The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-08-01
The Abundance Of Money.

The plethora of money just now in all the
great centres of commerce is remarkable, and
probably unprecedented. The Bank of Eng
land, which is the unerring barometer of the
financial condition of Great Britain, has it's
Golfers 80 full that TIE rate of interest is reduced
to two and q half per cent, with some talk Of
reducing it to two per cent. II was the same
with the Bank of France. The. former had
twenty-five and half millions sterling in it's
vaults and the latter over thirty-th mill ons
sterling This extraordinary accumulation Of
specie shows a wonderful change since year
ago, when the Bank Of England rate of interest
was ten per cent. But such is the abundance
of money outside the banks as we'll as in them,
that il can be had both in London and Paris from
other parties at one and half per cent interest
Here, too, in New York, though the interest
is almost always much higher than in Europe,
money is very abundant, and may be had at
five per cent In fact, few days ago it was
only four per cent on government securities.
The United States Treasury has probably as
much specie in its vaults as the Bank of Eng
land, or more. The July statement has not yet
been made, but the probability is that the
four millions sterling. Thus, there is at present
accumulated in these three great national in
situations the enormous amount Of about four
hundred millions of dollars in specie. This,
however, represents only small portion of
the money in various forms that is afoat.
hot 10 fo ho mil ;Ioh1
capital? The holders are looking out for OPP
portunities to invest it. If peace should be
preserved, France may find opportunities for
large portion of her surplus money on the
Continent of Europe, though O portion of that
even may find its way to this country, on &C
count of the superior advantages and higher
interest here. Should there be war between
France and Germany, as now appears probable,
the government will absorb good deal, and
portion will be boarded, while some may fly
to this and other foreign countries. But what
is to be done with the abundance OF money in
Englands The United States is the proper
field for British capital. Although we have at
this financial centre just now an easy money
market there is demand for capital through
out other parts of the country beyond the
means New York has of supplying it. Besides,
the interest which would not satisfy our CAPT
talists would be large for the Europeans A
thousand Legitimate and paying enterprises can
be found here. The country in every section
is teeming with undeveloped wealth, waiting
the application of that surplus money found
in England. The South, particularly, is full of
natural resources. Money is much needed,
and If used there now will in few years re-
turn immense profits to those who invest
That section, beyond all question. is the richest
portion of the continent It's political troubles
are approaching a settlement; and when these
are settled, slavery being abolished, both CAPT
tai and emigration must naturally flow there.
Here then, Is the best field for the employment
of British as well as American capital. And
now, while money is SO much needed, and be-
tore the full tide Of prosperity sets in, is the
time to make the best bargains and 10 secure the
creates. advantages Let the capitalists of
England, who can get only one and half per
cent for money, and in the best times not over
three to five, bring 1t here, where they can OBJ
tain much higher interest in the safest in
vestments. The Old World is approaching the
limit Of development, while we are just begin
ming. Money will double itself here in third
the time II can in England. This is the natural
outlet for the surplus capital of Europe, as it is
for the surplus population.
-------------------
ra..,.,.~i n.-sw.s