Washington telegraph., 1843-09-06

Union--we heard nothing of the suspension
of specie paynents--no,hing of universal
distress and balkruptcy--noihIng OF repu-
diation. The receipts anG disbursements
of the Treasury were conducted without
difficulty, through the agency of Bank of
the Uhued Siams-ihe Expenditures OF the
Government SO far from exceeding lis reve
nues, left ten millions annually to be applied
to the Public Debt. Two hundred and
thirty millions Il the public monies were
transferred by the Bank without loss Or risk
the Bank unlike the Sub-Treasury yieid-
ing dividend of half million annually 10
the Treasury on the Government stock, in
stead of the Treasury incurriug a heavy
expenditure for the transfer and lIansporta-
tion of the public money-ihe entire ex-
changes of the country, (except in the
States prohibiting the establishment of
branches of the Bank of the United States,l
were effected at an average cost not exceed
ing half per cent
We cume now 10 the second attempt 10
do without a National Bank. In consider
ing the condition oftie country since 1893,
we deem il unnecessary 10 take a wider
range at present, all the events being of re-
cen, date, than the States of TENNESSEE
and ALABAMA. Our own affairs are
most familiar to us-;he facts which they
involve will be less liable TO doub, or denial
while the trade Of our Southern and
Eastern counties is so interviewer with the
trade of Alabama and so dependent upon
the credit and value Of ALABAMA MON
Ely, that for the sake of convenience we
prefer 10 draw our illustrations from these
sources
BANK DEBT AND CIRCULATION
OF TENNESSEE.
A Brahch Of The United States Bank, for
ten years prohibited by a statute Of the
State, was iniruduced iGtu Tennessee with
the cOnsenl Of the Legis.siGre, aud located
at Nashville, in August, 1927. \; that
time the local Banks, with the exception of
The Bank OF Yeatman, Woods & CO.. were
to all practical purposes, in a state of liqui-
daton. They had, after long discussion,
attempted specie payments in 1897, and one
of the principal banks, tue Nashville Bank,
failed IN 90 or 20 DAYS. This pul the other
Banks on strict guard, and they gladly
avaiIed themselves of the introduction OF
The National Branch 10 make good their re-
treat. The old State Bank at Knoxville
10. which Judge White WAS the President y
Immediately wouDd up its Nashville Branch.
selling the Banking House to the Bank OF
the United States. la S29 the new State
Bank was put in liquidation by the Legisla-
iure.
Here then we find the State, practically,
with only one Incorporated institution, and
that a Branch of The National Bank, and one
private Bluking huIse.a concern by The way
that made and realized infinitely more profit
al less risk during the five years that the
Branch Bank rema.n"d uumolested at Nash
vile, than they did with al the supposed adj
vantages of an unrestricted circulation from
1888 tc 1887. And this for the very plain
reason, that every branch of business was
more 10 be relied on. Credit was safe. Tut
uc; too cheap. PuncIualiiv was observed.
Our home manufacture of Iron. in which
Messrs. Ycatman, Woods & Cow deeply
interested, H1uTished.
Tue capital of the Branch was nomihally
8 100000. With lhis,all reasonable loans
were granted to ercry class oftie community:
not n large sums TO commission houses.
except in the way of transferring the crop
of the country, and then not to the exclu-
sion of small dealers. The humblesi man
in The ccuutry, with industry, and good
character, aud friends, as endorsers, could
obtain his hundred OF five hundred dollars,
and that in money current from one end oi
the continent la the other, and TO be repaid
IN small instalmenis TO suit the nature of his
business The annual crop OF the planter
was realized in good money without cost o!
exchange, unless anticipated. when charge
of half or one per cent. and interest was
made on his bill on the South or East
The horse and hog traders of East Tcnnes-
see and along our Southern border, could
drive their stock 10 Alabama or Georgia,
and realizing regular and substantial profits,
return with United States Bank notes-
Central money at % per cent discount, OF
Alabama money at 10, 20, 3n OF 40 dis
count. as the case may be. were then un-
known 10 our people. What little Alabama
money there was in circulation 10 thai State
remained at home, and was Ecdeemable in
specie.
This state of things continued five years.
In July 1872. President jackson vetoed the
u. s. Bank, and four months thereafter, the
Legislature OF Tennessee chartered the
UEion Bank of Tennessee 10 take the place
of the Branch Bank. On the lst Angus;
1882, five wears after lis establishment. and
when the veto of the President rendered it
necessary tina, the Branch should prepare for
liquidation, the
Loans and discounts al Nashville
were S-,oif,ooo
'.' =. 74S-555