Nashville daily patriot. [volume] (Nashville, Tenn.) 1855-1857, 1856-02-20
For the Nashville Patriot.
For the Nashville Patriot.
The Freedom of Trade and the Privi-
Iege of Ranking.

The Freedom of Trade and the PriVi.
Iege of banking.
MEssRs. EDITORS: Your correspondents, and
those OF the other papers in this city, have been
lately discussing the relative merits and dement's,
advantages and disadvantages Of Stock Banks, State
Banks and Free Banks.
1t is known that in Tennessee there are three
kinds of Bankers. The State is the owner OF the
Bank of Tennessee, which is governed by Directors
appointed by the Governor, and regulated BY laws
passed by the Legislature. This makes Tennessee,
as State, Banker. In addition to this, the State
owns near half million Of stock in each OF the
Stock Banks, the Planters and UnOn-whose prin
cipal Banks are located at Nashville-and also ap-
points Directors to represent her stock. All these
banks combined have about twenty branches, loca
ted in various parts of the State; and for this
reason each successive Legislature has spent about
half its time legislating on banking.
In the course of twenty years experience it does
not appear that our banking system has advanced;
for, although our banks as solvent as any in
America their bills are at discount in every State
in the Union.
refused to redeem their bills except at the branch
where payable in their face. Iu Nashville bills are
issued always payable at Rogersvile, Sommerville,
or Athens, or some other point two hundred miles
distant The mother banks do not redeem the
branch notes, nor do the branches redeem other
branch notes, the notes Of the principal banks.
This is bad system and will always keep our bank
currency at q discount
Under the Free Banking law, however, each free
bank is compelled TO redeem its bills at its own coun-
ter And it is said the stock banks, instead of IA
cilitating and aiding the free banks have often
gagged in running upon them to withdraw their spe-
Gle, and in efforts to destroy their credit safe de-
postories for money. This is done by representing
that the free bankers not responsible for depos-
its; because they make no deposits Of State bonds
to secure depositors, and because their individual
property is not made liable for deposits.
1t is probable the original free banking law was
detective and il is ght that the Legislature should
guard il more fully for the future; but while doing
that il should also require all the stock and State
banks to redeem their bills at any branch where
presented.
While doing these things, it seems to me the
Legislature ought to be careful not to give TO the
banks, whether free or stock the exclusive and
absolute control OF the deposits Of business, or
of the trade in bills OF exchange, negotiable pa
per.
By loose construction Of the act Of 1927, oh.
So, for the suppression Of change. bills Tor shin
II. q. al. al.
banks only have the exclusive right to receive
money, or its equivalent on depost-the only and
exclusive right to deaL in bank bills or bills Of ex-
change, or drafts.
Srch a monstroas monopoly as this would be :
never was intended by that any other act, to be
given 90 the banks OF Tennessee. Such a con.
structon Of the act Of 1921, (ses Nicholson l. Ca
ruthers, p. l2l,) never dreamed Of by the
Legislature OF Tennessee. That act had for It's
whole object and scope. the suppression Of change
bis or bank biiis issued by persons not chartered
or incorporated by the State.
Its words are as follows:
"No corporation, individual or company, shall
erect establish, institute, or pas in operation any
banking institution, concern, Office Of discount and
ucpOsltp hug ceuh odtns bthe, Oaio
OF exchange, notes, other instrument Of any de-
seription whatever with the INTENT view or purpose
Of putting ~ operation, any banking institution,
concern, or Office Of discounI and deposit" &c.
This act cut up shin plas,ers, and wild cat bank
by The roots, aud drove from the State the chin
plaster currency.
Il Was not insenied 20, Dor did IL confer on Ell.
thsr the stock .banks, or any other banks. under
their charters. the exclusive right 10 do anything
bat 10 issue baNk paper.
IL did not give shem the prsroSatiSs Figh 10 res
qEire every merchant. planter, farmer, mechanic,
trader, or capitalist, 10 sell bills Of exchange, and
70 buy them from the banks or 10 compel them 70
sell their negotiable paper 10 them; or TO require
all men. Who lead money. TO deposits ID ia The saHIt,
Of the hanks.
Bsslnesa men generally know where 70 maks
their deposits, and where they can bay or eel bs
Of exchange OF other negotiable paper, 20 the best
advantage and they via so 10 The best Market
md they ought 70 80 there OF the mIilions Of |
aoney dsposiles In Tennessee, and Of The twensy /
aiIlions Of bills Of exchange and negotiable pepper,
Hhich sriss eat oflhs sonmsres and sraas Of Tea. |