Nashville patriot. [volume] (Nashville, Tenn.) 1858-1860, 1859-11-12
The Financial Pressure.
For the Patriot

MESSRs. .-DuTluP tue ldsJ lew
weeks | have watched with no little interest
the state of financial affairs in your growing
and prosperous city, as compared with the
moned interest of New York, Boston and
Philadelphia, and have been led to inquire
why the money market has been, and is how
unusually easy in these great marts of trade
while in this prosperous community, sur
rounded with rich agricultural population
rich in all that constitutes wealth, and
with no failure il any of the great staples
of the State, money is so scarce and difficult
to be obtained through the usual channels
from which our merchants and business men
are accustomed to obtain their exchanges to
meet their liabilities? Although have had
no occasion to inquire at our banks for ac-
commodation yet the complaint has been
universal among all classes of business men
that money is scarce, and that onr monied
institutions manifest very little desire to ac-
commodate the unavoidable demands, made
upon them in the legitimate business trans
actions of trade and exchange. The money
markets of New York and Boston have been
well sui pled-fOr the last two months, so
much so that 60 and 80 days paper have not
commanded the legal rates. In New York
where the legal rate is per cent, four to six
months. A No l paper has been taken as
low as 81 per cent, and 80 to 60 days paper
and demand loans, as low as 5 to 6 per
cent, and at times, the line of bank discounts
has not been filed at these low rates show
ing an ease in the money market strangely
in contrast with the stringency of our
own. Dealers in money might claim that
this easy state was owing to other causes
than supply Of the commodity, if it had
continued but for one or two weeks. but we
find that this is no exception to the general
average for several weeks. Notice for in
stance the report for the week up to the 4th
of the present month we find the report az
follows: discounts on strictly prime paper
(of which the offering continues moderately
are easy at COZ per cent. with exceptional
cases as low as 5! on 80 and 60 days accep-
tance."
With the existence OF great stingency in
the money market here, and the unusual
ease in other sections; is it not a pertinent
enquiry TO make, What is the cause and the
reason of les continuancei We think so, and
also that the business men Of this city who
cannot he charged with overrading, or wild
speculation, have a right to an explicit an
swer TO these interrogatories; and If this state
of affairs is simply local, as we believe it is,
whether produced by the banks under the
plea of protecting themselves from future
Legislative action, by Withholding liberal
line of discount. or by the indirect influence
OF wire-pulling, political hucksters and cur
rency thinkers. to the disparagement of our
monied institutions; then the active business
class, who are the greatest sufferers, have q
right to demand that these causes be removed
and liberal policy be hereafter pursued. 1t
looks TO outsiders. like war bet-yeen the
Legislature and the banks, and between this
conflict OF political and party interest on one
side. and our 'monied institutions on the
other stand the enterprising business men.
receiving the missiles of either party; aud we
have but little doubt but that this Is the true
state of the case, were the facts as they exist |
brought to light. The majority of the MEM
bers of the Legislature, we presume, deem IL |
n little; for Ii can be only +" tinkering," if |
they attempt to carry out their pledges made |
during the last campaign, and thereby show |
the sovereign people that they were honest |
in their professions, Of what might very |
facetiously be termed rerorm-a reform
worthy the days of Robespierre and the
Jacobin clubs of France--a pulling down. |
N hniidiny nur astn,a Go
ernor may feel II incumbent upon him to
foreshadow his course upon the bank ques-
ton in order 10 please the faithful devotees OF
a gold and silver currency; and we have no
doubt but he may be driven. politician as he
il. 10 make some effort TO carry out bic
pledges TO change the present system; bot II
is sclfevident to every thoroughly educated
business man. that IL these implied pledges are
any criterion by hich to Judge ofhis financial
knowledge. that be understands as lit.le OF
the diagnosis Of the currency disease. as
Krooman does of christianity; aud though i
the Democratic wing Of the Legislature
may feel themselves fully competent 10 reg
ulaie the currency and furnish supply OF
gold and silver for all the great channels OF
commerce and trade; yet Is we'll known TO
every intelligent dnaneier 20 be utterly i'm
practicable: and their efforts In this line may
end like the wonderful scheme Of aduiiera-
ting the gold coin 10 keep Il In the country, |
only making II 50 base a. to be refused by
ALL We wonld not detract in the least from
the intelligence Of the Legislature; bat we
believe they can be better employed. than
attempting 20 regulate thai which win rega- |
late itself. and can do more for their eonstryis
good by raising cotton. than In isglslaiing
upon the currency. We would not object 10
any change which can be shown wiil result
in the good Of ths basiaess community At
large; bus We do object 90 this sampstaag /
with The eauency. simply apoa political