Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1854-01-29
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KNoxvrLLr, Jan. Is, 1854.


To the Editors Of the Union and American:
I have just read the letter of W. E. FERGUSON,
Esq, Civil Engineer of the Nashville and North
Western Railroad, published in your valuable paper
of the l4th inst, and while heartily approve all
audable efforts to facilitate the Railroad Companies
in Tennessee in completing their works depre-
cate the plan proposed by the worthy writer
County bonds are not a safe basis for successful
banking operations confidence would not be suifi-
Gent; and one of the evil results would be the
flooding of Tennessee with deprecated circulation.
At the present time and for years past with good
and solvent banks, Tennessee money does not cir
culate beyond the limits of the State, and in this
particular section the banks of Virginia, North and
South Carolina and Georgia have perhaps their
best field in which to keep afoat their issues l
am not one of those who believe there is danger
of our having too much money, provided the quail
ty is good enough; give US good banks and there
is no risk in having heavy circulation.
But it was in its connection with Railroads that
the subject attracted my attention. Let the present
Legislature repeal the act of 1872, prohibiting
Railroad Companies from banking and allow them
the privileges of the free banking law, to the ex
tent of one half the amount of State aid granted
under the iron BILL and require them to keep at
least 20 per cent of the capital in specie in their
vaults and you will not only materially foster and
aid these companies but you will furnish circula
ton that is sound and beyond the reach of either
panic or pressure.
Railroad Companies have now to provide semi
lie, Grcf hi Al 4,
issued to pay for iron and equipments and then the
residue of earnings if any, to be divided among the
stockholders, whereas if you will allow these stock
holders the privileges extended to other citizens I'M
der the Free Banking Law, you give them the
chance to make and provide this interest on the
State loan ''outside of the act of the road ITSELF
and its real earnings will 60 where it properly be-
longs into the pockets of the stockholders and who
so justly entitled to all the privileges granted to
any of the citizens of the State as the individuals
who invest their private means for the purpose Of
building Railroads. and thereby developing the hid
den wealth, enriching the and increasing to
an almost unlimited extent the State revenue2-
Surely those men, more than all others, should not
be excluded from privileges made common by law
to others both il and out Of Tennessee. 1t almost
invariably happens that money thus invested in the
construction of Railroads lies for years without
producing dividends, and these men show their
hberality and public spirit, not in words, but by
their acts, for they perfectly aware, at the time
of paying out their money, that it cannot reason
ably be expected to return or yield an interest
til after the lapse of many years This prohibition
is very unjust citizens of other States buy up our
State bonds, establish banks in our midst and car
ry off large profits without expendng one dollar
among our people, save the rent of banking house
and the support of a Cashier, whereas our own and
our most public spirited citizens, who have invest
ed their means in building our Railroad are ex-
cluded from such privileges, simply because they
legally combine their means and effects and consum-
mate a laudable public work by which everybody
is more or less benefited
This subject is worthy the consideration of our
Legislators There is manifest injustice done the
Railroad companies do not propose that they
shall bank on the bonds received from the State to
pay for iron and equipments; let them, as do 9TH
ers, procure their capital as best they may. Nor do
Ipropose that they shall have only pittance of
ten per cent of specie in their vaults. In my judg-
nent that sum is too small for selfprotection and
believe the present law defective in that particular
and ought 10 be amended We say then that it is
right torepeal the prohbitory law of 1872, chap
19l, sec. 80, and afford opportunity for distrib-
uting some of the profits coming under the opera
tons of our free banking law, among that worthy
class of citizens of Tennessee who have SO LIBERAL
y paid out their money for the purpose of building
our Railroads. as it now stands. Railroad Comp a.
MES and citizens of other States enjoy the rights and
privileges under our lacs that are denied to compa-
MES and citizens of our own State
.. c. WALLACE