Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1857-12-03

I
banksl It's true thatourinserests are deeply inter
woven with the banks MilliRns Of dollars are owing
to them and if we coerce the banks they will ooerce
the people, and the consequences will be distress and
ruin on all hands. If the amendment does not ac-
| complish the object for which II is designed. |
should think still that there could be no impropri-
ETY. in lacking to the bill.
| MIR KING. do not wish to be understood as op-
! posing the amendment upon its own merits, but
purely upon legal principle. If the banks have
been engaged in shaving and issuing their notes,
four to in coin, its equivalent, the gentleman
is doubtless correct when he says such conduct would
operate as forfeiture of their charters This per-
haps is unquestionably true but then, in every in
stance the very act of incorporation points out the
very mode by which those defaulting banks, are to
be arranged before the Courts for such violations
Of their charters and by which, at last the Supreme
Court may enter up decree against them for swind
| ling the people, and put upon them an injunction
that shall set their operations at rest forever.
Mr. NEWMAN could not see the force of the ar
gument Of the gentleman from Shelby. He was re-
minded of the course of that gentleman in the oppo
stion which he made the other day to Mr. Ms reso-
luton, for searching into the condition Of those
banks. Thesimple question is, have the Legislature
the power 10 regulate these stock banks? l demand
the yeas and nays.
The yeas and nays were ordered.
Mr. ST JOHN. don't know Of any clause of the
Constitution that would declare this to be violation
of contract. They are compelled by their char
! ters to pay in so much money, not that they may
deposit their individual notes, and upon that issue
their paper The Constitution recognizes nothing in
payment but gold and silver believe it to be the
duiy Of this Legislature to pass such laws would
prevent those banking institutions from praetcing
frauds upon the people, and there can be nothing
wrong in requiring The stockholders 10 comply with
their charters.
am in favor of returning to the true basis-gold
aid silver cOin-not that would be in favor Of put
| oil baO in inf mm
because don't believe the country is able to stand
the pressure this would cause; but let place
banks in state of gradual liquidation; let grad
ualy rid ourselves Of the evi-so as not 10 Cypress
| the people.
Mr. BENTLEY. stated that perhaps some stock
banks had paid in more than ten per cent; and
that they might continue their operations for thirty
| years-tbe whole period of charIers-and make no
other call thus banking almost entirely upon their
ITT rxrr,a understand that the practice Of some
of the banks in Tennessee has been like this: After
a certain amount of gold and silver has been PAID
into the bank, and the bank properly organized, 1t
has been the habit IN Tennessee and elsewhere, for
the officers of The bank to discount occasionally, the
of the stockholders to enable them to pay their
| stock subscribed to the bank. That this has been
| done, have no question. have no question that
| Jhis has been done in the stock banks. But how
does that affect the integrity of the banks! For IN
stance, the stock in the first place, is paid IN, say
/
holders come in and get their notes discounted for
| The sum OF S25 900. Those notes discounted by
! the bank, and the same money, perhaps, which the
bank pays out paid again by the stockholders into
the bank for the purpose Of paying up their stock
| cues, before contracted to be paid That process
in sense be said to lessen the amount of CAPT
tai stock but it really has the effect of increasing
it to that extent If the stock note is paid at matu
rity, is it not the payment of stock itself? 1t can
not, as see, in any way, affect the credit or re-
spOnsbility of the banks, in any way affect the
power of the banks to pay their notes in coin when
they shall be presented at their counters.
Mr. RICHARDSON. How are we to ascertain
whether not the stockholders have paid in their
stock?
Mr. BENTLEY 1t is required of them to make
| statement oath to the Governor.
Mr. RICHARDSON. Have they not made such
statements heretofore?
Mr. BENTLEY True, they have represented their
stock as paid in and yet it has never been paid, ex-
cept by their promissOry notes, and they have
been banking upon the deposit of their notes They
have been banking upon their whole capital stock,
whilst perhaps not one-fourth part Of 1t has ever
been paid in coin.
Mr. RICHARDSON But how will you detect
| them? | take it for granted, that having sworn
that their capital stock has been paid in, they will
stick to it,
Mr. BENTLEY. Very well; if they have COM
piled with the condition of my amendment tt will
Mr. ROWLES understand the amendment COM
pels the payment of stock in coin-nOt by notes
not by mere technical payment-but according to
the true intent and meaning of their charters-in
order that the spirit well the letter of the law
shall be complied with.
