The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1913-06-09
ENORMOUS BORROWINGS.

In general way every reader Of the
public journals is aware that there are
enormous borrowings going on in the
world The Bank of France has been
borrowing many millions Of dollars Of
gold in New York, Germany has been
borrowing gold in the same market, and
Mexico is closing negotiations for a
loan Of $l0o,000.000 Almost every
city, and many of the larger corpora
tion throughout the world, are in the
market for money. All need money,
and as the great fnanciers have recently
declared, the demand for money depletes
the bank reserves so that there is a
scarcity Of gold the world over, in spite
Of the fact that the national banks of
Europe have increased their gold hold
ings something like $l20,00o,o00 within
a year. We find in the Philadelphia
Record general summary of the Dor.
rowing situation, under the title,
"World Borrowings" as follows:
In February the German Government
issued a loan for s135, 900, 900, which was
very much undersubscribed. But It has
Just announced another loan OF $50, ,260,-
600, with the effect OF great deDres-
sion In the Berlin stock market which
has reacted upon London, Paris and New
York
But Germany has not been borrowing
moro than other countries France has
been projecting loan of $500, 900, 900.
Fifteen bond issues OF national and colon
ial governments and corporations have
been left In the greater part upon the
hands of the underwriters in London, who
nave been Obliged tn borrow money 10
carry them.
The difficulty Of selling bonds has been
marked for some time. and has been
growing greater. Last winter the two
explanations were the Balkan war and the
| boarding of gold. The Balkan war ceased
some months ago to be serious factor,
of Europe hold sl20.000.0 900 more gold
than they did year ago casts some doubt
about the boarding. The financial au-
| thorites are coming TO the conclusion
the worlds supplies. The world Is not
saving money fast enough TO meet the
requirements OF governments and corpor-
ations. The security markets all over
are burdeued with undisested bonds. and
the London Economist summarizes the
situation by saying that the world is
| overloaded and overarmed.'
Nearly every continental nation is bor-
rowing for military purposes. Canada is
borrowing enormously, in proportion TO
its resources, for internal improvements.
~
FOR buildings and canals and roads and
every conceivable form OF expenditure.
The State OF New York is now raising
s2I 900. 600 on short-time notes. because
for the moment its bonds are unstable.
though they are among the most desr-
able of all Investments In fifteen years
New York City has added s9i3, 900. 900 TO
Its bonded debt, and its annual budget
has very much more than doubled. In
seven years the per capita debt OF this
city, whose debt Is relatively moderate
has increased from $37.03 to S5o.56; that
of Pittsburg from 56.24 10 SSl 3S; that of
Baltimore from $i0.3A 10 S71.6i and that
OF Cincinnati from sS6.3S to $40. A num-
Der OF State and city bond issues during
the past few months have failed or have
been carried through only by increasing
the rate Of interest. The demand for
money is driving up the price Of il. and
even at higher rates II IS not satisfied.
for the demand exceeds the supply
There are come elemonts of danger In
the situation. but the conditions ore not
peculiar TO this country Indeed, they are
more favorable here than In Europe for
none OF the money sought here is re-
quired FOR purposes OF waste and destruc-
ton, while most OF the continental coun-
tries are borrowing or trying 20 borrow
money 10 spend on armies and fleets. Of
which the best that ono can say Is that
they ore idle.