The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-01-13
THE MAYOR TALKS FINANCES.
THE SITUATION MUCH PLEAsANTER
HERE THAN NORTH.

The Unsatisfactory Condition of At
fairs in the Great Money Market.
The Financial Condition in savan-
nah and Her Territory is Much
More EneOuraging-The New Issue
of Bonds One of the UnsettIfng
Cause.-The People at Large Ready
10 buy the Bonds at "A Fair Price.
The Mayor Advances Some Ideas as
TO the Settlement of the Currency
Question.
Hon. Herman Myers returned yesterday
morning from New York, where he spent
last week attending 10 private business
matters. He was asked last night as 10
the condition Of matters in financial cir
Giles in New York.
''The financial conditions In New York
are not by any means what I would like
to see" he said. There is
a generally nervous and I'M
certain feeling. Money is scarce. the
banks are demanding high rates of inter
est and business men are not able to OBJ
tain as much accommodation as they
would like or as they have been accus-
toned to. A great deal of overtrading
has been done and a financial stringency
makes things very unpleasant for those
who have Overtraded. The conditions here
are far more satisfactory than in New
York. Our business men have been care
full, they have not overtraded, the banks
are able to furnish them all the money
they need, the people in both city and
country are in a fairly prosperous condi-
ton and there is a general feeling Of con
fidence. Although it is true that the
wealth of the country is in the north 1
much prefer the state Of affairs existing
here with us now to that which exists at
the north.
Part Of the trouble there" continued
Mayor Myers lis due to the expectation
that the new issue of bonds will be large
~ taken by private parties and that the
funds to purchase the bonds will be with
drawn from the banks. This anticipation
IS causing the banks to draw in their bal
ances and to scrutiniZe all requests for
accommodation very carefully. IL is es-
timated In New York that the banks of
that city Will furnish fully one-half of the
gold which will be required to purchase
the new issue OF bonds, so the banks have
good reason to be careful"
Mayor Myers was asked what the pros
poets for the popular loan are, and if
the indications are that private citizens
viii bid largely for the bonds
1T is very evident" he replied that
a large proportion of the new bond issue
VIII be taken by private citizens There
Is a very general disposition among men
or means to bid for the bonds Whether
the syndicate will get the greater part of
the issue, or whether other parties will
get It depends, of course, on the figure bid
by the syndicate. At a price anything
like that at which the former issue was
sold to the syndicate the whole issue
would be readily taken by. the people"
would you take any of the bonds at
the syndicate price, l0S?' Mayor Myers
was asked,
Certainly, the National Bank of Sa-
NAnDah WOIlld a a 20 Z
that figure"
Mayor Myers was asked if there is any
that any permanent relief will be afford
ed by the new bond issue, or if relief is
expected from the action of congress.
There is no such expectation" he said
There can be no relief until the gov
ernment goes out Of the banking business
and does something for the relief of the
amount of legal tender notes, about $780,
100000, l believe, are allowed to remain
outstanding besides other obligations, pro-
ducing an incessant drain upon the gold
in the treasury with no means of prevent
ing 1t without injury to the credit of the
government, the present state of affairs
Will continue. The question can be imme-
diately solved by an issue of $500. 900 600 OF
bonds at per cent. to take up these legal
tender notes and other gold obligations
of the government thus doing away with
the necessity of maintaining a gold re-
serve. By removing the tax on the banks
and allowing the banks TO issue notes to
the face value of the bonds the whole
issue of $500OO0,000 would be readily taken
by the banks and the currency placed on
a new basis. II this were done the num-
Der of national banks would increase ana
many state banks would Immediately
change their charters and become ma
tional banks This is my view of the So
luton of the difficulty, and many bust
ness men with whom I have discussed
the subject have agreed with me- Bur
nothing can be expected of congress,
which does not include a provision for
free silver, and so there you are"