The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1907-09-04
SOUTH LENDS NORTH MONEY.
n Reversal of the Old Order OF
Things Has Taken Place.


counting southern papers, the SOUTH
ern banks are re-discounting north
ern paper.
This is true Of sections Of the
south that have visited recently, and
while / do not know how matters
stand here, 1 should be inclined to
judge that in a general way, this IS
true of the whole SOUTH"
This highly important statement
was made this morning by Mr.. A. C.
Hutchinson, who is one of the clever
est observers In the State on money
matters and general financial condi-
tions, as affecting cotton milling and
other industries.
Further. 1 do not think that
panic would affect us in the least,
even If one did develop in the north"
declared Mr. Hutchinson. who has ar
rived at the conclusion that there is
more loose money in the south than
In the north on a per capita basis.
The usual order seems to have been
completely reversed, and whereas the
banks of the North were constantly
being called upon to lend to southern
borrowers. now the application for
money is coming from the Northern
States to the banks Of the South,
Il was in. Tennessee bank not SO
long ago, contiued Mr.. Hutchison,
land they showed me q string Of an
locations about two feet in length
which the bank had received from
the northern banks and bankers. ask
ing for the re-discounting Of southern
paper and notes. or in other words,
for loans from the south to the north.
OF courts this was a surprise to
me. but 1t was material and undenia-
BILE proof that the reversal of the old
order Of things had taken place, and
the south has arrived at a point
where she can afford to lend money
to the north.
Business men and bankers we'll
know that the rediscounting Of paper
from the north by southern banks is
almost an unheard Of transaction in
the south, but I merely give you the
statement Of the facts as have found
them. I cannot say as I stated be-
fore. how how far this condition ex-
tends. but think I have seen
enough to convince me that the
southern banks are re-discounting
northern paper to an extent-perhaps
very great. for southern financial in
stitutions and perhaps only small.
This swerving from the old order
is something new under the sun. and
Is the most substantial happening to
prove the solidity Of southern finance
that has yet crossed the horizon.
The reason why the north should
want money is not hard to find, as
the bearish reports on the money
market up about Wall street and in
every financial district. perhaps, has
during recent months become we'll
known fact.
Mr. Hutchison is also impressed
with the solid front which the South
Is able to present to the world, from
money that she wants, but the coun-
try is getting to a point where it can
at last In some instances, afford to
lend money north Of the Mason and
Dixon line.
The farmers after all are the men
who are responsible for this condi-
ton, I suppose, for they are better
off than ever before" admitted Mr.,
Hutchison.
reporter happened to mention
Mr.. Hutchinson's statement about the
re-discounting Of northern paper by
the southern banks, to gentleman
well acquainted with the banking bus
mess. He exclaimed, ~ never heard
or that sort Of thing before, al
though there is nothing in all the
world to prevent it, legally or COM
lly."Charlotte Chronicle.