Brenham weekly banner. [volume] (Brenham, Tex.) 1877-1907, 1880-09-16
CHEAP MONEY.

ii any poiltielan OF poltiCdi
economist had made the asser-
ton twenty years ago that the
people of the United States
would have plenty of money to
invest at three and one half per
cent. interest per annum, in the
year 1880, he would at once
have been told that he was era
zy. But it Is true, nevertheless,
and in the interim we have had
a war which cost the country
two thousand million dollars
from the public treasury and as
much more from the pockets OF
individuals. From a value OF
! 81 I-2 cents to the dollar the
currency has been restored TO
normal condition, and nov a
paper dollar is as good as gold
dollar. The danger of initiation
has past; there can in reality be
no initiation Of the currency as
long as a paper dollar is worth
dollar in coin-gold or silver
imitation means reduction IN
the value of paper money. It's
impossible to initiate the curren-
cy and maintain it on a par with
coin. We have no longer to
take our bonds to Europe to
| find market for them (; the de-
mand for them at home is now
reater than the supply, this is
proven by the fact that for
months past, government four
per cert. bonds have been at
premium of from eight to ten
per cent, and at that rate the
bonds only pay three and half
per cent. interest. This is GER
tainly low rate of interest, but
the bonds are considered to be
the safest investment that can
be made. In England, the
money center of the civilized
world, money is worth about
three per cent. per annum. Our
money has increased more than
our population, but this can be
accounted for by the immense
product OF our mines. In 1873,
during the panic, people who
had surplus money withdrew it
from active employment by
putting it away in safe-deposit
banks, in bank vaults, and hid
ing it for safe-keeping. With
the return of confidence this
money has been brought forth
from its hiding places and de-
posted in banks or invested in
bonds and other things where
it would multiply.
That there is an abundance
of money is shown by the fact
that it seeks investment at three
and one half per cent. interest.
In ST. Louis there are thirty or
forty banks and it is said that
there is not a single one that
has not from 100000 to
100000 that it is anxious to
let out on good security. In the
western states prosperous farm
ers who formerly lent their sur
plus money to their more needy
neighbors at from ten to twelve
per cent interest, are now glad
to get six and seven per cent.
In Texas a few years ago money
commanded from fifteen to eigh-
teen per cent, nowit can be had
at from ten to twelve in the
country, bank rates in the cities
being much lower.
The greenbackers are contin-
ually talking about the scarcity
of money when there is in real
ity no scarcity of it, but instead
of a scarcity a plethora. The
currency is on a solid basis and
is likely to remain SO for some
time to come; their occupation
in this respect IS gone. Wash
Jones and his fellow greenback-
ers will hardly be able to con-
vince thinking people that they
can have any better paper
money than that now in circu-
latiou which is worth dollar for
dollar in coin from one end of
the United States to the other.
The presidential canvass is pro-
crossing quietly and there is no
uneasiness in financial circles;
whether Hancock or Garfield be
elected does not SEEM 10 CTed-e
any alarm and this fact shows
that the country is in a healthy
condition. both financially and
politically.
The Victoria Advocate, one
of the best as well as one of the
most influential and best man
aged papers in western Texas,
and which was one Of the strong
est opponents of the re-nomina-
ton of the old alcade has this
| to cav and we HEARTILY endorcc