Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1870-08-24


have not varied materially for seyefa
months past. Butt is now clear that |
the market is hardening, and that 1.-THE
first demand for money for business pur-
poses the rates will advance. The heavy
bank SURPRISES that have contributed 80
much to the exceptional ease in money,
have been wiped out, and lenders will
soon become cautious and exacting. The
Economist says: i@ 4
sThere is also another. sign of stringen-
cy. The first bale of new cotton has ar
rived In this city. We are On the eve of
new cotton year, when the active move
ments of the crops will require q large
drain of currency from this city. The ]
breadstuffs crops are also coming forward
and must occasion more or less strain at
all the financial centers. 1t is true, f.
nancial stringency occasioned by crop
movements is essentially healthy in char
acter, and, under ordinary circumstances,
never need occasion any alarm. But, I'M
fortunately, there are at present some ex-
ceptional circumstances. In the first
place, the surplus of city bank reserves are
run down to an extent that requires ex-
trenle caution. 1t requires only q very
slight turn of the Bank of England screw
to drain the New York banks of the bulk,
| if not the whole, of their specie. The
| specie exports since the beginning of the
war during the live weeks ending Aug.
Ii, amounted to $22, $50, 215. This ex-
portation was within $4,000 900 of the
entire coin reserve of the banks at the
date of their last statement. These fg-
| ures show that our bank managers must
necessarily adopta conservative policy.
''There Is also another cause of strin-
gency. A sum of $4,000, 600 in legal
tenders is now locked up in the Treasury
Department. Under ordinary circum-
stances, as we showed few weeks ago,
the withdrawal Of this amount of money
| would have seriously deranged the money
market. But in the stagnation of the
summer months the contraction exercised
no influence Circumstances, however,
have now so far changed as to render the
question of its speedy return to circula-
ton matter of considerable importance
to the business community. 1t Is said
that Mr.. Boutwell, eontemplates disburs-
ing 1t for the purchase of bonds. He
can hardly contemplate keeping it locked
up for any continued period IN the pres
emit aspect of the money market. The
mere announcement of his intention of
disbursement would exercise a healthy
influence, and tend to inspire confidence.
''Of course there is nothing in the
present condition of the money market to
excite distrust or alarm. The most
striking feature is the fact that the hanks
are now in less favorable condition than
they were at the corresponding period
last year TO meet the usual demand from
the Interior for currency for the move
ment of the crops. In effect, the market
is almost completely dependent upon the
| Secretary of the Treasury. The exigen-
cies of the foreign specie drain seem 10
preclude the bank managers from any ex-
pansion even for legitimate purposes.
They are losing their reserve surplus with
rapidity that renders caution matter
of necessity. Under these circumstances
the only resort is for the Secretary of the
Treasury to reduce his legal tender &C
cumulstion as rapidly as possible. The
period is rapidly arriving when any hesi-l
tstion or delay in this respect may be
attended with the most disastrous results
to the business community. The fall
trade last year was ruined by the Septem-
Der gold panic. We trust that the coun-
try may be spared from similar disaster,
| whether resulting from a scarcity of cur
rency or any other cause. tI u--IllI