The Daily Nashville true Whig. [volume] (Nashville, Tenn.) 1851-1855, 1855-10-09

| TOT TIE O6LdllS VI JuO Cldt6 OcUts diN NV
true condition of the Treasury, / most respect
fully refer you to the report which will be made
/ by the Comptroller of the Treasury.
Banks.
| The condition of the Bank of Tennessee will
be fully set forth and made known in report
which will be made and submitted to the Gen
eral Assembly, by the President and Directors
of that institution at an early day. 1t Will be
seen, from careful examination of the report,
that the principal Bank and brancheshave been
conducted with great efficiency in the ordinary
banking transactions, and especially so IN COL
lecting and securing large portion OF what is
called the suspended debt More of this debt
has been collected and secured in the last two
years than at any former period.
In regard to this institution, | still adhere to
my former opinion, as submitted to the last Le-
gslature, that the principal Bank and Its
branches ought to be put iatO gradual llqulda-
dalton, and that the present is an suspicious
time for such gradual liquidation, giving ample
and reasonable time to all persons who are IN
debted to the institution, to make arrange
ments for paying the amount they may owe tiie
! principal Bank and its branches. The process
of winding up the institution at the present
time, can be made so gradual and easy as not
to embarrass the indebted portion OF the coil-
|
A number of banks have gone into opera
ton under a law passed by the General Assem-
bly, of 1872, and others no doubt Will soon
commence. In addition to this, the last Legs
lature incorporated seven Stock Banks, which
will more than supply the vacuum created by
| the withdrawal or the winding up OF the Bank
of Tennessee, and furnish all the banking IA
cilities needed by the whole commercial and
business portion of the country. As the capi-
tai of tie Bank is withdrawn from circulation,
it can be profitably invested in the Bonds OF
the State, thereby again making its way into
the general circulation, and at the same time
creating home market for the Bonds of the
State equal to the entire assets of the Bank.
! The Bonds are bearing an interest of six per
cent. per annum, which will in the end yield q
greater profit to the State, making it the safest
and most judiciousinvestment that can be made
with the Common School and other funds,
which now constitute the capital of the Bank
of Tennessee, and which is under the control
OF the Legislature.
If the State can in any reasonable time dis
pose of the stock owned in the Union and
Planters Bank upon good and reasonable
terms, and all other stocks owned Oy the
State in turnpikes and railroads, it would be
equally wise, safe and judicous, to make like
investment with the proceeds of such stocks in
the six per cent. bonds of the State The num-
Der of Internal Improvement works which
have been commenced by the various compa-
MES, and which are entitled to aid by law from
| the State, and number of others that in all
probability viii be commenced, which will re-
quire the issuance of large amount of State
| Bonds, amounting to many millions of dollars,
will absorb the entire capital of the State Bank,
and the proceeds of all the stocks owned by
the State, if they are invested in the bonds of
the State as already indicated.
The Free Banking Law, as it is commonly
| called, requires revision and amendment, and
should be so modified as to require all APP
! picants for banking privileges under it to
| deposit, as a greater security to note-hold-
ers, with the Comptroller of the Treasury,
! twenty-five per cent. more in bonds than they
receive notes in exchange for circulation. The
note-holders are entitled to this additional Sc
curity to meet any reasonable depreciation
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 should be law pass
! ed prohibiting the circulation of any Bank note
of a less denomination 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 trans
actions of the country, by the excessive issue
of small notes by the various Banks through
out the State. The passage of such law would
in a short time restore TO circulation, Cor all
ordinary purposes, 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
or the breaking of banks. The necessity of
the passage of such law must be obvious to
all, and it is wholly unnecessary for me to
make any argument to the Legislature or to
the country in its favor.
| There is one other suggestion that l will
make in regard to the Free Banking Law: The
law should be so amended as to fix definitely
the rates at which Totes should be discounted,
| by all persons banking under that law, thereby
making the discounts equal and uniform in
banking operations throughout the State.
Tax on Merchants
| in my message TO the last Legislature, the
attention of that body was called to the sub
.ect of Merchants Taxes, and as no action was
then taken upon it, again submit that portion
of my message to your consideration:
"There is some complaint with the mercan-
| tile interest, in consequence of the unequal and
| discriminating operation of 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, re.
quires ali wholesale and retail dealers in mer-
chandise in this State, to first pay into the
Treasury of the State one-half of one per
cent. on the invoice cost OF all goods vend-
ed by them. The main cause of Complaint,
as understand it, is, that in the first place,
the Wholesale merchant, by the revenue law,
is required to first pay into the Treasury the
half of one per cent, or fifty cents on the hun
bred dollars. After the tax is paid by him in
to the Treasury, the retail merchant then pur-
chases the same goods of him, and takes them
to another establishment, in or out of the coun-
ty where purchased, as the case may be, and
vends them again; for which he is required to
pay one half of one per cent. or fifty cents on
the hundred dollars, into the Treasury; which
is one per cent. paid TO the State for the good.
thus sold. BY this process it will be perceived
that the State lays a double tax on the goods
purchased from the wholesale dealer within
the limits of the State The business retail
dealer has no difficulty in understanding the
operation, aud finds it TO his interest 10 go be-
yond the limits Of the State 10 make his pur-
chases, and thereby save the one-half of one
per cent. IN the purchase of his goods, or fifty