Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-10-22
FIEANCIAL.
The Latest Freak OF Government
that Doesn't Know Itself.
The Currency to be Inflated Three
Million Per Week.
Government Going into the Exchange
Business.

BustneSS.
Grant Determines TO DO What ne
Had NO Right TO no Two Days ago.
New York, Oct. 21.--Reports are cur
rent on Wall street that the Government
intended buying Sterling and exchanging
gIeenbacks. The Express says kilograms
from Washington early in The day denleo
these reports on the direct authority OF the
Treasury Department, but during the even
ing the reports were revived again and .
prominent New York dry goods commiss on
merchant stated that he had Just arrived
from Washington bringing with hin letter
from President Grant to on officer Of one OF
the leading banks of this city. This bank
officer although refusing to show the letter
states that the President announces bis in
tention % draw ON the $44 900, 600 legnl ten
der reserve to the extent of 100000 per
week for some weeks to come, snd in add
ton, to buy, probably, 81, COO, 600 Sterling
exchange on London for the use OF the
State and Naval Departments. This IS q
queer thing from beginning to end, and l.
seems rather late in the day for the Govern
ment to do that which it refused to do dlt-
ring the greatest scarcity Of the panic.
This business is question of veraciiy be-
tween Secretary Richardson on the one
hand and the bank officer and merchant al
luded to above on the others
The Gold Room.
+ The election of directors and officers OF
the God Exchange resulted as follows:
President, Jas. B. Calgate; First Vice Pres
ident, E. T. Brogaw; Second Vice Presi-
dent, T. F. B. Parker; Treasurer, r. l..
Edwards; Secretary, VIM. P. Wescutt.
The First Life Insurance Company
Goes Under.
The Euening Telegram announces that
Eli Bard was this day appointed receiver OF
the National Life Insurance Company of
New York, No.,2i2 Broadway, and heads It
ga sequence of The Jay Cooke failure"
LATER-It is the National Life Iosur-
ance Company that is placed in the hands
of a receiver aud not the National Life In
surance Company of the Uuited States,
with which Jay Cooke is connected. Legal
proceedings were initiated by one of the
stock holders, it appearing by the examina-
ton of the State Superintendent that there
was deficiency in the company's reserve
fund of 100000. The assets are $544, ,OOO
snd the liabilities $713, 900.
Boutwell, on Resumption of Specie
Payments.
Mr.. Boutwell,, ex-Sscretary of the Treas
ury, delivered one of the Galaxy course OF
lectures at the Church of Disciples, on f.
nance, the panic, and its remedies. Judge
Edward Pierrepont presided and introduced
the lecturer. OF the idea of having paper
h~o- ~ 10 trsn UCStf
Mr.. Boutwell, said: "I make distinction
between resumption of specie payment and
equaliz alton and commercial value OF paper
currency of the country with coin. The
consideration of the latter is more impor-
tant th N the actual resumption OF specie
payment, which I don't look on as desira-
Bile. 1t is lot practicable that the banks
shall resume specie payments, but the Gov
ernment. expect If the banks are re-
quired to redeem their currency
in legal tender or specie practically,
we have resumed, for banks as well as for
the country. The Atlantic cities are pass
ing through q severe financial crisis, and
propose to Geal with some of the causes.
First, we have a paper currency of more
than ST00, 100000. 1t is not possible,
think, to say whether that currency is In
excess or not. There are those who de-
mand contraction IS a means of resuming
specie payments, and those who demand
expansion, as do, for relief of the country
from the present condition of things. Sus-
pension of specie payments is due to three
cause, the first, rather 9 consequence OF
the two which follow, is depreciation of
credit of the country. In 1869 in coin
bonds of the United states, principal and
interest payable in coin, was here worth 81
in the hundred, or at discount of eighteen
or twenty per cent snd the obligations OF
the country were not payable in coin.
During the last four years this has been
remedied, as to interest bearing obligations
they are at par In this and the chief fnan-
cial countries of Europe. wish TO correct
an error IS to their value. a few months
since when the French loan was put on the
market, the French per cent bonds were
taken in excess of the amount offered,
while ours was subscribed for in moderate
sums. The difference was that their bonds
were put into the bands Of bankers at s.
or "a cents on the dollar and sold for "a or
IS cents, while ours were sold al 100 cents
on the dollar, and there was an element oi
speculation in theirs which didn't enter in
to ours.
Another circumstance which has contri'
buted to the present condition of thing;
was the excess of the volume OF paper over
the actual wants of the country. During
the war paper money was issued in vast
quantities and while no one was able tC
state mathematically the law of relation
between the volume of paper money thai
may be circulated and specie payment
maintained, yet, unquestionably, there /:
such law. You may carry paper curren
cy to certain point, but beyond thai
you cannot maintain specie payments
Take our volume of paper to-day, and nc
one can tell whether it is in excess of that
amount. For third reason, which is, the
balance has been against us largely for many
years. We have not considered the losses
during the four years of the war, losses OF
tha cotton crop, withdrawal of the Nortl
from active pursuits; millions of man pom
producing In the field. The failure of bank
to maintain specie payments was due Il
transient causes, but the inability of the
country to resume and maintain it to day i
due to exhaustion, followed by the Chicago
and Boston calamities, by which millions
worth of property were destroyed.
Massachusetts Mills stopping.
BOSTON, Oct. 21.-The Boards of direc
ton of nearly all the mills at Fall River
have appointed committees to confer will
the representatives of corporations in othei
places, in regard TO partial suspension Q
work during the present dull season.
The Golden Deluge.
LONDON, Oct. 21-One hundred an
sixty-fiv thousand dollars were shippei
to day from Southampton for New York
and one hundred and ninety-five thousand
from Liverpool per Steamer Quebec.
Contracting.
WASHINGTON, Oct, 2l.--Outstandin
legal tenders S359, ,8l6,48S.
INDIANAPOLIS, Oct. 2I.-The Clearing
House Association this morning rescindet
their former action authorizing banks Il
exercise their own option as to the amour
of currency to be paid at any one time
This leaves matters exactly as they wer
before the panic.
ORe'Man Power.
CAV TIP ADr-rSrso Ont OF Tho trial N