Nashville union and dispatch. [volume] (Nashville, Tenn.) 1866-1868, 1867-08-27

States 5-2Os at 73s.
Exchange on New York was sold by the
banks yesterday at 81 per thousand.
United States 2Os, new Issue, were sold
by our brokers at 1883.
Nashville corporation checks may be
quoted at 25c discount
Tennessee bonds sold in New York on
the 22d inst. as follows: $4,000 ex. eou-
pOns at &c, $1,000 ex. coupons, ID call, at
654c, $4,000 new at Coo, $4,000 new at 643c
$40, 1000 nes at 643c, $1,000 new at Csc, and
$1,000 ex. coupons at 66e North Carolina
new sold at 54@534c.
The Cincinnati Gazette of the oath inst.
says;
We have had full eight months of BUSH
ness stagnation throughout the West The
most prominent cause of this was the fail
ure ofthe crops ia 1866. Currency tinker
ing and threats of war upon speculation"
aggravated the troubles, but at the bottom
of all was the scarcity of produce The
West had but little to sell, consequently
merchants found it difficult to collect
money due them, and the demand for
goods fell off to almost nothing. There
fore capitalists were unable to employ their
means in the ordinary avenues of trade.
Commission merchants, whose business it
is to buy and sell produce, and advance on
consignments had but little trade, and
their funds accumulated with no opening
in investment except government securi-
ties. This led to large purchases of bonds
and the rapid accumulation of currency in
the Eastern cities. Thus, while the supply
of money was largely reduced at the com.
mercial centers of the West, and there was
an extraordinary scarcity Of currency
throughout the interior, there was an over
supply in all the Eastern markets So
marked was this feature that the rate of
interest on call loans fell in New York to
3(94 per cent in the face of the withdrawal
of forty millions by the Secretary of Treas
ury. This plethora of capital is one sec
ton of the country-at the great money
centers-plainly exhibited the extent of
the depression of trade. And until this
money comes to be distributed there can be
no revival in business. Therefore, the
movement of currency in New York may
be safely looked to as the barometer of
trade. When the banks begin to report
loss of currency from western drafts upon
deposit, we may look for a healthy move
ment in business circles.
1t was supposed that upon theconcusion
of the wheat harvest the exchanges would
Immediately turn in favor of the West. In
this regard, however, some disappointment
has been experienced. Farmers finding
that the wheat crop did not yield as well
az expected, have been slow in selling
while buyers who were waiting fer heavy
receipts and large decline in prices, have
been tardy in raising their views to meet
those of sellers. The wool trade too,
proved sluggish, and the money required to
move this crop was not called for as expect
ed. Exchanges, therefore, were sustaine
at point that prevented the withdrawal |
of currency from the East, up to the close
Of last week. Now, however, matters be- |
gin to undergo a change. At Cincinnati |
and Chicago exchange is becoming abund- |
ant, and sight drafts are at a discount of |
1-1004. This leads to orders for curren-
cy, and the indications are that from all |
points in the West there will, for some
time to come be sharp demand for green
backs upon the Eastern banks. Thus we
shall have distributed among the people,
within the next sixty days, one hundred
million of the currency that has been lying
idle in the Eastern markets. This will
pass gradually through the channels of
trade, and give life to business which has so
long been stagnant. We do nos anticipate
a sudden change from stagnation to activi-
ty, but a gradual improvement that will
secure at least, a fair fall trade, and open
the way for a fall return to healthy and
vigorous business in spring"
The Montgomery (Ala-) Advertiser of
the 18th inst. says: "New cotton is com
ing in in small wagon loads, and selling
readily at 22c, for middling, buyers paying
the tax. We notice a good many wagon
loads of new cotton coming in to-day with
prospect of a larger supply for next week.
From all accounts from the country the
coming crop looks very promising, and
cheering news continues to come in"