Nashville daily patriot. [volume] (Nashville, Tenn.) 1855-1857, 1856-02-26

terests Of the State
The undersigned, are very respectfully, your
obedent servants,
GIN FOGG, Pres't pro tenn.
J. CORY, Cashier.
Union Bank of Tennessee
Nashville, 25th Feb, 1856.
The President and Cashier of the State
Bank say:
BANK OF TENNESSEE, !
Feb. IS, 1856.
To the General AssevJly of The State # Tennessee !;
The undersigned, the President and Cashier of
the Bank Of Tennessee, had the honor to receive
from the Clerk of the Senate, on the 23d inst, the
copy OF resolution requesting the Presidents and
Cashiers of the Union, Planters Bank and Bank OF
Tennessee, 70 answer, in writing, When, if at all
they intend to discontinue the issuance Of notes
payable at any other point than at their counters
and that said afcers be requested indicate their
policy in that behalf. 4"
In compliance herewith, we have the honor to
state: That the issues of the Bark of Tennessee
and its Branches are now redeemed in gold and
silver at the points designated on the face of each
ncte-are received by them in payment Of lisbili-
ties, and re.issued upon new loans or discounts
without regard to the place where payable The
opposite policy, that Of issuing notes payable at
the counter alone, would involve the Bank in much
useless expense as well as great and unnecessary
risk. The Bank and Branches must necessarily
receive the notes Of each other in the payment of
liabilities to the Bank if not allowed 20 reissue in
making discounts and loans, would be compelled to
send them home for payment in the precious met
ais, which would require the employment Of hume.
rous agents for the transportation of the money
from one to the other, at a very heavy expense to
the Bank, with all the hazards incident to such
business, and without benefit to any one, except
those engaged in the business of trading in the pre-
ciOus metals. The adoption of such policy must
necessarily reduce the business well as the prof
its Of the Bank one third if not one.half of what
they are at present, and TO that extent limit the
ability of the Bank to serve the people,
The Bank of Tennessee could not make all It's is
sues payable at the counter in Nashville without
radical change Of its present organization, giving it
the entire control Of the officers well as the cap
ital OF the branches-such as now possessed by the
Union and Planters Bank over their Branches
Such concentration Of the precious metals in
Nashville as that policy would require, would so
seriously affect many interests in other sections
of the State, that it is hardly probable it would be
sanctioned by the Board of Directors, even if they
had the power, without the express authority of
the General Assembly.
The redemption OF the notes payable at the
Branches by the principal Bank in this city in gold
and silver, would require the funds OF each Branch
to be under the control Of the principal Bank, or
would require suIicincy of the precious metals to
be kept at the principal Bank for that purpose, as
we'll at each Of the Branches. The notes of the
Branches area received here and by each other as
cash, in the payment Of debts in the purchase of
Exchange, or ia the discount Of notes bat if gold
aud silver be required, the holder must apply to
the Branch where payable, where ample funds are
now provided for their redemption.
For these reasons, the undersigned, without hav-
ing had an opportunity of consulting the Board of
Directors since the reception Of the resolution, ex
press the opiHion that no material change will be
made in the policy of the Bank upon the subject
indicated, without further authority from the Gen
eral Assembly. Should, however, the interests of
this Bank and of the people require change in the
policy of the Bank in this respect the President
and Board of Directors would not hesitate to exer-
else all the powers given in the charter, to meet
the public wishes without regard to the policy that
NAV be acted on by other Banks.
We are, respectfully, your obedent servants,
C. JOHNSON, Pres't
JAS MORTON, Cashier.