Daily Nashville patriot. [volume] (Nashville, Tenn.) 1857-1858, 1857-10-08

fct with the letter of the organic Law of the land
but it has been violated in spirit and practice since
the creation of the first flank in the State and the
people have been made the sufferers in the end by
every such violation Of this fundamental principle
of currency.
Within the last four years, not to 90 further back
in the history of Banking in Tennessee ten or twelve
of the Banks of the State have suspended specie
payment The failure of these Banks will result in
the loss of millions to the people, who had exehang
ed their produce for the worthless circulation. TIE
time has arrived when the legislation of the country
should be brought to bear upon all these spurious
schemes and plans of originating what is commonly
called money, mere paper circulation, which pass
es for currency one day and on the next becomes
Yalueess in the hands of some innocent holder who
has exchanged the product of his field, or shop Or
days labor for the worthless trash To the extert
that legislation can be made TO bear upon currency
it should be in making the circulating medium UNI
form in quantity and value, and thereby give all the
business transactions of the country uniformity and
stability and should studOusy avoid all legislation
which viii expand contract the circulating
medium or diminish il in value As between the
Banks which have been incorporated In this State
the Bank of Tennessee IS believed to be in as sound
and healthy condition any other Bank in the
State, if not more so, and upon an exhibit of the
business transactions of the Bank since it has been
under the control Of the present able efficient and
honest Directory and President, it will be shown
that the Bank hiss realized greater profits made
fewer
faction the public than IN any other period of four
wears since its Incorporation Il is believed how
ever notwithstanding the institution has been well
managed in the last four years, and will show in
creased profits that would be safer and better and
more profitable, in the end, to convert the entire
capital of the Bank and all the real estate owned
by it. into six per cent bonds, as recommended 10
INV former Messages, and subsequently by the Pres-
dent and Directors of the Bank BY converting the
entire capital of the Bank into State Bonds, the
whole machinery now necessary TO carry it on sue
cessfuy might be dispensed with, which would re-
suit in saving of some thirty FIVE or forty thousand
dollars per annum to the State.
Il is the opinion Of some, and it may be urged be-
fore the Legislature that the capital of the Bank Of
Tennessee should be increased to an amount which
would enable it to control the entire Banking ac-
commodations and circulating medium of the State
and at the same time giving TO the President and
Directory Of the principal Bank located at Nash
viIle absolute control Oall the Branches thrOughOut
the State establishing a kind Of central power
at the city Of Nashville, which, according TO their
views of the business and wants of the country,
could expand and contract the circulation at pleas
Ure. The entire circulation of Banks in the State
the first of January, 1857, in round numbers,
was eight million dollars, (SS,UOO,OOO) Bank,
with the capacity 10 tnrnsh eight millions of circu-
lation must be urfaer the control of a central re-
gency; which central regency must always, to
greater less extent, be governed by the influences
which surround It. To increase the capital of the
Bank of Tennessee and confer these additional pow
ers npOn il, would be doing great injustice to the
other commercial divisions of the State, each Of
which would be more competent to judge of its ne
cessities and conveniences as the amount of the
circulation required, than any Directory could be
at the city of Nashville.
II Banks are to be continued for the purpose of
making and issuing paper circulation, it would be
but Just and fair TO give to each commercial division
the control of its own Banking accommodations
and all the circulation issued by Banks in each of
these commercial divisions should be made redeem
able at the counter of the Bank where issued aud
at the principal commercial point in each division.
For instance to suppose East Tennessee TO const--
tute division; let all the circulating medium Is
sued by the Banks in that division, be made re-
deemabe at the counter of the Bank where issueC
and at whatever point may be deemed the most
commercial point in that division. And so with the
Middle aud Western divisions of that State: requ--
ing each OF those principal commercial points 20
make arrangements with the other two for the re-
demptiOn Of their paper circulation whenever il
passed beyond the commercial boundary ia which
il was issued. An arrangement by the Banks, up
on principle of this kind, would exert a powerful
and sautary influence in making the Bank paper
uniform in value and quantity, when thrown into
circulation by each of the commercial divisions and
at the same time leave each TO determine the wants
and necessities in regard to Banking accommoda-
tons in each commercial division.
have stated that the circulation of Banks in this
lion dollars. will now add that the entire amount
of specie in all the Banks, great and small, with
which this eight millions of Bank paper was 70 be
redeemed, in round numbers, was two million dol
lars. The bare statement of this fact must be cor
elusive 20 all minds which familiar with the OPP
erations of Banks that eight millions of Bank paper
resting upon two millions of specie cannot be sus-
tanned whenever there is pressure arrangement
OF the monetary affairs of the country.
A circulation III paper amounting TO four dollars
for one in specie, cannot afford sound and uniform
currency A circulation which can be expanded
from two 20 eight millions OF dollars, as the interest
and cupidrty Of the Banks may suggest. can never
be made uniform in quantity value but the whole
country be subjected the increase and dimi-
mutton OF prices for all tie products Of the country
Just in proportion as their Bank accommodation
are expanded or contracted This state Of things is
bad enough when brought about by all the Banks
but TO confer such power upon any institution
whether il be a State Bank, otherwise, embracing
separate and distincs commercial divisions 20 be
controlled by Directory IN the City Of Nashville is
3 state Of things which hope viii never be brought
about by the Representatives OF the people Of the
State Of Tennessee.
In recommending 70 your consideration the pro-