Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1857-12-03

but they drive out the metallic currency, 90 that
when pressure does come, and the banks fail, the
people are left destitute of ell currency.
Why sir, is the State of Arkansas to-day free and
easy in her fnancies2 Why dove not there hear Of
bankruptcies and failures with her citizens? It is
simply sir because their State Constitution prohibits
banking What sad contrast indeed does Tennessee
present. and every other Stats that allows banking
privileges.
Then sir. the banks hold the currency in their
grasp and when they fall ruin 20 the country is the
! necessary consequences. These, sir, are not the
phantoms of dream, but their truth, time has de-
monstraed, over and again. Then, sir, Is there no
/ remedy for these outrages? Shall poverty still
shadow the hearthstones Of honest people OF Ten
nessee while these lordy aristocrats revel in wealth.
illgoten from their honest, but unfortunate vicmsE
What do we see daily in this city, sir These same
| bank gentry, whose banks suspend "specie pay
ment, living IN ahuenee, while the poor man whose
diurnsl toll scarcely brings the necessares Of life,
is selling their paper, perhaps to their own agents
at from fifty to seventy five cents in the dollar.
| have also heard that some Of the stockholders Of
some Of the banks have generously refused TO take
their bank paper in payment Of debts due them.
Has shame ceased to blUshg Has justice departed
from the hearts of men?
What else do we see these suspended bankers do
ing They have said will not pay what justly
| owe, even though my poor creditor may starve and
his children freeze in tottered rags but it is mat
ter public and uncontradicted rumor that they are
from Ten 60 nfteen per cent
and have agents buying in their paper for them at
fifty cents the dollar. ask YOU sir is this right,
is it just, is it honest? How long then, sir, shall
this outrage continue to be perpetrated HOWlong
shall the tair escutcheon of Tennessee be Swallowed
| by these iniquities?
And yet sir, in the face of these facts we are
asked to legalize and make holy these wrongs. We
are asked by the bill Of the committee to license
these Shylocks to continue their unholy trsfio-to
continue promising to pay and never doing it, and
then we are mOdestly asked 10 keep any officer Of
justice from proceeding against them for their out
ragsous violation Of Law and justice. They ask that
they be not made to pay their contracts until 1859.
Not only, sir do they disregard law and justice but
they ask to violate for them the planest principle
of the constitution. What right have we 10 abrogate
or suspend the contracts they have made with their
creditors The organic law absolutely prohibit it.
But, sir, while see section in the bill of the
Iittee that allows them to refuse paving their debts
to the people, Look i---i- s1vtion mat says
that the people who the banks may refuse topay
them. That then, sir, resembles legslatng for the
few at the EXP OF the many, legisatng for the
proud arlsOcratic banker az the expense of the hum
bic poor man. Against that sort of legislation
enter my solemn protest know, sir, thatthe strong
armed laborer fells the forest oak and builds your
cities and towns; l know It's him who braves the
storm Of battle for his country, and l. sir will be
the last man to give the arstocrats of these ncor-
porations any privilege that l would not extend to
him.
No. sir, let our legislative policy be to retraee
cautiously our steps and get back the metallic cur
rency that thousands of years have not deprecated
but the return must be gradual and the remedies
applied with caution. But Of this will speak more
| fully directly
have been speaking Of the injury oceasioned d.
rectly BY the banks. will now offer few observa-
tons on the consequential injury they have caused
during the present suspension.
Now, sir, l assume that the banks are iustlv &C.
eountable for the present financial crisis am sus
tanned In this by the able and learned President of
the Bank of Tennessee, who undoubtedly attributes
1t to the proper cause. The country was prosper
| Gus, and the earth was groaning under rich and
abundant crops, but the banks taking advantage of
the prosperity Of the country, threw out millions
that they could not redeem, and hence the general
crash that we have experienced It is entirely safe
and reasonable to estimate the value of the real and
personal property of the United States at twelve
thousand millions of dOllars-it is reasonable es.
innate TO suppose it to be deprecated in value one
sixth which would make up total loss of two thou
sand millions OF dollars four times the value of
all the real and personal property in Tennessee
This, sir, has been produced in few weeks by the
errors and cOrruptiOns of the banking system, and
this IS the record the banks present US when they
! ask us to come to their relief
But, sir, Will make few remarks especially on
the banks In Tennessee and first Of the il dividua
banks; think their paper should be got out of the
hands of the people, and then wind them up; but
/
egslate so as to save the innocent holder from
harm. To do so, must not deal too harshy with
the banks; not even as harshly they deserve but
we must throw restrictions around them to guard
against recurrence of similar outrages to those
| that now af1ict the country. Let US then make
the stakeholder individually liable for the banks
debts when The bank fails-let us strike out by gra
duaion, the small notes, and prevent the passage of
small notes of other States in Tennessee in order
that there may be gradual rehux of gold and sill
YER to prepare for the time Of final liquidation of
them ALL and a to the constitutional curren-
cy, that the tempests and mutations of time cannot
disturb
Next is the Bank of Tennessee, which is the PEG
pies bank-Its capital is their money and it is sus
tanned by the credit of the State the honor of which
Is every day furnished while it refuses TO nav its
debts. Its detalcatOn, 1t is aedged was Occasoned
/ BY the banks Of New York and New Orleans sus-
pending. If that be so, it only demonstrates more
clearly the overshOdaWing dangers of the banking
| system If the people of Tennessee have a curren-
! cy regulated by the corrupuOns caprces of the
banks Of other States, in way responsible their
State, their condition is deplorable indeed This is
the second time this institution has proved itself in
adequate TO regulate the currency of the State or
even TO stem the tide of bankruptcy, that deluged
the country during those memorable times Il sns-
pended and remained so for two or three wears II
condemned by Gov. Polk, at the time in his
messages to the legislature in terms of disapproba-
ton which will apply as well now as then.
But we hear it said that if we force the Bank of
Tennessee to resume, all of her specie will be drawn
out and carried to New York and other places Gen
uemen certainly forget that specie here Is worth
from TO fifteen per cent. premium, while in New
York is only worth from three quarters to one and
a half per cent. Why, then, would the New York. |
ers come here and give fifteen per cent. when they
get it at home at per cent? But sir if we |
owe New York the money, ought we not to pay il ? |
But permit me TO remark that the Bank of Tennes- !
does not owe New York such an extrayagant |
amount as to cause suspension. The report of the |
Bank to the present Legislature has this item "due
10 banks S346OOU" and sO1het thing MORE Il do not |
give the fractions, this is the only item Of debted-
ness TO any banks, that am able discover In the
way of bills; and the bank is indebted in the uav
Of exchange, imagine the merchants OF Nashville |
and elsewhere, VINO received that exchange are good
Tor it, because it is really debt Of the bank,
but their own.
Wen how then is New York or the New York |
banks 10 draw out our gold and silver? 1t is SAID
they will buy up Tennessee paper and make run |
on the banks, well then If they have to buy up the
Tennessee paper they will have give the gold for
it, so while they get gold out Of the banks the PEG
pie will getlt out OF them, so we are the gamers at
last.
Bnt although l condemn the policy of the Bank of |
Tennessee, do not wish TO be considered as re-
fleeing the integrity of the officers of that 4
any other bank Some of them [ know. and /
hold IN the highest esteem particularly the venera-
spent life Of usefulness IN the public service and
whose career as statesman, is entitled to my pro-
foundest consideration and respect, and whose life
is pledge that he entertains opinions on this sub
ect similar to my own But was there any cause for
that institution susPending? In reply to the letter
the Merchants of Nashville the President of the
bank very emphatcally says:
The Bank Of Tennessee is able to pay all &C. |
mands against it, whenever and however made" |
This was only few days before suspension and a |
few days after, the President in a communication 10
the Legislature, said:
elf The Legislature would intimate. that it did
not approve the course of the bank it would tmms
dtatety resume and pay ali its liabilities as thew
might De presented quote it from memory, but
l am sure, give the substance and meaning Now
sir, from this, who could suppose the bank suspend
ed from necessity. l assume, then, that there was
no cause Tor suspension and am sustained by the
President of the bank in the assumption
Mr. POLK, interruPting, and Mr. Williams giving
way, said: "ln justice the venerable OentIema9
presiding over the Bank Of Tennessee, beg leave
IN AM from ne ,,,,t,1,