The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1912-05-18

United States are purely arbitrary.
fictitious forced. a majority OF
these bonds bears . per cent interest.
and if they were not available for ma
tional banks purposes, either to secure
circulation or deposits, then it would
be impossible to market these securities
at par. If the British consols cannot
be sold at par. there seems to be nc
reason for presuming that the United
States 2 per cent bonds could be mar
keted al par. Sometimes bankers have
in an informal way discussed the in
terest rate upon United States bonds
which would Justify the marketing of
these bonds at par, and the general
opinion has always been given thai
not less than 3 per cent and probably
21I per cent interest rate would be
necessary if the United States were
to market bonds at par in the oper
market.
The state and the city of New York
by reason of the tests which have been
made through the marketing of thel-
securities, which are exempt from tax
alton, have demonstrated that at the
present time the standard rate of in
terest for a security having the high
est credit behind it is not less thar
4 per cent. 1t is true that about u
years ago Mr.. James Speyer seemed tc
have demonstrated that a very higl:
grade of railroad security, bearing 313
per cent interest. could be easily mar
keted 1t was the experience which
was the good fortune of Mr. Speyer
when he refunded the debt of the Lake
Shore Railroad company which per-
suaded the late Ashbel Fitch, when
comptroller of New York city, that II
would be possible to market New York
city bonds at par even though the in
terest rate were fixed at 31a per cent
That, however, was in the time OF
great industrial promotions and of
great speculation and when gold was
pouring into the United States from
Europe in large amounts. One hun
bred millions of gold was received by
ope at this time. So it was sometimes |
said that New York city had demon |
strated that it could maintain at PAL
a security bearing 315 per cent inter |
est and that the ability to do this gave
New York the highest credit of any
or state in the world.
The test however, was only tenn |
porarily successful. and seven years |
later New York city found itself un-
able to market an offering of 40 mil |
lions of bonds bearing per cent in |
terest.
MIR. Schwab and United States Steel. |
The interview with Charles NJ |
Schwab which was recently published |
in the Wall Street Journal caused a |
great deal of comment and some cyni- !
cisn. One of the remarks sometimes |
heard was that Mr. Schwab must be |
long of United States Steel stock !
So also it was sometimes said thai |
Mr.. Schwab had permitted his optimis- |
tic disposition to influence his judg-
ment. But the prevailing opinion with |
those who have known what Mi |
views respecting the United |
States Steel corporation have been |
since he retired from the presidency
Of the corporation is that Mr.. Schwab |
in this interview is consistent with ali /
that he has said of the steel corpora /
ton since 1905. In fact, he is no more
optimistic now than he has always
been, both IS to the future of the steel |
and of the iron and steel
business of the United States
In the spring of 1907 Mr.. SehwaS
was at Palm Beach, Fla. At that time
1 good many men prominent in the
arger affairs of the United States were |
taking a vacation at that resort. To
these men Mr.. SchWab ventured to say
that unless there came serious bust
ness setbacks Or unless legislation that |
was very radical was adopted by tho
states and by congress he was con-
rinced that by the year 1912 the Unitedll
ng net 200 millions and might earn
rs much as $50 millions a year by that |
line.
The money panic and the business
stagnation caused the very emergency
o which Mr.. Schwab referred as posi-
Die. In those Palm Beach converse
ions Mr.. Schwab earnestly asserted
hat there would be steel and iron bus
ness enough in the United States in
lines of normal prosperity for both the
United States Steel corporation and
or the independent steel and iron pro-
luce-s.
1t is observed that in this interview
Mr.. Schwab intimates that business
conditions at the present time make it
lear that the United States Steel cor
ooration is not and cannot be a mon
'poly. HOLLAND.
Mate-When he fired the pistol at Won
what did you do, captain? Captain-I !
moved to one side and the bullet sped |
larmleSslV by and buried itself in A. |