Nashville union and dispatch. [volume] (Nashville, Tenn.) 1866-1868, 1867-09-24
London adHices Of yesterday quote Unit

LONDON advlces OF yesterday quote United
States 5A2os af73I
Exchange on New York was furnished
by the banks yesterday at 81 per thousand.
There is but little demand for govern
ment bonds. The new issue 5-2O5 are
held by dealers at 1851.
| Nashville corporation checks we're
bought yesterday at 25c, aud sold at pc
discount. aFE
The sale of Tennessee bonds at the New
York Exchange on the 10Th inst was S31, :
600 new al Csc Georgia Ca sold on the
same day at 70.
The New York Post of the afternoon of
the 18th inst. says "The loan market is
still working at 607 for call loans, and at
81 to for choice bills. The sharp and
sudden change from an abundant supply
Of idle capital fortnight ago at 3@5 per
cent, to an active demand this week at 7
per cent, calls forth considerable discus
sion; the prevailing opinion being that the
trouble is not due to the natural move
ments of supply and demand, but is to
great extent artificial, and has been brought
on, in part, by a combination in which GER
tain large bear operators in stocks are sup
posed to have been moving. If this opin-
ion be correct, some relaxation of rates may
be looked for, and, in any case, stringent
money market this fall could scarcely be
permanent while there isso large an amount
Of idle foreign capital here, in addition to
the ordinary supply of American capital,
and so inadequate an outlet for the employ
ment of those funds in business enterprises.
For the present, however, there is sharp
demand for money, and a number of loans
have been called in. A few old loans are
running at 5, but the new business is at
or"
The New York Tribune, in its money ar
ticle of the evening of the 10th inst, re-
ports call loans at per cent and in many
cases extra rates in the form of commits
sions are paid, and adds
There is good deal of changing of loans,
and many peremptory demands for pay
ment, without regard to interest. Banks
which have loaned their deposits at per
cent. upon speculative shares, fear that BY
the rapid wasting of margins these call
loans may become permanent Investments,
and they be in turn unable to respond to
the drafts now making by their country
dealers.
Speculation iii Wall street has received
a sharp check through the advance in the
rate of interest from TO per cent. Great
pains are being taken by some writers to
assure operators that, legal rates being es-
tablished, capital is sure to be forthcoming,
and that dealing for an advance is the sure
road to fortune. Now the facts are that
the recent advance in speculative shares
has been the result of cheap money and
abundant crop prospects, used with great
boldness and success by daring gamblers to
initiate prices, but not to tempt new opera
tors into the field, upon whom they could
unload and realize their profits. In this
they were defeated by actual statements as
regards the crops, and the unusually early
drain for currency to move the crops.
These facts, In connection with the pay
ment of the compound notes and the can
collation. of plain legal tenders, gave an &C
tivity to money which has defeated their
calculations, and established losses where
large gains were looked for. The demands
for currency to move the grain, hay and
cotton crops for the next ninety days must
be supplied from the Atlantic cities, where
alone money has been in any degree cheap,
and higher rates will pc paid. Parties
wanting capital to move the crops, are
ready to pay extraordinary interest, in the
way of commissions, an example which
must be followed by borrowers upon stocks.
1t is, therefore, reasonable 10 assume that
full prices will be paid for money for some
time, and that stocks, which for many
months have had the sole use of cheap
money, may suffer in market price, now
that the commercial operators Of the coun-
try make their demands upon financial in
situations.