EXHIBIT 12
                                 
                                 
                                 
                                 
            CATERPILLAR FINANCIAL SERVICES CORPORATION
                                 
              STATEMENT SETTING FORTH COMPUTATION OF
                 RATIO OF PROFIT TO FIXED CHARGES
                            (Unaudited)
                       (Millions of Dollars)
                                 
          
          
                                   Three Months       Six Months
                                      Ended              Ended
                                  June     June     June     June
                                   30,      30,      30,      30,
                                  1997     1996     1997     1996
                                                                   
Net Income                        $ 21.9   $ 20.1   $ 48.9   $ 36.4
                                                                   
Add:                                                               
  Provision for income taxes        12.4     11.2     27.0     21.4
                                                                   
Deduct:                                                            
  Equity in profit of               (.7)     (.7)    (1.2)    (1.1)
partnerships
                                                                   
Profit before taxes               $ 33.6   $ 30.6   $ 74.7   $ 56.7
                                                                   
Fixed charges:                                                     
  Interest on borrowed funds      $ 87.8   $ 75.9   $167.3   $149.6
  Rentals at computed interest*       .7       .6      1.3      1.2
                                                                   
Total fixed charges               $ 88.5   $ 76.5   $168.6   $150.8
                                                                   
Profit before taxes plus fixed    $122.1   $107.1   $243.3   $207.5
charges
                                                                   
Ratio of profit before taxes                                       
plus                                1.38     1.40     1.44     1.38
  fixed charges to fixed charges
     
*Those portions of rent expense that are representative of interest
cost.