Nashville union and dispatch. [volume] (Nashville, Tenn.) 1866-1868, 1867-06-08


by the banks yesterday at par, and sold by
them at premium. .t..-. r..
There was but very little doing in un-
current funds. .ef q.
Bank of Tennessee was quiet at SIC buy
ing.
Other Tennessee money and Southern
Bank notes were dull at the advertised
rates. ~ .. a..
Nashville Corporation Checks were
bought at 15c discount.
Tennessee bonds sold in New York on
the 4th inst. as follows: $4,000 ex. cou-
pons at 694c, $1,000 ex. coupons at 694c,
$4,000 ex. coupons at zoe, $4,000 new at
689c, S67 900 new at 6Ssc, $4,000 ex. cou-
pOns at zoe, $4,000 new at 683c, $4,000
new at csc, $1,000 new at 69c, $4,000 new
6Ssc. North Carolina new and ex.
coupon bonds sold at 494e. .al
There was a rumor in New York on the
4th inst. that Mr.. McCulloch has been
making secret arrangements with some of
! the national banks for the issue of more
nationl bank notes. 1t is well known that
the limit to circulation to national banks
! under the National Banking law is three
hundred millions of dollars, and that this
limit was long since reached. There are
still national banks without any cireula-
ton, and many others with much less than
they wish. Now the report is that the de-
partment has privately informed some of
the banksin an informal way, that, to the
extent that they will redeem the bills of
broken banks, new notes may be had by the
banks desiring circulation. This report
has created quite sensation among the
banks interested, and premium az high
as or per cent. has been offered for the
broken bank notes. There is, howevea, no
law aiithorising the issue, and the terms
of such issue must be settled by Congress
The New Ysrk journal Of Commerce Of
the afternoon OF the 4th inst. says: The
market generally continues langnid.
Values of most descriptions of produce are
unsettled, and prices of many classes have
a downward tendency. The drygoods
trade is inactive. At present there is little
effort on the part of holders to press sales,
of staple styles of either cotton or wool 1
fabrics, and the limited demand is sup
piled at rates which show no important |
change during the last few days There is
an increased demand for money, and call |
loans are readily placed upon the best Sc
curities at COZ per cent. The range OF
discount for frst-class commercial paper at
short date is 7@S per cent. per annum."
The last clause of the first section of the |
national banking law provides that
"AH bonds treasury notes and other obliga- |
tons of the United States shall be exempt frem |
taxation by or under State or municipal au- |
thority.' .f
What is meant by "otEsr obligations" is
defined in The 18th section of the same act
Of June 80, 1864 That section reads:
"The words. obligation OF other security of |
the United States. used in the act shall be held /
to include and mean all bonds coupons, Nation |
al currency, United States notes, treasury notes,
fractional notes. checks for money Of authorized
officers Ofthe United States certificates OF in /
debtedness. certificates of deposit, stamps and |
other representatives of value of whatever de- 1
nomination, which have been or may be issued i
under any act OF Congress"
We don't think any two lawyers can be
got together who would hesitate moment |
in concurring in the opinion that legal
tender notes, commonly called greenbacks,
were embraced in that 18th section, and are
just as much exempt from taxation as five
twenties or seven-thirties. A citizen of
Ohio, who had been pestered by his town
ship Assessor on the subject, wrote to the /
Controller of the Currency, at Washing
ton, for his opinion, and received the fol-
lowing reply: -,.
TREASURY DEPARTMENT, OFFICE OF CONTROL
LER OF THE CURRENCY. WASHINGTON, December,
a. l365.-SfR our letter of the 9Th inst. is re-
eeived. The last clause of section l. act OF June
80. 1854 provides that all bonds, treasury notes,
and other obligations Of the United States shall
be exempt from taxation by or under State or
municipal authority. Section Ii OF the same set
defines the meaning of the words Obligation
or other security of the United States" and in
cludes legal tender notes am. therefore, clear
ly of the opinion that legal-tender notes are ex-
empt from local taxation State and municipal.
( Very respectfully. N CLARKE:
Mr., Spalding, leading Radical member
of Congress, at the first session of the last
Congress, introduced resolution to de-
clare that the meaning of the 18th section
of said act of June 30, 1864, was not to
exempt legal-tender notes from taxation.
Mr.. Thad Stevens Immediately denounced
the resolution, declaring it TO be rank
reputation" The resolution through
courtesy to the mover of it, was sent to the
j judiciary Committee, and has not been