The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1885-09-01
THE DEMAND FOR MORE MONEY


and quickly seen, and the amount Of
any importance. The very fact that
interest Is high, is sufficient proof of
the fact that the demand for money ex'
ceeds tho supply. The usual legal rate
OF interest Ia 6per cont. That rate
corresponds to, say, the 3Sls or 90 per
cent, for which goods arc usually
sold. To double the interest, and par
ticulsrly lift is quadrupled, is equiva-
liant to rise In profits on merchan-
dise OF from 100 To 200 per cent. How
long would a merchant DO allowed 10
enjoy a monopoly on goods where a
clear profit Of 100 per cent. even, was
being made? In the shortest possible
period competition would cut figures
to living prices. But the hanks OF
this city and, indeed, throughout the
State and South, for that matter, are
permitted to enjov and maintain a
monopoly of money that Is paying
them what, on goods, would be 100
per cent. profit, and agriculture and
business remain passive and never
seem TO dream OF efforts to better and
enlarge and choapon the money mar
ket.
But here the analogy between the
profits of money and the profits on
merchandise stops. A cost on money
Is tho most burdensome OF all costs.
Calico the farmer can do without, II
the prics Is too high; clothing from the
stores, il too high, can DO replaced by
that made on his own premises; oven
coffee and sugar can be stopped TOR u
time, and, indeed, the goods OF the
merchant, ,of all descriptions, can bo
dispensed with for season, at least,
II cxorbitant prices are charged. But
with money 1t Is different. The agri-
culturist needs IL from the commence
mont of the planting season to the end
of tho crop. His hands must be paid,
his implements repaired, his crop car.
rled to market. Without money he Is
helpless, and II 1t rules ut tho
highest and most usurlous rates, yet is
he compelled to have il. Higa prices
can be paid for goods II money ID plen'
tiful and cheap, and no one thinks of
complaining. II money Ia scarce and
high, 1t causes reduction ia ether
prices, bu. tho purchaser is not bene-
fted, for the excessive cost to him is
upon the money ho uses. Tho NOR
chant, on the other hand, suffers, for
he sells at small profit here where
money! is scarce, and buys at high
figures East, where money 10 chsEp
and plentiful.
In a word, all classes OF people in the
community suffer from the status OF
affairs which Ia witnessed in tho South
now, but one-thc money lending
class. 1t takes from to Is per cent.
off the profits of labor, OF crops, of
merchandise, and standS, as wo have
repeatedly shown, directly in the
pathway of Investments and enter.
prise.
The remedy is the acquisition Of
more banking capital In the South.
Tho present banks cannot meet tho
full demand, the Hast has money geek
ing investment, and 1t follows that
here IL, therefore, the very best of
fields. II it Is safe and profitable for
those banks now established in the
South, why is 1t not equally safe and
prof table, under the circumstances
noted, for yet Othors7 The same cry
is now going up in North and South
Carolina. Georgia, and tho entire
South. A Georgia paper, of recent
date, referring to this "ohoaper mon
ey," says:
1--WE need more banks. The supply
OF money to lend il not equal to the
demand to borrow. There are many
towns In the South doing from $4,000
600 to $i,00O,0O0 worth of business an
nually, that have not more than one
bank, and that often weak ono. The
business interests of such townsneces
sarily suffer for lack OF adequate
funds. Not only do manufacturers and
merchants suffer from this cause, but
the farming interests suffer also. Farm
ers have found that it Is cheaper to
borrow money, Ii they have no money
OF their own, and buy for cash, than 10
buy on credit; hence, they rs class,
need q great deal OF money every
spring. Instead of the South needing
hundred more banks We need a
thousand more. Our crops are unprec
edentedly large, we are entirely over
the demOralizations OF the war, facto-
ries of every description are springing
up all over our Southland, an era o.
substantial, permanent prosperity il
da wning upon us, and the interests OF
capitalists certainly demand that
they occupy this inviting field 1T
once"
The courss Is plain and simple one.
The business men of this city and sec
ton know, personally, scores of East
ern capitalists. Let these facts, and
the demand for moro banks, be prop
erly placed before them, and the capt.
tai will come. Capital is cautious. 1t
doesn't rush reoklessly into a field.
But 1t Is also progressive and ready for
bargains. 1t will not halt when the
roadway is clear and safe. TIE bust.
ness Of Dallas ought not longer stand
In its own light, by negligence aud in
difference, in this important matter.
THE HERALD does not wish to be
considered an alarmist, nor does 1t