The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1912-02-17

this statement is that liquidation OF
loans upon real property has been
made possible through the industry
and wisdom which have characterized
the people of these two states. Every
banker will realize what the meaning
is behind the prevalent money rate in
the part of the country with which
Mr.. Holmes is familiar. If good loans
are offered at rate of interest run
ming from five to six per cent the pre-
sumption would be that opportunities
of that kind are not very plentiful.
The people do not need to make loans
as they formerly were compelled to do
when the middle west was in process
of development According to Mr..
Holmes the rates charged for money
behind which stands good security in
the middle west are now no greater
than rates charged in New York or
Boston.
It has been observed now for some
weeks that all of the reports brought
to this city by men competent to
speak and almost all of the reports
received from qualified correspondents
in other parts of the country state that
business is fairly good and that moth
ing like hard times is to be discovered
anywhere in the west or south.
A Reason for Hope.
Many of the men of finance whose
business it is to keep themselves IA
miliar with conditions in this country
and in Europe speak of the recent
change in diplomatic relations which
has taken place in Europe as a most
encouraging symptom. Business con-
SideratiOnS of a high and worthy kind
have, it is believed, made possible the
new and happy understanding which
has apparently been entered into be-
tween Germany and Great Britain.
And not the least of the causes for re-
vived hope of business prosperity is
the assurance that the United States
and Germany will, through the great
moral influence these nations are able
-
China, the open door for trade and
commerce will be maintained in what
was the Celestial empire and is now
the most recent of republics. This
guarantee of protected autonomy will,
it is believed, result in very great ad-
vantages to the United States after the
Panama canal has been opened.
To Aid Foreign Commerce.
One of the features of any reforma-
ton of our banking and currency sys-
eign commerce would be the perfect
ing Of means by which foreign ex-
change is provided. Every busin ess
man in the United States who pur-
tries would doubtless be glad were
congress to permit national banks to
accept drafts drawn by business Gus
toners of the banks which by that ac-
ceptarce would instantly become as
valuable as any form of foreign ex-
change. For instance, an importer at
Chicago or at Philadelphia or any city,
having bought commodities in the for
eign markets, is now compelled to pur-
chase foreign exchange with which to
make payment. If, now, the national
banking law permitted a merchant to
make draft upon his own bank
which that bank could lawfully ac-
cept then the draft would become
practically a bill Of exchange good the
world over. 1t could be sent to the
largest money market and turned into
cash at very low rate. 1t would pro-
vide a market for no small portion of
the large volume of funds which flow
to New York, Chicago or other large
cities Every banker and every COM
petent business man can easily under
stand how drafts of that kind would
serve very greatly to limit those re-
sources upon which the socalled
money power must in great measure
rely for the utilization of it's power.
HOLLAND