Nashville union and dispatch. [volume] (Nashville, Tenn.) 1866-1868, 1867-12-05

London adviees of yesterday quote
United States 5-20s at71s
Exchange on New York was taken by
the banks yesterday at &c discount, and
sold by them at par
There was very little doing in govern
ment bonds or uncurrent funds
Nashville corporation checks we're bought
by brokers at 30c discount.
The following abridged extract from the
report of the Secretary of the Treasury
will be interesting to those who study the
finances of the country;
The Secretary of the Treasury reports
the finances of the United States, notwith-
standing the continued depreciation of the
currency, as in a much more satisfactory
condition than on the last annual report
Since November, 1866, $44 ,399, 263 of in
terest bearing notes, certificates of indebt-
edness and temporary loans have been con-
verted into bonds, and the public debt
deducting therefrom cash interest. is re-
dueed SIS, sos, 525, During the same period
a decided improvement has been itnessed
in the general commercial condition of the
country.
The policy of contracting the currency,
although not enforced to the extent author
lied by law, has prevented the expansion
of credits, and had no little influence in
stimulating labor and increasing produc-
tions.
The temporary loans, certificates Of in
debtedness and FIVE per cent. notes have all
been paid excepting small amounts. The
compound interest debt has been reduced
from $2l, 72l ,469 to $1l, 878,0 ST.
1000 having been taken up with three
per cent. certificates. Seven thirty notes
have been reduced from $830,000 900 to
1887 81 AT, while the cash in the Trea-
snry has been increased from IS, 82l ,805 to
1913, 1895, 1898, and the funded debt in
creased to $685., 504 800.
In his last report the Secretary remarked
that he was of the opinion that specie pay
ments might be resumed as early az the lst
of July, 1868. These anticipati0ns may not
be fully realized.
The government has been defrauded of
large part of its revenue upon distilled
liquors, and the condition South has been
disturbed and unsatisfactory. These facts,
and an apprehension created in Europe
and to some extent at home by the utter
ances of our public men on the subject of
finance and taxation-that the public
faith might not be maintained-may post
pone the time specie payments shall be
resumed, but Notwithstanding these nm
reasonable embarrassments, much pre-
liminary work has been done, and there
is not, in the opinion of the Secretary,
any insuperable difficulty in the way
of an early and permanent restoration Of
the specie standard. 1t may not be safe to
fix the exact time, but with favorable crops
next year and no legislation unfavorable
to contraction at this session, it ought not
to be delayed beyond the first of January
or at the farthermost the first of July, 1869.
Nothing will be gained, however, by forced
resumption. When the country is in
condition TO maintain specie payments,
they will be restored, as a necessary con-
sequence to such a condition of national
prosperity az will insure permanent re-
storation of a specie standard. The fol-
lowing measures are, in the opinion of the
Secretary, important, if not indispensable
First, The funding or paying of the bal
ance of Understanding notes, and cons
tinued contracting of paper currency.
Second, The maintenance Of the public
faith in regard to the funded debt.
Third, The restoration of the Southern
States to their proper relation to the Fed
eral government.
The Secretary argues that the national
banks should be sustained, az they could
not be destroyed without precipitating
upon the country financial trouble, which
it il now in no condition TO meet. At some
more propitious period it may be wise for
Congress to consider whether the national
banking system may not be dispensed
with. That the national system, with its
limited and secured circulation, and re-
stricted provisions by suspending the
State system, has prevented a financial
crisis, there can be but little doubt For
this and other reasons suggested, it should
be sustained until better system shall be
devised or the country in a con-
dition to dispense with bank issues.
Regarding, as he does, the issue Of notes in
the first Instance as having been a mis-
fortune, their continuance as q circulating
medium. unless the volume shall be stead
lily reduced, without mischief, the Secre4
tarv can conceive Of no circumstance that
would Justify further issue Of these de-
preciated notes; but the legal-tendernotes,
Notwithstanding the reduction that has
taken place, will stand in the way Of a re.
turn to specie payments, As a Substitution
of them for bank notes would be regarded
by them and the country as declaration
that resumption had been indefinitely post
poned. II those now outstanding shall be
reduced at the rate Of four millions per
month, the amount IA actual circulation
will soon be reduced 10 they may not
seriously retard restoration to the true
measure Of values. If on the contrary,
under any Pretense, or for any purpose
whatever, their Volumeshould be increased
ifthey should be made the sole paper car.
onlation OF the country, a false measure OF
value will be continued; speculation WILL
be continued, industry vail decline, and
Il