The morning news. [volume] (Savannah, Ga.) 1887-1900, 1890-08-27
THE MONEY STRINGENCY.
SAVANNAH BANKS AND MEE-
CHANTS PREPARED FOR IT.

It viii Not Interfere With the Prompt
Handling of the Cotton CroD-Cot-
ton Now Coming In WIN Relieve the
Tightness Of the Money Market as
soon as It is Put on shipbosrd The
Naval stores Men Have Handsome
Balances With the Crop Fully Half
In.
While the stringency in the money mar
kets Of New York has ramified the country,
Savannah is not seriously affected, aud
there will be no embarrassment In moving
the cotton crop. The same situation Of
affairs characterized the opening of the
cotton season lat year. Il is pretty well
understood on the Bay that, while money
might be freer, factors will be able to handle
the cotton.
SAVANNAH FACTORS HAVE GOOD CREDIT.
A member Of one Of the leading firms on
the Bay, In an interview with a MORNING
NEWS reporter, says that il there was any
doubt about the local banks accommodat-
ing their customers, the factors would
have no trouble in getting accommoda-
tions elsewhere, and he cited three
firms, which he said could
get 81, 5000 outside If necessary. In that
respect. he added, Savannah factors are in
much better financial condition than in
some other ports. Cotton, he says, is coming
in lively, and as fast as il goes on ship
board returns will be had and the strin-
gency relieved.
The naval stores men are not affected. In
fact. a member of leading firm of naval
stores merchants says that now is their
harvest, and advances are coming in better
than last year. Prices have been good, and
fully one-half Of the crop has come in and
been disposed of, leaving handsome bal
ances on the right side OF their bank &C
counts.
PROTECTION THAT DON'T PROTECT.
The president Of one Of the leading banks
OF Savannah was seen by a MORNING
NEWS reporter. and questioned with regard
to the money stringency and its effect
upon the Savannah market He said
there was no doubt of the fact
that there Is a pronounced stringency
OF the money market throughout the whole
country, from the great financial center,
New York, to the remotest country dis
tricts. This scarcity Of money is caused in
great part by the heavy speculation and
immense purchases Of imports by foreign
buyers, both caused by the Mckinley bill,
which greatly increases the customs duties
upon certain products and many
articles of general demand, which has
caused an immense amount Of money to be
locked up in stores and warehouses; Be-
sides this, great quantities of American
products are being held in warehouses in
the belief that the passage of the Mckinley
bill Will increase the price. In Savannah
even, large amount of wool is
being held for this reason. A bright bust
ness prospect and the large number Of new
enterprises throughout the country have
caused a general demand all throughout the
year for money.
MONEY HARD TO GET.
The banker said that the banks usually
borrow their money in the fall for the fall
trade, but that this year they had borrowed
all there was TO be obtained In the summer
and that as fall is coming in money is diff
cult to obtain. The banks having placed
the summer loans, the result is a tigh tness
Of the money market.
SAVANNAH CAN HANDLE HER COTTON.
The local banks have enough money for
the transaction of their usual business and
the accommodation of their regular Gus
tome S, but none to put out on loans for
any length OF tins, no matter how large
the interest or what the security
The banker says he does not believe that
the condition OF the money market will in
any way affect Savannah's trade or lessen
the port receipts, as the me chants and cot
ton factors, knowing the condition of the
market, will act accordingly in their bust
ness transactions. He thinks that the mar
keting of the early output of the cotton
crop will relieve the stringency
OF the market, as the factors
will receive back the money which
they have advanced to the farmers and
country merchants, who will then be able to
repay the loans which they have secured
from the ranks. He does not think the
tlghtuess of the money market will affect
the handling of the cotton crop to any ap-
preciable extent or lessen the price of cot
ton