Nashville union and dispatch. [volume] (Nashville, Tenn.) 1866-1868, 1867-07-16


Contrary to a very general expectation, though
according to very general experience, gold has
advanced IN anticipation of the payment of a
large amount OF coin interest by the Treasury
The expectation of the disbursement of interest
very generally induces an oversold condition OF
the market. and the consequence is, that the
premium advances just at the time when an in
creased supply of gold might be expected to
force 1t down. At present. however, there are
other circumstances tending to keep the pre-
MUM firm. The assembiage Of Congress in
special session, tends to excite a certain degree
Of uDeasiness. The course of the extreme party
IN Congress causes misgiyings among thoughtful
capitalists, and anything tending to reopen the
question o. reconstruction, ami 70 excite pOliti-
cal anlmosltles by the impOsitiOn ofharder terms
upon the South, has a very direct tendency 10
enhance the premium on gold None but those
familiar with the inner circles of Wall street.
where public measures are weighed purely upon
their financial and commercial bearings, can
form any idea of the gravity of the misgivinrs
excited among the representative capitalists of
the country, by the spirit and measures of the
Congressional leaders. But for fears OF this
Character, gold would to-day range fully ten
points below Its present premium. There is no
disposition TO sell gold below its present price.
until u becomes apparent what sort of councils
are likely to prevail in the extra session. We
nave good reason Tor believing that the Trea-
sury Is not likely to sell gold for some time to
come. The administration has no sympathy
with the assemblage Of Congress- and is not like
" to do anything 70 counteract any tendency of
8
~, therefore, TO be some time before the market
will receive any additional supply of coin. The
amount due on July coupons, was about sl9.-
100000; on the LIST of September a small amount
becomes payable on l040 coupons, and after that
no further payments are due until November
LIST. Considering that, for the next four months.
about Sl3, 100000 per month viii be required for
customs duties alone, to say nothing of what
may be wanted for export, it is very clear that if
the government declines 70 sell gold freely, the
premium may advance to much higher figures, on
account Of its actual scarcity. At the same time.
there IS IN some quarters a certain degree OF
mlstrust respecting the maintenance of peace in
Europe. The relations between France and
Prussia are viewed with some uneasiness, and
there are those who predict with much posi-
tiyeness, that before christmas the two powers
will be at swords points. Ii is also thought by
some foreign bankers, that the difficulties beset-
ting the process of reconstruction, and the de-
velOpments at the extra session Of Congress will,
to certain extent, shake the confidence among
the holders ofour bonds in Europe, and induce
tall in the price. Although the growth Of con
hdence among foreign bOndhOlders, at a time
when political affairs have excited much uneasi-
ness at home affords little countenance 30 this
opinion, yet it doubtless contributes with the
other causes mentioned, to impart frmness to
the premium.