The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-11-01
1--WE Are Converting Too Great an
Amount of Liquid Capital Into
Fixed Forms of Investment"
LINE OF SAFETY POINTED OUT
INVESTMENTS SHOULD BE KEPT
WITHIN THE TOTAL INCOME.
Expansion of Loans, Loss of Foreign
Are UnfavOrable Phases.

WILMINGTON, N. c., Oct 31.-Hon.
Frank A Vanderlip, vice president of the
National City Bank of New York, and as
sistant secretary of the Treasury during
President McKinley's first administrator,
was the guest of honor and principal
speaker at an elaborate banquet here to-
night, under the auspices of the Chamber
of Commerce. There were 200 representa-
tive business men of the community in at
tendance. Mr.. Vanderlip said:
81 am just back from another European
trip and have again met many of the most
distinguished of European statesmen and
financiers. The change that the past year
has made in their point OF view Is ex-
tremely interesting. They are no longer
fascinated by our progress. Instead of that
i found in every capital / visited and in the
mind of almost every keen observer of in
ternational affairs with whom 1 conversed
belief that we have for the present
marked the high-water point of our over
flow of exports into the European indus
trial field And instead of credulous belief
in the unlimited possibilities of our develop
ment, which seemed to be the average
state of mind a year ago, there is to-day a
feeling Of grave conservatism and anxious
interest in our future.
They note that the rapid increase Of
our exports came tn halt two years ago.
They note that our imports in the last two
years have been rapidly rising, the record
for the fiscal year just closed being more
than $500, 600, 900. against little over $780,
000, 600 in 1898. They note, too, that in spite
OF a tremendous balance Of trade which
government exports showed in our favor. a
balance running up to an average Of
almost $6O,O00,C0O year, we do not
seem TO have any unusual command
upon International credits. but we are, as
a matter of fact, a considerable debtor in
the worlds exchanges, and that now in the
midst of extraordinarily bountiful harvests
and al the season when a movement OF gold
in this direction might normally be expect
ed, we are concerned lest a high rate of
sterling shall lead to gold exports.
IF we are honest with ourselves we must
admit that the edge is off our invasion of
foreign markets. Our totals are still colos-
sal. but the rate of increase which they
were making has been checked and de-
creases have been recorded. Our exports
of manufactures for the fiscal year just
closed are S3O,000.0O0 less than the point
they reached two years ago. Our total
more than s1OO,OOO.OO0 in the year. Instead
of decreasing imports we have made some
large increases in our purchases of for
eign goods. and the total for this fiscal
year stands more than s3OO,OOO.O0O above
1899.
BANK DEPOSITS.
1--WE have had an expansion of s, 800. 900, =
600 in national bank deposits since the be-
ginning of 1899, while the basis of gold
and legal tenders upon which that inverted
pyramid stands is actually slightly smaller
than II was at the beginning of the period.
Now, In that same time, the deposits Of
other baEks-state banks. trust companies.
savings banks and private banks-have
probably increased not far from $1,000. .OO0-
600. and there Is little likelihood that their
gold and legal tender reserve is materially
larger than. IL II is as large as. at the be-
ginning OF 1899. We have had then in less
than four years. an increase I'm the total
bank deposits of the country of over $4,000
100000. accompanied by no increase In the
specie and legal tender holding OF those
banks.
THE principal reason for the expansion Of
Its and the accompanying expansfen
is to be found In the great mova'
Dhas- been the signifcm 1nfsaS1ue
or the inSt