Wood River times. [volume] (Hailey, Idaho) 1882-1915, 1892-06-10
THE PLETHORA OF MONEY.

The PLETHORA OF MONEY.
The chief subject of complaint 10
financial circles throughout the civil.
ICED world is at this moment in regard
TO the steady accumulation of idle
funds at every banking center and the
dearth of employment Therefore. This
situation is shared alike by London
and New York. It is not, however.
confined to them. The same diff
Guilty in fnding an outlet for un,
employed money exists at Paris and
Berlin. Interest rates have reached
the minimum figures alike in Ameri>
can cities and in the financial center
OF British India. The marked feature
OF this unusual state of affairs is its
failure thus far to stimulate activity in
either general business or specu lation.
The existence of low scale of utter.
est rates affords of course direct proof
that the recovery from the crisis
through which the whole world has 80
recently passed is not complete. The
paralysis of speculation and the shock
to credit has naturally restricted enter.
prise and resulted in . drawing in of
capital which, with a fall of prices,
makes it possible for civilized nations
to transact their current business with
a relatively smaller amount of money.
Under these circumstances the pos
sibility of . revival of activity and
confidence is OF primary Importance.
It Is impossible to accurately diagnose
such . situation, and indeed tho de.
velopments of the past year have not
been of . character to lend confidence
to predictions on the subject. Never
theless = considerable share ofinterest
attaches to tho views which find OK.
preston in this connection. For this
reason the following survey Of the field
and estimate Of the probable outcome,
which proceeds from one of the lead.
ing London financial journals, is SUBJ
mitted. After discussing the low
stage to which interest rates have
fallen in all the leading loan markets
of the world, it proceeds TO say: "The
accumulation of idle money is forcing
down prices. Here in London the
very best securities have given way;
but they will inevitably rise again, and
the investment demand for second
class securities is extending. Upon
the continent the best class of SCI
curities are steadily rising. A large
investment must lead to shifting of
investments gradually, and after q
while to revival of speculation.
That, however, will not greatly lessen
the plethora; only the bringing out of
new enterprises can effect that. AL
ready new issues are beginning to
appear, and they will certainly in-
crease in number as the weeks go on.
1t is not probable that for long time
to come there will be much lending to
governments, though, of course, gov
ernmenss will borrow when they can.
The chief outlet will doubtless be in
industrial securities. American rail-
roads will borrow; but America is rich,
and has SO much spare capital now,
that most of the money will doubtless
be found at home. Still, after q
while the immense investment in
American industrial enterprises which
characterized the ten years ended
with 1890, will begin again. There
will DO great outflow of European
capital-especially British capital and
British skill-to South Africa. Prob
ably, too, there will be a very large
investment in India. Apparently the
country has now reached the stage
when it is prepared for more marked
industrial development. Japan, too.
is pushing ahead, while in China there
is an indefinite field for investment, if
only the policy of the government
were more enlightened. In ell these
directions, and in very many others,
doubtless, there is scope for great
enterprise and vast extension.