The Nashville daily union. [volume] (Nashville, Tenn.) 1862-1866, 1864-06-30
Tas NEUTRALITY-SUSPICIOUS.. contraction,

Ths CarreHcY-IRfatioR, Contraction,
DC.
Iwas certainly q grave financial
error on the part Of Mr.. CHASE, TO reject
s3S,0OOO00 Of the late loan, because
below four per cent premium Had he
accepted all, his wants would have been
abundantly supplied and no necessity
would have existed for the issue Of
more interest bearing legal tenders to
supply the place Of currency withdrawn.
The n J. Commercial Adrertissr, of a
late date, thus sums up the circulation,
and the progress Of reduction in the
volume of currency:
"The official statement Of the public
debt, issued on the l4th OF June, shows
a present decrease in the amount OF
Government paper money, as will ap-
pear from the following comparison
with the preceding statement OF
May IA
June y. May "a.
Uoitei stafes nOtes-.s432, "a 80 Sal ,Zzi,Oll
Five per cent j ST notes a. 5HUo 4i,ooS,oOv
Five per cant z y'r notes i6,fs3s051
Five per csct. 2 ~ notes Ioyr-ssssel
with coupOis.....-...-..-. III, ip3.SJJ
Treasury notes or which
Frsetiond currency 800. 2l.0i,9is ao,s2592s
sez5, ssi.g44 scse.o2z o70
Decrease. .................... so,es7,sss
The total decrease OF circulation du-
ring the thirty days is thus S60,6S7 ,g52 /;
certainly very large contraction for
so short a period, and which undoubt-
eddy contributes to the present difficult
ty of the banks in finding sufficient
Greenbacks for covering the demands
Tor settling Gold and Exchange trans
actions. The items Of decrease have
been as follows:
Six per cent two year Notcs.............. 55i5, SCI
At the same time there has been an
increase:
In per cent one yea Notes oi..........si 52oc0o
In Overdue Treasury Notes.......---...-..-. e,3lo
In Fractional Currency -..........-.-..--. IJa'1-'
This reduction ofyolume is sufficient
ly rapidly for any purpose, certainly {;
and but for the fact that it Is, in
some measure, counteracted by State
bank expansion, its effect would have
been felt ere this, in a most decided
manner Another month, and even
with the bank circulation, the result
would be to reduce prices. The money
market is indeed stringent; so much
so that the veteran commercial editor
Of the Cincinnati Gazette remarked
that within a brief period, there must
be an increase of currency, or a Tedue-
ton Of prices. Therefore, ifthe volume
of currency continued to diminish,
prices must soon seek their true level
The national expenditures average
S65, 600, 900 per month; half of which
can be realized in g short time under
the tax law. We hope that the remain
ing sum will be borrowed, and believe
it can be, through proposals for it; and
in the meantime the 1910 bonds could
be employed in redeeming outstanding
treasury notes, at the rate of Sl,OOO,OOO
per day
But Mr. CHASE refused all bids under
l,O4, and the result is, he only realized
$40, 00o 600 out of the S75,000,0OO called
for, and, as a consequence, he Is com
PEELED to replace a portion of the large
sum called in, with other, though diff
ferent legal tenders, and the result,
taken with the power granted in the
loan act, to issue S2OO0O0,000 in rs le-
gal tenders, has given the spectators
the upper hand, though, we hope, but
temporarily.
Proposals for the remaining $685.
000, 600 Of the late loan, are to be re-
ceived again and we hope that the re-
suit will justify the rejection of bids Of
less than ! ,Q4, but we fear that it viii be |
found otherwise