Nashville union and dispatch. [volume] (Nashville, Tenn.) 1866-1868, 1867-08-06

the banks yesterday at 81 per thousand.
Nashville corporation checks were
bought at 15@16c discount and sold by
dealers at Soc in the dollar
United States 5'2Gs, new issue, were sold
by the brokers at l09
Tennessee bonds sold in New York on
the LIST inst. "a follows $4,000 new at 664c,
$4,000 new at 66gc, and $1,000 IS at Zoe.
Virginia new sold at 5O4@504c, and North
Carolina ex. coupons at sac.
The New York Post of the 1st inst. says
" The probable working of the loan mar
ket during the months of August and Sep
TENDER is regarded with considerable
diversity of opinion. Some persons sup
pose that activity, if not stringency in
money, may be expected in a few weeks.
The reasons assigned for the opinion are
that the conversion of compounds into
three per cent. certificates will deplete the
reserve of legal tenders in bank, while the
want of money to move the crops will
diminish bank deposits in all the chief
financial cities But it should be remem-
bered that Mr. McCulloch has announced
that the three per cent. certificates will not
be issued till October; consequently any
effect these securities may work in the
money market is further off than these
spectators are calculating upon. Besides,
the compounds prior to October will be paid
off in currency which has been locked up
in the Treasury. So far as such a pay
ment may be made it will obviously tend
rather to ease than TO stringency for by it
greenbacks which have been for time
withdrawn from the stream of circulating
money will be let loose and set in activity,
instead of being allowed to remain inert as
at present. As to the argument that the
reserve of the banks will be diminished in
proportion as any compounds whatever are
paid off it loses sigtt of the fact that the
banks do not hold so many of the COM
pound notes as formerly. Out of one hum
dred and thirty millions outstanding the
banks report as reserve only seventy five
millions. Hence, nearly one-half Of the
entire aggregate of compounds might be
Withdrawn and cancelled without seriously
Impairing the reserves which the banks
actually hold for the protection of their cir
culation and deposits. So far as these
points are concerned, therefore, there
seems little confirmation of the belief that
We shall have tight money market in the
early future, and the opposite anticipation
is supported by the abundance of capital
seeking investment and the large accumu-
lations of idle currency at the monetary
centres. Looking abroad there are other
arguments founded on the plethora Of idle
capital in England. The Bank Of England
minimum is down to two per cent, lower
point than it has touched for years. The
specie of that institution is mp to one hun
dred and fourteen millions of dollars, that
of the Bank of Westminster is reported
at fifty millions and that of the Bank of
France is one hundred and seVenty-eight
millions. So long as there is such a plethora
of idle capital and such an overweight re-
serve in the money markets of England
and Continental Europe, there can be no
doubt that English capital will flow hither,
under the temptation of higher rate ofin-
terest, and that the existing surplus of I'M
employed funds in this market will thus
receive an additional increase. Should
there be war in Europe between France
and Germany, this movement of capital
will no doubt be accelerated, and in any
case the movements of foreign capital,
together with the local forces operating in
our money market in the direction Of in
creased ease, may be expected at least to
modify causes tending to stringency, and to
limit any perturbations of the money mar
ket that may arise during the next four
months to narrow area and to a very short
duration"
The New York Journal of Commerce Of
the lst inst. says:
There is some feeling manifested among
the banks because the Secretary of the
Treasury is paying off the maturing com
pound interest notes in national bank cur
rency instead of greenbacks. We have seen
note dated at Utah, and issued under the
shadow of Brigham's seraglio, which is said
to be part of the currency thus employed
but, we suppose this is joke, as we do not
think the Secretary need 90 far for the
pictures. While admitting the Justice of
the demand for ordinary legal tenders in
payment of the compounds, we do not
blame Mr.. McCulloch particularly for the
existing arrangement. If the holders
choose to accept the bank currency with
out remembrance, why should he trouble
himself to look further? We have very
little sympathy for the man who tamely
accepts less than he knows 10 be his due
and then grumbles at the imposition. If
the New York, Philadelphia and Boston
bankers were 10 ask Mr.. McCulloch to give
them greenbacks he would doubtless accede
to their wishes at once. and they might be
saved from the uncompllmentary utterance
In relation 10 the Secretary which are now
80 common in bank parlors Even as it Is,
the trouble is not great. Those who choose
can quietly thrust out the currency utah
goes as well as anything else, since the
pictures are quite as well done, and easily
collect again the necessary legal tender re-
serve. There was a time when the Treas
ury would fitself have determined what is
right in the premises, bat the formerthings
have passed away"