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

lowing irrefragible facts and arguments in support
of their recommendations, to which ask your earn.
est attention.
1.-The creation of so many new Banks at the last
session Of the Legislature, in addition to those
that existed before, produced so much competition
between them will in all probability, reduce the
business and profits of each to point so low not
to Justify the continuance of all of hem and in the
conflicts likely to arise from such competition, an
institution belonging TO the State, organized as the
Bank of the State is at present. is likely to be made
the victim of the selfshness and cunning of others
more interested and more skiliul in their manage
ment than inexperienced citizens cap be; and as
the Legislature cannot recall the charters grant
ed Others the Directors have come to the conclu-
sion, with great unanmity, and from settled con-
vicon that the best interests of the State require
it. that the Bank of Tennessee should be put in IL
quidation and its concerns closed at as early pc
riod as the convenience of the citizens will allow.
That nonresident stockholders should have no
control over the moneyed institutions in this State;
they have no interests in common with the people,
and no sympathy for them in times of Distress their
interests are indeed often antagOnistic. Their in
vestments in stocks made solely with view
TO the per centum derived from them, and their
control of them will be solely with a view to the
profits that can be secured by them. That dealing
in the circulating medium of the State, whether OF
the precious metals paper currency, which regu-
lates the value of property, and the price OF the
productions of the State, should be prohibited as
far the Legislature has the authority TO do So The
citizens nave too deep an interest IN amount, as
well as the quality of the circulating medium by
which the trade and business of the country is
ried on to allow any intermeddlng with it by stock
jobbers, spectators, brokers, or bankers turned
brokers.
1.-THE Bank Of Tennessee was established for the
purpose of creating "a fund for Internal Improve
ments' and to aid in the establishment of a system
of education.
"The operations of the Bank in a few years seem
to have convinced the General Assembly of the inn
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its creation under the organization which had been
given it; and act passed in lS49, directing
the profits of the Bank to be paid into the Treasury
and the payment of the interest the bonds of
the State and the School Fund to be made by the
Treasury by that time near million OF dollars had
been taken from the capital by appropriations of the
legislature and the debts lost By the bank. BY
the act of the Sd March, 1854, the annual profits
of the Bank directed to be applied to supply
the deficiency of the capital Occasioned by the bad
debts. So that the bank cannot be regarded this
time in any other light than financial project to aid
the Treasury of the State. 1t can scarcely be
doubted that an investment of the School funds,
composing in part the capital of the bank, in the
bonds of the State, bearing an interest Of six per
cent. would have been more wise and judicious
disposition of them, than in the Stock of any
pOratiOn yielding nominally two three per cent.
more; and especially in one which sub
ject from its organization, to Ill the casualties ari
sing from the change of its officers every few years
as the the other party prevailed in cleo
tons and to the careessness, negligence or frauds
of those controlling it. The other portion of its
capital belonging to the State, million OF dollars,
was obtained by issuing Bonds of the State bearing
six per cent interest and upon which the State now
pays interest, and will be compelled pay whether
the bank yields profit or not
"From the operations of the bank heretofore,
there is strong to apprehend that losses of
similar character may occur hereafter, and that the
profits by the time the charter expires, may be
quired to reinstate the capital as now required by
the act of 1854. Under such circumstances it
would seem to be the true policy of the State to
pay the million dollars for the bonds of the State
whilst it has the means under the control of the
bank and TO invest the school funds in other bonds
of the State, bearing interest, and thus avoid the
hazards incident to borrowing money to be reOaned
under the control ofany corporate body. The pub
lie is seldom benefited by such financial schemes.
elf the money has to be paid by the citizens il
makes but little difference whether it be done thro'
the Treasury by the profits discounts and
loans made to them through such corporation;
the more direct the mode adopted, the better gem
orally for the citizens. 1t is, in the opinion of the
Board OF Directors, no unimpOrtant matter to avoid
the danger, seriously apprehended by many OF sub
iecting the citizens taxation for the payment of
debts created for the establishment of the bank,
which would be the in the event OF any serious
disaster happening it before the expiration Of s
charter. The fund now belonging 20 the State, and
now in bank, will go far toward extinguishing the
Indebtedness of the State. The present time seems
more favorable for the accomplishment Of this OBJ
ject than any other for years past, than may be
expected for years to come. The circulation Of this
bank is now less than i. has been for years and if
Withdrawn, its place will be at supplied by the
numerous banks now in operation, and its loss will
be scarcely felt by the community
The past season has been more favorable to the
great interests of the State than for many years
and the surplus products viii enable the debtors OF
the bank to meet The demands against them with
out serious embarrassment, If q reasonable time be
allowed for that purpose.
"By closing the concerns Of the bank an end will
be made of the competition for making money be-
the State aud its citizens, and especially
with those corporations in which II has so large an
interest; such contents always result 10 the loss of
money as wei credit to the State; aud the excit-
ing contests for the control Of its capital which Is
witnessed almost at every general election viii be
avCiied."
This report OF the President and Directors, Of
ITSELF seems almost conclusive upon the subject well
nigh superseding the proprety Of offering any thing
more in addition 10 what they have said The neces-
sty and expedency of longer continuing the Bank
Eaaai f,r ~