Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1872-10-27

Tennessee Bonds are quoted IA New
cork at 755 for both the old and the new.
Bank Of Tennessee notes are scarce and
in demand. Dealers ara holding at 81.
Comptrollers warrants are offered quite
freely and are dull at Soc for small denomi-
nations and 50 for large amounts.
The Cincinnati Gazette says, Oct. 25:
Business in financial circles was active yes
terday, bat there was not much reduction
in the demand for money, although it was
generally of a less urgent character. The
banks generally were able to discount for
depositors to the extent of the paper ma
tuTiGg, but in some quarters the demand
on them for currency prevented this, while
in the open market II per cent was OBJ
tanned on good business paper, and it was
not easy to effect negotiations at this rate.
Secretary Boutwell, was visited on the
24th inst. by delegations of business men
from all the leading Western cities, save
Chicago and Cleveland, who came TO urge
upon him the policy Of expansion, and that
he proceeded to issue the S44000,000 yet
remaining under the currency act for the
relief of their section of the country. The
same old arguments were INDUCED in, to-
wit: That the business of the country had
outgrOWn the present volume of the circu-
lating medium, and that there was not sur
plus capital enough in the East to get the
Western crops 20 market. The Secretary
listened patiently to ali the various spokes-
men of the delegations had to say, and re-
glied, in a conversational way, that he
would favor the policy which would best
promote the business interests of the whole
country. If that required an increase of
the present volume Of the circulating medi-
um, he would certainly increase it 20 the
full extent Of the five hundred million iaIi-
tati0n. However, that was subject which
there were 1--WE sides, and he should always
be free to hear arguments from both. The
delegations left not altogether satisfied
that they had made much OF an impress
sion.
Touching The demand for more green
backs, the New York Bulletin says: "The
uniysIs sal stringency of money, not merely
this fall, but periodically for some years
past, and the grieVous consequent injury to
all business interests, is one of the most
serious evils of the times; and neither the
Administration nor Congress should be
allowed days rest until something is done
towards placing affairs upon more natural
and Wholesome basis. An expansion ofthe
greenback circulation, however, is not the
best way of securing the desired immunity
from these spssms. If the volume Of legal
tenders were increased to S400,000,000,
there would be a temporary relief; but, in
a short time, business would have so far
become adjusted to the changed volume of
the circulation, that when the crop seasons
came round we should no more have re-
serve supply Of currency for meeting the
al a
present; and the result would be a demand
for still further issues; and 50 on, ad iyQfni-
tan. The difficulty arises from having a
fLed U0lluae of circulation, which cannot
vary respOnsiyely to tue fuctuating
meuis Of trade. What We need is not so
| much either an increase of the fixed amount
of the circulation, or decrease Oft; but a
currency the volume of which will naturally
contract when money IS less wanted and
expanded when it is more wanted, following
the law of supply and demand. such an
elasticity in our monetary system cotud,
perhaps, best be secured by such moulnca-
| tons in our national bank arrangements as
| would insure the return oil bank notes for
! redemntiou ri the counter when the elrcu-
Iation was redundant, and admit OF their
issue (under the same conditions IS to col
lateral security az now without any fixed
limit, when the activity OF business called
for an expansion Of the calculation. Under
such conditions, We could never have TOO
much circ lariOn, nor too little; and the
Folume of the currency being always just
what the country required, the rate of in
terest would be comparatively uniform, and
money panics would be almost unknown.
Without the recognition Of this principle of
elasticity ia our currency arrangements, we