Nashville union and dispatch. [volume] (Nashville, Tenn.) 1866-1868, 1867-04-25

London adyices of the oath inst. quote
United States 5-20s at 67b.a rs
Sterling exchange has advanced to 1897
Gll0k in New York.
Exchange on New York was in good de
mand Yesterday The banks were buying
at par and selling at premium.
But little was done in uncurrent
funds.
Bank OF Tennessee was quiet at ESQ sec
buying and Sc selling. Other Tennessee
money and Southern bank notes were dull
at the advertised rates.
Nashville Corporation checks were dull
at 10G12c discount,
Tennessee bonds sold in New York on the
10Th inst. as follows: $4,000 ex. coupons at
644c, $4,000 new at 69c, and $1,000 new
at 62sc.
The New York Post of the afternoon OF
the Goth inst says: "The loan market is
easy at soc on call for government col
laterals, and at for miscellaneous securi-
ties Commercial paper is quiet and the
best names pass at 63@74. The accumu'
lation of idle capital is increasing, and the
tendency still is to lower rates. There are
considerable amounts offering at to the
large dealers in government securities"
This indicates very large accumulation
of capital in New York. Only two or
three weeks ago money was in brisk de-
mand at 7 per cent. 1t is not the scarcity
of money that causes the stringency now
experienced in some portions of the couna
try, but want of confidence as to the fu-
ture The bank statements throughout the
country will show an unusually large
amount of money lying idle, most of which
would be used if Congress had established
some definite financial policy. A few weeks
will bring some of the ease experienced in
New York in this direction.
Should some of the leading European
powers become involved in war, there viii
doubtless be developed demand for gold
for export, carrying up the price of that
commodity; and perhaps that state of
things may involve a considerable return
upon the home market of American securi-
ties now held abroad. But this effect will
be merely temporary; and in the end Euro
pean capital will flow in upon US for safe
investment and profitable employment.
1t is especially noticeable that while thepri
ces of European bonds have declined con-
siderably in the markets of Europe, ours
are quoted as high as they have been for
some time. In case of war of several
months duration, the grain countries OF
Northern Europe would produce less, and
the demand for our breadstuAs and proyi-
sions would probably be very large. But
what benefit wouId such demand he to
this country? The price would also advance
enormously; and our gain would be upon
that small proportion Of our production
whish constitutes our exportable surplus;
whilst, to the country at large, there would
be the same ratio Of loss, upon the i'm
mensely larger portion taken for home con-
sumption. Those who imagine that it
could be of any advantage TO the country
to have renewed advance in the price of
our bresdstufs and provisions, in the pre-
sent inflated condition of prices generally,
must have strange ideas of political econo-
my. An advance in the price of our lead
ing exportable products would materially
aid in keeping up the present general infa-
ton of values, and thereby protract exist
ing embarrassments and retard our return
to normal condition of affairs. There is
yet another side to tie question. If Eu-
rope has TO pay more for our food products,
it will be all the less able to purchase our
otker eKportable commodities the conse-
quence being decline in their price, which
would set off any gain from the former
thesource. Farbetter would it be for us, were
grain countries of Europe TO produce their
usual quantity of breadstuffs, or even more
than their usual quantity, for We should
then have cheaper bread, the first requisite
to cheap labor, and cheap products gener
ally, while Europe would be in better
condition to purchase our surplus produce
at large Again, allowing that the West
ern farmers would be benefited by war, at
the expense of consumers throughout the
country, what would become of the South
ern cotton planters? They would probably
have to qend to Europe one million bales
of cotton at five cents per pound less than
they would have realized under peace in
Europe, while upon their sales to the
Northern States they would lose in an equal
ratio. The result would be that, upon one
| years export of cotton, We should lose
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