Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1857-12-18


dspensably necessary to any wholesome legislation
upon the subject.
9th. That no bank shall issue more than two of
circulation for one of specie in the vaults or incur
liabilities to noteholders and depositors, Of more
THAN three dollars for one in specie in their vaults
7th. That the President and Cashier of each and
every bank in the State shall make monthly report
upon their oahs to officer Of the State Govern
mentsthe real condition their respective banks at
the time of the report and that the report be publish
ed at the expense Of the respective banks, in some
newspaper at Nashville; and that swearing falsely
to such report, shall be deemed perjury, and punish
ed accordingly.
Sth Such penalties and forfeitures for the viola
ton of any Of these provisions as will secure impli
cit obedience to them, should be provided.
Whilst it may be admitted that the Bank of
Tennessee under the control of its present able and
efficient President and Directors, has been managed
with amount of skill and ability, unsurpassed, if
indeed it has been equaed by any preceding boards
both as regards profits and the observance Of those
laws of banking which tend to restrain the Excess
sive issues Of Its own branches, as well as other
banking institutions, yet it is by means certain,
that the State will at all times be able TO obtain
either the same skill integrity for its future
sgement, even if it were deemed polite to perpetu-
ate the institution Indeed, it is fearful to contenl
plate the evil that might be produced. If the bank
should ever fall into the hands of unsklful and dis
honest men. What pecuniary loss to the State
What suffering to the people, by the depreciation of
its circulation! Great as these might be- they are
yet as nothing compared with the Injury Inflicted
by tampering with The freedom Of the elective fran
ehise or the corruption in other respects of public
enthusiastically, unobserved by the world, but all
the more dangerous to that high sense Of integrity
and morality which after ALL the only true safe
guards TO our republican institutions
1t is also, confidently believed, that the State
should not engage in banking or any other business
or speculation in competition with her citizens, with
al ~ .,otff .,fso, of
this character never be we'll, or so successful
ly managedby the Government, as III the hands ofpr
yate enterprise from the fact OF the liability under
every new administration of the Government, to an
entire change OF It's directory and officers; resulting
very often in an entire change in the policy Of the
bank In addition TO which it may, truly be said,
that you rarely find the same amount Of care aud
energy exercised in the execution Of public trust,
that common to the prosecution of private and IN
diyidual enterprise And as an investment, 1t 10
confidently believed that if the entire property of
the bank, was converted into money, and with the
capital of the bank invested in the six per cent
bonds of theState thatit would result ultimately IN
more profit to the treasury, than our present, or
any other system of State banking is likely to do.
Thus furnishing TO that extent home market for our
State securities already deprecated for the want OF
it, and Kidding the State of the expensive and de-
moraliaing machinery of banking institution, and
Of the hazards necessarily incident to the banking
business
The President and Directors in their report to the
present session, say:
"That the true interest of the State, hereafter,
will be best promoted by dissolution of all connec-
ton with the banks, or internal Improvement COM
panies, at as early period thefnsnces of the
State will admit of it, without unnecessarily OPP
pressing the people, and with due regard to the pub
lie faith pledged TO them"
recommend that you fix a day in the future, and
so soon as it can be done without distressing our
po,lr 81 and ar
branches be put in gradual liquidation,
The time should be fixed far enough in the future
to give all classes of community reasonable time to
adapt themselves and their business to the inaugu
ration Of the proposed policy, and the liquidation
should be slow and gradual In Its operations SO as
TO do little violence possible TO existing in
teress, by withdrawing the circulation of the bank
OF rapidly collecting its debts.
My distinguished predecessor, has already laid
before you a full statement Of the financial condi
tion of the State showing the actual Indebtedness,
present and prospective liabilities, &c. fully con-
cur with him, in recommending the sale of all the
stock owned by the State in the banks and internal
improvement companies, and the appropriation
of the fund to the payment of the the actual
Indebtedness of the State, believing as | do,
that the State is profted by associations or
partnerships with corporations stock companies,
and that the sooner the connection is severed the
better for the interest of the State.
l also fully concur with my predecessor, in recon-
mending an amendment of the Constitution OF the
State SO to fix a reasonable limit, beyond which
the legislature shall not go, in creating debt or
liability of the State, without first submitting the
question directly to the people, except in cases OF
invasion, instruction or rebellion.
Such amendment is certainly wise and proper
in ITSELF securing to the people the right to be con
suited and to determine for themselves by popular
vote, whether they will take upon themselves the
liibiity proposed not especially in view of the
49,
to turn much more upon party considerations and
federal politics, than upon local State policy
and most of the questions of which have sprung
those heavy liabilities, have been very little dis
cussed-if, indeed they have been discussed at all
before the people, previous to their enactment.
Another saiutary effect following such an amend
ment is that it would inspire confidence in such Sc
curties the State hasissued may ISSUE
throughout the money markets OF the world; and
to the extent that you convince capitalists that we
have not issued, and will not ISSUE bonds beyond
our ability to pay, do you restore and appreciate
the credit of the State
And in this connection, allow me earnestly to re- |
commend that the faith and credit of the State be
no further pledged in aid of internal improvements
or otherwise The reasons for this recommendation
are too papable to require argument. sufficient /!
one however, is found in the fact that the actual
Indebtedness present and prospective liabilities OF
the State, amounts to near twenty millions of dol
lars and before increase the aggregate liabilities
of the State in aid of these works, we should
what extent our internal improvement experiments
successful
Under various acts of the Legislature the State
has, by the endorsement Of the Governor guaran- |
tesd the payment of the principle and interest of
various bonds Of certain corporations.
There is no provision made for the payment Of |
the semi-annuay accrung interest out of the State
Treasury, in the event of failure to pay the part
of the corporations.
The faith and credit of the State is certainly as
much pledged for the prompt payment of the inter
est on these bonds as 1t is upon the bonds of the
State loaned TO companies and for the coupons TO
remain unpaid after maturity, is not only breach
of the good faith of the State, but ii affects most in
juriousy her credit.
l, therefore, recommend the passage of law
putting those bonds upon the same footing in this
respect with the bonds of the State loaned to
panies-and thus secure the payment of this inter
est as well as the principle with the same degree of
Almost the entire indebtedness and liability of the
State is evidenced by coupon bonds; coupon being
issued for each instalment of the interest. These
coupons when discovered from the bond to which
they belong may pass from hand to hand being good
in the hands of the holder against the treasury for
their amount and after Being paid and taken up, if
by.any accident they should be lost or get out of
the possession of the proper officer, they might be
again presented and paid, and there are no means
provided by existing laws to detect the error, so as
to prevent the repayment
. l. therefore, recommend the passage Of q law
requiring all coupons, when paid to be returned to
the Comptroller of the Treasury to be by him regis
tered with accurate and full description of the
same in a well bound book, to be kept for that
purpose, and that they be Immediately defaced by
some mark of cancellation and at stated periods to
be by him burned, in the presence of the Governor,
Treasurer and Secretary Of State or any two Of
them.
All of which recommendations are respectfully | d,
submitted to your favorable consideration. !
ISHAM G.. HARRIS. ,
Mr.. FREpER1cK P STANTON, Secretary of the
Territory of Kansas, having used his Office for the
oursose of aiding the lawdefying party in
hat Territory, has been very properly dismissed by
The President The immediate cause Of the dis I
,,innnl nf Mr. Stanton is the fact of his having |