Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1860-05-03
mOnetarys


The telegraph reports sales Of Tennessee Bonds in New York
the lss at Ole.
The New York Times has the following specustons on ne
late advance Of interest by the Bank Of England:
The state Of financial Affairs IN London continues to excite
mark here, since the advnce Of cent az ne 9Sa y ing
thores The fact would to be clear tnal ~
trust is at this Il is almost equally IAN
tat the Contnenal Eha gss quoted, have tte
nothing to do with it. The exchange WIN ths Cnted
state on ne other hand has unquestona5y diminished
tb RanEin ability Of ne great English establishment, but
this Of ITSELF would scarcely produce 50 great rise IN the
hs aoiinarv aciivyin British trade and manufactures
last especally-is creating Voue % mercantile Ds
Ard naents Throughout. kingdom, which, concentrating
= seosor az universal speculative excitement in
temDting Colonial Securities such as Caa Stock hdla hu
zoe r and Australian Railways absorb more banking
-, the Rank OF England, under the restrictions
Tie Peel Charter Of 1884, in The o6senS this spring Of the
s fs ie of Bullion from this side, has the authority
L - sriov IN discounts The establishment has all
credit al ourse or would have under less arbitrary
~ n ne sa al Government securities as part Of the basis
~ a. C ~ Tssa Department, than is prescribed IN
Of s95 That bill vas the awIof the Bank sixteen
% before he discoveries California and Australia, and
- itbout taxing into consideration .he enormous in
ateal Norld
which has since taken place upset nearly all past theories In
- he Imtations Of banking, that Of Sir Robert
Peel which held ETA OUOOo in Government STOCK ana hs
br on hand would be sufficient for all time for the Ma
I po1, Nafe Currency Of the Kingdom. It would
Gin 10 be felt in OF uneXampled manufacturing prosper
y As has been realized in the reverse Of coEA
e mat the rule Of fl4OOO co., Tor ETA 475 QUO as since
srgd uugisely restrictive well as exceedingly arbitrary
When the Peel charter granted in 1874 the capital stock
NJ fourteen and half sterling the Issue Department
limited to 100000 Government stock and the amount OF
bullion lodged in that department. the basis Of bank nete cir
he bullion al the Of that year ETA 446 co.,
The active circulation then stood f2i56OOO leaving IN the
ponng Department OF notes unemployed OF about
seven million sterling Under this system, after sixteen
other branch Of business throughout the King
DOM we find the with fl4O 90 in bullion the same four
nors sterling in Government seeuInes II us issue De
circulation OF S2e45OO The reserve
notes unemployed reduced to 1851 600, which sum, with
The present volume wants OF trace is scarcely equal to four
millions 1874 This reserve ran down TIE week
ending the 9Th APRIL would be further reduced BY the pay
dividends the succeeding week ending lith Of April
This further reduction probably known exactly to the Court
the Gdsee until Friday afternoon, 18TH and hence the addition
al rise in the rate OF interest.
Notes the real measure the ability Of the Bank TO extend its
BANKING Department holds but Dg
amount Of Bullion say haa million er3g me otner S9I
hon. Government Stock is pledged TO the
Department It cannot be drawn out except on the return
for cancellation, Of corresponding amount OF Notes II me
public already hold OF these Notes. and demand
upon Bullion for the Continent for Notes
supply increasing Of the public the reserve neees
sary runs down the rise OF interest and mOne
the does not AMI no pew supplies OF
Bullion in to renish the Issue Department the process
because the cdh Of the Bank to issue Notes
security Government Stock in the Department but simply
process has been limited to tOOOOOO in
Stock and the Bullion on hand.
The Note Of the Bank Of England legal enders only
legal alternative as Currency, Gold and Silver In this
view plain that the restriction Of this Currency to
twentyegh millions sterling IN o44 was very 1hereht que
restriction, practically, in 1851 The manuac
turing industry the Kingdom alone, demands employ
ment for more than double that served
sixteen years ago. The surplus product CT this branch OF la
exported from the Kingdom in the proportion OF one nun
dred forty millions sterling in 1860, say screen hundred
million dOarS to fifty millions sterling IL 1884, Tor Two nun
fifty million dollsrs and the material OF Cotton
wool alone consumed 1860 is 600 bales to bales
in 1874 The exact figures Of the export o. w SIueu
are 1874 f5u 3O6, and in 1859 t3O 4l ana the esti
f4O least The exact consumption Of
raw Cotton in 1874 was 4256OO bales and $40 in leg
and the estimated increase 10 per cent for 1901 making z4i
bales.