Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1881-05-21
MONEY.

editorial from the Nashville Banner.
The only objection we find to it is
that the Banner does not state to
whom the credit for the present
happy, healthy and prosperous con
dition of our country and State be-
longs. This, Of course, it is I'M
necessary to mention, for every one
knows that the Republican party has
been, and is, the benefactor and
savior of this Union. To that party,
then, be all glory and honor. The
Banner says:
Perhaps no time since the flush
times of the Bank of the United
States has money been more plenti-
full than at the present time. Unlike
those times, however, when specula~
ton was wild with excitement, the
present condition of the money
market has solid foundation, back
ed, too, by the total income of the
government, and by a metal basis.
AS result of the present plenty,
property is gradually assuming a
higher value, and a constant lookout
is observed for safe investments.
stocks that have any assurance Of r.
turns are more and more in demand,
and yet the close scrutiny that is
exacted as to tue condition of the
stocks gives assurance of the proper
exercise of Judgment, and there is a
total lack of wild speculation with
the idea of quick fortunes. Now
and then men have made a great
deal of money by a happy invest
ment, but it does not resemble the
South Sea bubble stocks. In those
days companies were founded upon
the most absurd foundations, such as
men of sense would see at glance
were frauds. But stock companies
now must have something to show.
Nothing succeeds now but those
companies which show a dividend,
and even the origin or source whence
the dividend emanates is closely
scrutinized. There is doubtless a
great deal of wild and reckless
speculation in mining stocks, but
the immense fortunes realized occao
slonally by investing in mines, give
them show of realty, and affords
plausibility to such ventures now and
then. Such operations are not in
dulged in, save in the Western coun-
tries or in Wall street,where all sorts
and kinds of stocks and bonds are
placed, In the Sou hern country the
people are more timid because their
capital is acquired by slower and
more painful processes, generally by
hard labor or by rise in real estate.
Hence the people are slow in
coming to decision as to the meth.
Cd of investment. Having been ac.
customed for SO many years to a
high rate of interest, they lily brook
3 J and 4 per cent. In former days
there was no trouble in getting 10
per cent. for money, and "slaves
had perfect monopoly at even
higher rates. The class of men
whose paper went on the market in
those days are long since consigned
to the black book, and happily there
is but little prospect of renewal of
that nefarious traffic that had but
one termination, The profits were
enormous, but risky, and the last
one who touched generally got
shaved himself. The exemption and
homestead law renders it almost im~
possible for small land owners to get
money on loans, which by the way is
better for all parties concerned. The
men with small sums of surplus are
on the lookout constantly for placing
it safely, and being driven from
loans, they are turning their atten-
ton to investments IN real estate,
and to manufactures, including min~
ing operations. The tendency is to
the latter, which is rapidly showing
itself to. the benefit of our State.
In some of our inland towns
the deposits are larger than was
ever before known, and this is from
the profits of farming. 1t will not
be great while before these de-
posts will be put in an active form
by building up factories. The sooner
this enterprise is begun the better
for the towns as we'll as for the
country. 1t is the only salvation
for them, and is their true policy for
prosperity. In Ohio, Indiana and
the Northwestern States generally,
the smaller towns began erecting
factories of every conceivable
character, and the work was
chiefly done by prosperous farmers.
1t operated we'll for both the towns
ard farms. For the one acquired a
stable population, increased the cir>
culation of money, and for the farm
ers it gave them good market for
their produce at their doors. The
result has been to create solid pros
perity that will endure so long as the
manufactures are maintained, and in
stead of waning they are likely to
increase and grow with each year. II
is by these methods alone that Ten
nessee is to derive it's ultimate cons
dition of wealth and population.
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