The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1907-09-11
Secretary Wilson Re-
ceiveS Proof That
West Is Willing
to Lend.
High Interest and Best
Security Offered for
Funds in Large or
Small Amounts.

Secretary Wilson has received striking
evidence Of the assertion he made
short time ago that the West was send
Ing money TO the East instead OF the
East 10 the West IN the light OF this
evidence the prevailing Idea that vast
sums are sent to the West 10 move
the crops is made TO look like a bit Of
pleasant fiction which IN some quarters
It is found worth while to keep up.
A banking friend OF Secretary VIII
son, a country banker in Iowa, has
forwarded to him a number OF circulars
sent out from big Eastern banking
Institutions. These circulars offer IN
usual inducements 20 Western money
lenders to loan money on long time on
high-grade Eastern securities. Secre-
tary Wilson says the purpose is to bor-
row the money in the hands OF the
farmers, particularly the farmers OF the
prosperous central West. Much OF the
money is desired for Chicago, but stm
more for New York and other Eastern
money centers.
High Interest Offered.
High interest rates on long time are
offered. The rates range from to Z
y
vance. One big manufacturing con-
cern Is Offering 7 per cent discount.
Railroads are asking for money for
terms of three or four years. and are
willing 10 pay 6lk per cent or more. They
are willing 70 borrow small sums, as
low, for instance. as $1,000 They are
reaching FOR the farmers money
through the small banker.
Secretary Wilson declares that the
fnanciers are just beginning 10 appre-
ciate thar n they want money they
must go 10 the men who produce the
most OF It. the farmers.
Last year" said the Secretary the
farm products Of this country were
worth $500 000000. This year. they will be
worth much more. from 500. 900. 900 TO s1.-
O0o, 10000. II is not possible 10 give the
exact sum, but that the value OF the
crops VIII be greater this year. I have
no doubt. The crops are not as large
but the prices are better What other
element cf our population produces as
much as this?
4 have often told CAPITALISTS that ~
they would make their railroad and
other securities as safe as Government
bonds. they would have no trouble bOr-
rowing money The recent exposures OF
the methods OF Juggling with railroad
have made people doubtful about where
they lend their money. The man that
takes proper steps TO protect his credit
viii not have difficulty IN raising
money"
Inducements Held Out.
The circulars that have core 20 Sec
rotary Wilson's attention from Eastern
financial houses offer various induce
ments for loans on the paper of rail-
roads, manufacturing establishments,
and the Ike. One Of these IS absolute
security; others are the greater yield OF
interest over longer period than would
be obtainable on ordinary commercial
paper, the possession Of securities for
which there is an active and inter-
national market on which 10 realize IN
case Of sudden need Of money, and
holding Of securities that can be I1stSss
to obtain temporary accommodations.
Heretofore, transactions Of the sort re-
ferTed to have generally been through
big financial institutions IN the great
money centers. Now, they are pTacti-
cally with the farmer himself, through
the me1ium Of the country bank.
Secretary Wilson thinks the small
bank generally holds the paper, paying
the farmer interest for his deposit, and
receiving a share Of the interest itself
for making the transaction, but he
thinks the situation may resolve itself
to some degree into direct borrowing
from the farmers, the latter themselves
holding the paper.