Arkansas true Democrat., 1857-11-17
From tie Richmond South.
 James K. Polk on Bank MonopCles and Paper Money.

Paper Money. We observe with uufeigned satsfaction that the leading democratic journals of the country are lifting their voice against the evils of bank monopoles and paper currency. Among oth- CTS. the Nashville Union performs timely ser vice in reporducing the teachings of that great expounder of democratic prlnclpes-J AMEs k. POLK Commenting on the suspension of specie payment by the Bank of Tennessee, the Union says:
 This institution closed her vaults on yester | day and refuses longer to redeem her own blis | The intelligence will be as unexpected to the great mass of the people of the State as it will be dscouragng and injurious in its siects.- | From the fact its being State institution, It | had obtained a hold upon the confidence Of the | people greater than that of any other bank, and | in the midst of the general uneasness Its notes 1 have been sought for by the laboring people of | the countr, as their greatest security Ill these uncertain times. It has been but few weeks | since meeting of our merchants and business men, ,cho, very naturally, ,oere more oanlous to p,ovide accomnaodations for themselves a'an to see the banks pay htelr honest debts, held meeting | in our city and passed resolution requesting the Union, Planters, and State Banks 70 sus- pend, in order to give timely aid to their cus- toners and debtors" the very policy which the Bank of Tennessee has now adopted. The nroposition was then declined for reasons and | in a manner which we thought worthy of the gentlemen who control that institution. Col Johnson published card o the world in which he Said:
 "The Bank of Tennessee is able and reaay to meet nU demands against it l0lsateUer and hOt0 eper made, and would not, therefore, be justified or excused for refusing payment of its notes when demanded"
 If the Bank of Tennessee was able to meet al demands against it, whenever and however made, at the beginning of the crisis, of course it is equally able now, as she has been every day pr, pnring for the shock IVe conclude, there fore hat its officers haUe Mough proper to close is vaus and dishonor its paper from some other cause than an inability to pay With such an ac- knowledgment before them, their reasons W hat ever they may be, are not likely to satisfy the indiscrminate public whose pockets are encum- bered with their depreciated currency.
 This is not the first time that the Bank of Tennessee has suspended, and if it is continued as a financial institution for another ten years, it will not be the last. Our present financial policy is but another mode of gambling, and the game, though large one, must necessarily have an end every few years, when all the cards are trown up, re-shuff1ed, and dealt over again for another hazard and another loss. In 1859, under precisely stnailar circumstances the Union, Planters and State Banks went by tEe board, and were for three years suspended. That the reader may understand the history of that suS- pens )n, its deeterious effects and injury to yhe peep and comprehend thereby what may be anticipated from this, We make the following extract from the able message of Gov James K. Polk, to the Legislature, in 1859. After having shown the causes of our troubles to have resulted from an inflated paper currency, start ing first with the banks of the eastern cities, he says:
 Upon the receipt of the information that some of the banks at the east in little more than year from their last resumption had again sus- pended specie payments the question immeGl- ately arose in the public mind, what had pro- duced the suspension. and what would be the course proper to be pursued by the banks oi Tennessee?
 As far as are informed, the suspension at the east is represented to have arisen :" not out of a lack of power to continue specie payments but of self f-preservation, under the form of keep ing the specie from being drained out Of the country." Without the means of knowing how the fact nay be, it Is for a suspension o payment by the banks but an absolute inability to meet their responsibilities promptly. And whatever may have been the cause of the suspension of payments by the banks at the east, IL cau furnish no sutfi ceut ground for the suspension of payment by our banks, so long as they have an ability to pay. Like individual debtors, they should meet their liabilities hon. eStly and prompl as long as they are able to pay W nat Is the effect If d contrary course be adopt ed? A few of the banks at the east suspend and represent to the public that they are still solvent; and do so, not from necessity, but to retain their specce; and following their exam ,,la f ,ly.,i b.a ,ok Il represented to be solvent, suspend also, not be- cause they are under the necessity to do so, but simply because the eastern banks have suspen- ded 50 that the suspension of the banks in single city which may have indulged in exces- sive issue of bank paper and bank credits, and thus stimulated and promoted over-action iE trade, or which may have ulleror objects 1T view, Is made to operate as a suspension ot payments by all the banks of the country. - Surely if bank suspend in Philadelphia it is no reason for our banks to follow the example unless they are compelled by their condition tc do so.
 The apprehension of the drain of their specie can be no sufficient reason, for one of the con- dltlons ot their corporate privileges is, that they shall keep themselves at all times in a condi. tion to meet their liabilities. When suspen. sion of specie payments takes place by banks
 
 value aud tue loss falls not on the banks but on tE people The laJor of tue country bears the Joss ,0Jtjist the barks, dc11ng per5oi of suspension are 9ften dolng their most proftable business. | was hoped that the Bank of Tennessee of whose ability to pay specie no doubt is entertained would continue to do so. She did pay day after the Union and Planters banks had suspen dei; but l regret to say finally yielded to the panic around her and stopped, Tot from inabi ty to pay, but as measure of prudence. He course Is much to be regretted, and an early re. sumption is in my judgment demanded by the interests of the State. By maintaining firm stand, honestly meeting all her engagements and at the same time extending to her debtors every possible indulgence compatible with her safety, her character State institution of un- doubted credit will be maintained, and to the extent of her means, to furnish a sound curren- cy will be preserved. In the future mango ment of that institution, owned it is exclu sivey bythe State, and supported by the credit ot the State, It should be a cardinal object con- stantly kept In view, to confne her operations within her means, to meet her responsibiIite: promptly, and to preserve at all times her cir , culatlon in sound state.
 , No one can fail to see how admirably suited those remarks to the present. time. Gov Polk could not justify the suspension then. anc II he were living would not justify it now.- f The same arguments which he advanced agains such policy at that time are precisely applica ble now.
 Two years passed by, and, contrary to Gov , Folks recommendations and to their owr pledges, these banks were still suspended. = Therefore, In his message to the Legislature O lo4l, he again treated the subject as follows Let the members of the present Lesislatur, learn wisdom from and take warning by hi suggestions:
 It was hoped and belived, when the bank ot the State suspended the payment of specie a asecond tune, near two years ago, that 1t woulc be ot temporary duration. In the reports mad