Nashville union and dispatch. [volume] (Nashville, Tenn.) 1866-1868, 1867-03-09

London adVices of the Sth inst. quote
/. United States 5-2os at 734.
Exchange on New York was bought by
the banks here at par, and sold by them at
/ premium.
But little was done in uncnrrpnf money.
Bank Of Tennessee was quiet at 25c buy
ing and 92e selling. Union and Plant
ers' bank notes were in good demand The
former were bought at SOC, and the latter
at SEE. lra .ne1
Southern bank notes we're very dull at
the advertised rates.
Nashville corporation checks were dull
at Zoe discount.
The only sale of Tennessee bonds on the
the New York Stock Exchange on the 9TH
inst. was $4,000 ex. coupons at Csc.
The New York Tribune states that the
financial action Of Congress is not regarded
as facilitating expansion 30 any extent, and
prudent people are shaping their affairs in
harmony with the declared policy of the
Treasury-steady and persistent cOntrac-
ton. The leaders in contraction will be
the National Banks, which, having left no
stone unturned to make money upon the
food of paper money which has covered
the country, now find themselves lOaning
upon crops and goods which cannot be
marketed except at heavy losses, and upon
stocks which in numerous cases cannot be
sold for the amounts for which they are
hypothetical. As bank officers and fnan-
cial people generally are among the fore
most in speculations, they are naturally
disposed to look with more favor upon spe-
cuiative customers than their character or
capital warrant; and it is only when the
bubble bursts that they realize the risks
they have been taking, and disclose to the
stockholders the losses they have suffered.
Some very unpleasant disclosures hayejust
been made at Baltimore, Boston, Pittsburg,
and other smaller points, and more will be
brought to view as the banks are forced to
contract, as they must, by funding the ma
tional debt and calling in compound notes.
Present bank credits upon breadstufs, pro-
visions, and long list of manufactured
goods, are based upon prices which are
steadily shrinking, and mustcontinue to do
so, to the damage of their owners and par
ties loaning upon them. Atno distant day
this fact will be apparent, and a scramble
will be made by creditors to "protect"
themselves. Forced sales will be made, |
lower prices established, and many notes be
left unpaid. This is the process by which |
the country is to return to prices before |
the war;" and it will cause the loss of for
tunes, as perishable as the paper upon which |
they have in the past few years been calcu-
lated.
By the involuntary sections of the bank |
rupt act, power is given TO a creditor for
very slight cause, to throw debtor into the
bankrupt court, and cause his property and |
assets to pass into the hands of receiver.
This will contract the credit system snd |
tend to lower prices; for it makes corner
ing and monopolizing dangerous under
takings if based on credit, as they almost |
always are.
The following instructions to United |
States Internal Revenue Assessors will be
interesting to National Banks and their
TREASURY DEPARTMENT, WASHINGTON, Febru-
airy 70, ls67-STR: 1t has come TO the knowledge /
Of this Office that many of the National Banks /
pay the local taxes State and local) assessed |
upon their shares deducting the amount so paid /
from their earnings, thus reducing the amount /
subject to the tax of FIVE per cent. under sections
IL and III of the internal Revenue Act of June j
80, 1854, amended July -. 1866
effect that said taxes may be imposed upon the /
shares of the National Banks, as being the per |
sonal property Of the shareholders. and they can
not therefore be deducted by the bank as an err
pense of the bank, as if the tax were assessed /
upon the corporation.
Assessors will instruct the banks that taxes
paid for the shareholders cannot be deducted in /
aScertaining the amount of net gains.
1t also appears that some National Banks /
withhold from their returns of dividends and /
surplus profits, the amounts carried to surplus /
fund. as required by the National Currency acts
This is erroneous. as the law requires the tax /
to be paid upon the entire net earnings, includ-
ing amounts paid stockholders, and all undis-
tributed sums or sums made or added during the /
year to their surplus or contingent funds (See
sections 120 and III aforesaid.)
This tax upon the additions to the surplus /
should not be COMPOUNDED with that ence required
to be paid upon surplus as n part Of the banks
capital, it being a tax upon the profits Of the i
business without regard to the disposition made Il
of the same. Very respectfully,
THOMAS HARLAND,
Deputy Commissioner.
The following will show the stocks of
Rio coffee at the various receiving ports at
the latest dates: