The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1867-08-02
The Abundance OF Money.
From The Herald.

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 its
Golfers so full that the rate of interest is re-
duced to two and half per cent. with some
talk of reducing it two per cent. 1t was the
same with the Bank of France. The former
had twenty-five and half millions sterling in
its vaults and the latter over thirty-three mil
lions sterling. This extraordinary accumula-
tion 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
well as in them, that it 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 England or
more. The July statement has not yet been
made, but the probability is that the amount
will be equal to twenty-three or twenty-four
millions sterling. Thus, there is at present
accumulated in these three great national in
stitutions 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.
What is to be done with all this available
capitalY The holders are looking out for op-
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 portion of that
even may find its way to this country, on ac-
count of the superior advantages and higher
interest here. Should there be war between
France and Germany, as now appears proba-
BILE, the Government will absorb a good deal
and a 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 England 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
throughout other parts of the country beyond
the means New York has of supplying it. Be-
sides, the interest which would not satisfy our
capitalists would be large for the Europeans.
A thousand legitimate and paying enterprises
can be found here. The country in every sec
tion is teeming with undeveloped wealth, wait
ing the application of the 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 rich
est portion of the continent. Its political
troubles are approaching a settlement, and
when these are settled, slavery being abo-
lished, both capital and emigration must 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 before the full tide of prosperity
sets in, is the time to make the best bargains,
and to secure the greatest 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 it
here, where they can obtain a much higher
interest in the safest investments. The Old
World is approaching the limit of develop
ment, while we are just beginning Money
will double itself here in third the time it
can in England. This is the natural outlet
for the surplus capital of Europe as it is for
the surplus population.