The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-08-31


This comparison is far less unfavorable
to the present condition than might be
inferred from the tone of feeling with
which it is regarded. In six out of the
last twelve years. the surplus in the sec
ond half Of August has been less than ten
millions; and. in FIVE of the dozen years, the
ratio of reserve to deposits was lower
than it is now. Indeed. the present re-
serve is not sufficiently below the normal
limit to warrant any serious apprehension
for the future of the money market. The
years when the figures were notably high
er than now We're periods Of unhealthy re-
dundance following collapses. as for in
stance in 1894 and 1895 which reflected the
redundancy following the panic of 1898:
and in 1884 and 1885. which presented an
accumulation Of currency arising from
the crisis in the spring of 1884.
The fall money movement is always
largely self-regulatiye 1t is an almost
invariable rule that foreign gold comes in
to take the place in the banks of the paper
sent to the interior. The European pay
ments for new crops of grain and cotton
turn the exchanges in our favor and gold
comes in more freely than at any other
season Of the year. And, if the pressure
on tie home money market becomes acute,
it is found easy to get relief through is
sues of sixty-days foreign bills against
deposit of collateral 1t thus turns out
drawal Of legal tenders to the interior is
compensated by the receipts of gold from
abroad
There is no reason for expecting that
this rule will fail us during the present
autumn. Last week it was shown in these
advices how largely the exports of prod
uce have been exceeding the imports of
merchandise and we then suggested the
probability that gold would soon come
hither from abroad. Our words scarcely
got into print before it became known
that foreign engagements had been made
for the shipment of $2,O00,OOO, since in
creased to 100000. 1t may be safely
expected that large further relief will
come from this source; and should that
not suffice. any large difference between
the rate of interest here and in London
would bring us temporary advances
through foreign bankers, sufficient to
stave off any really embarrassing strin-
gency The worse feature in the situa-
ton is the fact that the feverish temper
into which the financial markets have
fallen causes every obstacle to be I'M
duly magnified in the public magma
ton; and the money market is now suf-
fering from that sort of exaggerated APP
| prehension.
The New York bank managers have
again shown their sagacity in their ac-
| ton in preparing for the issuance of
clearing house certificates. They do it.
| however, to ward off danger. on the prin-
| ciple that an ounce of prevention is better
! than pound of cure. 1t is TO the credit
/ OF large and strong bank to have taken
| the initiative in this matter, as was done
| by the same bank in 1898, for the purpose,
as it were, of breaking the ice for the
benefit of others. The needs for money
| at the present time are not for Wall
| street, but for the benefit of the mer-
| camille interests and for crop moving pur-
| poses. The banks, therefore. do well in
| preparing themselves for such legitimate
| money requirements.