Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1857-12-17

amounts to slavery, and our bondage is complete.
The system is at with the spirit and genius Of
our Institutions. And yet, Mr.. Chairman, We are
told that we must legislate for the banks, that the
banks may accommodate the PsoDlsts the cid song.
Let the government take care Of the rich and the
rich will take care of the p0or.rs-
Having thus Mr.. Chairman, rather at length dis
cussed the abstract merits Of the question, come
now 70 the consideration Of the remedy. Sir, every
attempt TO accomplish good must have more or less
of policy in it. To blot out once all the banks Of
Tennessee and destroy paper issue at one fell stroke
know, Mr.. Chairman, would involve many OF our
fellow citizens in bankruptcy Having bought prop
erty, and contracted debts even to the banks them
selves upon the prices and state Of circumstances,
produced BY the banks, as have shown, it would
De unjust to them to compel payment upon hard
money basis.
The remedy should be gradual, safe and certain
progress or return to specie basis; not violent
sudden change from the present posture of things
Let US new protect the people and legslate for their
interests. Let US guard them against the powers
and eXaetions Of the banks. Can we do thisi The
consideration Of this question: in view of our pres
ent relations TO the banks and their present position
TO the people, involves the determination of two
questions The first is, have the banks forfeited their
charters by reason of the existing suspensionsi
second, who is benefited by the continual suspen-
sion OF specie payments by the banks! In my ex-
animation Of the first question, Mr. Chairman have
been forced to the conclusion, that the banks Of
Tennessee have in their recent suspension forfeited
their charters need not trace the history Of this
question, IN the action Of the banks, asking as it
were the authority of this Legislature to suspend or
their subsequent efforts to have that suspension le
gazed, eonceding they did thereby the points to
be settled, but go further and nd as the law set
TED aud reelled as 1t is by Angel Ames COrpo-
rations, sec IA, that 1t is tacit condition of
grant Of Incorporation that the grantees shalt act
up to the end and design for which they were incor
porated and hence through neglect or abuse of its
franchises, corporation may forfeit its charter as
for a condition broken, or for a breach of trust"
The subcommittee of the bank committee however,
quotes decision made by the Ohio courts and prob
ably some others-wihout, however, if nv memory
serves me, coming themselves to a formal conclu-
sion-to the effect that where penalty is provided
for the note holder, that suspension would not
Work forfeiture. am free to say, sir, looking at
the decisions of the courts in different States of the
Union, IN connection with the action Of their differ
ent Legislatures, that this is question not alto
gether free from doubt and controversy. But sir,
1t so happens that the author from which 1 read,
standard legal authority with all the courts of this
country says Immediately after referring to the Ohio
decision, relied upon by the subcommittee that "a
of specie payments by bank may, how
ever, be carried so far to afford evidence of en-
tire misuse Of powers, and thus extingush its char
tered privileges; and strictly, bank can Wlfuly
refuse to pay specie for single day, without expo
sing its charter to forfeiture. Mark it, bank can
Wituly refuse to pay specie for single day, with
out exposing its charter to forfeiture This law is
and enforced in the decision of the case
Of the Bank of hatcher vs.. State of Mississippi in
which 1t is held that the penalty can make no differ
ence. Decisions to the same effect are to be found
in other States Of the Union Who doubts that the /
suspension Of specie payments by the banks of Ten
nessee has been wilful 1t is almost so officially an
bounced They have not, nor do they say that it /
proceeds from an inability to pay, but utility from
other considerations. But, sir, what do we want |
with learned judicial decisions upon question that
common sense decides!
Mr.. Chairman, the banks are bound to furnish a |
sound circulating medium. This is the end and aim
of every bank charter 1t is the law of their exist
ence, to furnish circulation payable in coin on
demand, and when they fail to do this submit to
common sense, the common judgment of every man.
