earned 1888 and the SIS only .0972.
For April on the same basis the aver
age earnings were: For the As of 1928,
224 per cent; As of 1907, 1851; 3's. lbs,
SIS. 1.452.
1.-THE contrast with foreign loans is most
marked. The German 31a per cents sell at
!8la to 81, and the IS at SO to $50, so
that their earnings to the buyer are more
tTdn tHt interest Slstleu lie vi
British consols is about l per cent. and on
the French rentes l per cent. or slight
fraction more. and their earnings vary a
little above the face interest. The latest
9s. 19d. for three months. and 969d for
twelve months. Thus money is cheaper
with US than anywhere else among men.
What UnderIies the Law.
'"The labor and wealth of the American
people underlie the law of March IA, 1900.
To them are due the results of which we
are thinking. More potent for riches than
even the yellow metal, is our agriculture,
with it's cotton and corn, hay and tobacco,
its farm animals. The maize which the
red men gave us, which saved John Smiths
colony from starving, turned out last year
a crop 500 2lb. 40 in value. and that ex-
ceeds the capital of all the national banks.
The worth of farm animals by latest fig
ures is 81 ,?.7 olo,4G7 very nearly equal to
ali the money in circulation in the coun-
try.
And yet no less than our agriculture.
our manufactures create an FL Dorado
richer than the early navigators sought,
and their growth expands with each new
year. 1t is not enough that the American
people have long led all nations in this
broad field-the rate of Increase exceeds
that of all the rest of the world If the
earth is already giving us its maximum
crops. Imagination falls to limit the prod
ucts of forge and mill, of factory and labora-
tory. Take pig iron the index of manu-
features: The increase from 1897 to 1899
was Al per cent. The product Is now at
the rate of II, 600 tons a year, more
than 80 per cent greater than that of
Britain. Our exports of manufactured artt-
Giles for the ten months ending with April
were s34S.roo.6)0, indicating for the year
over $40 Oh0.nn. and that Is more than our
total exports as late as 1870. The product
of our manufactures this year will hardly
be less than three times the total assets Of
all the national banks, $15,0OOOoO,GOO.
Great Increase In Exports.
"Our products flow outward into all the
world, In a gulf stream ever rising. Our
total exports for nine months ending with
March were SLIP. 1856 s5, being s135, 94s, ST.
more than for the same period last year.
and indicating for this year 81. 400, 600, OOO
and balance of trade of $3.50. 600 Com
parison with Great Britain cannot fairly
be made, for she is a trader more than q
producer, and Is way port for the worlds
commerce. We Sell what We raise and
make; our foreign trade springs from our
home industries. Our net balance of trade
belongs to our own people,