The Virginian. [volume] (Lynchburg [Va.]) 1822-1829, 1823-10-24
TENNESSEE BANKS.

TENNESSEE BANKS.
These banks suspended specie payments
in 1919 and subsequently, their notes de-
preciated in an astonishing manner. The
Legislature determined to arrest the evil !;
aud in 1921, passed law requiring them
10 commence the redemption oftheir notes
On the first Monday of April, 1924. This
law has given rise to much alteration il
the State.
Those who are indebted to the banks are
generally opposed to the law; for, they see
that a curtalmeut of their notes must pre-.
cede the redemption ofthose of the banks.
The latter must call in IA portion of their
paper, before they can be qualified to pay
their lloatlng notes. On the other hand,
the public at large wish the law 10 he en-
forced. They are disgusted by the scenes
which they have witnessed the credit of
the state abroad sunk to the dust !; con
tracts and debts ut home almost set al
uought by the change in the circulating
medium; laws enacted by the Legislature
to vitiatc contracts under the preterce of
relief and declared unconstitutional and
null by the ceurts--thus a species of ciyi!
war pervading the branches of the govern
ment, to the prostration of the dignity OF
one or the other.
| Both parties will ln fully heard before
| the Legislature Mt this time in session.
! Shall the law be enforced Shall the
banks he called on to pay their notes in
April next ? The Governor in his Mes
sage urges the enforcement of the law
lie insists upon it, that the character
and interests of the state require, that
the law in question ought not to be repeal
cd"
The Stnte Bank has laid before the
House of Representatives statement OF
It's situation. Among its rays md means,
II counts up S14,09I specie; 55,131 in notes
Of Other baaks 1892 as due by other
banks ; S4l7,987 in discounted notes !; and
real estate 6,294--amountmg in all to
S582,475; Asits responsibilities, it estimates
its notes in circulation at S267, 1857 dcpo-
sfs by the state TrpaSurerS, 2l5,23l
lndtriduul deposits, l7,425 and due the
Branch at Knoxville, 50,246. Total "a
mount $3.50, 759-leayng an excess OF
S3l,7i6, which it is pleased 10 term the
profits Of the Bank.
The character of the notes and debts by
other banks, (amounting 10 Io4, 1O3 dollars
: IS not defined. w know not whether
they be spocie'paying institutions, or not
they are not, their notes &c. will serve
IN very small degree as its available funds
The amount oiits specie is only $1,000
or course, it must look to its discounted
notes for It's great relief A rapid curtail.
mcut of them will call in its own paper Il
then its customers are in situation IL
stand the curtal and il the State Treasu-
rers are not compelled TO make large draft,
upon their deposit money, thebank will bt
able to meet its engagements, without diff.
tlculty or danger. 1t need not apprehend
that all its notes viii rush back for specie
Men are soon satisfied with the sight of the
"sllver." 1t Is enough for most persons to
know that they can get when they want it
Besides, notes o! the bank will still be wan
ted Tor the purpose. of circulation-the
moment ii is known, that they can be al
any moment turned into specie at the coun-
ter OF the bank, they will be worth as
much as gold or silver, prouided their a.
mount does not exceed the demand for Cir
culRtion.
The Western Country has been schurg.
, ed by this monster of paper money. Ten
nessee and Kentucky have suffered a thou
sand ills, in this way We are not 80 mad
as TO shut our eyes against the lights which
, they have produced. Do you believe that
eny man in his senses would bring into the
Legislature of Virginia bill for erecting al
once batch of23 Banks The expert
ment was tried in 1916. Thanks to thu
good sense of our legislature, it was laid
IN the tomb never 10 rise again.
Rich. Comp