Nashville daily patriot. [volume] (Nashville, Tenn.) 1855-1857, 1856-02-27

nishing their Branches with sufficient amount Of
circulation TO transact business upon, believing
that this course would be an effectoal remedy for
the grievances complained Of As yet, however,
they have never been able TO come to any agree
ment upon the subject, and It win readily be per-
ceived that all the Banks must pursue one line Of
policy, and that no single one could take step by
itself which would not result in its own ruin or
greatly TO its disadvantage. The undersigned would,
however, respectfully state to your honorable body,
that the Union Bank will, with pleasure, be willing
to make all their issues payable at the counter in
Nashville, whenever the Planters Bank and Bank
of Tennessee WILL by mutual agreement with
this Bank, decide upon the time when they will be
prepare TO pursue such
The Union Bank will cheerfully act in concert
with the other Banks at all times, ia adopting line
Of policy that will be conducive 10 the financial in.
terests OF the State.
The undersigned, are very respectfully, your
obedieut servants,
G. NJ. FOGG, Pres't pro tenn.
J. CORY, Cashier.
Union Bank Of Tennessee
Nashville, 25th Feb 1886.
REPLY OF THE BANK OF TENNESSEE.
bank OF TENNESSEE,
Feb. 25, 1856.
To tie General assembly of The State # Tennessee
The undersigned, tine President and Cashier of
the Bank of Tennessee, had the honor to receive
from the Clerk Of the Senate, on the ODD inst, the
copy Of a resolution requesting the Presidents and
Cashiers Of the Union, Planters Bank and Bank Of
Tennessee, to 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 sicers be requested to indicate their
policy in that behalf. "
10 compliance Herewith, we have the honor to
state: That the issues of the Bank Of Tennessee
and its Branches are now redeemed in gold and
silver at the points designated on the face of each
note-are received by them in payment Of liabili-
ties, and Fe.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 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 nume-
rous agents for the transportation Of the money
from one to the other, at a very heavy expense to
fbo R,pL al ba b,ya incidaDt IN cpch
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 as well as the prof
its of the Bank one third if not one half of what
they at present, and to that extent limit the
ability Of the Bank to serve the people.
The Bank of Tennessee could not make all its 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
ial of the branches-such as now possessed by the
Union and Planters Bank over their Branches
Such a 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 1t 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 a sufftincy of the precious metals to
be kept at the principal Bank for that purpose, as
well as at each Of the Branches. The notes of the
Branches areI received here and by each other as
cash, in the payment of debts in the purchase Of
Exchange, in the discount Of notes, but 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 opi"ion 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 clarter, to meet
the public wishes without regard the policy that
NAV be acted on bv other Banks.
We are, respectfully, your obedient servants,
c. JOHNSON, Arrest
JAS MORTON, Cashier.