The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-01-22
why Money Goes to New York.


Why is it that there is so little. money to
loan in the west and south where the rate
of interest IS high and so much il New
York where the rate just now is remarka-
by low? The complaint Of the people IN
the west and south IS that money Is
scarce, and they demand a monetary sys-
TEN that would bring about more nearly
equal distribution Of the currency.
a question which present itself Is this:
Is it possible to devise a system that would
scatter the currency pretty evenly over
the country? We doubt if IL isl
Why does money go to New York? Not
because there is a greater demand for it
there, nor is it sent there for safe keep
ing 1t goes there because IT is owed to
those who live there. Admitting that
such is the case, the money would go
there even If We had state banks, and the
notes of the banks were at a discount In
deed it is difficult to see how it could be
prevented from going there.
And why is so much money owed in New
York? Because the headquarters of the
great railroad systems are there, and the
bonds Of the railroads are largely owned
by the people who 1--we there, because the
great life insurance companies are located
there. and the tens of millions of dollars
in life insurance premiums that are annu-
ally collected are sent there, because the
chief offices Of the great fire insurance
companies are there and the fire insurance
premiums are sent there because the bonds
of the different states are almost all held
there and the interest on the bonds Is sent
there, because most of the man
ufactured products are produced
there and in the New Eng
land states and our money goes there
to pay for these products and because the
great cotton and grain and stock ex-
changes are there and our people send
their surplus wealth there and lose it in
gambling in cotton. grain and stocks.
While these conditions exists how are
we to have an abundance of currency in
the hands of the people seeking invest
ment? With these conditions could a
banking or currency system be devised
that would bring about more equal dis
tribution of the currency? We are in
clined to think not.
We notice that Gov. Culberson of Texas,
in his message to the legislature of that
state the other day. said that for the year
1895, the people of Texas paid the life in
surance companies of New York 81. Al 1872
In premiums over the losses paid in that
state by these companies and that in the
last ten years they have paid three life
insurance companies in premiums $l8,6H,
PASS and the amount of policies these
three companies paid to Texans in that
time was only $4,947, 5695l. Think of it,!
Three New York life insurance companies
got from one southern state in a decade
nearly $14,000000 more than they paid
back to the state. What wonder is it
that there is so little money in the south
seeking investment! And life insurance
premiums are only one of the many means
Of draining the south of her wealth. And
the same thing can be said of the west
What is to be done to keep the surplus
wealth at home? We must have factories
of our own, and life. and fire insurance,
and trust and guarantee companies As
long as we depend upon New York for
these things, and others that might be
mentioned, there will be a scarcity of cur
rency in the south and west. whatever the
currency system is that may be adopted.