The Athens post. [volume] (Athens, Tenn.) 1848-1917, 1855-08-24
MORE SHAKING.

nePort says the DIS OF the FARMERS Dank,
Knoxville, one of the institutions organized
under the Free Banking Law, are becoming
rather uncurrent mp the country, and We
learn they are no longer taken at the agen.
cies Of the railroad. 1t is matter for surprise,
if not regret, that any of the banks should
manifest weakness at a time like the present,
when the crops are fourfOld more abundant
shan they have been for years, when all de-
scriptions of produce command highly remu-
nerating prices, ana every business interest
seems to be on the full tide of success. Un-
der such suspicious circumstances there
ought to be no panics, alarms, or "bust ups"
The Free Banking System, when first
adopted, met with great favor, but We are
apprehensive it won't. do--in every State
where tried, it has failed to realize the ex-
pectations Of the advocates Of the system
We do not mean that there is any great dam
ger to bill.holders, or that the Free Banks
will not ultimately redeem their issues-on
the contrary, the State Stocks deposited with
the Comptroller as security, guarantee against
any serious loss ON the circulation. But the
Free Banks are failures for the legitimate
purposes of banking, so far as subscribing any
public good. They are required by law to
keep in their vaults 10 per cent. in specie of
their entire circulation, and in the event of n
loss of confidence on the part Of the public,
panic and a run, they must necessarily go
into liquidation, because confidence in mo-
ncyed institution once being destroyed, can
never be fully restored The specie fund
being exhausted, the Bonds deposited for Sc
curi.y must 90 into market, and If they car.
not be sold At par, they must either be held
up or disposed OF at sacritice-and in the
event of the latter, pro rata redemption Of
the ejaculation takes pace--that is, there is
m p:tnal loss to the bill-bolders 10 the ex
tent of the loss on the securities.
But going on the supposition, which is
generally true, that the State and Other
Stocks on deposit rs securities can be dispos
ed Of as par, and the proceeds prove suf
fcient to eventually redeem all the circula
ton, the delay that will necessarily occur il
winding up one of these institutions mus
frequently result in much injury. For exam
pie: A Free Bank is forced to 20 into lqui
dalton, condition to which they are liable
to be driven at any moment if they aspire t.
become anything more than mere brokers'
shop, and an individual happens to have il
his hands any considerable amount of tn,
bills-he may have the greatest confidence
that they will ultimately be redeemed, dol
lar for dollar, yet at the same time the della!
may prove ru:nous TO him. He must ethe
wait, perhaps TO the destruction of his bust
ness, or submit to n ruinous shave at thu
hands Of the Shylocks and money changers
We respectfully submit that this is not tn
thing In the way Of banking demanded b,
the public interests, and that the Free Bank
ing System is failure in regard 10 furnish
ing a reliable, ready and convertible currency
although sowe of the objections to it may b.
urged against other systems. We are, o
course, speaking of the system generally, ant
hot of any particular Institution organized
under 1t, for We regard the notes of the Far
mers' Bank really just as good as the issue
of any of the Free Banks, and that the bill
holders nre jnst no strongly secured agnns
ultimate loss. We may recur to the subjec
uunin.