Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1857-12-03
WHAT SHALL BE DONE WITH THE FREE
RANKS

The Shelbyville CoHsttutiOHahst faVors the policy
Of winding them up, and, the State is RESPONSE
bic for having given them credit, that a law be
passed making their notes now in the hands of the
people legal tender in payment of taxes.
The Trenton Independent Journal favors the same
idea. Hsays:
Thepublio anxiety has been stretched to its ut
most tension IN the vain hope that relief measure
would be prOposed-that some steps would be
taken 10 enhance the value Of our State bonds and
consequently the value Of the notes which they hold
based upon these bonds. The people have been
assured time and again, that the notes of the Free
ba ks we're the best currency, and from the fact
that the bonds oil the State we're deposited and
pledged for their redemption, they were induced to
look upon the State in the light of an Endorser It
remains now for the State of Tennessee, through
her Legislature 70 say what value she will put upon
her own bonds. Whatever value may be placed up
on them by the Legislature, becomes the liked value
here and controls their sale abroad. The require
ment Of he Free Banks deposit additional bonds
within 80 days Of an amount sufficient to make
their par value according the NeW York prices of
said bonds" is admission that ace estimate them
81 discount, and that the brokers of New York are
al liberty 10 shave us below that amount Now
why not athX a par value upon these bonds our
selves, by authorizing our Revenue Collectors to
take the Free Bank notes in payment of Taxes, ana
deposit them in the Bank Of tennessee to the credit
OF the State, who Is really Endorser Of their SOL
vencyg If we estimate The bonds of Tennessee az
30 cents, their present value at New York is there
anything obligatory upon the New York Brokers TO
take them al such valuation but on the contrary:
would they not fall 20 per cent discount more in
their discount upon Tennessee Bonds? By such
process as this, chow long would it be before the
bonds Of Tennessee would become worthless and
the notes Of the Free Banks now already in the
hands Of the people, become drug and wholly un
suited Tor all business transactions. IL should be
remembered that these notes bear the endorsements
OF the State and Whatever value is given to its bonds
at home has corresponding influence upon them
II the Slate now estimates her bonds at 20 cents
Instead OF par shein effect regulates her own bonds
to the ano mt Of 70 cents IN the dollar and BY a
continuation Of the process, for there is no restrc-
ton, to still greater extent The relationship
which exists between the Free Banks and the State
is Of such nature that the cannot be deprecis-
ted without lis corresponding influence upon the
ether For this beautiful theory we are indebted TO
past Legislatures, aud it would i'll become the first
democratic Legislature which meets afterwards to
adopt reputation as their policy, offset for the
ai-admlnlstratiOn Of their predecessors. What
ever policy 1ay be adopted by the Legislature let
the faith Il the State be sedulousy GU Irded and
let her bonds at least command a par value q
home.