Daily Nashville patriot. [volume] (Nashville, Tenn.) 1857-1858, 1857-11-24
For the Nashville Patriot.
Exchange and CODA suggest,

Exchange and Coda Suggestion.
Since the suspension of specie payments by the
banks, the community Is suf ring tax Of say from
to 10 per cent, on all remittances made from
Nashville to New York, Cincinnati, New Orleans,
and other points. The reason of these high rates
is the difficulty of obtaining gold, at a time when
produce is not going forward in sufficient quantity
to meet the demand for exchange. There is
large amount of gold in Tennessee, but too much
of it is held up by the banks against the day of
resumption Now, thu good banks have spscie
enough on hand to redeem part, though perhaps
all of their circulation But then if the doors
were kept open for continued run upon them, for
and all their circulation they would be forced
into contraction ruihous to their customers. Hence
the suspension considered a good thing by ma
ny-but not the suspension too sudden and
complete, giving the exchange brokers too great
an advantage OF the community Gold in New
York is now per cent. prem; IN Cincinnati a 2
per cent, buying and selling, lie here the bro
krrs buying at about and selling at about 10
per cent Gold is too dear with us-I adhere to
this form of expression presume the communi-
ty generally understand that exchange on any
point in the United States Except Cafornia) can
not be more than per cent. higher than gold.
1 think We have had too much of the good thing
in the late suspension. Let me suggest that should
our General Assembly egalize the suspension it
b. qured of ali banks availng themselves of tn.
provisions of such act, to resume, forthwith, the
pigment Of spe Gle all notes of certain speci-
fed denomination-say, for instance, all their tens,
or fves no matter which; and at a future day APP
pointed, on all of certain other denominations; and
so on to a full resumption. The denomination Of
notes to be FIRST redeemed might well BE- SIS
not So aud under, as that would work unequally,
especially upon the B INK of Tennessee.
This regulation would give the people little
gold, which would just now be a great relief, aud
yet it could not embarrass any bank which ought
not to be wound up. The farmers may as well
know that they pay ing to 10 per cent discount
on their money for if the merchant pays ca {
much pr.a ium on exchange be aidsit on the goods
just at this tim, when little produce is going for
ward the people are greatly in need OF gold, and
l mink this splitting the difference" with the
banks would work sell. The banks, at least,
should not complain. Some complaint is made
against aledgei plrliality in che course Of the
banks in redeeming part Of their circulation in
Oh tnge No complaint Of ptr.iality could be wei
raised against the regulation here suggested. As
or evil might have resulted from the withdrawal
of too much gold from the banks, 80 also much
harm results from the Withdrawal Of none. When
the produce Of the country shah have time to go
forward the banks can strengthen themselves for
fall resumption.
Aud allOw me further TO suggest that. shonli the
Legislature not lrg.izs the bank suspension, it
make provision fora Stte pros cuton against all
Oh .rt red banks whic snail nOt forth ~ith resume
the partial sp Gle paymtnt above allude to. The
present law IN regard to Free iuks l. enough for
them, but regulation might we'll be passed pro-
wiling Tor the prot 81 of their bills when desfi
Die, in the aggregate, instead Of in detail as al
present. Such regulation would save much ex-
prnse 70 the banks. L.