The daily intelligencer. [volume] (Seattle, Wash. Territory [i.e. Wash.]) 1876-1881, 1877-03-02
County and City Official Press.
Friday, March 2, 1877.
CHANGING CONDITIONS.


There is dis matrical contrast be-
tween re financial condition Of old and
new countries. The old have a surplus
Of money and people, the now. a
deerth Of these. aud Of the wealth that
consists in articles Of artificial crea-
ton. but . greater abundance Of natu-
raj wealth.
A. long ss we have unsppropriated
lands to pay for. mills and mines to de-
velop. ard natural resources to absorb
the wealth Of immigration like .
sponge, money must be at heavy
premium. Heretofore. this has been
the average condition Of things 10 the
United States. If q railroad had to be
Laid, or reducing works for quartz
mine built. or any other big job accom-
plished. the European banks were the
source whence the supply Of the need
fal funds was sought. Not only pri-
vate but even oil government: exigen-
cies required loans from London. or
Paris. or Frankfort-on-the- Main. The
interest drafts of Europe upon the ex-
chequer Of this country have been
enormous. Bat the signs of the times
indicate changing regime in this re-
gard The enormous shrinking of
prices that has been taking place since
the war, and the steady accumulation
Of monetary capital through the cen.
tusies Of peaceful industry have
brought some of the Eastern banks into
. similar condition with those of Eu-
rops-a supply Of funds in excess OF
local demands. In consequence general
reduction in rates Of interest has follow.
cd and some Of the Massachusetts in.
stitutions have voted TO reduce the rates
on deposits to per cent. beginning
with the first Of July next. This is
lower than the rate paid by the gov,
eminent to the foreign holders Of its
bonds which have lately been changed
cent. Naturally enough tho European
capitalists have eagerly absorbed these
bonds, the rates Of interests fixed by
their own banks being often Is low q
two per cent. per annum and averaging
far below four per cent The wonder
10 that more OF them are not held by
Americans; tho security being by far
the best in the country. the interest the
most promptly paid, and with the least
inconvenience
There ere good reasans why it would
Be preferable thus to place the national
debt Ut home. The interest would not
be distracted to foreign countries, aud
furthermore the holders would one and
oil become sort Of joint stot kholders in
the government and bound by the strong
tie OF financial interest to its perpetuity
and prosperity. This decline in inter
est rates is not ~ noticeable on the Pa
cifc Coast ~ in the East, for the rea-
sons noted above; and yet there has
been . change steadily going on rs
great in proportion. The law of sup
ply and demand 10 universal in its Cd.
Grafton in financial - we'll Is in other
mattsss; and there is telegraphic sym
pashy extending through all the money
markets. Of the world. Depression or
advance in any ono country 10 only a
rsnex in degree. Of influences that a.
fsot il Ia others and distributively ev.
erywhere.
The present gratifying monetary con-
dition is. however. largely attributable
to the sound position OF the Govern
'nent. 10 boldly taken and so firmly
maintained Of q speedy restoration Of
tie gold end silver currency.