Fayetteville observer. [volume] (Fayetteville, Tenn.) 1850-1966, 1857-10-22
FAYEFTEYILIsE TENN.
Thursday Morning, Oetober2 1857
The Bank Of Tennessee. /:

tV"iti w lin - 49,
ident, was read inthe Senate on Fri:
day. It sets forth the reasons that
induced the directory to pursue the.
course they have. We may be per-
mitted to say that, while we lay no
claim to an intimate knowledge with
bank fnanciering, it does appear to
us that the Bank ought to have cone
tinued to honor its ownnotes, partic-
ularly after announcing itself ready
to. pay fanny and all of its debts
however and whenever presented"
J 7otae General Assembly 81 he Ssatee Tennessee:
= The President and Directors of the
Bank of Tennessee, have takena step
of so much importance. to the Insti-
tuition and to the interest of the eff
zens of the State, as TO make it their
duty to communicate to the General
Assembly. the grounds upon which
they acted
E On Thursday morning last a. partial
suspension Of specie payment, was,
with great reluctance, ordered by the
Board; ibey had resisted steadily, for
Eweeks,sthe most urgent representa-
lions Of many leading citizens and
business men, as to the propriety and
the necessity Of a SUSPENSION under
the confident belief that the Banks
of New York and New Orleans, with
which very extensive business had,
for years, been transacted, would be
able TO meet and successfully resist
the pressure existing in the money
market.
They learned on yesterday morn
| ing, that not only the Banks In New
York and New Orleans had suspend
ed, but that the leading Banks in
| New England and several of the
Southern States, had done so like
wise, which will probably lead tosa
! general suspension Of the Banks in
the United States. q.
I Such a course may operate very
seriously upon the interests of this
Bank. Most of the bills maturing
between this and he.frst Of the year,
are payable, and now in their posses
sion, how and when they are to be
|b, paid. cannot now be- aseertained.
If promptly paid at maturity, as Ne
confidently expected they would be,
this Bank would not have had the
least difficulty in meeting any de-
mand against it, as heretofore stated
in a letter addressed to the citizens
| and business men of Mas vile.
If these bills when pan ean only
he made available to us in the Cur
rency, which may be adopted IN those
- y & s ~
cities, it must be apparent to every
one that we could not deal with
them upon such terms, and pay. IN
gold and silver, and time may be re-
qnired to. collect the other dues Of the.
Bankfrom our cwn citizens, to meet
its liabilities. Without the amount.
due on those bills, the Bank would
still be able to meet and pay every
acknowledgement it reasonable time.
Hdid not appear to the. Board
prudent. to stand still and pay its
liabilities 10 gold, when the Banks In.
other States refused to do>so. 8.
{ BY the suspension in the princisi
pal cities, the value Of gold has been
50 much enhanced, that the Brokers.
and oiber5specuiator in money have
already made it their especial bust
ness to hunt up the notes in every
sectiond the country, of our branch.
es, which constitute our principal cir-|
culation, and demand their payment
ia the precious metals for Shipment
to other sections. s.
The interests of the Bank, as swellI
as The State, therefore, seemed to de-
mand the course adopted BY the
Board. s