Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1872-04-19
FINANCIAL AND COMMERCIAL.
MONEY.
PUBLIC LEDgER 0ysIOE,
MunPHTa. TENN. ADril 10. 1872

MnhPHIs. TENN. April II. NJ.
The leading topic of conversation in hnan-
cial circles to-day was the new tax law and
its effect upon the commercial interests Of
our city. Among insurance men and bankers
much uneasiness is manifest, and II is almost
certain that the high rate Of taxation upon
the capital of those institutions viii have the
effect to reduce the same to q mere nominal
amount. and in some cases there will be a
wind-up altogether. II was stated to- day by
one Of eur leading fnanciers that not less
than sS0O0.C00 was supplied yearly by the
banks and insurance companies to tho mer-
chants. who with II brought cotton TO this
market. That amount would establish
credit for our merchants Of SIS, 100000. Now.
by taxing the backbone or main capital "a
per cent, and deposits. as well as solvent
notes, railroad stocks. etc., about the same
amount per annun. II will cause general
stampede Of capitalists to other points. The
legal rate Of interest is ten per cent, and the
city would swallow nearly half that amount,
leaving the lender less revenue than he would
obtain were he to invest his money in govern
ment securities. which the city cannot tar.
Can any one doubt the result Of such law
making? A fair and just tax, say one-half
that now placed, would realize more revenue
than the present one, and will be more salts
factory TO the business men of the city. Let
the present law remain in force two or three
years. and every man doing business with q
small capital will be driven from the city.
Stores will be vacated. and instead Of the
busy scenes on Front and Main streets. the
sign - For Rent" will be found upon many
stores now doing thriving business. Reduce
the tax at least fifty per cent. and save a
financial crisis. There is little of interest
Transporting in the local money market. the
only feature of interest being the withdrawal
Of large amounts of currency deposited at
some Of the banks by capitalists, who will
employ it elsewhere. Yesterday in one in
stance $4,000 was drawn from a bank and
sent elsewhere for investment-thc early re-
suit of the increase in taxes by the new law.
Other instances could be cited where smaller
amounts we're withdrawn from the market.
Currency is easy at lOg12 q cent. q annum.
but only the best class of commercial paper is
taken at the inside rate. Strictly prime bus
iness paper is taken at the outside rate, but
the date Of expiration must not exceed
thirty or sixty days. Mercantile depes-
its are increasing, and checking decreasing.
There is. however. not much disposition to
negotiate outside paper. as the banks are I'M
willing to invest their surplus funds on long
date notes.
Exchange is scarce, and a hank demand is
reported at 81 Is premium per $1,000.
Counter rates are par buying and Acpremium
selling on New York or other Eastern cities.
and ssg1lc discount buying and par selling on
New Orleans.
Gold is bought by dealers at l1014gll01s. A
small purchase of silver was made at 106.
Local securities are quiet. City bonds, long
date currency, are 52@53c; gold issue, 6l@62c.
County warrants are scarce. and dealers in
quiries at 93@94c fail to bring much TO light.
The selling rate by those who have them is SOC.
Tennessee money is also scarce. and is sold at
9O@elc. The Mississippi and Tennessee first
and second mortgage bonds. Sl2 900. were not
sold. as stated yesterday, the rate quoted be-
| ing the price bid. To-day the sale was eff
fected, however. at S5c for the first and zoe for
the second mortgages.