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Show BANKERS WANT SECURE LOANS Utah Traction Bonds Go Quickly as Result of Abundant Credit By HARDEN COLFAX S 1 n cini Correspondent r The stand- 1 iinl-l xanilner. (Copyright. 1922. by The Standard-1 Examiner. j WASHINGTON, June 3 Twenty-' I five billion dollars of unused credit lies j jln American bank valuer today, sue-1 . cording to this week's statement of the ' 1 federal rcserw hoard. Savings and' j state banks have another huge fund I which they are most anxious to lend. ' I While there Is no method of measur- ' Ing that sum the nation s banks probably prob-ably have all told an untapped total for forty billions of credit avaAlabi. for business entc rprie. Today's great reservoir of unused cr. dlt has been filling rapidly within the past year and stands today at the highest mark over reached ln tho history his-tory of American banking. it has brought about a situation virtually 'without parallel in our economic hls-j hls-j tory. The man or firm who wanted to borrow money a year ago had dlf- j ficulty In obtaining It at high interest I rates; today he is courted by banks J and investment houses. Hungry dollars dol-lars are strenuously seeking" his ein-ploy ein-ploy and at low rates of Interest. The only thing he need have to get all the money he wants Is prime security for his loan. Every issue Of securities, big or lit- I tie, offered the nation's investors by ! reput.-tblu houses within tho past month or so has been scooped up with an eagerness born of huncer. Foreign and domestic issues alike are over 1 -ul. scribed again and again. For in-I in-I iii' e a $24,000.01111 issue of bonds of tho republic of Hollvia was offered Investors In-vestors Friday. The subscription books I w ere opened at 10:30 o'clock. Five minutes later they were closed. The lsu- had been heavily over-sub-ecribed. The treasury's offering oi $200,0004: 000 In securities paying 3fj per cent, Interest v;ls over-subscribed ln every district this week. UTAH BONDS SOI (.ill The farm loan board's offering of J7o.ouo.00o of 4Vi per cent tax "free bonds, offered a lew weeks back, was heavily over-subscribed on th day it was offered that the board issued a few days later another $42,000,000 to take up part of the overflow. The Canadian government $100,000,000 bond Issue, put on the market about a month ago, disappointed thousands of investors ln that they could not get a share in it. Industrial offerings of prime value meet the same response. During the precni week the New Lnglund Tele-phoiio Tele-phoiio ,v l'el. graifh company ..fun d $36,000,000 of first mortgage 30-year five per cent bonds Tho books were opened and closed Immediately with an enormous over-subscription. The Virginia-Carolina Chemical company's ;-.'j ji.il, ion.. ... i.rst mortgage 2..-y-ar seven per cent bunds was absorbed will n an hour The comparatively small concern seeking money likewise is embarrassed embarrass-ed by the profusion of offers The Utah Light & Traction company offered offer-ed a few days ago an Issue of $12,-500,000 $12,-500,000 In live per cent bonds. It had to turn away dollars from Its doors. The Philadelphia Electric company put out a $7,500,000 issue of 5V2 per cent bonds and many Investors failed to obtain as much of tho offering as they wanted. N 1 V. I s 1 1 S RETIRED With the hor.h- of Investors, individuals individ-uals and banks, clamoring for loans. Interest rates are dropping fast. Some of the borrowers who r.ad to pay high rates a short time ago are seeking today to pay off their old loans and U sue securities at lower rates. ,An instance in-stance is the application of the New York Central lUUlroad company this week made to tho interstate commerce com-merce commission, for the opportunity to pay back at a premium of o per cent $25,000,000 of its notes Issued ln September, 1920. at a 7 per cent interest in-terest rate, and issue instead a similar sim-ilar offering which will pay but five pei cent. The effect of this tremendous pressure pres-sure of Idle funds has been to cut bunk earnings materially. The federal feder-al reserve banks, for Instance, paid the government about $60.O0o.uu in excess earnings as a franchise tax last year. In 1920 tho payment to the government gov-ernment was about the same amount. This year, howover, due to lowered Interest In-terest rates and the groat volume of -funds seeking Investment, the federal fed-eral reserve banks will pay something j III.-- ... 1 'Hi. drop ul mon than 9 0 per cent. B INKERS I l TIOUS. Notwithstanding th- 1 xu'.v of idle money, high rati have to be paid, generally, on second trust loans on real estate. Bankers explain thl9 by Baying that tho building trades aro I experiencing record activity at price levels which appear to the bankers to j be Inflated. Tho bankers profess to believe there Is an excellent prospect j Of houses selling today for. say $10,-000 $10,-000 In some localities, will sell ln a year or so at lower figures The high rate Is charged on account of tho hazard. haz-ard. It Is stated. On prime first mortgages normal rates prevail and defend lor this class of security is difficult dif-ficult to satisfy Easy money and plenty of It continued con-tinued to help business further back 1 to normal during the wock. according to reports received here. The movement move-ment of freight over tho railroads continued con-tinued lo gain. Tho Iron and steel Industries In-dustries wcro reported running at about 80 por cent of capacity. Labor shortages ln certain lines became more marked nnd in other lines the employment employ-ment situation continued to Improve. 00 FOR U. l ( 11 N'.i NEW YORK, Juno 3 Foreign exchange ex-change steady. Great Britain, demand. $4. 171; cables $4,484; sixty-day bJUa on banks $4.45$i. Franco, demand. 9.12; cables 9 12. llnlv ,lnv,n4 91- nahln. C Oil Belgium. demand, 8.43; cables S.43. Germany, demand .364; cables. . r. ' H . Holland, demand, 38.90; cables 38.96. Norway, demand, 17.87. Sweden, demand, 26.95. Denmark, demand, 21.83. Switzerland, demand. 19.12. Spain, demand 15. SO Greece, demand, 4.22. Poland, demand, .02. Czecho-Slovakla, demand 1.96. Argentine, demand, 36.50. Brazil, demand. 13.87. Montreal, demand 99 1-16. II Mn ST 1 I Ml AT NEW YORK. June 3. Tho actual condition of the clearing house banks and trust companies for the week shows that they hold $26,641,170 In excess of legal requirements. This Is an Increase of $8,017,730 from last week. LONDON RATES LONDON, June 3. Bar biIvoi 3 5 -d per ounce. I Honey I per cent. Jl Discount rate, short bills 2 5-16 per ie cent; 3 months bills &Z2T-16. |