Mr. RICHARDSON. 1 understand all that; but
the difficulty is, how is the fraud to be discovered!
If the officers have certified that the capital stock
has been paid in, how is it be shO that it has
not? and what is the remedy?
Mr. BENTLEY. They have to render statement
upon oath.
iIr RICHARDSON. STILL they are shielded by
techncalties; and they might get the coin it
self and show it to the Governor, and you could not
catch them if disposed to practice fraud in that
way. cannot see anything practical in the amend
ment.
Mr. COOPER. Does the amendment require the
full amount of stock to be paid in within the six
months
Mr. BENTLEY. OF course it does; but not if
they do not bank unlawfuly upon the amount of cap
ital paidiu. L wish them to pay in their capital
stock, and bauk upon three to one
Mr. COOPER. l will go with the gentleman for
the suppression of the payment Of stock with stock
notes. move to strike out the words, "subscrip-
ton stock and"
The amendment was agreed to, and the question
required on the adoption of the amendment as
amended; EheTeupOn, the yeas and nays being ia
ken, resulted-yeas 70, nays l, as follows:
Ysas-Messrs. Algee, Anderson, Bate, Bayless,
Bentley, Benton, Bicknen Blackburn, Bradford,
Brazelton, Buioch Caldwel, Carter of c., Carter of
H., Cooper, Copeland, Davie, DobsOn, Dodson, Dun
lap, Estes, Ewing, Fulton, Cannon, Golladay Grit
fifth, Hamilton, Harvey, Holiness Ivie, johnson,
Kendriek, Keeney, King, Lackey, Lamb, Lloyd, Low,
Nancy, Maris, Mickey, Newbern, Newman, Polk,
Randolph, Rawlston, Renshaw, Richardson, Roberts,
Rose, Rowles, st. John, Saunders, Savage, Schmit-
tOu, Senter Shrewsbury, SRartt, Stanton, Stovall,
Summers Taylor Thompson, Turner of Sumner,
Of Of
Vaughn, and Speaker Donelson-73.
Nays-Ar Beale-l.
Mr. POLK proposed to amend by adding the fol-
lowing:
Sec. -. Bet further enacted, That if any person
shall bring into this State, any BILL note, other
instrument of writing, intended to be circulated as
currency, issued by bank company, or person,
not authorized or established in this State, of the
denomination of five dollars under, of ten dollars
or UNDER or twenty-five dollars or under, with intent
TO put such bill, noJe instrument of writing, in
circulation currency; shall pass or offer to
pass ps currency any such notes, bills, or instru
ments of writing Of the amount aforesaid after the
dates aforesaid, such person shall be guilty of q
misdemeanOr, and conviction thereof, shall be
fined and imprisoned, as in other cases of INSIDE
meanOr.
Mr. RICHARDSON. 1 am for the principle of the
amendment but l cannot see how it can be made
practical.
After further debate by Mr. Kendrick and Mr. Stan
ton in opposition, and Mr. Polk in reply
Mr. TURNER, of Sumner proposed TO amend by
striking out "twenty five and inserting "twenty"
so to suppress the twenty dollar notes and I'M
der.
Mr. POLK accepted the amendment.
The House then adjourned until tomorrow morn
ing at nine o'clock.
SENATE
WEDNESDAY, Dec. 2, 1857
Mr. HElSKELL from the Committee on Printing,
offered the following resolution; that the Comprol-
ler's Report is not printed in the style OF other
printing and should not be received
Mr. JONES introduced bill to protect stock from
milk sickness Passed first reading
MIR JONE obtained leave of absense for Mr. Har-
ris owing to illness in his family.
Mr. GO0DPASTURE introduced bill to change
the place of comparing the polls for Joint Represen
tatve fOrthe counties of Scott Morgan and Fentrass
Mr. WALKER called up the bill to amend the act
Incorporating the Mechanics Library Association of
Fayetteville, which passed the third and last reading
Mr. MCCONNIC0 called up House bill 10 create the
Office of county judge in the counties Of Shelby,
Davidson Enoy and Mont