The Atlanta constitution. [volume] (Atlanta, Ga.) 1885-19??, 1895-05-20
NO LACK OF CREDIT.
Southern Bankers Can Borrow any Reasona-
BILE Amount of Money.

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have been very large number of bankers
visiting New York from the states of
South Carolina, Georgia and Alabama
since May LIST, at different times. Probably
other southern states have had many,
but most of the men l am acquainted with
are from the states named, and they are
here for the purpose of arranging, whether
preconcerted or not, to get currency to
carry 10 their respective states. / am
informed by one of the intelligent men
above named that they have secured loans
from bankers in this city since the LIST of
May amounting TO $zOOO,000 or $S00O,OO0.
They get IL for 4 per cent until the LIST of
October, with the privilege of renewing at
that time on so, 90 and 80 days at the same
rate of interest. In conversation with one
OF these bankers today, he informed me
that it would make times better in the
south when this money was turned loose.
How do you propose to turn 1t looSe?"
l inquired.
oh" he said. 1--WE can turn four times
that amount loose in our states at good
rate of interest. We will lend this money
due, say October lst, at to l2l2 per cent
per annum, which you see will be quite
nice profit for on the amount loaned"
But can YOU" l asked, "make these
loans on good security"
Just good as anybody would wish.
In the first place great deal of this
money will be loaned to merchants who sell
what is known in our section of the coun-
try as time goods to farmers. These
merchants will pay US, say s per cent.
Then they will sell goods due in October
TO planters and farmers and get 10 or
~ per cent for the supplies"
Then you think this process will make
good times?"
We'll" he said, '1t will give the people
what they want-that is, money"
But can they make any money by pay
ing this high rate of interest?'
''Of course the merchants will They
pay s per cent for it and if they sell to
The farmers goods on time, the farmers
will have to pay n very high rate OF in
terest, it is true, but they cannot make
a crop without something to make it with,
and while the interest these farmers have
to pay is pretty high, It is not as much
as they have paid in the past and we will
have no trouble in disposng of this money,
as ! ten you"
Bankers support CIeVciand's Policy.
OF course this banker did not suspect
that the information he was giving me
would be printed and hence ! would DE
betraying his confidence if / gave his
name, but this is the programme that is
being worked to relieve the pressure in
the south. 1t may bring about temporary
prosperity, but in the end, when the day
of settlement comes | think the farmers
will be left pretty much in the condition
they were in before they borrowed the
money; many of them probably in a worse
fix Nearly every banker that l have
met is enthusiastic i'm support of the sound
money policy of the president ana cites the
fact that he can get money at per cent
per annum-al he needs. Many of the
bankers of the south keep large deposits
in New York banks. The New York banks
have established rule that permits out
side banks to draw on them when they
need money at lower rate of interest
for five times as much money as his bal
ance shows in New York, and in this way
can avail himself of the conditions now
existing on account of the scarcity Of
money in that part of the country.
The west is very much in the same con-
dtion.
A great deal of interest is manifested
here on the part of all the large business
men, and bankers and brokers to main
tain the present financial system, and Mr..
CIeveland's policy is almost universally
commended by these men. They claim
that he has saved the country from a ter
rible panic by his bold move on the last
loan When / asked the question if there
would be any further loan before congress
meets they unhesitatingly answered; IF
any necessity comes there viii be. Your
CORRESPONDENT believes that there Will be
another loan whenever matters are ripe,
ON the same terms as made by the last
and that il will be consummated by the
list OF October. In fact YOU can near Ger
tain intimations from bankers on that line
already and the people need not De sur
prised to hear of large loans larger IMAM
any made VET before october ISL