The morning news. [volume] (Savannah, Ga.) 1887-1900, 1898-07-12
Bad Policy.

Among bankers and business men in this
part of the state it is regarded as bad
policy for the Governor to borrow in New
York the $4,000 needed to pay the school
! teachers of the state, instead of borrowing
IL OF the banks of the state. There will
be plenty of money in the state treasury q s
soon as the people begin to pay their
taxes. The state therefore, viii be ready
TO repay the loan in three or four months.
II may be said that the Governor
couldn't get the money from the home
banks, or that he can borrow 1T at lower
rate Of interest in New York than he can
in the state. How does he know that the
banks are not prepared to lend the state
all the money he wants to pay the school
teachers? He has not made any inquiries
OF them as to their ability to supply the
states needs. For all that he knows they
could let the state have a great deal more
than 100000 and still have enough left for
business purposes.
We are not prepared to say, of course,
whether OF not he can borrow money an
New York for the state at lower rate Of
interest than he could get il at home, and
ii is probable that he does not know There
IS way of knowing except by making
inquiries and if inquiries have been made
the fact has not been made public.
But, suppose he can borrow money in
New York at a little lower rate of interest
than he could borrow it in Georgia, what
does a few hundred dollars amount to, as
far as the state is concerned, in compar,-
son with the benefit it would be to the
state to have il understood that the home
banks are financially able and willing
to loan the state all the money she needs?
Georgia is not a poVerty-stricken state.
She IS prosperous and rich and has many
banks, all of which. as far as we know,
are in first-class condition. Failures are of
infrequent occurrence. Here in Savannah
there has never been a bank failure. The
fact that the Governor goes to New York,
however, to get money 10 tide over tenn
porary deficiency is calculated to give the
impression that the banks of the state are
not as prosperous as they should be- 1t also
has a bad effect upon the credit of the
stale, because it starts the inquiry as 30
why the state, having so many banks
within her limits, finds it necessary to go
10 New York for money, and it creates the
impression that the banks either have no
money on hand with which to help the
state, or else that they are unwilling to
trust the state. We are sure that Ohio
or Illinois or any other of the states OF
Che West would not borrow money in New
York unless itwas plainly evident that the
money could not be had at home
Here in the South we have got so in the
habit of going TO New York for money that
we do not seem to realize that the time
has come when we can depend upon our
selves--that we have grown rich, and
therefore are not so dependent upon the
great money center for money as we once
were. The sooner we overcome that habit
and depend upon ourselves the better 1t
win be for us.
1t is much better that the state should
help the banks of the state whenever she
can do So without actual loss to herself.
If the Governor had borrowed the 100000
the state needs from them they would
have received the interest on 1t, and the
interest money would have remained in the
state. But as the money is to be borrowed
in New York the interest will go to the
l
the home banks are heavily taxed for state
purposes, as well as for the support of the
county and city governments they should
oe favored whenever it IS possible for the
| state to favor them.
| 1t looks very much as If the Governor
had made a mistake in seeking a loan for
the state in New York before trying to
see whether or not the loan could have
| been obtained on satisfactory terms in
| Georgia 1t is certainly time for the Gov
ernor of This state. as well as for the
! Governors of some of the other Southern
| States, to depend upon home financial in
! sttutions, when in need OF financial as
sistancc, rather than upon the money
lenders of New York. BY doing so these
! Governors would increase public confidence
in their home banks. help their own people
and strengthen the credit of their respec-
| tive states.