Savannah morning news. [volume] (Savannah) 1868-1887, 1884-07-03

Herman 4 KavtOn. wholesale dealers in
provisions. on being asked what he thought
o. the stringency in the money market,
said:
ssThe monetary stringency nas not caus-
ed anv embarrassment that ] have heard
Of among leading provision dealers any
where in the country who were doing
legitimate business. None OF them have
been heard Of as falling and ] don't think
they will be. The provision business Is
on q boom but not in a speculative sense.
We have been doing a me business
here. and have no trouble IN obtaining all
the money we require at 6 per cent. l
don't think any one who Is doing Ieglti-
mate business in Savannah has been IN
any vav embarrassed. No doubt there
have been a large number Of "hangers-on"
in the large cities who have been
affected by the stringency. These
firms only had a fictitious stand
ing in the market, and had to 60 under. L
have no doubt but there are others like
them in New York and Chicago who will
have 10 succumb, but their failure VIII
not iniure legitimate dealers. On the con-
trarY. il will benefit the community. l
see no reason TO apprehend any serious
embarrassment among those who are con.
servative and are doing legitimate trade.
The recent panic naturally made men
distrustful. but il Will have good effect.
The provision dealers have had no reason
TO complain so far, and ifthe crops are good
they need not feel uneasy about the pros
poets Of trade"
Walter Mcneil, on being asked
whether the strIngency had seriously af-
fected the naval stOresinterest, replied:
Eyes, sir; quite seriously"
ssWhat is the outlook for the fall?"
Money is somewhat easier, owing TO
the payment Of the July divi-
dends. but don't see
how any permanent benefit can follow.
The people who receive the dividends
don't know who to trust and will prefer
10 hoard their money until confidence has
generally been restored. They prefer to
lose the interest rather than risk their
capital. and this condition Of affairs may
continue for several months. 1t is
rumOred that two or three large
houses in New York must
fail, and as it is not known who will be
affected by the disaster the want Of con-
fidence will continue until the blow Is
over. If we knew just who would fail we
could tell better what calculations to
make
..what has been the effect on the price
Of resins and spirits!"
ssThe price Of the lower grades has been
dropping for some time. The finer grades
low. The trouble has been that the factor
invested his money last winter to make
the crop which is now coming in, and he
is obliged 70 dispose OF his rOsin and
spirits in order to save himself from
complete annihIlatiOn. The banks are not
disposed to give him long accom-
mediation except at high rate. Some OF
these factors are behind two or thTee
months. They cannot stop short in the
II HrtNh -
getting the turpentine farms in operation
was done some time ago, and the money
for the work is already paid out. The
Weld is now coming in and will be
for some time. The factor is obliged
10 gather the crop TO meet his engage
ments for money advanced TO the farmers.
Hence the receipts are coming in daily.
The buyer has the advantage Of the fac
tor. He has no large output involved in
the business. He purchases when he
wishes and on his own terms"
rs not the demand gOOdg'
"GeS: there has been good demand all
along, but there has been correspond
ingly large production"
J. W. Hunt, Of the firm of Peacock,
Hunt & Co., said that while the naval
stores trade had been affected to some ex-
tent by the condition Of the money mar
ket OVer-productiOn had as much. If not
AllHEEs 10 no WIN AlE AdAA III tue lAAEE VI
resins and spirits. 1.-The receipts he
added, ''will continue TO come in for some
time. The only way TO remedy the
matter is to curtail the work on turpen-
tine farms, but this curtailment will not
be made at once. Next year it is likely
that precautions viii be taken to limit
production"
J. Clarence King, representing Messrs.
l.. J. Guilmartin & Co, was asked how
the cotton interest was affected.
Mr.. King replied: at is not affected al
all. Nearly all the old crop has come for
ward, and the money required at this sea-
son to handle il is easily obtained. There
is no difficulty in obtaining what is re-
quired as advances to the planters. Up to
this time the reports from the growing
crop have been quite favorable"
What effect have the recent rains
hadg"
1--WE have received several letters from
points as far west as Central Alabama
where there has been rain. These re-
ports. in substance, say that no injury
has been done, but that if the
rainy - season should continue. or
if hot, dry spell should Immediately
succeed the rains the cotton would shed
and the production will be greatly i'm
paired. An occasional rain would be
beneficial. By September or October it is
likely the monetary situation viii have
improved, so that there Will be no trouble
in obtaining all the money needed to move
the CROP
James II. Hunter. Cashier of the Savan-
nah Bank and Trust Company, said /:
Money has been quite stringent. but there
is a marked improvement in New York,
and il is easier now in Savannah Large
sums were held in order to meet the pay
ment Of the July dividends, which Will be
placed in circulation one way and another
and the market relieved Of its stringeucy.
Horace A. Crane. Vice President Of the
Southern Bank, said:
ssThe Southern Bank has not refused
accommodation TO its customers at the
prevailing rates. It has been doing fine
business. We have not felt want of
confidence in the situation, but have been
careful in making loans"
.sWin the payment Of the July dividends
relieve the market?'
sUndoubtedIy. About O.O0O, 900 will
be placed in circulation by this means in
New York. and over 100000 is usually
paid in Philadelphia. Boston is a great
dividend paying centre, and a larger
amount than is paid at New York will be
distributed there"
May not the people who receive these
dividends refuse to reinvest, and in this
way keep large amounts out Of circula-
tiOn?"
Business men are not likely to hoard
their money in that way. There are
plenty OF avenues where it can be safely
and prOftably employed. / do not see
why the monetary situation should not
improve. A few irresponsible firms at the
North may be injured, but all houses
doing a legitimate business are likely to
survive. Here in the South, where there
is so much conservatism, no trouble is
likely to arise"
Manager Skerritt, of Dun & Co.'S
Agency. said: s1The situation is hopeful.
There have been but comparatively few
failures in the South during the past six
months. and these were confined TO small
traders. so that the monetary situation
has not been greatly disturbed in this
section Of the country. The crop pros
poets up to the present time are very
encouraging. both for cotton and corn.
Corn may be said TO be already made.
The rains have not injured the cotton. but
planters say that they have had enough
rain up 10 date, and that more Of it
would be very damaging. The crops
are. however. somewhat later than last
year. A more reliable forecast as to the
cotton crop can be given about the goth Of
the month. All the leading dealers in
dry goods give good report Of trade and
seem TO be very hopeful Of the future"