The Washington times., 1912-05-12

ing municipalities to pay more for their
money, with consequent ever increas-
ing burdens upon tax payers; In TINS
auent c For instance, on January "a,
1903 New York city sold 3h per cent
bonds at 10i56, an interest basis OF 8.Sl
per cent. Its recent sale OF "A per cents
at 1OO.7H figures out an interest basis OF
42l per cent, or 8 per cent higher: Apply
the Increase to $65, 100000 Of bonds run
ming for fifty years, and 1t Is apparent
that during the life of the recent loan
the city Is compelled to pay 40 per
cent more than 1t would have had to
pay nine years ago to secure It's money,
or s29, $4,000 additional In interest
charges alone. ,, l.,
connection with this marked change In
interest rates. that in 1899 the Equitable
Life Assurance Society sent out letters
asking the opinions of the leadlhe
bankers Of the country on what they
Thought the interest rates on the high
est class Investments during period OF
twenty years, or until 1919, would De.
The answers were almost unanimous
that they would not range above o 70
5h per cent, and many men preolcteo
" per cent. Very many railroads. az
the time brought out 315 and even per
cent bonds, and many OF the torInsr
sold at a premium. Some OF these ROADS
are now borrowing on notes around D
per cent, and their bonds are selling on
a basis Of AZ to AZ per cent, or higher,
and appear to be under liquidation, Tor
II looks very much as though ponns
were heayed for per cent OASIS
The loss to investors and investing in
| stitutions through this change In ln-
tcrest rates and the consequent rednc-
| ton in the price Of high grace oonus
! in adjusting to present conditions must
| be simply enormous.
Business and Money.
According to the reviews or buslnesE
conditions issued by the commercial
agencies, the general movement OF
trade conditions upon larger scare
than a year ago and the indices oy
which Industrial activity Is customaril9
measured are still favorable. Dun
| Review, in It's issue today, notes that
| bank clearances outside OF New 1ork
this week are lis per cent greater than
in 1911. while within the city the gains
are 1873 per cent. Railroad gross earn
ings for April increased IS per cent
| and the movement of foreign commerce
! from this port maintains hlghly iaNor-
| able showing, but with this there Is the
tempering influence of conservatism IL, IL,
| all lines of business, and this VIII
doubtless continue throughout the perIoo
OF crop and political uncertainty. Ihe
chief discordant note IN the pns'ness tss
! small basis of profits due to the hlgh
cost OF labor and materials.
! The chief events in the money mar
ket of the interval was the reducuon OF
: Che minimum discount rate Of the Bank
Of England from 3I2 to per cent and
European advices are to the erect that
similar action may be expected botr
from the Bank of France and the I'M
), pcrial Bank of Germany. Locaily
\ money rates were unchanged, neithef
the better conditions OF business nor tht
more hopeful sentiment OF the stocf
market having any appreciable influence
on rates for time and call money OF
commercial paper. AS was to have beer
expected, the city bond sale reflected tc
some extent in today's bank statement
loans increasing 1895 900 and deposit
liza bilities expanding S3l, 900. Casf
plus reserve decreased 1856 $50. Bu'
the local borrowing demand Is so ex
, ceedingly limited that no attention was
paid to the bank statement.