Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-01-29
VARYING VIEWS OF BANKERS
One Declares Danger is Small, Another
Pessimistic.
HEAVY DEBTOR TO EUROPE
FUnabsorbed Securities, Due to Devel-
opment, Regarded on the Other !,
Side With Concern.

PARIS, January 29.-Declaratons of Eng.
lish bankers and the Impressions thereon
In New York give rise to comments by the
Journal des Debats as follows:
"Advices from New York had already
cooled speculative ardor to some extent. I,
Is difficult to clearly grasp the situation OF
markets so far removed. where the personal
influence and action of :. certain financial
powers play an important role, but we
know that prices have been pushed up in a
frightful manner: that there exists an enor-
nous mass of floating securities which the
public no longer absorbs and that there
Is no end to the issue Of new paper.
NO matter what the prosperity OF the
United States may be. 1t is evident that the
condition is not free from danger, and when
there comes. as was the case last week, a
big drop in Wall street, one is disposed to
think that it may be the beginning Of big
crash in prices.
Structure Built on a Mine.
1.-The impulse of the rise in metals, par
ticularly in copper, came from America.
The entire framework and scaffolding,
erected in Europe. are on a mine, and In
dustrial issues are thus in danger of being
shattered il the crisis should come in
America.
Therefore the bourse Is justified in pay
the other side of the Atlantic.
ut may seem at first paradoxical that
there should be a question Of a crisis in a
country where economic prosperity grows
always greatest. but it is just this rapid
development which might become the cause
of serious embarrassment.
'Eurepean markets have offered to Amer
lean f1nanciers useful outlet. but their
capacity in this line is not great enough for
New York's surplus. Thus American bank
| have
under various forms and have contracted
a heavy debt in Europe.
There exists in the United States lack
of harmony between money rates and the
Importance of the demand. On the other
hand too low a rate stimulated investment
of capital and consequently more paper
1t is this condition that constitutes the
danger
Varying Views Of Bankers.
A correspondent interviewed the heads
of several Paris banking houses. One of
the best authorities thinks that no real
crisis is imminent in New York and that
the credit and prosperity of the United
States are not endangered.
This very prosperity should prove as
suring" he says. 1.-The cause of the
trouble is the demand for money. This de-
mand is disquieting for Europe, particu-
larry because of the big scale of operations
in the United States.
Here, If We need one hundred million
francs we first ascertain whether the sit
uation is favorable for finding the sum.
1t is different in America. where financiers
ask not one hundred million francs, but
two or three hundred million dollars with
out considering whether the worlds mar
ket is in a situation to furnish the amount
asked. This way of doing business, which
is typically American, gives us a fright,
and the more SO because we have already
placed large sums over there. However, l
am not pesSimistic the situation"
Another banker, who is in close relations
with New York, holds a different opinion.
He says:
ut must be admitted that the situation
is rather serious. The prosperity of the
Unite States is not endangered. but it
must be remembered that 1t is always dur
ing period of such prosperity that these
| accidents happen and they are the result
of running wild on certain securities
America, has too easily found money
here. She thought she could always do
So but France and England have been
| overfed on American securities, and think
it would be unwise to try to make them
swallow any more"
Still another local financier says:
Il think that all danger of a crisis has
been averted, at least for the present.