Nashville union and dispatch. [volume] (Nashville, Tenn.) 1866-1868, 1866-11-25
London adyices Of the 29d inst, az

O-ZUs at |O4.
Exchange on New York is in good de-
mand, and is taken by the banks at par, and
sold at premium.
There is but little doing in uncurrent
funds. The notes of most of the banks of
this State are in good demand at firm rates,
while the bank notes of the Southern States
are scarcely in any demand and rates are
weak
Bank of Tennessee is quite firm at 45c
buying, and is held at 47@5Oc. We have
heard of only slight sales atthe latter figure.
Planters Bank is in request at SIC buy
ing and 8Sc selling.
Union Bank notes are bought at 77G97Sc.;
Bank of Chattanooga at 2Oc.; Bank of Shell
byviIle at S5c, and Bank of West Tennessee
at 43c
Southern Bank notes generally are dull,
and only few of the banks will readily
bring the quotations.
No sales of Tennessee bonds were reported
in New York on the 21st inst.
The Cincinnati Gazette, of the 23d inst,
says: GAS general rule bankers are not
lending money at present. and whatever
business is done in this line is transacted
chiefly to accommodate customers who can
produce satisfactory paper, rather than with
reference to profting by investment" What
the Gazette says of Cincinnati is equally true
Of other large financial and commercial
centres. The money market has been made
close by the operations of the Treasury De-
partment in drawing heavily and suddenly
upon the National Bank Depositories
throughout the country. In this connection,
the New York Tribune says, under date of
the 21st instant
The demand for currency continues, and
among the buyers the Treasury Department is not
the least. The National banks have been close
y drawn upon 70 strengthen the Department at
points where past-dUe temporary loans remain
unpaid. This resource is not equal to the demands
upon the Treasury, and gold has been sold to
moderate extent " to buy currency" and pay the
past-due debt. It is evident that the Treasury
has reached the point where it cannot come to the
rescue Of any class of borrowers. 1t is in posi-
ton TO meet all its obligations promptly and to
steadily reduce the volume of the National debt,
but that is all. 1t has ceased to manufacture for
itself or for the National banks anything in the
form of currency, and is now laboring in a diree-
ton which converts legal tender and short debt
calling for legal tender at maturity. into long
funded debt, which employs money. From this
time the Treasury will press with heavy hand
upon all forms of industry, in the shape of taxes
or forced loans, as they may with great propriety
be called. These forced loans. to be sure, 90 to
reduce the National debt and to pay the interest
upon IT, but they burden upon industry. and
no matter how necessary to maintain the honor of
the nation are no less burden As these taxes are
paid in legal tenders, which can and will be de-
stTOyed steadily, the market price Of all the pro-
perry of taxpayers will soon convince them that
nelther public nor private deDts are blessing.
that the Treasury is steadily reducing the legal
tenders upon which commodities now rest so in
securely and shape their business accordingly the
safer they will be-"
At the dates annexed, Mr.. McCulloch
held in the Treasury in paper money as
follows:
lst of September. 97 749 46
lst Of October Al ~, S3S q
lst Of November........... SO,9l3,942 W.
Thus, we find in two months he disburscd
S26,OOO,OO0 of the balance held September
LIST, in'addition to two months, surplus re-
ceipts on account of internal revenue. What
he did with this money cannot be particu-
larly stated, says the Cincinnati Gazette, ex-
oept that in addition to paying off the tenn
porary loan, it is understood he bought up
7-30s and compound interest notes. The
disbursement Of this currency gave great
ease TO the money market, encouraged
speculation and inflated prices. 1t put up
largely the prices of the very securities Mr..
McCulloch was buying. For these he paid
EOS per cent. above current rates. Mean
time be suffered balances on deposit with
the National Banks to accumulate, inducing
those institutions to loan freely, and to buy
Government securities at advancing rates.
Thus, during the months of September and
October, Mr.. McCulloch encouraged specu-
lation by initiating the currency to the ut
most extent Of his power, and this was in
continuation of his policy during the sum-
mer. At the same time he boarded gold,
causing the price to advance to over l50
Having got the business of the country on
to this high level, with a superabundance of
money at cheap rates, he turns suddenly
around, sells gold which he held when it
was $50, at 145 downward; buys S2,000,000
of bonds, maturing in 1868, at equal to
40; draws simultaneously and heavily up
the National Banks, and retires about $16,-
000, 900 greenbacks. These operations dis
turbthe money market, depress values, cause
general distrust, and bring the whole bust
ness community to the verge of sweeping
panic. Now, if this contraction we're to be
permanent and if values were to be kept
down on their present level, there would be
some compromising results from Mr.. Nc
Calloch's smashing operations; but this is
not the case. The flow of money is dis
turbed, and practically, for the time being,
people find difficulty in borrowing; but
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