Nashville union and dispatch. [volume] (Nashville, Tenn.) 1866-1868, 1867-01-25

-
par
Very little was done in tncurrent money
Bank Of Tennessee was very quiet and
seemingly in no demand. Brokers were
paying 4Sc, and holding at 52e. Union
aud Planters Bank were in good demand.
The former was firm at sac buying. and the
latter in much demand at SSc.
Southern Bank notes were unchanged.
Nashville corporation checks were dull st
lOc discount
Tennessee bonds sold in New York on
the 18th inst. Is follows $4,000 new
at 65tc, $4,000 at CSC. and $1,000 ex.
coupons at 66tc on the 18th, $4,000
new at 65c, and S 900 at 65c; end on tile
10Th, $4,000 new at 643c, $4,000 ex.
coupons at G54c, 5000 at 654c, $4,000 at
CSC, and $4,000 ID call, at 64se
The reports from Washington give some
hope that Congress is pretty rapidly drift
ing into some policy in regard to the cur
rency, and if the fortielh Congress will let
this disturbing question alone, we may
look for easier times than we have expe-
rienced for some months past. The New
York Tribune Of the 10th inst. says: "The
action Of Congress iE regard to the circula-
ton of National banks is looked for with
interest by the public, as well as by bank
oyners. The agitation Of the policy of as
sumingthe circulation by the government,
is rapidly bringing new support to the
measure, which, it is admitted, while doing
the banks no injustice, will facilitate the
return to specie payments and save the
public from losses sure TO follow the at
tempt to force the banks to redeem their
circulation in legal tenders The National
bank notes are now exerting all the evil of
which they are capable upon prices, and
assuming the obligation to redeem them
while still in action by the government,
instead of after their decease as at present,
will not be movement in the direction Of
expansion. The loss of Sl8,000,OOO of
gold interest would more than counteract
the ability of the banks to expand, upon
the return to them Of the margins on their
bonds now pledged for circulation, and the
premium to be paid when the government
buys the bonds, by assuming the redemption
of the circulation they represent. 1t is
conceded by the earliest bankers under the
L.. 1T H. fotio,, of y,OSao NOW prao.
tically irredeemable, except in the case of
the banks in the Atlantic cities, or in the |
case of broken banks, is one of the most |
dangerous elements, and the great impede
ment to resumption. 1t is apparent, in /
view of the alarm in bank parlors caused |
by the small reduction made in legal ten
ders thus far, that at no remote day there |
may be seen a currency panic produced by |
inability of National banks to redeem. |
This can only be avoided by at once max
ing the bank notes so nearly equal in value |
with legal tenders that, in the movement |
toward specie payments, there shall be no !
war between the two currencies, such az
must occur as the laws now stand. With
the currency thus reduced to uniformity |
the movements of the treasury would have |
a less violent effect upon financial affairs
than at present. No harmonizing of the
currency can prevent steady decline in |
prices and widespread commercial disaster,
but the fall and loss can be in some degree |
mitigated by this step. The plan Of pay |
ing the banks S18,OOO,OOO in gold per an
mum to circulate a currency interior to
legal tenders was a war measure" and
mistake, as time has shown, and the sooner
it is altered the better for the solvent part /
of the community. The first step should |
be the assumption of the circulation by the |
treasury, stopping all interest on the bonds |
with redemption in legal tenders in New |
York alone"
The following letter to New York
banker possesses interest for banks outside |
of that city:
Treasury DEPARTMENT. OFFICE OF THE Coup |
TRoLLER OF CURRENCP, WASHINGTON, Jan. s. |
le57..SIR: am in receipt OF your letter OF the |
Section eight of the national currency act, |
cOnfers upon National banks all such incident
al powers as shall be necessary to carry on the /
business Of banking, by discounting and nego-
tiating prOmissOry notes, drafts, bills Of ex-
change, and other evidences Of debt" aud closes
with this provision: And its usual business |
shall be transacted at an Office or banking house !
located in the place specified in its Organization
certificate"
As the law cOnfers no authority upon Ma |
tional bank to establish branch, or to carry on |
the business Of banking at any other place than |
the one where it is located il must follow that |
all such banking at other pOintsis irregular, and
in violation Of section eight Of the law.
Such banking IS also in violation Of the pro-
vision OF section thirty. which restricts National
banks to the same rate Of discount or interest i
allowed by law In the several States where they /
may be located.
National banks have no authority conferred /
on them to discount or negotiate notes" other
wise than under restrictions of the thirtieth sec
tion Of the law; therefore, a New f0rk Ma |
tiOnai bank" is not authorized to bay CONNER |
eial paper in the open market ut rate greater 1
than seven per cent" Very respectfully,
II. X. HULBVRD
Deputy and Acting Comptroller
The Augusta GA COnsiitutiOaalist of the
23d inst. says Dsmesticg are in good de-
mand Augusta Factory, I, IS; A, 20; !
Drilling, DC; Montour Shirtings and |
sheetings, 174@l93 Yarns, 50 50 20 OF.
Osnaburgs q cents Stripes, SO cents"