The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-06-10
HOTEL LOBBY GLEANINGS
j. III. sONNTAG, OF FARsoN, LEACH
q CO., AT HOTEL ENGLISH.
Indiana Securities Have Good stand
ing I'm Money Mnrkets-Other Wis
itors ut the Hotels.

]. II. Sonntag who was deputy state
treasurer under F. J. Scholz. is at the Hotel
English. He is here in the interests of
Farson, Leach & Co, dealers In public Sc
curities. Discussing the financial situation
last night Mr.. Sonntag said: within the
last three months have been I'm the princi-
pal cities of Minnesota. Wisconsin and
Michigan. The bankers all say they are
having an unusual demand for money and
are making loans at 6 per cent, but the
very highest grade loans are made at IA
and per cent. The demand is caused by
the great business activity now existing in
the West. There seems TO be plenty of
money in the West 10 meet all the require
ments of business and bankers tell me they
have lately made quite a number OF loans
in the East through their New York corre-
spondents. At the same time most OF the
banks seem TO have certain amount of
money TO put in high-grade bonds. They
consider them as quick assets because in
case of necessity they can always be real
lied on with short notice.
Municipal bonds are not as popular as
they were year or so ago on account OF
the low revenue they produce. although
with people who have enough money to be
still popular. Gilt-edge corporation securi-
ties have been much sought after lately.
The most popular bonds perhaps are gas
and electric light company bonds of good
sized towns, which can be bought to yield
the purchaser about per cent. net income
and are considered next to municipal
security. 1t is generally thought that
money will be easier from now on until
fall, as banks seldom have the demand for
money In summer they have in other sea-
money now in the middle West is because
of good prices obtained from farm products.
The old saying that everything comes out
of the ground is a true one. An example
of this is shown from what is called the
Minnesota district which includes the
wheat fields of Minnesota and the two Da-
kotas. In ordinary year this district
averages 150 100000 bushels of wheat, which
even at so cents bushel brings nearly $780,
100000 fresh money into the district each
year This condition is true proportionately
in Iowa, Illinois and Indiana. In Kansas
the corn has yielded the farmer enor-
nous amount of money in the last year
or So.
lately that up to a few years ago they could
get per cent. for ali the money they could
loan. Now they are glad TO get Al per
cent, because the farmers are no longer
borrowers but are loaning money them
selves. In Indiana the banks have always
been able TO get pretty Iair rae i IoT
by manufacturing plants and other Indus
tries. Indiana municipal bonds are con-
sidered higher grade than those of any
other State in the country on account of
the per cent. debt limit and from the fact
that the towns are solid. The prosperity of
a town depends largely on the quality of
the country surrounding IL, and the whole
of Indiana is good agricultural country.
To show how high Indiana bonds are held
our firm recently purchased 81 100000 Of
bonds of the Evansville Gas and Electric
Light Company, and Mr.. Leach, head or
our New York office. said he would sell
them down East almost at once, Indiana
securities of high grade being sought after
almost more than those of any other State. "