Nashville union and dispatch. [volume] (Nashville, Tenn.) 1866-1868, 1867-10-09

There is nothing doing in our local
stocks and bonds, and rates are unchanged.
Nashville corporation checks are bought
at 2S@30c discount
Tennessee bonds sold in New York on
the 4th inst. as follows. $4,000 new at
&c, $4,000 new at 623c, $4,000 new
at &c, $4,000 ex. coupons at SAC, $4,000
new at 62ac; and on the 9Th, $4,000 ex.
coupons 634c, $4,000 ex coupons at 634c,
$4,000 new at 614c, and $4,000 new, ID
call, at &c.
The New York Journal of Commerce of
the afternoon of the 9TH inst. says "The
money market continues active, although
little less stringent than yesterday. There
is sharp demand for temporary loans of
capital at per cent, which appears to be
the lowest rate for new transactions upon
the best securities, while large portion of
the business is done at a higher figure
The range of discount for frst-class COM
mercial paper is from 1910 per cent. per
annum, but at present there is but little
doing. "The New York Post of the same
date says; "The monetary pinch seems
now, however, to have ceased for the mo-
ment, and the opinion generally prevails
that there will be more ease and steadiness
next week. This opinion is founded in
part on the issue of the new certificates
which it is supposed will make the banks
easier in point of reserve, especially should
there be diminution Of the drain of green
backs to the West"
The National Intelligencer has the follow
ing remarks in regard to national bank
circulation and its redemption:
The projects before Congress last winter
in reference to the notifications of the ma
tional bank system entirely failed, and
they will, no doubt, be revived at the
coming session. The experience of the
last few months has enjOined the necessity
of some notifications of the system. The
recent prostration in the money market,
the sudden rise in the rate of interest and
the fall in stocks may be ascribed in great
measure to the want Of uniform mode of
reducing the national bank issues. Cur
rency was abundant everywhere in the
summer, when it was not wanted but in
the fall, when wanted for moving crops
and other business transactions, it became
scarce. The Comptroller Of Currency
recommends to Congress, as a measure that
would meet this and other difficulties ap-
pertaing to the present system, plan for
the redemption of national bank issues at
some one or more central points. The
Committee on Banking and Currency re-
ported bill for that purpose, which was
not acted upon, and, meanwhile the banks
in the interior manifested much opposition
to it. 1t is now contended that such pro-
vision for redemption at New York would
give elasticity to the currency, rendering
it abundant for all occasions when the &C
tivity of business should require it. Now
it is abundant for speculation, as a low rate
of interest, at a season VIXEN it is not want
ed for regular business. The inequitable
distribution of the national banking cur
rency is another source of evil, and has
given rise to much complaint in the South
and West. The opposition to the banking
system has been manifested in some quar-
tiers upon this ground alone, and strong
combinations will at some time be made
against it, unless the defect be remedied
Several remedies were proposed in the last
Congress, but not adopted. An increase Of
the currency for the purpose of effecting
more equitable distribution was recon-
mended on one hand, and another propO
sition was made to scale the shares allowed
to the North and East, and Distribute the
excess in the South and West.
The question is frequently asked, What
becomes of the amount of currency issued 10
banks that have failed and been closed up g.?
Why, it is asked, should not this amount
of currency be redistributed, 30 as to adj
just, in some manner, the inequality Of al
lowance to different sections and CONNER
cial cities?
1t appears, however, that ne provision
has been made for this contingency. The
notes issued to these broken banks, are not re-
tired from general circulation. They remain
in use, and do not come back to the Treas
ury for redemption in legal tenders, except
when they come as mutilated or worn out
notes. The limit fixed by law to the
amount of currency to be issued (three
hundred millions) was reached some time
ago. Ba4ks have since been established
under the Law, but not az banks Of circula-
ton, and received no currency from the
Treasury. But it appears that these banks,
or, indeed, any other banks, may purchase
of the retiring banks their currency and
employ it. They pay premium to the re-
firing bank for this privilege, and, indeed,
the rate of premiums in some cases has
been very large. 1t would seem that this
is a matter that should be regulated by
law. The Treasury has given notice in
several instances, that the issues Of baaks
wound up would be paid on presentation
but the privilege Of employing them Is too
l. L.. IT,. IL