Nashville union and dispatch. [volume] (Nashville, Tenn.) 1866-1868, 1867-01-04

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5-2Os at 49,.
Sterling exchange was quoted in New
York at l09s@uOI. Exchange on New
York was taken discount and sold by the
banks at par.
There was but little doing in uncurrent
money, and rates remained az heretofore.
Bank of Tennessee was bought at 4S@ soc,
and held at 52c. Planters Bank was firm
at 82c, and Union Bank was in demand at
Soc buying, and SIC selling.
Southern money continues dull, with no
demand.
Nashville Corporation Checks are in
some demand at 10c discount
In New York, on the 3lst ult, $4,000
Tennessee bonds, new issue, sold at Zoe
On the % inst these bonds were quoted at
68c, and yesterday they had declined
to CITE.
The statement OF the New York city
banks for the week ending Saturday last,
Dec. 80 compare a. follows with the pre-
vious week, and with the corresponding
week last year to which we add the specie
and currency balances in the New York
Office of the United States Treasury at those
dates respectively:
Dec 80. '65. Dec D, 'G6. Dec. p &C.
National Cap'LS7l SO7. 200 S7400I,700 sl4,0Ol,IOO
Local Capital, S,SiS,5OO s.26250O 9,2525OO
Total Capital sos 200 ss827O,2o0 $Ss.27o,9oo
Loans.... ,22y i45,ISO 2Jy,S5i.70l 25s,2595l4
Gold and Gold
Notes............., l5,33I.769 I3l85.222 l3.2I3gT
Other L. Tend'r 7l,l346g6 G3,O0J69I 6i,5l6,s52
Deposits ...lS9. pa Sol 2O0.9ll 80 2O2029SIl
Circulation ...... L .99O6S9 S2,66455 81, 433 429
In Sub Tres'y... 75,9J5,SH ", 3522o5 ll4.U9'l25
The following are the changes from the
previous weeks statement:
Increase in Loans ,o99 54I
Decrease in Specie. 8l4S
Decrease in other Legal Tenders. ,8l62I5
Decrease in l,2lS55L
Increase in Circulation ...-.............. &5lU9i
The New York Tribune of the Ist inst,
after noticing the readiness of borrowers TO
pay per cent on call for money, says:
I'm many quarters the opinion is expressed
that the commencement Of the new year IS to be
the signal fer renewed ease in money and Il gen
eral restoration Of business. As the causes which
in trade and demand for money at full legal
rates upon the best cOlaterals still exist in full
force, this hope will hardly be realized. War
taxes continue to eat up the substance OF the
people, and at the same time there Is going on
contraction Oflegal tender money! contraction
only to be stopped by decreasing taxation 10 a
point where the Treasury will be without power
to cancel legal tenders or to buy up compound
notes, themselves legal reserve for banking pur-
poses. Unless these compound notes are renewed
in some form rs they mature, an idea which
should not for a moment be entertained by Con-
gress or the Treasury, there must be a sharp con-
traction in bank circulation and bank credits.
The compound notes now represent probably
S5OOOOO,OOO Of bank credits, which must be re
tired as the compounds mature. The plain legal
tenders are being retired very slowly, and thus
far the decrease in legal tender money of all
kinds has had no effect beyond advancing the
rate of interest on call from to per cent. But
other and more violent effects will be shown
upon the money market, and the prices Of COM
mOdities. contraction proceeds TO that stage
where the combined amount of legal tenders,
compound notes and coin fall below the legal re-
serve required under the banking law. Then
will be seen a scramble to sell goods and TO Dor
row money similar to that recorded IN the
numerous revulsiOns which have marked the
history OF commercial enterprises stimulated by
excessive paper credits. The new year IS not to
bring debtors ability to meet obligations based
on commodities bought az high prices by selling
the same at lower rates, which means that a good
many debts are to remain unpaid. The real cost
of the rebellion is now beginning to appear, and
those who manage their affairs upon the model
adopted when the government was making ana
spending two millions Of paper per day, and was
at the same time the great purchaser of every
thing from pins TO mammoth irou-clads. will
soon find their error. The great purchaser with
manufactured money has disappeared and IS
succeeded by the tax-gather and funded debt
requiring daily near half million OF dollars for
interest alone.