Savannah morning news. [volume] (Savannah) 1868-1887, 1881-05-07
The Volume of Money in the Country.

The Volume Of Money in the Country.
1t is subject of general remark that
never before in the history of the coun-
try has money been so plentiful or has
the rate of interest been so generally
uniform in all sections. Banks which q
few years ago could easily discount good
paper at seven, eight and nine per cent.
are now, in many cases, glad to loan
their funds at five per cent. and even
less, while investors generally seem to
be satisfied to receive three per cent on
their investments. This is doubtless
why we have seen the New York Sc
curity market continue steadily to adj
vance, Notwithstanding the apparently
high figures it had previously reached,
and the tendency seems still to be up
ward.
Commenting on this plethora of
money in the country, the Philadelphia
Press reasons that this condition of af-
fairs would be the less remarkable if the
general prosperity of the country were not
a matter for comment all over the world.
1t says one has only to look at the mills
to see that they are running on full time
with all hands employed, and to search
for workmen to ascertain that there are
few to be had. A glance at the adver-
Using columns of the leading newspa-
pers will show that millions are asked
for new enterprises which are not pro-
jects of the future, but which are
already actively employing both men and
means. Never before, even in the days Of
the Pacific railroads, have the plans of
railway extension been less important
or less expensive. The present year
viii probably witness the greatest pro-
gress ever known in any country in
railroad building, and the largest amount
ever yet paid out for labor in the IRON
mills, the coal mines, and the machine
shops. The cotton crop bids fair to be
the largest that was ever raised; the grain
crop will be so abundant that it will not
only exceed that of any previous year,
but it will be sold at profit to foreign
nations at such a price that they will buy
from US in preference to raising their
own breadstuffs, and our exports of pro-
visions and dairy products will also be
upon an unprecedented scale. Already
immigration has attained such volume
as was never known before, and ocean
steamships are taking our products
abroad at very low prices in order that
they may bring back to US the host of
foreigners who are seeking homes in the
new world.
With all this, remarks that paper
further, ''the spirit of speculation is
comparatively dormant. Attempts to
hold up the prices of provisions and bread
stuffs have failed, and the bulls have
been compelled to yield, make settle
ment, and allow the market to take its
course. There is so much money that
the six per cents. will be almost all ex-
tended at three and half per cent.-a
reduction in the rate of interest on
national debt such as was never known
before on the face of the globe. Even
now the price of the six per cents. on the
market is such that those who decline to
extend them and call for the principal
will lose more than one per cent, or, to
put it in another way. the extended six per
cents, which will not begin to draw in
terest until July next, are now selling at
a premium of more than one per cent.
eve cannot" continues the Press,
look upon such a condition Of affairs
as other than most favorable. The
whole tendency of capital is toward safe
investments, and the rate of interest
upon such is so low that there is always
a surplus for new enterprises which
have anything of promise. When
great railroad company is in the market
for loan of millions, and offers it at a
premium when promising only four and
a half per cent. interest, there is little
reason to fear for the finances of the
country"