Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1872-11-24
Yesterday: VI
LOCAL STOOLS AVID BONDS.

| TrNertMsllles' new issue, 1S68......ll4x
| srIe1-iortles..........- ...............1O7T
New five per cents 10aH
| currency Skies ...-.-...............I13X
LOCAL STOCKS AND BONDS.
There was another advance Ia Tenuessee
ponds yesterday, they being quoted in New
York at rs. They would command here
10 The past due bo.ds are worth about
oo and the coupons 53c In the dollar.
DsnK OF tennessee notes are almost en-
urely absorbed, with none in our market
6S7c. -'''-'' sac "'''n %
Inc new issue Bank of Tennessee notes
at $50. - " anu SCH
country and city bonds are yerv ouiet
Win very few Offering for sale and but
hILle demand. For quotations Ia full We
refer TO rates given by the National SAVINGS
company, corner Union and College streets.
FINANCIAL MATTERS.
| upon The proper understanding of the
practical workings of the general system of
DanK corporations and individual credits
everything depends with those who would
correct their evils; hence the impropriety.
IL not positive wrong, Of all crude and un-
considered attempts st reform by those who
are Ignorant OF them. Under our national
banking laws there is no saeh thing as
Gohtracuon OF the currency. For q num-
per OF years the volume Of paper circula-
tion (greenoacks and national bank notes)
mas STOOD at about the same point, and the
amount remains the same now. A strin-
gent money market, therefore, does not
spring lrom this source. With the same
amount OF currency In circulation, within
Inc last eighteen months we have seen cur
rehcy drug at 304 per cent yer annum In
the chief money centres; but to day money,
all over the country, Is worth from 1O6l2
per cent, and at some points higher. It
should De Dorne IN mind that tight money
market Is more liable to be produced by
general dlstrust and lessening of conf
uence IN the management of large corpora-
tlons, constantly widening their operations
ana strainlng their credit than by scarcity
OF ioanable capital The present bank ex-
pansion Is not one Of currency; but of bank
credits In all their multifarious forms. which
tne low state Of their reserves has admon-
lsned them to contract. This form of con-
traction must, to greater or less extent.
continue so long as the great railroads ali
over the country continue to be the bor
roWers OF all the floating capital and cur
rency Of the country at high rates, and
until better confidence is restored in their
financial management, and the results of
the policy of widespread extension and
consultation are more perfectly realized.
These elements of the financial situation
are comparatively new to our finance. and
1t Is admitted are power that controls our
system OF banks, and through them indi-
Vidual Credits. Probably the greatest
question of the day, one that viii excite the
Dltterest and most corrupting controversy
In Legislative halls and constitutional con-
ventlons, will be whether this power, SO re-
ientlessly exercised In the sole interests of |
oVershadoWing corporations to the damage |
OF the interests Of the people, shall be re- |
strained within reasonable limits. The |
financial situation Of many of these corpo- |
rations affords the key to the clamor for |
currency imitation, and which has so far |
been SO successfully resisted by the solid |
business interests Of the country as to ex- |
tort from Mr.. Boutwell, the admission that
any further issue of currency "would be |
ruinous, unnecessary, and prejudicial to |
the whole country" and be says in response
to these resolutions of the Boston mer-
chants, 'thanks for courage aud wise pub
lie spirit"
The report of the Comptroller of the
Currency of the condition of the National
Banks, called for on the Sd Of October, is
important in view of contemplated legisla-
ton at the approaching session of Congress.
1t Is OF special value as exhibiting the con-
dition Of the banks at the period Of the
greatest strain on their resources which they
have encountered since the Inauguration
Of the national banking system. There
are 1919 nationals banks organized to date,
with an aggregate capital Of $479, 100000,
with 100000 Of surplus, or undistrib-
uted profits. The money capital, there
fore, which the banks hold as security to
their depositors is $3.50, 100000. Their de-
posts were 1859, 100000, and their circula-
ton S332, 0O0,GOO From these figures It
would appear that the loaning ability ofthe
banks, making an allowance for the Is per
cent. reserve required by Law, would be ST.
3S6, OOO, 600, while the actual loans of the
banks, according to the Comptroller's Ia
Die, we're 81, 474, 000, 900 in all the States at
,he close Of business on that day. 1t is un-
ferstood that three important amendments
% the national banking act are to be pressed
lpon the consideration of Congress. First,
o diyest the system Of its distinctive char
Icter as monopoly, and make banking
rec; second, to repeal the section of the
aW requiring reserve to be kept against
circulation, already fully secured by de-
'osit OF national bonds for more than its
I'LL amount; and third, to require the banks
o hold as o part of their reserve all the coin
interest they may hereafter receive on the I
'ondS deposited 10 secure circulation, until
he amount OF coin so held shall be equal
o the whole amount of lawful reserve re- {
uired. The first proposition has power
vi support In all sections Of the country, I
nd meets with great favor among some Of
he most intelligent of cur bank managers.
The principle of monopoly is an odious one,
nd bank managers might as well make up
heir minds that it will not be tolerated, but
hat banking will become as free as any I
Their business sooner or later. The third
roposition is quite as important as either of /
be others, and if it had been adopted and B
nforced at the close of the war, the ma B
Ional banks would before this have been in
condition to resume, their whole reserve
eiug held in coin, and the credit imitation n
bat now vexes the country would have been v
ept within reasonable bounds. Ii adopt \
d now it will be the first great step in the q
ERECTION OF sound, redeemable currency;
nd, withal, so gradual as not to seriously c
isturb the business of the country. The 8
uestion Of q sound currency is the most
ltsl one likely to asitste the country With
/ the next few years, and the people will :,
OF be satisfied with its postponement. The :,
litigation on the part of The banks to keep =
competent reserve will not and should not
. abandoned. 1t is in strict harmony with
ublic opinion, and Should be fully up to
he requirements of a sound fina ncial pol
y. If any change is desirable in this d.
,ction it is that the banks should be made c,
ronger and not weakened. Their divi- b
ends and surplus profits attest the value d
the privileges they enjoy, and that there 81
margin enough for all proper restrictions.
he tables of the Comptroller develop
le fact in strong light of the dis o
1sition Of the banks to extend, for .
le sake Of profit to the utmost limit. On :"
e Sd of October the banks had in hand 81
or cent of their demand liabilities, exelu-
ve of bonds and other property; last year, d
per cent; the previous year, SO; in 1869,
;, in 1868, Al PEI cent, aud in 1865, 46
IT cent. Their circulation gives them no
Z. = l