The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-09-19
Puts light in the eye, tints
the cheek with Natures
boom, loosens the tension
of life, brushes the cobwebs
from the brain, that's what
HOLSTERS Rocky Mountain
Tea will do. IS cents, Tea
or Tablets. King Drug Co.


to the astonishing diminution of divi-
5dends in premiums were wont to give
the questioner sympathetic smile
and say with degree of financial
JUNCTION which was appalling:
The Low Interest Dodge.
This is the day of large loans and
small interest. Ten years ago my COM
pany was loaning money at five pei
cent. Now We are very fortunate to
get three. New York is full of money
They are begging you to take X at
any old figure. A prosperous looking
man in Wall street has to call on the
police to protect him from Would-be
creditors. The great corporations with
their millions of dollars are compel
ing so strongly for the privilege OF
loaning their money that the rate is
going down all the time. These fig
ures on your policy We're made on a
basis of four per cent Now, in COM
mon safety, we have to reduce the
basis one half of that. l tell you there
is a fight in the money centres for
loans Money? There is nothing but
money in New York; it's going beg
ginG."
In support of which the agent would
produce the days paper at the stock
report sheet and place stubby dia-
mond girdled finger on little line at
the bottom of a row of hieroglyphlcs
and say triumphantly:
Look there, call money / IL per
cent: time loans 2 IA to 3 per cent.
Now. you see!" entirely forgetting that
the loans referred to were those of a
purely speculative nature and that
the ease was due to a quiet market
and no borrowers, or Uncle sage
having dumped some millions in the
street to accumulate a line of loans
which he would cali inoppCrtunelX
for the debtors and run call money"
up to 20 per cent within week!
With all of which, presumably, the
company that was Strong as iSandow
or Bigger than the Out-of-Doors or
that wanted to Nurse Your Baby
after Your Death" had nothing to do
it being a charitable organization
created for the purpose of taking care
of all the Fools-itseif!
Whereas, what are the facts regard
ing the great shrinkage in loan rates
They have all appeared in the reports
of the Investigations but thigh IL
nance" is sometimes as technical in
its terms as the structure of the brain.
One never quite knows whether he is
sliding down the chutes OF the fax
cerebri" resting under the tento-
rum cerebelli'' or-and that is more
likely-is merely the longest cared
of those who travel by way of 'pons
asinorum." High finance is peach Ut
the Chauncey hue until it is reduced
to the United States language: then
II is merely "swipe.' 1t is better for
those who fly low to think hard and
speak plain.
HOcus- pOkus on Loans.
In the matter of making loans, one
would think that the insurance COM
pany could find in all the world no Sc
curity quite so good as its own poll
cieS.
If one will look at the loan values
fixed thereon, for obtaining which ir
addition the policyholder must pay
five per cent in spite of the great
plethora of money, he will find thai
they constitute but a very small pei
cent of the present value of the policy
One writes, however, to see about
the loan value. The company replies
and. for instance, the policyholder re-
fuses to take the loan. Does thai
end the matter? Not at all. 1t Is
there that the beauties Of high finance
become evident.
Although the pOlINy IloluCI iie'o ScNiN
nothing about making loan eXcep
to the company, he is surprised in 3
few days to get a letter from trus
company of which he has never near,
offering to loan him money on his pol
lev in the "Strong as Sandow' to al
amount fifty per cent in excess OF thc
loan value fixed by the company IT
self.
There is just this difference. that
although money is easy 1ats
of interest will be six per cent. in
stead Of the five at which the com
pany would make the smaller loan.
And the milk in the cocoa nut j.
this: that if the policyholder will takt
the trouble to look, he Will ascertain
that the officers of the kind trust ccm
pany are also the officers of the "Strone
as Sandow Benevolent Association"
that the said "Sandow" officers owr
most of the stock of the trust com
pany; and that the same "Sandow" j:
Idepositing with the trust company mil
lions of the money which it is collect
ing from premiums at the nice little
call" rate-money being so easy =
of per cent interest
So that in the case of loans on poll
cies. high finance works soniewha
thusly:
That the money paid in by policy
holders is loaned out to the subsidiary
trust company at two per cent; mucf
of which could be loaned back t.
policyholders at 5 per cent rate.
The trust company, however. Off
cered by the same men who contro
the insurance company, will lend thi
money back to the persons from whom
it came for six per cent. for which
they should be grateful.
While the insurance company, b.
reason of the small rate it obtain
from it's loan is forced from conServa
tive business principals to pay les
than estimated and to reduce divi
dends on premiums
That is one phase of high financ
which is at least plain to one deduc
ton:
That money, when it is the people
is "easy'' to the man who ShufffeS tn