Fayetteville observer. [volume] (Fayetteville, Tenn.) 1850-1966, 1857-10-15

the citizens will ALLOW
That nonresident stockholders
should have no control over the
moneyed institutions in this State;
they have no interests in common
with the people, and no sympathy
for them in times Of distress; their
interests are indeed often antagouis-
tic. Their investments in ourstocks
are made solely with d view to the
per ceutum derived from them, and
their control Of them will be solely
with a view to the profits that can be
secured by them. That dealing in
the circulating medium Of the State,
whether Of the precious metals or pa
per currency, which regulates the
value of property, and the price Of
the productions Of the State, should
be prohibited as far as the Legisla-
tture has the authority to do SO.
The citizens have too deep an inter-
est in the amount, as we'll as the
quantity Of the circulating medium
by which the trade and business of the
country is carried on, ito allow any In
termeddling with it By stockholders,
spectators, brokers, or bankers tur-
ned brokers.
Tie Bank of Tennessee was es-
tablished for the purpose of creating
inndfor Internal improvements, and
to aid in the establishment of a sys-
tenn of education.
The operations Of the Bank in a
few years seem to have convinced the
General Assembly of the impraetica
bility of accomplishing the great
objects of it creation, under the or
ganization which had been given it;
and an act was passed in 1919, di-
recting the profits Of the Bank to be
paid Into The Treasury and the pay.
ment of the bonds of the State and
the School Fund TO be made by the
Treasury; by that time near million
of dollars had been taken from the
capital by appropriations ofthe Leg.
islature, and the debts lost by the
bank. BY the act Of the 81 March,
1884, the annual profits of the Bank
were directed to be applied to supply
the deficiency ofsthe capital occasion.
ed by the bad debts. So that the
bank cannot be regarded at this time
in any other light than u financial
project to aid the Treasury OF the
State, 1t can scarcely DE doubted
that an investment of the School
funds.composing in part the capital of
the bank, in the bonds of the State,
bearing an interest of six per cent
would have been a more wise and
judicious disposition Of them. than ia
the Stock of any corporation yiel
ding nominally two or three per cent
more, and especially in one which
was subject, from it's organization, to
all the casualties arising from the
change of its officers every few years
as the one or the other party pre-
vailed in our elections, and TO the
carelessness, negligence or frauds oil
those controlling it. The other por-
ton Of its capital belonging to the
State, a million Of dollars. was OBJ
tanned by issuing Bonds OF the State,
bearing six per cent. interest, and
upon which the State now pays In
terest, and will be compelled to pay
whether the bank yieldsaproGt OF not
From the operations of the bank
heretofore, there is strong reason to
apprehend that losses OF similar
character may occur hereafter, and
} that the profits by the time the char.
ter expires, may be required to rein
state the capital as now required by
the act of 1854. Uuder such cir
eumstances it would seem to be the
true policy Of the State 10 pay the
million dollars for the bonds of the
State whilst ii has the meaps under the
: control Of the bank, and to Invest the
school funds in other bonds of the
4 State, bearing interest, and thus a.
void the hazards incident to borrow
ing money to be reEoaned under the
control ofany corporate body. The
public is seldom benefited oby such
financial schemes.
If the money has to be paid by
the citizen it makes but little differ
ence whether it be done through the
Treasury OF By the profits on dis
counts, and loans made TO them
through such corporation; the more
direct the mode adopted, the better
generally fer the citizens. 1t is, in
the opinion Of the Board Of Direc-
tors, no unimportant matter to a.