Nashville union and dispatch. [volume] (Nashville, Tenn.) 1866-1868, 1868-01-15


Planters Bank Of Planters Bank ...... IL
Fairheld'',.'',.'. E. O5 Union Bank-.."...... O5
Our money market continues very tight,
and money is in much demand The banks
are loaning in very limited amounts on
good collaterals, such as bonds gold, etc,
at one per cent month. Money on the
streets is worth very much more, and notes
are shared at from three to FIVE per cent.
per month.
Since our last, events have occurred
which have reversed the course of the gold
premium; and those who last month were
expecting the price to decline to 100, are
now very generally anticipating an advance
to 40, or beyond. There are obvious con-
siderations encouraging this tendency of
the market. The curreut exports of cotton
and produce, fall far below our maturing
obligations on account of imports the inn
Portations of three months ago, for which
We are now paying, being at the rate of
$50, 100000 per month while the current
exports cannot be estimated at over $22,.,
100000 in gold, leaving large balance to
be covered by shipments of specie. A
certain amount of the interest upon skies
of 1881, due on the let inst, is payable to
holders of the bonds in Europe. 1t is
estimated that also from $5,0O0,0O0 to So
100000 of the skies of l847, now matured,
have been held abroad and thus far about
one.half of the proceeds of their Tedemp-
ton is RENTED in cash, the remaining por-
tion being reinyested. These operations
in bonds and coupons, together with the
return of five ,twenties from Europe, in
crease the adverse foreign balance at present
in process of settlement. These considera-
tons win account for the unexpectedly
large shipments of gold within the last four
weeks. 1t does not appear improbable,
however, that we may have an adverse
foreign balance for some time to come. The
utterly PROSTATE condition of the planting
interest, renders it impossible forthe South
to raise more than half cotton crop next
year. The planters are not realizing With
in % per cent. of the cost of their cotton
and as consequence many have no dis
position while more have no means to plant
for the next crop. After the lat of Febru-
| airy, tits too late to make proper prepare
ton for planting operations; so that, should
the prospect of realizing better price fol
the next crop ultimately improve, it would
| be too late TO induce any important extern
sion of planting These facts, in connection
with light crops in Egypt and India, are
inducing large speculative demand fol
cotton at home, which is likely to result in
an important portion of the present croT
being held back for shipment until late
period. Nor can our surplus of breadstulii
be relied upon to make up the Temporary
deficiency in our cotton exports. Onr homt
stocks of grain had been so completely ex'
hausted before the harvest that We have {
much smaller surplus for expectation thar
we had supposed. The prospect that ON
exports of cotton and produce are likely e
bear an unusually small proportion to oui
imports, is the more important as it is nov
very predetermined whether Europe vii
take any further material amount of on
securities. For the last five years, We hav'
sent bonds to Europe at the rate, on al
average, of $IO0,0OOOOO per year; ana
these bonds now call for an annual remit
lance Of $50 100000 in gold for interest
If we can no longer set off our large ad
verse foreign balances by the export o
bonds, tits evident that we must immensely
increase onr shipments of specie. Thi
prospect is a cause OF no little anxiety il
some quarters and the more 30 as Congress
strongly leans toward financial schemes
which are likely 10 be construed very un
favorably TO our credit by foreign bond
holders. There is evidently strong dis
position, in both Houses, to court popularit,
by sukieetiag bonds, directly or indirectly
To l6ca1 taxation and as such a eours
could only be regarded as a violation @
one Of the conditions upon which the bond
were issued, lis inevitable effect upon III
gold premium is very obvious. Bond
holders would be too apt to regard such
measure as the first step toward repudia
ton; the whole fabric Of public eredi
would consequently be thereby shaken
and the finances would bethrown into con
: fusion. The present course Of the publ
, debt unfortunately tends to give create
effect to these considerations. On the i
of December, 1867, the net debt showed a
+. increase Of S9,701, 301 on the lst Of Jant
. ar7, 1868, there was further increase {
: Sc, 919,sg9 and the probability is thas tn
payment Of So, 100000 Of coin iniere
i. and Of about 100000 Of currency II
, terest this month, may involve fuTth'
augmentation Of about SIS 100000 ia q
y February statement. In view Of the
!, prospects, saeh consideration as the ee
d tainty Of suspension Of contraction an
2 2 the probability Of issue Of legal tsnde
equal to the amount retired, are OF min
importance IN their bearing on the pr
MUM although under other ciTcumstane
they would have indaced speculation
J. an advance. Il is with much regret I
have TO note these reaciionary tendenci