Nashville union and dispatch. [volume] (Nashville, Tenn.) 1866-1868, 1866-12-01
The following are the changes from the


The New York Tribune shows that the
banks in that city are rather hard pr essed
and that further demand upon them to
meet their obligations, such as was made
last week, could be responded to only by
large sacrifices. The Tribune says in its
money article of the evening of Novem-
Der %:
Money is offered on call more freely by city
lenders and there are considerable sums from
the interior at COZ p cent. The recent break
down in the price of pork and stocks, the down
ward tendency in breadstuffs and the general
paralysis stealing over all departments of trade.
unite to produce an easy money market on CALL
and a hard market for commercial bills. Upon
cheaper money on call, there viii be shown
more active stock market, and possibly higher
prices, but they cannot be sustained long, unless
Congress commits the foley of enlarging the
National Bank circulation, and also takes from
Mr.. M2CullOch his present power of funding
and paving tho short currency debt. Specula-
tors for an advance must not forget that they are
now buying. not in the face of an increasing
volume Of currency, as in 1853 and 1864, or as in
the early part of 1855, with a currency nearly
stationary, but against q currency steadily de-
creasing by the action OF the treasury, and that
too in form which mustfoTce contraction upon
the banks, and all trading upon borrowed capt.
tai. The banks are already contracting, and an
examination of the last statement out will show
that they are now in a position, when at any
moment they may be Obliged to make large saU-
riiices to promptly meet their deposits.
Fhe statement shows the banks to be hard
pressed for legal tender, and In no condition to
meet continued drain,
Their circulation and deposits are...s2 "A, nc 402
Calling for legal tender reserve Of. 6l,194100
Legal tender reported. g. 359 81
Surplus abovelegal reserve. 81, los, 154
Any further drain upon them can only be met
by selling compounds, or gold bearing debts
dueed their surplus Of legal tender to a very
large degree as viii be seen by the following
Egures:
Circulation and Deposits, Dec. 80,
1862 SUI, q 54l
Calling for legal tender reserves. 81 SOB SS5
Legal tender reported..--.............. 7l,1S4996
Surplus legal tender. Dec. 30. 1885, SO ssl III
Surplus legal tender New. q, 1850. 1,l65l54
Decrease ofsurplus legal tender-....S1s,16 5, 957
The banks are still too much expanded. and
will soon be scrambling for legal tender to keep
up their reserves. This circulation is at the
highest point and this. too, when the Treasurer
is calling Units legal tenders By W hich circulation
is redeemed. In plain legal tenders they are all
poor, and at the next pressure for money will be
obliged to strengthen themselves by purchasing
plain legal tenders, BY selling their interest
bearing reserves. Since the commencement Of
the year the position Of the Treasury and the
banks has been reversed. In January 1865, the
Treasury was hampere6 with a short floating
debt. controlled to great degree by the banks,
which held the Department at their mercy.
Now the Treasury has ne floating debt which it
cannot readily pay, and no debt maturing until
June OF 1867. It has the ordinary expenses of
the Government and interest to pay, but beyond
this Is free, and in position TO name its own
price for tho portion Of currency debt il is able
70 retire with its surplus income. 1t has the
80 notes TO fund, but the Secretary has at com
mand bonds which hecan sell, running 80 years,
al six per cent. absolutely. a security which
placed in the market for 7-30s would absorb
them, asrapidly as tho dew disappears before
the sun in August Forty years and 6 per cent.
are high rates for money. but il would be a
smaller evil than paying the T-S0s in currency.
anai is the plain duty Of the Secretaryto fund at
the rates f essrates fail Unless Congress deliber
Rtely PROHIBITS the the Treasurer from funding
his short debt and calling In legal tenders, moth
ing can stop the existing movement toward spe-
Gle payment Upon legal tenders overtrading
and speculation have proceeded until at last the
fabric drops Of his own weight. as is proved by