Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-06-27
FRUITS OF THE CURRENCY
BILL.
of Four Small OPeratOrs-Recent
Legislation VariOusly Interpreted.
New York Tribune, June "a.

The buoyancy of the previous day
was preserved yesterday morning at
the opening of business at tie Stock
Exchange. Orders to buy came thick
and fast, and prices ran up at a rapid
rate. There were fluctuations, but the
ultimate result was an advantage of
from ] to % per cent. The advance caus-
ed the failure of a few small opera
tors on the "bear" side. They were
respectively G. L. Davenport, N. Cald-
well, NJ. A. Plant, and j. W. Blatch-
ford. Their failure caused no special
sensation. beyond renewed animation
and briskness in the bidding. Stocks
were bought in for their account, con-
sisting principally of Lake Shore,
Western Union, Erie and Pacific Mail.
Large quantities of Lake Shore changed
hands, about Is, 900 shares having been
reported as bought by one firm of
brokers.
John Thompson, of the First Nation
measure was not such remarkable af-
fair as some people supposed. 1t did
not revOlutiOnize anything, and the
various effects attributed TO it were
either entirely unfounded or grossly
exaggerated. Referring to the differ
ent provisions of the measure, Mr..
Thompson said that the clause provid-
ing for reckoning center was very
judicious. While the general public
had not Disseminated between the
notes of the several banks, taking them
as readily as they would legal-tenders,
yet bankers were compelled to make a
discrimination between the notes of
banks IN the several sections of the
country. As 1t was essential that
these notes should be exchanged for
legal-tenders when demanded of the
banks that had issued them, the result
had been the establishment Of a series
of informal redeeming points through
the United States. These redeeming
points were generally in what are
termed the Hub cities" that is,
cities encircled by a populous. bank
ing and commercial district. New
York, Of course, was the great central
point. Boston was the principal re-
deeming point of the New England
banks. Philadelphia was the redemp-
ton agent Of Pennsylvania, and the
West divided its redemption between
Chicago, St. Louis, and Cincinnati.
But now a central redeeming point had
been named, and the result would be in
creased facility of redemption. 1t
would not follow that this circulation
would come back to the banks of issue
as fast as 1t was sent out. He believed
that there would be comparatively
little returned, except in the three win
ter months, when a quantity having
accumulated packages would be made
up and sent on to the several banks.
The five per cent. legal tender reserve
would be more than sufficient for this
purpose. With respect to the new dis
tributiOn Of the bank circulation taken
from the East for distribution in the
West, he did not see that any material
results would follow The West did
not have the money wherewith to es-
tablish national banks, and he would
venture to say that there would not be
S5.000,O00 called from the East In twelve
months. The measure does not profess
to be IN any sense a return to specie
payments. Theoretically there APP
peared to be a tendency to
initiation, but practically the inha-
ton was likely to be very small. The
legalizing of the full $3.50, 100000 did
not make the initiation. as the difference
between that amount and the 1856, 600,
600 had already been put out, and the
full effect produced. On the whole, be
FL 1 !. 1
be at all revolutionary.
A Tribune reporter called on the
President of one of the leading Ma
tional banks in that city. He insisted
that the effect Of the Currency bill
would be to contract the circulation of
the currency in the cities and expand
the credit of the country banks. The
portion Of the reserve which country
banks were in the habit of keeping in
the cities would have to be withdrawn,
and many Of the city banks may have
to uphold the country banks with the
Government. The policy of the bill
was, perhaps, to lead toward a hard
currency, by making the country banks
redeem their own currency, in
steadIof allowing 1t to go floating
around as now, until the notes are worn
out. He did not think that the Presi-
dent of the United States had retreat
ed from the plan laid down in his veto
message, as the measure would doubt
less, in time, secure the resumption OF
specie payments. When hard cash
was restored, the National Bank bills
would still be the principal medium of
exchange, if for nothing else, as a mat
ter of convenience. At first the meas.
ure might cause a slight initiation,
Int this effect would only be foTa short