EXHIBIT 12
                                 
                                 
                                 
                                 
            CATERPILLAR FINANCIAL SERVICES CORPORATION
                                 
              STATEMENT SETTING FORTH COMPUTATION OF
                 RATIO OF PROFIT TO FIXED CHARGES
                            (Unaudited)
                       (Millions of Dollars)
                                 
          
          
                                   Three Months       Nine months
                                      Ended              Ended
                                  Sept.    Sept.    Sept.    Sept.
                                   30,      30,      30,      30,
                                  1997     1996     1997    1996
                                                                    
Net Income                          23.0   $ 22.1      71.9   $ 58.5
                                                                    
Add:                                                                
  Provision for income taxes        13.2     11.6      40.2     33.0
                                                                    
Deduct:                                                             
  Equity in profit of               (.6)     (.6)     (1.9)    (1.8)
partnerships
                                                                    
Profit before taxes                    $   $ 33.1    $110.2   $ 89.7
                                    35.6
                                                                    
Fixed charges:                                                      
  Interest on borrowed funds      $ 96.6   $ 82.7    $263.9   $232.3
  Rentals at computed interest*      1.0       .6       2.3      1.8
                                                                    
Total fixed charges               $ 97.6   $ 83.3    $266.2   $234.1
                                                                    
Profit before taxes plus fixed    $133.2   $116.4    $376.4   $323.8
charges
                                                                    
Ratio of profit before taxes                                       
plus                                1.36     1.40     1.41     1.38
  fixed charges to fixed charges
     
*Those portions of rent expense that are representative of interest
cost.