The Savannah morning news., 1903-09-17
MONEY IN PLENTY
SOUTHERN BANKS HAVE NEVER
HAD so MUCH CASH ON HAND.
DON'T NEED TO BORROW.
FORMER CUSTOM OF CALLING ON
NEW YORK NOT NECESSARY.

pOsit Treble the Amount of Their
Capital StOck-One Bank at VAL
dosta Capitalized at $4,000 Has
100000 on DepOsit-Incrensed
Amount of Money That VIII Come
to GeOrgin Cotton Planters This
Year Would Pay Bonded Indebted
ness of Central Railway and
Ocean Steamship Co.
The handling of the cotton crop in
the South has ceased to be the serious
problem for the banks here that it
formerly was when money was scarce
even four years ago. No season yet
has found the moneyed institutions
in such excellent shape for furnish
ing all the money needed without re-
course to the Golfers of the big bank
ing concerns in the North.
Up to two years ago nearly all South
ern banks found it necessary to draw
largely on Northern banks at the
opening of the cotton season for ready
cash for the marketing of the crop
AS the heaviest demands come for
cash in the early days of the season
when cotton pickers have to be paid,
bagging and ties bought and hun
dred and one minor expenses incident
to the marketing of the crop have
to be met, and the banks have had
no return from the drafts they cash
ed for cotton brought here, it has been
necessary to borrow from New York
banks. This condition has not pre-
vailed this year. for never before in
the history of the South has there been
so much money on deposit in the banks
in Dixie land, and even the largest
drafts on foreign houses have been
met without resort to foreign money
powers.
Banks Have Plenty.
BY the Citizens Bank alone this sea-
son from $50 900 to 100000 has been
shipped into the interior daily to de-
fray the expenses of harvesting the
crop since the season opened. Not
a dollar of this money has returned
to the bank, and yet there is plenty
on hand to meet all emergencies.
Drafts to the amount of $600,0O were
received here yesterday, and were han
died without the slightest inconveni-
ence The vast amount of money need
ed for conducting such mammoth sales
is on deposit in the banks in the South
ern cities and in the banks in interior
towns.
Bank statements from interior towns
show, without exception, that the
amount of deposits are treble the cap
ital stock of the banks. In Valdosta
one bank, capitalized at $4,000, re-
ports over 100000 on deposit.
The mode of furnishing the $90,00O,0OO
that will be paid to the Georgia plant
ers this year for their crop is known
to very few of those actually engaged
in the product of the staple. 1t is be-
yond reason that this amount of ready
cash is carried in the banks through
out the state in addition to the regular
business funds. The way it is done is
simple enough.
Exporters in the Interior.
Every exporter is represented in the
interior towns by buyers, who give
drafts on their firms for all cotton that
they buy. These drafts are attached
to the bill of lading for the cotton ana
are sent to the banks through which
the transaction takes place. The draft
and bill OF lading comes to Savannah,
and the Savannah banks send the
money to the interior banks, and the
drafts are sent to New York, where
they are placed to the credit of the
bank here. The amounts to the credit
of the banks here is not drawn on until
ready cash is needed for the interior
towns.
In former years it has been the Gus
tom of banks with limited amounts OF
cash to ask immediate remittances on
foreign drafts sent to New YORK. 1t
has not been necessary this season 10
resort to this eXpedient as nearly all
of the banks have had enough ready
cash or hand.
The first shipment of money from
New York will be received by the Citi-
zens Bank to-day, amounting to $780,
O00 This bank has had sufficient
money on hand to meet the heavy de-
mands that have been made this sea-
son without even drawing on their de-
posits in New York.
Southern Banks Prosperous.
A local banker. in speaking of the
generally improved condition of all
Southern banks, said yesterday: There
has never been so much money on de-
post in the banks in the interior as
there is at present. All of the smaller
concerns are independent, and many
have larger deposit accounts than some
of the banking institutions in the
larger cities. This indicates that the
farmers are prosperous with the good
crops and good prices that have pre-
vailed for the past two years.
1.-The greatest evil of the South is
speculation. If the Southern farmers
and factors would keep away from
speculation in cotton futures for a pc
Rod of five years, this would be the
most generally prosperous section of
the country in the world. Ever since
the war the South has contributed. on
an average, of $4,000 900 annually to
Wall street. If this money were kept
at home. and put into the regular chan
nels of trade, untold benefits would re-
suit.
The increase in the amount of money
that the farmers of Georgia will re-
ceive this year from their crops over
that of two years ago, would be enough
to pay off the total bonded indebted
ness of the Central of Georgia Railway
and the Ocean Steamship Company,
and with this vast amount of additional