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


ering property insecure and the wages Of labor IN
steady and uncertain. The corporations which
create paper money cannot be relied TO keep the
circulating medium uniform in amount. In times Of
prosperity, when confidence is high, they are tempt
ed by the prospect Of gain, or by the influence Of
those who expect to profit by it, 10 extend their is
of paper beyondthe bounds Of discretion and tbs
reasonable demands of business, and when these is
have been pushed from day to day, until public
confidence is shaken, then reaction take place
they Immediately Withdraw the credits they have
given suddenly contract their issues, produce an un
expected and ruinous contraction of the circulating
medium, which is felt by the whole community
Jacksoa's FdrelCeli Address, 1887.
"Of all the conIrivances for cheating the labor
ing classes of mankind, me has been more eaectua
than that which deludes them with paper money
This is the most efectual Of inventions to feriliz
the rich mans field by the sweat Of the poor mani
brow. Ordinary tyranny, oppression, excessive
taxation-these bear lightly the happiness of th
mass of the community, compared with the fradulen
currencies rObberes committed by deprecated
paper. Our own history has recorded for instruction
en- ,ugh and more than enough, of the demoralizins
tendency, the injustice and the intoerable oppres
sion the virtuous and wel-disposed, Of DEGRADED
paper currency, au horned by law, any wsy coun
lensnced by government" speech Of Daniel Wsbste
IN the Uaited States Senate 1882.
81 cannot but lament from my Utmost soul, tina
the United States. There will never be any uniform
rule if there is 8 of justice, nor any clea
credit public, private, nor any settled confidence
in public men meatures until paper money il
done away with."-John adams TO John jag, 1886
l now ask the House 10 pardon me for occupying
50 much valuable time. | hope the older and mor'
experienced members willtreat my remarks Literally
may have propigated some erroneous views, bu
there is more rea ~ 10 acknowledge an indies
erection than myself
Mr. ALGEE. wish to ask the gentleman iron
Haywood Mr. Bradford question. Is he in fayol
Of pure metallic currency?
Mr. BRADFORD. / am.
Mr. ALGEE. Are you in favor of putting the State
bank in liquidation?
Mr. BRADFORD. am for gradual liquidation.
think all notes of FIVE dollars and UNDER should be
made redeemahle now and all other notes on the
LIST of August 1858 This will secure the small note
holder, or labOring man now. He being secured
next comes the weltheir class, who able to wait
get out VIII With as lille u a ina as PSssbe mus
On motion by Mr. ROWLES, the committee rose, and
asked and obtained discharge from the further con
slderation of the subject.
The question being on the adoption of Mr. New
mans substitute for the COMMITTEES bill, (2l6) anC
the yeas and nays being demanded, ordered and
taken thereon, resuted-yeas 27 nays AZ, as folOWs
Ye0S-Messrs Bate, Bayless, Bentley, Bradford
Caldwell, Carter of Hardin, Copeland, Dobson, Dun
lap, Fulton, Cannon, Hamilton, johnson, Lamb
Low, Maris, Newman, Roberts, Rose, Rowies, 81
I'm, Smart, Stovall, Summers, Turner of Sumner
Wood and Speaker Donelson-27.
Nays-Messrs Algee, Anderson, Beale, Benton
Bicknell, Blackburn, Brazelton, BullOeh, Cooper,
Davie, Dobson, Estes, Ewing, GOlladsy, Griffith,
Harvey, Holmes, Ivie, Kendrick, Keeney, King,
Lackey, Lloyd, Nancy, Mickey, Newbern, Polk,
Randolph, Rawlston, Renshaw, Richardson, Saun-
ders, Savage Schmitou, Sener Shire Wsbury, Stanton
e l.. %
Vaughn-42.
So the bill in lieu was rejected.
Mr. POLK proposed to amend by way of substi-
'utng his bill (265) in lieu of the Committees bill
and the same, to wit: the bill (265 to regulate the
business of banking, being read through by the
Clerk
Mr. POLK proposed to amend his substitute by
extending the exclusion of small notes of circulation
10 all of less denomination than five dollars.
