Evening journal., 1903-11-16
REPORT MADE STIR
IN FINANCIAL CIRCLES
John Tatlock, oil New York
Mutual Life, Sets Men
Thinking

Local financial circles are DISCUSSING |
that portion Of the report made by John |
Talock of New York. associate actuary
OF tho Mutual Ilfe Insurance Company, |
in which the opinions Of leading author
ities in Europe ON the raite Of interest are
given says the Baltimore News. These |
opinions were presented at a meeting. |
he'd in New York. OF aotuarics. Because
ol THE large sums which insurance COM
panies have to invest, these views are
attracting much attention. This portion /
of Mr. Tauocks paper is as follows:
Probably no subject before the Con-
greas attracted more attention. nor ex-
cited more earnest discussion ehan that
Of the future rate of interest OF impou.-
ance TO all Investors 8. has a peculiar
Significance ito life insurance companies.
AS pointed out by more than one speaker,
on account Of the large proportion Of en-
dowment policies, as we'll as other con-
itrac.s involving large premiums and re-
serves, now on the books of the life COM
panies. fluctuations in the rate Of interest
have more bearing upon life contracts
than fluctuations I'm the rate of mortal
ity Many interesting facts and state
lments were brought out IN the discussion
On tins subject. but uhe dme at my dis
posal docs rot admit Of more than the
nero men.icn Of the most pertinent and
striking namely; that the increase in
gold production does not affect perman-
entity the tate OF interest: that modern
facilities for the transfer Of money tend
to eqIalize The rate at any ri'-en date in
all ,ho financial centres; that the OBJ
served facts show that it is an utter fal-
lacy to hold that the abundance Of money
or tho progressive accumulation OF wealth
produces low rates of Interest; that the
lcontrclling factor which determines the
rate of interest depends upon the esti-
mates formed in mems minds Of what the
future productiveness OF capital Will be-"
and the significant fact, closely correlated
with The slight but general increase in
the rate Of interest now going on, that
nn Government obligations. with the ex-
ception of those OF the United States,
have fallen in price in the last six years.
As to conclusions for the future. TO
quote first from the authors of the papers
presented on this subject. DR.. Grossman,
Of Vienna, considered that at least inter-
est VIII go no lower; Mr. Hankar, OF the
Belgium Savings Bank showed that for
Belgium a positive tendency to increase
is noticeable: Mr.. Burn of the Prudential
Assurance Company of London argued
that the general tendency OF the rate OF
interest is TO fall. Other speakers ex-
lpressed opinions that any present increase
lcsnnm be considered as permanent; that
the rate VIII not be higher than at pres
emit that there will be no further de-
crease; that "the reaction against the ex-
cesslve depression in the rate Of interest
brought on about the year 1896 by the ex-
treme accumulation OF caution and tlmid
lcapital has produced a reaction in the
Opposite direction of which we are not
/, vet able to see che limits. and 1t is quite
conceivable that it may go on to much
lgreater extent than is generally believed
lehat ethcre is no reason whatever TO be-
leve In the permanent and secular dimin-
ution Of the rate of interest" OF course
the bottom must be reached at some time.
and many believe that the bottom was ac-
tuahy reached six years ago.