Nashville union and dispatch. [volume] (Nashville, Tenn.) 1866-1868, 1867-10-20


United States 5-20s at $50.
Exchange on New York was fur
nished by the banks yesterday at 81 per
thousand.
Nashville corporation checks were in
but little demand. Dealers were buying
at zoe and are holding at 15c discount.
Tennessee bonds sold in New York on
the 10th inst. as follows; $4,000 new at
Gle, $4,000 new at 604c, $4,000 new at
60lc, $4,000 new, I'd call, at 601c, $4,000
new at Coo, $4,000 new at 6O4c $4,000
new at 60tc, and $4,000 new at Coo
Tennessee bonds have steadily declined
since the election of Governor Brownlow,
and the new issue are now Sc lower than
the same bonds sold for on the I'd of Au-
gust There has not been so heavy a de-
cline in other bonds, which fact shows that
there is some cause peculiar to the man
sgement of affairs in this State that has
produced the decline we have noticed
The brokers in New York are thoroughly
posted in regard to the management of the
finances of this State, and it is this knOwl~
edge that has brought about the decline
in our bonds. If there is not a check ap-
piled to the Encouragement and extrava-
gance of the State government, our bonds
will sell for much lower prices than at
present.
The New York Tribune says, in its
money article of the evening of the 10th
instant: Money is in active demand at
Z per cent, and borrowers are ready to
pay, indirectly, higher rates. Long enr
gagements are Stunned, and call loans
given decided preference. The daily
movements of banks at the Clearing House
are closely noted, and those which are
creditor in any large amount are looked
after sharply by their associates not so for
tunate. Further contraction in deposits
and legal tenders will naturally appear in
the statement az the year draws to close,
but no decrease of millions per week in
rapid succession need be expected. The
banks are now moving in quite a limited
sphere, and are in a position when loan
of one million of legal tenders will oblige
them to turn the screw 80 sharply that at
many weak points in the commercial sys-
tenn something to weaken confidence will
occur"
The New York Post, of the afternoon of
the 10th inst, says:
The features of interest in Wall street
are, first, the. diminished activity of
money, and secondly, the extension of
speculation in railroad securities, which
are active, while government bonds are
unsettled and lower. The last named cir
cumstance is by some persons ascribed to
the disposition which is said to have
seized some of our investors in various
parts of the country to sell their govern
ment bonds and buy dividend-paying rail-
road shares To what extent this alleged
disposition is operating we cannot at pres
ent know. All that is certain is that for
several days past there have been eonsid-
cradle orders to sell in the government
market, and that for the present fve-tEen-
ties and other popular Federal securities
seem to be offering more freely than usual
at the counters of the large dealers.
There is nothing new in regard to the
spurious seven-thirties. The yexed ques-
ton as to responsibility is still discussed,
and what will be the opinion Of the legal
officers OF the government is not known.
On one side it is urged that, the notes
being undoubted forgeries, and conse-
quently without value, those dealers who
have sold them to the government are
bound TO refund the money, and should
fall back on the correspondents from
whom they purchased the notes. These
dealers claim that the case involves two
questions-one Of expediency and one Of
law. As to the first, it is argued that the
public securities will suffer in price very
severely if the risks Of the dealers and
holders which are now so heavy are aug
nented as they would be BIZ an adverse
decision. On the point Of law, the argu-
ment ia that the Treasury is in the posts
ton of bank that has paid forged
check or note upon itself, in which case it
can have no claim upon the innocent per-
son from whom the spurious instrument