The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-02-11
CharIestOn's Sub-Treasury ArEu-
ment.

IEf News ann courier THINKS AMaL the
fact that the Bank Of Charleston sub
scribed for $4,000 OF government bonds
will not be regarded as without bearine
on 1.-THE sub-treasury matter" The News
and Courier may be right. We are in
clined TO think it is. II will help to con-
vince those who are interested in Charles
toms application for a sub-treasury that
the government acted wisely when IL
closed the sub-treasury that once existed
in that city for the reason that there was
not business enough TO sustain il. and
that it would be folly TO establish an
other there as long as the reason exists
that caused the one that was there to be
discontinued.
1t may be true that Savannah has no
money to put into government bonds. but
it doesn't follow that she hasn't vast
amount Of Observation-Disclosures which would
enable her to sustain a sub-treasury. As
already stated. we do not know whether
Savannah has as much money as Charles
ton or not. but we do know that she can
find use for all she has at from TO 8
per cent. interest. From d business stand
point therefore she could not afford TO
put money into government bonds. which
pay only about 3l5 per cent.
But Charleston seems to have money to
loan at 3h per cent, and why? Is it
not because she hasn't the business in
which she could use what money she has
and make It earn from to S per cent?
1t can readily be seen therefore why
Charleston is anxious to put her idle
money into government bonds.
The News and Courier calls attention
to the fact that one of her business firms
that has a branch house in Savannah has
put some money in government bonds
Yes, that is true. but was the money ac-
cumulated in Charleston? We think not.
The firm deals in long staple cotton, and
Savannah is the market for that kind
of cotton, not Charleston. We are in
clined 10 think the FIRMS business in
Charleston is very small. while in sa-
vannah it is very large. And perhaps the
firm did wise thing in buying some gov
eminent bonds, because in its business
the bonds are about as good as cash,
since the banks will loan money on them
to their fun market value should the
firm want to borrow.
Really. we do not see what comfort the
News and Courier gets out of the fact that
. Charleston hasn't business enough to af-
ford employment for all her money. and
that therefore it goes into 49, per cent.
government bonds. 1t seems to us that a
sub-treasury is wanted where there is busl-
not find employment. A sub-treasury is
not needed as a depository for the govern
ment bonds owned by the people. A sub
treasury cannot be sustained in that way.
There must be business to sustain an in
stitution Of that sort, and business is what
Savannah has.
We are sincerely glad that Charleston
has put some of her money into govern
ment bonds, but because she has bought
bonds of the government it doesn't fol-
low that she has more patriotism than
Savannah. 1t only indicates that her
business isn't sufficient to demand what
money she has. and that rather than have
the money earning nothing she has nut
what she cannot use into safe. low-inter-
est-bearing security.
Savannah could use more money than
she has. She has to supply the business
demands not only Of her own people, but
also the needs Of the people of an i'm
mense territory. This fact is well known.
however. and it is unnecessary to call
attention to it. 1t is one of the reasons.
however, why sub-treasury is needed
in Savannah, and why such an institu-
ton would be more than self-sustainine.
But why continue the discussion of the
possibility of Charleston's getting a SUB
treasury? Our Information is that so far
as an institution of that sort is con-
cerned, Charleston isn't in it," and hasn't
been. We do not say this in any dispar-
agement of Charleston, but simply state
what we understand to be a fact