Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-11-20
The Present Financial Position.

The events of the past week in mercan-
tile and stock-broking circles, indicate re-
covery from the effects of the panic. There
| has been strong and steady advance in
! the prices of tie securities upon the lists of
| the Stock Exchange, and a gain in the
greenback reserves of the banks. The
mercantile interests are in better position,
because the banks can afford accommoda-
ton now, which they were compelled to
deny in the worst days of the panic.
Goods have deprecated in value, but the
failures which were expected in cOnse-
quence have not occurred. While the
merchants will not receive as much for
their property on hand as they anticipated,
the financial institutions which have taken
care of their interests will be better able to
do so in the future, and the gulf in this
way may be bridged over. So far the
future seems bright, and only complications
which have been but partially considered
can affect the probable prosperity. The
chief obstacles in the way of a substantial
and rapid recovery in all branches of trade
which now present themselves are, posi-
bility of trouble in England, which is not
vet entirely removed; complications be-
tween the United States and Spain, grow
ing out of the capture of the Virginlus and
the shooting of her crew; trouble in the
banks, on account of the new system to be
voted upon on the 10th, and which, if
adopted, will wipe out the majority of the
StOck-brOking houses. The exercise of the
power of the Bank of England so far, seems
to have had the desired effect, and the rails
ing of the rate of discount to nine per cent
has greatly checked the outward flow of
specie, and enabled the institution to main
tain its bullion reserve, so that it has not
become necessary to suspend the Bank act.
Securities declined, but as soon as it be-
came certain that the Bank of England was
steadily gaining specie, there was a sharp
recovery. British investors became more
confident in the value of their holdings
when they knew that the wealth of other
nations was returning to the Golfers of the
great financial regulator. Houses heavily
loaded up with mercantile paper and stocks,
of course, have been greatly weakened BY
the unusual rates Ofinterest which they have
been obliged to pay. They have kept along
without failing so far, and if few weeks
do not bring the news of numerous suspen-
sions it will be fair to conclude that Eng
land will not suffer as we have done. 1t is
not safe to conclude from present informa-
ton that all danger of panic on the other
side has or has not passed away. The Di-
rectors of the Bank of England as vet are
not satisfied that the amount of gold on
hand is sufficient to meet possible demands,
or else the rate of discount would not re-
main at nine per cent. The feeling in
London seems to be one of uncertainty.
waiting for turn of the tide. As vet, it is
not certain which way the current will
flow. Every one hopes for the best and
prepares for the worst. In France, as vet,
there has been no marked change for the
better. Should the financial situation there
become more promising, it is believed that
England will be out of danger.
The news of the execution of the crew
and passengers of the Virginius by the
Spaniards in Cuba, has had an important
influence upon the stock and gold specula-
ton during the past week, and cannot be
left out of calculation as to the immediate
future. 1t was certain that gold would adj
vance upon the probable complications of
the United States with Spain, and its rise
or fall will depend in a great degree upon
the extent to which the governments be-
come involved. 1t is argued that war will
lead to initiation of currency, and that as
natural consequence everything, stocks,
gold, and merchandise, will rule at higher
prizes. IL Is not ceiGail, however, JIlaC IN
flation will follow. The war, if it does
ensue, will be a maritime one, and the
good old days of immense greenback issues
can hardly be expected. The government
would, Of course, need money, but not an
eXorbitant amount. 1t would naturally 90
into the market as a borrower upon bonds,
and the current expenses would be easily
provided for, without an additional crea->
ton of currency.
The event of the week, which is likely
to be of most Importance to the part of
Wall street identified with railroad inter-
ests, will be in the result Of the Clearing
House meeting set down for Thursday. 1t
will be remembered that On the new plan
recently proposed for adoption two import
ant points were pressed: That there should
be no certificatiOn of checks for brokers I'M
less funds are in the banks sufficient to
cover them, and that no interest shall be
! allowed by the associated banks on depos-
| its. The columns of the Times have re-
corded the way in which these propositions
have been received by the brokers, banks,
and mercantile community. The brokers
4 y.