That they have failed 20 ''act up to the end and
design for which they were Incorporated" and
hence, have forfeited and violated their charters
Another view Of this question, Mr. Chairman, is
that the Legislature of Tennessee are authorized to
grant charters only for the public good" Then,
sir, if the Legislature grant charter Of ineorpora-
ion to any body Of men, that may, does, or can
urn round for any purpose whatever, and defy US,
and rise superior to the public good" and thus
defeat upon the mere yolition of the corporate, n
he end and aim Of its incorporation, l submit to
you, that 1t is unconstitutional and void In other
words, that such incorporation have no legal
existence whatever.
l have still ansther view of this question. I
quote for the consideration of the Senate the 14th
article of the charter of the Planters Bank of Ten
lessee, being the same provision that appears in
he charter of every stock bank in Tennessee.
cart. IA. The said corporation shall not at any
lime, suspend or refuse payment of any Of the notes.
bills, or other obligations thereof, nor of any mo-
ley received on deposit in said bank when demanded
BY the holder or depostOr, at the place where the
same is made payable in gold silver; and in case
)f such refusal, the holder of such note, bill or
or the person persons entitled to re-
,eive such money deposited aforesaid, shall be
entitled interest from the time of
such demand and refusal, at the rate Of ten per
cent per annum until paid"
Now, sir, submit TO the Senate, that the article
lie have read is positive Injunction laid upon all
hese banks that failure to pay their notes on de-
nand, in gold and silver, is q failure to discharge
he duty they owe to the sovereign. 1t is positive
Injunction, that they shall not suspend. 1t is as
hough the State Legislature had said to them
ou shall not fail to pay your notes when they are
shall not fail Of this duty to the
Oyereign power but if you do, then the sovereign
an do with you as it shall think proper
The other part Of the section is intended for the
rejection Of the note holder; and will you allow me
D say, that doubt very much whether 1t could be
nforced in favor Of the note-holder If intended ,
interest, 1t is In cOnravention of the law and the
onstltutlon; but if as damages, then it may be |
covered. At any rate, it is only private remedy
the hands of the note holder, and ne satisfaction
the penalty incurred TO the sovereign which Gre
ted the bank. Therefore, MIR Chairman, l hold
lat all these banks in our power, by reason of
lie expiration Of their charters; and then in 1868
hen the charter OF the Bank of Tennessee shall
lpire, l say let her too die the death. If we 20
pom this principle, we shall be preparing the
lnds and the business of the people for a hard
Va, I'D AZ |
T the occasion. They will accommodate them ii
Ives to hard money currency in q much shorter a
ne than gentlemen suppose.
Upon this point, as well as the policy of fixing
early day of resumption, further quote for the =
Of the Senate, entitled to the high
respect and am certain it will receive it from y
= fellow Democrats, the opinion of one of the d
rest, and most distinguished statesman of the FIR
lited States, James X. Polk, who said, in refer
ce TO banks, in his Message me Legislature in
IL, that
90 They are ususually invested with exclusive
hits and privileges, which withheld from the 7
lance OF the community, and in consideration OF n
.se, they contract certain duties and obligations Of
thepubhc, Which they should be required strictly to NJ
form. The most important of these, is to pay gu
,ir liabilities in specie on demand, and recon-
nd to the consideration of the General Assembly,
necessity of making suitable provision by law, T.
sHJ0rce the faithful observance of this as well az
u.
future day be fixed, upon which they shall be
uired to resume, giving them reasonable and
hcient time to prepare to do so, without oppres-
G their debtors. In fixing future day for re- n
aption, the occasion may be fit one to impose III
h additional restrictions, liabilities, and penal
:, as experience may have shown to be necessary.
guard the public against future suspensions If vii
Banks nave violated their charters the General AT
emily possesses the undoubted power TO impose ~
h restrictions, liabilities, and penalties, as con-
ons upon which they may be permitted to continue
exercise Of their corporate privileges"
lere Mr. WHlTTHORNE read his bill. making Y
lments upon it. OBJ
o what banks, Mr. Chairman, does this bill apply9
My bears oppressively upon those that are not
estly managed; but yet is severe even upon those
he stock and free banks that are prudently man
In other words, am frank 10 saw, that ia
nded to fall rather upon the stock and free
ks, than upon the Bank of Tennessee It leaves A
Bank Of Tennessee as a wall midway between 10
people and the dangers that might ensue from be
operation. Why do do this? have said. that beh
eturning to hard money currency, we must be :sy
led by policy, and that policy as l have marked
1t, IS TO get rid Of the small concerns first. As
The Union and the Planters Banks, their char g.
n hov, - IN