Show AMERICA HAS MONtY TO BURN j j Bank Vaults Are Bursting j With Idle Cash 2 + SEEKING INVESTMENT IN SOCKS AND BONDS 1 + Capital Is Unable to Find Safe and Profitable Securities t if i Money Is the Cheapest Thing in America ad Loa Are Placed at Ridiculous RateRui Negotiating Ne-gotiating For an American Loa Former Comptler Eckel Talks About the Plethora of Idle Mone and the Benefits of Trusts ± Chicago Dee 1Te Chicago Daily i News sags TIle statement may startle the general gen-eral public but in the financial world the report will cue no astonishment although the condition be unprecedented unprecedent-ed In the monetary history of the country coun-try tryFor For nearly two months money has been the cheapest thing I America a financiers phrase it For a fortnight cal loans have been made in Wail street as low a onehl per cent while shorttme borrowers with approved ap-proved collateral are accommodated at 3Y Del cent in Chicago The bond market a absolutely bare of firstclass securities yielding more than 3Y per cent Today 5 per cent coupon Issues were bought on the exchanges at 117 and highgde stock that pay dividends at the rte of 5 per cent per annum were quoted at 132 ChIcago Northwestern North-western common was a Instance Firs that make a specialty of investment in-vestment securities akowledge that the demand for valuw has exceeded the supply threefold Fairly safe issue have ben absorbed and there is no diminution di-minution In the funds seeking place meat The national treasury states that for the current month money in circulation circula-tion has Increased 2030722 This foi lowing a gain of 50000 for October makes a total expansion of about i5 000000 for the last sixty das Compared Com-pared with a year ago the total circu liton of all kinds of money is l6579s 00 greater and amounts in all t 1 886800000 The perspective reveals even more mor money On the first of le year corporations will distribute about 1000000 in interest in-terest and dividends Besides exports are increasing rapidly while Imports are decreasing quite as rapidly The latest figures tel that the exports of merchandise from this country exceed those of Great Britain for the first time in the history of the two countries The United State is in the unique position f 1 no h I n attu ur ueSlrng 10 uur toe Amencan eLudes and bonds that are held abroad RUSSIA WANTS TO BORROW I is this condition tat has warrant ed a foreign government In making tentative ten-tative overture for I big lo TIle borrower is supposed to be Russ The representatives of that country were negotiating with French bakers sometime some-time ago for a large sum but the transaction trans-action was not concluded ExComptroler of the Currency Eei cIs has heard of the overture made bY Q side a foreign power to raise money on this sideThe monetary condition of the country coun-try is today quite unlike anything we have heretofore witnessed he sad Despite the unusual activity in all character of stocks and bonds and in general business lines deposits grow in the banks largely beyond expansion of loans There certainly is no present and but little future prospect of I change There can hardly be one wit the amount of money flowing into the country from abroad and the morons iris demand there for ou products Whatever discussion appeared some weeks since as to the raising of rates of the Bank of England and the Imperial Impe-rial Ban of Germany has now passed awar awaI seem that so far a German felt conditions are concerned London cncere there might be trouble in Berlin because be-cause the banks had not bee prudent In advancing to so great an extent on securities which the banks themselves were really interested in because the customers to whom advances were made had not the means themselves to finance them This condition of great demand for money immediately reflected re-flected itself in Lpndon and Paris and though much less so in New York It is stated by those in a positon to know that the change is now for the better and tough money Is still wanted In Berlin there will be no great strn gency or any difficulty because the situation was faced in good time Asa As-a result no further advance is anticipated antici-pated In the rate of the Bank of England Eng-land ADVANCE IN SECURITIES I doubt if the definIte announcement of the signing of the treaty of pee tvith Span has had much if anything wih to do with the surprising advance in all characters of securities As a matter mat-ter of fact al the effects of such an act had long been discounted as had every step in the war in so far as bud ness was concerned Much of the advance ad-vance Is upon the basis of merit owing ow-ing to generally Improved condItions Some however is purely speculative and may be carried tq a extent that will cause a reaction ThIs reaction while it mIght be serIous se-rIous under other monetary conditions effect with would have less marked efect the plethora or money on hand everywhere every-where throughoirt the country 1 So great Ui this that I have heard It intimated from good sources that there has been some real discussion of one of the foreign power negotiating a loan in New York All this is accentuated 2 accentu-ated by the fact that America interests inter-ests are loaning abroad The force of economies In management and expenditure expendi-ture is rot the least of the reasons for 2 a betterment In values of slow and mOre thorough organization in car Ing on great enterprises The reduction of prices in so many thing i nov compelled to be met by better systems of administration and greater volume of business Neeesarlly Is this so in all classes of industrials and railroads As for the banks it is the greater volume of business alone which enables them with so great a reduction in the payment for transacting the business 1 to make a fall return upon thr capita invested All this benefits more than anyone o i else the great body of consumers How i ever apparently on the face of things comblnatlonsmay seem tobe ut prts ett or the benefit ofapitaI aiiana1y Isis I-sis of the red effect of them will show that the consumer is the largest gain cr The danger in such combinations lies in their inviting more or less speculation spec-ulation thus affording opportunlt tQ managers to crifice the interests of the great body ot shareholders to their r own personal gaih Then too the eJY great reourees vested in theni tend to r bli invite political bl and cause participation par-ticipation in politics by them < However these features can all be safeguarded and in time combinations made within the lines of laws and fairness fair-ness conducted upon legitimate busineSs busi-neSs principles will be accepted here as much a part of everyday cammer cinl life as they aiC indthr countries where thIs evolutionwas lOng since a fixture and an ccepted benefit It is knoTp that german institutions have pafl fu the last five weeks as high as 4 per tent for six months loans mad In Wall and La SaIle streets which is not excessive hen it is re31loothat the dlscountrat of the fleiqhbank iB6 1excent Money bein dearer inFrance and in Enflaid than4athe Wilted States the infereJlIlC Is I sI t1I ical that the foreign I represpn tat Ca Who lre negotiating a large loan in this country are acting for lh zars gpyernPJent |