The morning news. [volume] (Savannah, Ga.) 1887-1900, 1890-12-16
Is Money scarce7

Nearly ali the leading 1naQclers OF the
country have given what they think are
I the reasons for the stringeacy which has
/ prevailed in the money market for several
I weeks, and il is worthy of notice that their
reasons arr widely different. Sone of them
say that there is not enough money to meet
the demands of trade; that the business Of
the country has increased wonderfully, aud
that there has not been corresponding
increase IN the circulating medium. They,
therefore, advocate free silver coinage. or
an amendment u the national banking law
permitting national banks t. issue cur
rency to an amount equal to the face value
OF the bonds deposited to secure the cur
rency, or the removal Of toe 10 per cent
tax on state bank circulation so rs to per-
init state banks to issue notes, or the issu-
ing of greenbacks or other means for swell
ing the volume of the currency.
Others Of tho financiers say that there is
no scarcity of currency; that there is
from S0.0O0,0O0 to $4,000 900 more in the
hands of the people and the banks than
there was twelve months ago, and great
deal more than was ever in circulation at
any other period Of the history Of
the country. And they give facts
which appear to be convincing. The
money, they say. that should be easy
to obtain is locked up in the banks, and in
the vaults Of the safe deposit companies, aud
Is being boarded by the people. There is,
they declare, a lack of confidence, and not
a lack of money.
In an interview the other day jay Gould
said that he had no doubt that fully $780,
100000 was hidden away in stockings. He
did not mean, of course, that his language
should be taken literally. What he meant
was that that amount of money had been
taken out of circulation and was locked up
in safe deposit vaults aud private safes.
The weekly circular Of John A Hamilton
& Co., of Baltimore, firm largely 10
terested in southern securities and we'll
known in this city, one of its members be-
ing a director in the Savannah Con-
struction Company, contains the fol-
lowing relative to the present
financial situation: "All banks and bankers.
trust companies and other financial institu-
lions have made themselves as strong as
possible and have accumulated every posi-
BILE dollar, and are holding on to all they
possibly can. Whys For the simple and
only reason that they lack confidence, aud
fear Go put their money out. Is money
scarcel Is there any dearth OF circulating
medium! Decidedly not. Money is plenti-
full, and you can borrow all you want at low
rates of interest on call, but not on time,
because confidence is wanting. On, most
learned aud wise senators and representa-
Ind a.
and in a moment money will be drug in
the market. Insist upon making more
money, and you will find wha. you call
money will briug-not confidence but dis
trust, not prosperity but disaster"
II what these fnanciers, who do not
believe there is scarcity of circulating
medium, say. is correct. the thing for con-
gress TO do is not to increase the volume OF
currency by legislative means, bnt to find
out the cause of the lack of confidence in
the business stability of the country.
Having found the cause it will be in posi-
ton to legislate so as to restore confidence.
With restored confidence the strong boxes
will be opened and the supply of money
will quickly become greater than the de-
mnnd
No doubt the Mckinley bill had great
deal to do with weakening confidence. 1t
induced importers to import vastly more
than they were able to pay for promptly,
and hence they became discouraged, and,
as Mr.. Gould says. they impaired the feel
ing of discouragement TO others. And the
threatened passage of the force bill unset
tied business matters greatly, because in
business circles the belief was entertained
that if the bill should become law trade
relations between the north and south would
become, in a measure, strained. and the tens
of millions of dollars of northern capital in
vested in the south would be jeopardized
The first duty Of Congress is 30 seek the
cause of the lack of confidence in the coun-
try's financial stability. Having found it
there will not be, in all probability, two
opinions as to the proper course to pursue to
cause money TO circulate freely