The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1902-06-01
Great ExpIoiter Said to be
Forming Trust There.
TALK OF A LOAN TOO
Many GueSSeS Made About
FinanCer'S Visit.


New York Evening Post. The recent
visit Of Mr.. Morgan to this city has given
rise TO a variety Of conjectures, more or
less fantastic. It has been gravely whis-
pered that the purpose of the visit was
10 approach the compagnie Generate
Transatlantique on the matter Of its alb
sorption into the shipping trust This
story has been formally denied; in any
case, it was quite impossible that a
French corporation which could not live
save by the subsidies of the state, and
which is dependent upon the government,
should surrender its liberty Of action to
foreign company.
1t was then declared that Mr.. Morgan
had arrived TO prepare for the introduce
ton Of American stocks on the Paris
market. 1t IS a fact that this proposition
was once seriously mooted But the rs
cal policy governing our Bourse interpo-
ses an obstacle almost insurmountable
La effect, while the right of trading is
granted, so far as concerns foreign gov
eminent securities alone. to all those which
actually circulate in France, it is requir-
ed that they shall have been negotiated
r
company engage to pay each year the
tax on certain number Of shares. fixed
more or Jess arbitrarily by the administ-
tration, which number must always rep
resent an important percentage Of the
corporations capital
The existing ministry Of finance is GER
tainly not hostile in principle 10 the in
PRODUCTION Of good foreign securities. 1t
serl-+
ton by relaxing the generally excessive
rigor Of the fiscal administration; by, for
instance. fixing Ieniently the number Of
shares subject TO the stamp tax. But it
will not do 10 reckon on the introduction
at any future time-at all events. for
very long time-of the great speculative
American securities. such as the railways
and the trusts.
In some quarters a third purpose has
been imputed to Mr.. Morgans voyage to
Paris namely. the placing of large loan
on our market. I do not think this view
correct In fact. after having made care
full inquiry all quarters where such an
operation could possibly be concluded, I
am sure that nothing of the kind has
been contemplated. 1t would not be sur
prising if American financiers had this
season borrowed very large sums in Lon
don on stock collateral, as has been done
at other times. But at Paris the general
sentiment of banking houses is distrust-
full OF your market. noe finds on every
side the opinion that financial expansion
Is too rapid: that the undertakings of
New York fnanciers have been too gi-
gantic. Besides, even if there did exist
greater confidence in this phase of the
matter, the credit establishments which
loan out the deposits Of their customers
would hardly dare to engage their cap
ital in operations of this sort, for this
reason. If for no other. that, public opin-
ion ching what it is. the mere announce
ment of such loans might hurt the insti-
tuition s credit And there is not sin
gle banking house in this city, outside of
the Rothschilds, which can control re-
sources of its own large enough to put
through an important operation of the
kind
This does not mean that New York is
not now a heavy borrower in Paris. But
such loans as are being placed are being
made through the medium of the bank
ers' drafts on their Paris correspondents. {
The number and Importance of these
drafts has very greatly insreased during
the past few months. 1t is a fact. how
ever. that in granting credits of this kindl
American houses are preferred which |
are known to do a banking business, /
strictly speaking and which are not ex-
cessively engaged in large specuIations. |
Outside of this class Of bills. the supply !
of advances is comparatively limited. 1
The whole truth of the matter is that 4
our lenders. even while advancing freely /
from their bank crdits. are extremely /
careful not to take too direct a risk in
the combinations which are towering up /
IN New York City.
At London. where financial relations /
with America are more intimate. bankers |
so doubtless more generous with their 1
credits. II is true as you doubtless know /
that last year the London bankers call /
ed for the repayment of a good part Of /
the advances which they had made TO
America. the volume OF New York paper /
then in circulation being regarded as too
large. I believe that since that time the
supply OF such bills has remained some
what more moderate. To degree Lon
don has relieved itself and increased our
line Of debts by getting its American
bills rediscounted in France. II is thus
that. directly in the form Of drafts on
Paris, and Indirectly in the form Of re-
discounted drafts on London, our market
IS at this moment undoubtedly provid-
iug very important sums Of capital for
New York
Generally speaking. then. it would ap-
pear that the debt Of the United States
10 Europe has been considerably aug
mented these last few months-lately.
even by borrowings from Berlin. II is
not felt here, the form OF the advances
being what they are. and the prosperity
Of The United States being what it is
that this borrowing creates any present
danger America might possibly increase
stu more its debit balance on exchange
without exposing itself 10 a direct re-
fusal OF credit Nevertheless. I must re-
peat that people here are not looking IA
vorably on the nature Of the operations
gor which the American hnanceers need l.
50 much Of their money. The familiar
comment Is that all the combinations
now making their way across the water
rest. in the last analysis on newly-man-
ufactured shares more or less wattered.
which their creators are compelled TO hold :
until the public shah see 1t TO buy them
VIII the American public absorb these
shares There is the question. II the
Industrial situation were 70 be impaired
for any reason whatsoever. apprehension
docs exist that there would be pro-
oUced on your side, not perhaps a crisis
profoundly affecting the general pros ;
perity Of the country. but ''crise de
hourse." crisis Of credit which might Sc
riousiy embarass New Yorks market for ,
the moment We are perhanS 700 much | ,