Year: 1877

Anything sppertaining to discount
md interest that may tend either TO in
crease or decrease the rate is alike OF I'M
portance to all classes who have money
T. loan or want money TO borrow. In
New York city number OF Insurance
Companies and Savings Banks are COM
menclng to loan money At SIX per ce't


The World thinks that "the significance
of this step is very great" and DO doubt 1t
is, for it will not only be the beginning
OF general reduction in the rates OF the
great money mart, but it will b. the en-
tering weige OF lower rates OF interest
throughout the country. New 1Ork Is
the certre Of the monied heart


whuse pulsa'ions beat and are felt across
the continent. IL is but natural that this
commodity, like everything else these
DAYS, should he cheaper, and Ms Is shown,
capitalists are beginning to believe 1t Is
better 10 have their funds At work earn
ing something than lying idle in bank
vaults. The same journal adds tur,her,
that It is TO be remembered thai tine IN
surance interest, measured by tie capital
invested in il and controlled 10y Z, Is one
of the greatest in this country, next, We
believe to railroads 1t make differ
ence of some $8OO,O00 annually to one
insurance company in this city whether
II receives six or seven per cent on Its
surplus 1t is not to be supposed that
the trustees of An Institution will sacrifice
such sum rs this, even for
one year without the most
mature consideration. And such
q sacrifice cannot be made for one year.
A well managed and durable corporation
of this magnitude Is not turned about by
every turn of the stock market. 1t does
not expand its business when there is Il
flush feeling in Wall street nor contract
it when Wall street is dull. 1t has and
must have permanent policy which is
not lightly to be changed. When, there
fore, the acknowledged leaders OF their
business, the LARGEST and most prosperous
life insurance companies and the Oldest
and richest savings banks, volunteer to
give up large portion of their income
the surrender means much,


In the present case the determination
Of the insurance companies and savings
banks to accept a lower rate OF interest
than they have hitherto received, is u
recognition OF the conditions Of busi-
ness in this country 1t l. an admission
that those conditions are not SpaSmodic,
but serious and permanent. Tn9 World
sevsral DAYS since maintained this view
of the state OF trade, in opposition To
those who expect trade 10 revive with
L rush" and look forward to seeing, II not
in 1877, then in 1878, some such years OF
plenty as 1867 and 1868. The U'ortd in.
sisted that that could no. be. The lead
ers of trade, the men who do Is
much rs any other men towards regulat-
ing the money market, not from day u
day, but from decade to decade, have
expressed their belief that il could not be,
and have expressed it IN way which
leaves no doubt of their sincerity. OF
course they have made sacrifice only in
name. 1t stands to reason that when the
United States can borrow money at four
per cent y private borrower, offering the
unquestionsble security which only life
Insurance companies and savings banks
can legally accept, cannot be ex-
pected to 60 on paying seven. The
placing OF thirty millions of the four
per cent. loan 1T par has been surprise
to many men, and many men insist that
II is negotiable only on account OF pecu-
liar and transient financial condition.
The lite insurance companies take the
other view 1t would be folly for them
~ lower the rate OF interest they demand