Savannah morning news. [volume] (Savannah) 1868-1887, 1882-02-25


The Merchants Rsriess of New York
contains. in its last issue, an article on
the above subject from which we gather
many suggestions worthy of considera-
ton. II takes the ground that the legiti.
mate business Of the country. has never
been in better condition than at the pres
ent time. Money is plentiful, labor is
well paid, and employment..is, as gen.
eral thing, easy to be obtained. The
purchasing power of the masses is as
great, if not greater, than it has ever
been, and, all things considered, it would
seem that we ought to be on the eve of
an era of great prosperity.
The only obstacle in the way of these
prospects being fully realized is the
prevalence Of the gambling fever
politely called speculative mania-which
always follows 10 the wake Of good
times, and which. judging from recent
events. may rise to a point that will IN
settle values, destroy confidence, and, as
in 1873, possibly precipitate a panic.
While, however, there is some ground
for a present fear of such mishap, the
danger il not as yet at all imminent.
The failure of the Union Generate in
Paris has undoubtedly exercised bene-
fetal and conservative Influence in this
country, and acted as a check upon reck-
less speculation. Indeed, the French
crisis occurred at a most opportune
moment, and served as a warning to the
spectators, which they have, to a certain
extent. needed. 1t was fortunate, too,
that such a warning came from Paris,
which, not being an important money
market, in a cosmopolitan sense, did not
possess a very powerful influence upon
the financial world. Had it occurred in
London instead of Paris its results
would have been disastrous to the whole
world.
But our New York contemporary
thinks further that while these Paris
panics may have the effect OF checking
speculation in Wall street for a time, the
lessons thereby taught will not be per
mauently needed, and it is clearly of the
opinion that such measures should be
taken, TO curb, if possible, this disturb
ing element and prevent over specula-
ton, which, unless checked, must pro
duce a panic, and. by destroying
confidence, work great injury to
the commercial and material inter
ests of the country. In this cOunec-
ton the Recielr, while believing that the
national banking system is the best sys-
TEN of banking which has yet been de-
vised, thinks that the power Of the banks
over the money market of the country is
too strong, and that they have not only
encouraged speculation unduly, but
have, at times, brought about an artif
cial stringency in the money market by
permitting certain men 10 lock up mil
lions Of dollars by means Of certified
checks as effectually as though the banks
had not one dollar on deposit. The re
suit of this is necessarily Injurious
to business, inasmuch as, under
such circumstances, a merchant o.
manufacturer who wants money for q
legitimate purpose either cannot get il
at all, or has to pay for it an enormously
nigh rate of interest. For this reason it
IS argued that no national bank should
be allowed, under penalty of forfeiture
Of its charter, 10 certify any check not
covered by a deposit. If this were done
the danger of panic would be reduced
to a minimum, while as matters stand al
present the ability to make the money
market easy one day and stringent the
next has an unsettling tendency which
not only encourages wild speculation.
nut interferes materially with legitimate
trade.
These are, in effect, the views of our
New York contemporary, and the points
presented are well taken. There is nc
doubt that the prevalence of the spirit Of
reckless speculation in the country is a
constant menace to a healthy business
condition. If the interest of spectators
lone were involved, it would make but
little difference, but, as we have seen,
such is not the case, and therefore every
legitimate means which can be used,
should be brought to bear TO check that
spirit, and, as far as possible, keep il
within due bounds