Daily Nashville patriot. [volume] (Nashville, Tenn.) 1857-1858, 1857-10-08

Plus pfOducL OF the country. InlS Will follow as
naturally and certainly water will find its level
or the surrounding atmosphere supply and fill up
vacuum when created.
The strongest objection now urged to the wind
ing up of the Bank of Tennessee is that it is nee
essary fiscal agent for the State, to receive its
revenue and disburse the same to pay the interest
on the State Bonds that have been issued, or may
hereafter be issued. This objection when examined
and reduced to a practical test ceases to have any
force solidity in it whatever. l would most re-
specially suggest that all the duties now performed
by the Bank ef Tennessee as a fiscal agent in re-
ceiVing and disbursng the revenue ofthe State and
paying the interest upon State Bonds can be per-
formed by the Comptroller and Treasurer, the fnan-
cial officers of the State proper, with equal conven-
ieEce and safety, and at far less expense than it
now costs to carry on the machinery of the Bank of
Tennessee.
1t is a matter of great importance to the people
of Tennessee that our State should be free from
debt If the policy have recommended should be
adopted, the debt which accrued under the acts of
1856, and 1878, would be liquidated in a very
short time. We should then have no interest to
pay in the eastern cities, except the Bonds loan
ed to railroad companies, and would therefore need
no Bank or other fiscal agent to make payment at
any place, other than at the Office Of the State
Treasurer.
Under the act of 1872, by which the State
credit leaned to various railroad companies,
provision mace that the interest accruing on
the Bonds loaned, should be paid into the Bank of
Tennessee, fifteen days before it became due in New
York. Surely any President of a railroad company
having the money 10 pay the interest on the Bonds
issued to his road, could in less than fifteen days
by buying exchange from a Bank or Broker or by
shipping coin, transfer the amount to New York, or
any other point in the Union. This is often done
now, many Of the roads have issued bonds which
endorsed by the State and the interest has been
promptly met without any agency the part Of
the Bank of Tennessee. Our Merchants and MAUI
to make in the Northern and Southern States.
These payments made by purchasing exchange
from Banks Brokers, and so long as capital is
employed in any pursuit which requires the trans
mission OF money from one point to another to pay
for articles purchased there surely will be- even in
the absence of all Banks, exchange brokers or fac
tors, ready to supply any demand for exchange
In no event can there be any necessity for fs-
cal agent, other than the Treasurer or State Comp
troer Both Of these officers should be well quail
fed for the important positions they occupy and as
competent to manage the finances Of the State as q
Bank President Cashier The Constitution of
the State provides for the election Of Treasurer
and enrusts to him the receiving and discussing the
entire funds of the State.
1t may be said that Bank is better able than the
Treasurer TO tell the condition Of other Banks and
would not Teceize the notes of such Banks as would
likely become insolvent. Such argument would
only prove that some former Legislature had char
tered corporations for Banking purposes without
requiring sufficient indemnity to protect the note
holder. In granting Banking privileges to a com
pany, the people have right to expect of their re-
personalities, that they should be fully protected
from fraud in the circulation of any Bank notes. If
the Legislature would grant Banking privileges
except when the note holder was secure beyond any
possible contingency, it would be simply discharg-
ing duty which the electors have a right to de-
mand OF their representatives.
Within the period of about four years, AZ before
remarked, many OF the Banks, chartered by our Lee
giSature, have entirely failed and the money nut
in circulation by some Of them will prove to be al
most worthless to the note holder. / am of the
opinion that this evil might have been prevented at
the time the charters obtained, and am clear
y OF the opinion that you have the power TO guard
against any further fraud which may possibly be
practiced by any Of the Banks chartered by a pre-
vious Legislature. IL will certainly not be contend
ed that any former Legislature take out of your
hands the power to correct any evil or prevent a
fraud from being practiced on the people you repre-
sent.
Our State, very properly, requires security Of all
its officers having charge Of any Of the State money
or property. individuals require security OF each
other in their daily money transactions, and there
Is no reason why corporation, chartered by our
Legislature, with the privilege Of issuing uotes
checks and bills of credit, should not be required to
give ample security 10 the note holder. The iuteg-
rity and business capacity of Bauk officers is often
the the principal capital of Banks Past expert
anty to the note holder that he will be paid when
he presents to a Bank its own issue. Il becomes,
therefore, matter Of first importance for the safe
ty Of the funds of the State the security Of the
people and for the prosperity of all branches Of
industry, that in granting charters Of incorporation
when special privileges guaranteed 20 the few, a
credit should EOt be given such corporation until il
is deprived Of all power do Injury. / cannot sue
the necessity Of our State creating a Bank or con-
tiuuing one already in existence, with power TO
emit bills Of credit" the ground that We require
a fiscal agent TO receive, disburse and keep more
safely the funds Of the State.
The losses sustained by the State on account of
depredations Of officers, in the Bank of Tennessee
large, compared with any loss sustained on ac-
count OF our State Treasurer
In my last Biennial Message, I recommended the
passage Of law suppressing the issuance aud circu-
latiOn Of Bank notes bills OF a less denomination
than five dollars. An passed by the last Legis-
lature ITO regulate Banking" the third section Of
which, il seems, intended % accomplish that
purpose, has wholly failed 20 DO so. Il merely pro-
hibIts the issuance OF small notes, bY the Banks but
does not suppress the circulation Of those already
issued, and it Is believed that the amount IN crcu-
la.iOn the passage of the law has not been mate