Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1881-05-12
Utility LttCRE. :"
int PRESENT STATE Of TIE MONEY
MARKET.
Good Crops and Economy Produce State
ofProsperity That Fills All Golfers,
Eleyates Bonds and will
Cause a Boom in
Real Estate.

general pu0llc, ID one WHICH Poii'ica'
economists have vainly puzzled over
and one the solution OF which must be
left to some future day. We have tried
both and are at present dealing with the
latter. Money is very plentiful. Per
haps no fnancier in the city can recall
times as perfectly flush" as at present
EVERYBODY HAS MONEY,
and il is standing perfectly still. The
times are considered prosperous, though
as We say above, whether such cohui-
ton is beneficial, is at least a matter Tor
argument. ,.,,.
Transactions are cash and but little
private paper is floating about. house
is sold az auction or at private SAFE ahu
the purchase money is paid In cash.
country merchant comes to the city,
BUYS a bill OF goods and pays cash 10
make the discount. Insurance compa-
MES paw their losses without waiting Tor
the sixty DAYS allowed and save the dis
count-if they can. though generally the
assured is willing to wait and save 10
himself the discount.
THE BANKS CANNOT LOAN MONEY,
no one needs it, there are no borrow
ers-and il accumulates in their Golfers.
Some of them are now declining 10 pay
interest on special deposits. The rate OF
interest has steadily declined. Some
wears ago depositors could obtain per
cent. on special deposits; then 1t declln-
ed to and to and now depositors are
fortunate il they can get three per cent
Everybody wants TO lend and nobody to
borrow.
This is an interesting subject, and a
REGISTER reporter talked 1t over al
length, yesterday morning, with several
OF our prominent bankers. One OF there
gentlemen, probably
THE VETERAN BANKER
of the city, expressed himself quite free,
" upon the situation and pronounced
il both interesting aud perplexing.
81 cannot attempt to explain it," ne
said, with a smile, 81 can simply give
YOU some OF the causes, and you may
Judge for Yourself. And | must say the
causes which operate upon the money
market are very many and furnish
much food for thought. You can scarce
~ think OF anything that has no con.
nection with or no influence. direct or
indirect, upon it. You pick up the
paper, and the first transaction that
catches your eye will bean index to one
OF the great causes constantly IN opera
tion."
"But, Grst OF all, what Is the condition
OF the money market"
"You see for yourself. Everybody
has money. and has no occasion for Dor
rowing. The money has been drawn to-
ward the money centres, and is lying
there. There is no demand for it, and
consequently it does not circulate freely.
We say We are prosperous, but I'm
doubtful whether that is true prosperi'
ty. But that is just the condition OF the
money market"
"Now, as to the causes in operation?
81 was talking to a gentlemen the
other day and he mentioned fact that
gave me better insight into snch mat.
tiers than | had ever had before. 1t was
in regard to the wages paid here. Every
year nearly three million dollars are
PAID OUT IN WAGES
by our manufactures, making, say
twenty-five millions in ten years. This
is an enormous sum and it nearly all
STAYS here. Beyond little that goes
out for dry goods and travelling ex
penses, all STAYS here and accumulates
So there is Just that much additional
money coming to and belonging to the
city. 1t OF course changes hands little
and some few grow rich. You may see
how many families, take La Belle
street, for instance, have grown quite
wealthy"
"But why do we feel the effects just
at present."
EVERYTHING CASH.
because other places are growing
wealthy in proportion, and money is
proportionately plentiful. For instance,
several years ago the Riverside mill sold
nails on four months time. Their
western customers sent them four
months paper, and the banks had the
handling of it. Now they pay cash and
bring that much money right into the
city. Another thing. For the past three
years the crops have been unusually
good, and farmers have been thriving.
They ale paving of their mortgages and
taking business from the banks. They
buy dry goods and groceries and hard.
ware from the country merchants, and
pay cash for them. The merchants pay
cash to the manufacturers and save dis
counts. The paper is aiioat TO pass
through the banks, and the exchange
amounts TO nothing.
PEOPLE ARE EcoSoMIzING.
"Still another fact. After the panic
OF '73 reaction set in and people began
to economic. The man who spent
5000 year came down to 81 900, and
the remaining $1,000 was withdrawn
from circulation. The articles it would
have bought were unsold and the deal
er spent less money in repleni5hing his
stock. do not think it is beneficial to
a people for a man TO live below his
means. Let him spend what he can
afford and the circulation will benefit
somebody.
"Then there is the
BALANCE OF TRADE
in our favor. Last year it was one hun
bred and sixty millions and the year be-
fore it was one hundred and forty mil
lions. There's grand total Of three
hundred millions Of dollars poured in
upon us. Our crops have been very
good and across the water correspond
ingly bad. Our wheat has poured
across and our cotton has poured across
and our meats have poured across, and
in return the gold Of the old countries
pours in upon US. And
MIGRANTS BRING OVER MONEY.
Why forty thousand OF them are coming
every month and they average $500
each. There's twenty millions OF dollars
right there. And so, you see, the coun-
try is full of money"
"Will the moving OF the wool crop
have any effect upon the market?'
"Oh, no. When the wool is sold the
farmers will have little more money,
that's all. II they have any debts they
can pay them, or, il not, they may buy
some land. But it will have no particu.
lar effect upon the market"
"What are our banks doing?"
"Some Of them are not paying interest
on special deposits, and one has not