This bill, (he said, framed by one of the best
fnanciers in Tennessee. 1t meets my appreciation
than any other that has been offered though it
does not meet my views entirely If it does
nothing more, it turns the face of the people in
the right direction. say this bill, that by the
first day Of July, all notes of circulation under five
dollars shall be redeemed in gold and siyer-so
letting the labOring man know that his one dollar
notes good as gold l shy that by the first
day Of October next all notes under dollars shall
be redeemed with specie, and none of less denOmi-
alton than ten dollars shall be ssued-still legisat
ing for the poor man, by making good money OF his
two, three and five dollar notes / say here that on
the first day Of January, 1859, the banks shall re-
sumo specie payments on all their notes; ana that
from and after that time, no note of less denomn-
alton than twenty five dollars shall be Issued We
have to come to specie basis; but let US do 1t grad
ually. We cannot do it at once. After the first day
of july 1858, there will be no issuance of notes un-
der five dollars after the first day of October fol-
lowing, no issuance of notes of less denomination
han ten dollars and after the first day of January,
1853 no issuance of notes under twenty-five dollars
giving at specie basis to the Ones twOs fves,
tens and tWenties, in the hands of every man, and
at the same time driving them out of circulation.
would say to the House, if it is adopted in lieu,
intend to offer other amendments TO the bill and
of them will be, to exclude all small notes from
other States, so that may keep down to the spe-
Gle basis, and come at length to the result which
the gentleman from Haywood Alr Bradford) has so
ably argued.
MIR DAVE. What are we to do with the stock
banks, in connection with the proposed reduction Of
the small notes
Mr. POLK. l have no donbt about the power of
the Legislature to restrict the free banks in this
particular.
The amendment was adopted.
Mr. GOLLADAY said none of the bills came up to
what he desired fully. The gentleman from Maury' 5
bill came the nearest, and he should vote for it, as
perhaps the best basis we can adopt.
Mr. POLK. fthe House WilladOpt it, will with
pleasure accept of any amendment that shall carry
out the leading object which it seeks to accomplish.
Mr. BULLOCK also favored the adoption of Mr..
Folks bill. He could vote for it with amendments
Mr.. BENTLEY proposed to amend by adding
provision, requiring all bank stockholders to pay
their subscription, and ''stOck notes executed d.
rectly or indirectly for the purpose OF paying in
their stock in gold and silver within six months af
the this and that the said caDital
stock so paid in, shall never be withdrawn under
any preteXt whatever except to redeem their notes;
and requiring the President and Cashier, within
the same PERIOD to render 10 the Governor state
ment of their compliance or non compliance with
the provisions of this BILL and failure, their
charter to be declared forfeited. sc.
Mr. BENTLEY said: Whilst on the one hand,
would cheerfully extend all due hberality and elem
ency to the banks; on the other hand, l regard it
as my duty to require of them some additional in
Identification for the holders of their notes. because
of the present depreciation of the currency for which
they are responsible. We are requiring of the free
banks an additional deposit of securities to the
tent of % per cent, and we are requiring nothing
of the stock banks. These stock banks were, some
of them, chartered seven eight years ago. Their
were required by their charters at the
time they subscribed their stock to pay five dollars
on the share. Subsequently they were required 10
pay other i've dollars on every share; and then it
was let al the Opon OF the directors, whether or
not to make any other calls upon them. Many of
these banks have made no other calls; but these
stockholders have issued their notes. which have
been recognized IS stock paid mas representing
stock-and so they have been going on aud increas-
ing their circulation three dollars dollar of
stOck-upon which they are receiving from eighteen
to twenty-five per cent. profit, for simply lOaning
their credit in this way. What is the consequence
1t IS, that every day have to submit to the most
runous rates Of discount the notes Of these stock
banks. We are Witnessing daily the sale of the
sale Of the notes of some of these stock banks at
thirty per cent. discount, in some instances; and
we know also that these identical stock banks have
charged from eight to ten per cent premium for gold
so making forty per cent discount, Il is for this
reason that l have offered these restrictions.
would cheerfully extend the time for their resump-
ton to ten or twelve months, but l wish to have
good security that they will then resume.
MIR KING. The statement made to the House by
the gentleman shows, if he is correctly informed
that these banks have been very poorly and very
badly managed, and l agree with him that some
thing ought TO be done by the Legislature for the
purpose OF correcting this evil The question pre-
scented to my mind is whether this Legislature has
any power over the stock banks, TO change the ma
ture Of the contract entered into between the State
Of Tennessee and the corporators of these banks
The atement shows great evil existing in regard
u