Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1857-03-13
BANKS AND BANKING.

Wepublish in to-day issue Communication over
the signature OF P, relative to the Union Bank
and the meeting st Knoxville The writer makes
some harsh comments on the conduct of the Union
Bank, and as we have written several articles
touching the conduct Ct several Of our banks, we
have made enQu ~ into The facts on which these
charges sre based. We do not intend to set up
ourselves as defenders of Banks. But, on the con-
rary, we are Of the opinion that the whole system
os Banking in Tennessee is full Of evil and that the
sooner they expose themselves the better for the
public.
The Union Bank is IN the habit OF purchasing
of our citizens bills Ga New Orleans. When these
bills mature the agent at New Orleans is directed
to invest the proceeds in sight exchange on New
York, 4 checks at 30, 60 or 20 days, as the Bank
nav desire This Is the extent Of its discounts in
that CITY, This we understand is done by the
State Bank, the Planters Bank and every other
Bank in this city. So if this is wrong, P. will find
on enquiry Of the other Banks that every other
Bank IN Nashville commits the same wrong. It's
one plan adopted by all the Banks to get exchange
on New York.
Oar remsrks, in previous issues Of this paper,
touching the difficulty between the Union Bank
and the Brokers, msy have led.some to believe we
were opposed to Brokers drawing coin from the
Banks. Nothing was further from our design. We
believe that Banks are as much bound to pay their
debts IS individuals, and we think they ought not
to be permitted 10 pay out any note unless it was
Convertible into gold at the counter where PaId
out. We are satisfied that the Union Bank IS tul-
" able TO pay in coin its entire circulation, and we
are also satisfied that the officers Of tie Bank will
throw no obstacle in the way Of any one wishing
gold for the notes Of the Bank. But there is an-
other QUESTION involved, and we think the Union
Bank has acted proper in not countenaucIng any
wild cat system of banking As We are informed,
an Insurance Company at Aberdeen, have been
issuing something in the shape of money-knOwn
here as 3" The Mutual Insurance Company OF MIS-
gissippi. The Bank at Memphis wanted the
Union Bank to receive these issues on deposlte.
II the Union Bank had ,couutena1ced this thing It
would have been giving it circulation IN our state
and may have resulted in seriously ipJurlng our
people. Who in Tennessee knows anything OF the
solyency Of a Mississippi Insurance Company Z
But this preposterous and absurd proposition was
%,
strings TO its bow, and comes up with PROPOSE
t,ou that the Union Bank shall settle with it for
ali the notes of certain South Carolina bank
tbsv receive, thereby putting that South Carolina
Bank ou the same footing with the Tennessee
Banks. Is there man in TeunCsse aside from
those interested, who viii censure any OF our banks
for rejecting proposition Of this kind
We have therefore taken the position that it Is
highly improper for any Bank or Broker IN the
State to aid Mississipp or South Carolina Banks,
N any way, TO iDjure sny Of our own Banks.
When P. asserts that the Union Bank is great
shaving shop we will not be at issue. But we VIII
ssv the same thing Of every sank IN the State
from the least to The grestest-we will Include the
Bank Of Tennessee, and place 1t at the very head
of the lst Its capital is put down at $780,
lao 46. Its notes discounted on the lst Of jan
usry, 1857, amount to $l,592,728, 70. Domestic
bills. at the same date, amount to F2,O0I,46o y
The report for January, 1857, Of the Union Bank
shows its capital TO be 81 775 500. Its discount
ed notes. 81. 800, 332 %. Domestic bills S3.494,
COB 90, The circulation of the Bank OF Tenues-
see, ct the same date 81 ,565,87C. The circulation
of the Union Bank, at the same date, S25l61Oo
Thus it will be seen that the Union Bank, (snc
the same may pe said Of the Psnters) with only
about half the capital Of the Bank Of Tennessee
mas discounted the most notes-has purchased the
most bills-snd has out larger circulation II
therefore, d;scounting freely, is advantageous tc
the people, the Union Bank hss done more to
wards their relief There is another matter men
tioned by P shout which we will take no issue
The act of the General Assembly requires report:
from the branches. P. thinks they should comply
So do we. But is there not the same cause tC
complain Of other Banks. Not one in tue State
having branching privileges has complied witt
the act. All have gone astrsy in this particular
and we are for a general rsformaton-R correction
Of evils no matter on Fbom the csnsuFe may fall