Fayetteville observer. [volume] (Fayetteville, Tenn.) 1850-1966, 1855-10-18

Ihe Bonds are bearing an 1nteIest
1 six per cent per annum, which will,si
, , the end, yield a greater profit to th
) State, making it the safest and mos
= 'aiudiclous investment that can b
made with the Common School an
; other funds, which now constitute th
. capital of the Bank of Tennessee, an
which is under the control Of the Leg
islattrre. }'1 +. e-l.sessf.3.ss s:a1isv
IF the State can in any reasonabl
!, time dispose Of the stock owned j
the Union and Planters Bank upol
good and reasonable terms, and al
I other stocks ownedlby the State il
1turnpikes and railroads, it would b
equally wise, safe and judicious, t
make a like Investment with the pro
fceeds of such stocks in the SIX pc
tcent. bonds of the State. The mum
Der of Internal Improvement works
which have been commenced by the
various companies, and which are en-
titled to aid by law from the State, ane
I a number of others that in all proba.
fbility will be commenced, which will
require issuance of a large amount Of
State Bonds, amounting to many mil
lions of dollars, will absorb the entire
capital Of the State Bank, and the
prsceedssof all the stocksiownad by
the State, if they are invested in the
Bonds of the State as already indiea-
ted. r43i91 - - -uiao5
The Free Banking Law, as it is
commonly called, requires revision
and amendment, and should be so
modified as to require all applicants
for banking privileges under it to de.
post, as greatersecuIity to note-hold-
+ers, With the Cemptrolteref the Treas
'ury, twenty-five per cent. more IN
bonds than they receive notes ineex-
change for circulation. The note
holders are entitled to this additional
security to meet any reasonable de-
probation which may take place in
the value and sale of the bonds of the
State, when thrown into market. for
sale. And as a further protection to
the community, there shouldlbe a law
passed prohibiting the circulation of
any Bank note of a less denomina-
ton than five dollars, in the State.-
We have seen within the last few
years, gold and silver driven almost
entirely out of circulation for all the
ordinary business transactions OF the
country, by the excessive issue of
small notes by the various Banks
throughout the State. The passage
of such a law would in short time
restore to circulation for all ordinary
gold and silver, which can
not depreciate in the hands Of the
small and unsuspecting dealers, as is
often the case with bank notes, by
the depreciation of small notes orthe
of banks. The necessity of
the passage of such law must be
obvious to all, and its wholly unnec-
essary for me to make any argument
to the Legislature or to the country
in its favor. .a e.
There is one other suggestion that
I will make in regard to the Free
Banking law: The law should be so
amended as to. fix definitely the rates
at which notes should be discounted,
by all persons banking under that
law, thereby making the discounts
equal and uniform in banking opera
tons throughout the State. .
Tax ON MERCHANTS.
In my message to the last Legis-
lature, the attention of that body was,
called to the subject of merchants
taxes, and as no actien has, been taken
upon it, / again submit that portion Of
my message to your consideration:
tsThere is some complaint with the
mercantile interest, in consequence of
the unequal and discriminating ope-
rationsof our revenue laws regulating
merchants license. The complaint
is not without some foundation and
good cause on their part. The law,
as it now stands, requires all wholesale
and retail dealers in merchandise in
this State to first pay into the Treas
ury of the State one-haif of one per
cent. on the invoice cos. of all goods
yended by them. The main cause of
complaint as / underestimate, is, that
in the first place, the wholesale mer-
chant, by the revenue law, is required
to first pay into the treasury the half
Of one per cent, or fifty cents on the
dollars. After the tax is paid
by him into the Treasury, the retail mer-
chant then purchases the same goods