Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-12-07
FINANCIAL MATTERS.
Theories Traversed-WalI Street OPin-
ions of Grant and Richardson's Re-
concentrations.

cOEhAkhcEkuatIOnS-
From the New York Tribune, Dec. 4.
The report of the Secretary OF the Treas
ury and those parts of the Presidents mes
sage relative to the finances were the sub
jects of general discussion in Wall street
yesterday A great many bankers and
commercial men confessed that they had
not read the report or the message CAREFUL
ly, but from their summary perusal they
were not disposed to favor the views of the
President on the Secretary on important
matters of finance.
The senior member of one of the largest
banking houses in the city said that the
proposed policy of legislating for the pre-
vention of interest payments by National
banks was pernicious and puerile. The
Secretary might well propose some legisla
ton by which the circulation of the banks
could be protected, but beyond that he
should be willing to let business take care
of itself. Let people understand that the
Government is not expected to take care Of
the business interests of private individuals.
Then they can choose with whom they will
do business, accepting those who do bust
ness well, and avoiding those who do bust
ness badly. As to the proposed increase of
taxation, this gentleman said that the tax
should be replaced on tea and coffee, or
such ordinary necessities, if it is to be
replaced at all, as that tax falls on
everybody very lightly, is not a bur
den to any, and does not protect or
damage any corresponding branch of in
dustry. Financial legislation, however,
by the present Congress is not likely to
amount to anything very salutary. There
were too many minds to satisfy. Every
member doubtless had scheme of his own
which he deemed the only acceptable
scheme, all others being worthless. With
so foolish Secretary of the Treasury, it
was almost impossible that the financial
legislation of such Congress can result in
permanent benefit. If there were strong
mind at the head of the financial depart
ment, who could mark out line of policy
for Congress to work up to, ''we might Sc
cure some very excellent legislation, but il
seems impossible now"
Another gentleman, president of a large
bank which does not pay interest, said the
proposed abolition of interest payment;
would be very beneficial if it could be eX
tended to the State bank as well as to the
National banks, for the system of paying in
terest is certainly a very unhealthy system
and is in great part responsible for all the
evils that beset the money circulation. But
the United States Government has nC
power to prevent the payment Of Interest
by State banks or private corporations, anC
to legiSlate against its use by the Nationa
banks will serve greatly to diminish the
usefulness of the National banks, and event
ually to drive them back to the old State
system. 1t would have been well for the
| National banks if the Clearinghouse As
ISOLATION had agreed to abolish the paymen
| of interest when the report of it
| Special Committee recommended such q
measure, but legislation by the Genera
| Government on such a matter would bt
unwarranted and disastrous. The private
| banking houses and trust companies OF the
| period would probably be greatly assisted
in their present difficulties by such legisla
| ton, but they have seen about their las
DAYS, and it is not advisable to proceed t.
extremes for the purpose of bolstering then
up.
On being questioned relative to the pay
ment Of the bonds of 1858, which matur,
on Jan. 1, 1874, and are not issued payable
at any time after specific day at the pleas
ure of the United States, as the other bond
are generally, several gentlemen Of finan
cial prominence in the city said that al
! governments find it necesSarytO make thei
| bonds payable after a certain date, but it i
always the custom to pay them on demand
after that date unless the governmentmean
reputation. This country has had little ex
perience in the payment of bonds maturing
and for the comparatively small amount
represented by the ante-war series of bonds
there would be little difficulty in settlin
on any one day. But the large amount
represented by the war series would rende
it impossible for the Government to buy n
any one series on given date, unless
had heavy sinking fund established fo
the special purpose. This is true with al
nations, and none of them interpret tn
word 'pleaSure" in this instance to b
equivalent to granting the Government al
indefinite time for settlement. The wor
''pleasure" is in fact nothing more than
''fction" for the purposes stated. The bond
of '5S are due on the LIST of January, 1874
and though they may not be paid on tha
day, the interest continues until they ar
paid, and it is quite likely that no holde
who presents his bond will be refused hi
money. 1t would be pretty wise polio.
to pay these bonds promptly, and, whel
they are not presented, to advertise 70
them and stop the interest. at is, in fact
necessary TO sustain our credit abroad
where we are soon to have a good man,
other securities maturing, and if we lacl
the money to buy them, it is because W
have disbursed so much, buying othe
bonds for the last six years."
1t is the. opinion of bankers that the Pres
ident's and Secretary Richardson's recon
mendations clearly mean imitation, an
that the policy Of Congress will probabl
be in that direction. Mr.. Camp, manage
of the Clearinghouse, said yesterday tina
the banks were daily growing stronger an
that the certificates were steadily bein
drawn in. He thought it would be grea
folly to initiate the currency now, when th
country had so nearly reached ''hard-pan.
This he believed to be the views of banker
generally; and such was found to be til
opinion Of all with whom the reporter tall
ed.