Fayetteville observer. [volume] (Fayetteville, Tenn.) 1850-1966, 1857-10-15

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TITS the epiriion Of some, and if
may be urged bafore the Legislature,
thatithe capital of the Bank Of Ten
nessee should be increased to an a..
mount which would enable it to con-
troll the entire Banking accommodate
lions and circulating medium of the.
State, and at the same time giying.to
the President and Directory of the
principal Bank, located at Nashville.
absolute control Of all 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 con-
tract the circulation at pleasure. The
entire circulation of Banks in the
State on the first Of January, 1857,
in round numbers, was eight million
dollars, (S,000,000) A Bank, with
the capacity to furnish eight
millions of circulation must be under
tie control of a central regency;
which central regency must always,
to greater OF less extent, be gov
erned by the influences which sur
round it. To increase the capital
of the Bank OF Tennessee. aud con-
fer these additional powers upon it.
would be doing great injustice to the
other commercial divisions of the
State, each of which would be more
competent to judge of its necessities
and conveniences, rs to the amount
of the circulation required, than any
Directory could be at the city ofNash-
vile.
| IF Banks are to be continued for
the purpose Of N king and issuing
paper circulation, it would be hut
just and fiir to give to each CONNER
.r
ciil division the control Of its own
Banking accommodations, and all the
circulation issued by Banks in each Of
these commercial division should be
made redeemable at the counter Of
!, the Bank where Issued, and at the
principal commercial point in each di
vision. For instance, to suppose
East Tennes see to constitute one d.
vision; let all the circulating medium
issued by the Banls in that division,
be made redeemable at the counter
Of the Bank where issued, and at
whatever point may be deemed the
most Commercial point in that diyi-
sion. And so with the Middle and
Western divisions ofthe State: re-
curing each one of those principal
commercial points to make arrange
ments with the other two for the re-
demption of their paper circulation
wheneYerit passed beyond the COM
mere al boundary III which it was is
sued. An arrangement by the Banks,
upon prIncipleof this kind. would
exert a powerful and salutary IN
Auence in making the Blnk paper
uniform in value ard quantity. Nhen
thrown into circulation by each of
the commercial divisions, and at the
same time leave each to determine
the wants aud necessities in regard
I to Blinking accomdation in each COM
mercial division
! ] have stated that the circulation
of Banks in this State on the first
of january, 1857, was eight million
dollars. | will now add. that the en-
tire amount Of specie in all the Banks
great and small; with which this
eight millions Of Bank paper was to
be redeemed, in round numbers, was
two million dollars. The bare state
ment Of this fict must be conclusive
to all minds which are familiar with
the operation of Banks, that eight
millions Of Bank paper, resting upon
two millions of speci-. c'tnnot be sus-
tained whe never there is a pressure
OF arrangement Of the monetary af-
fairs Of the country.
Concluded ncrt sceek.
( DEyocB ATTIC TRurgfpu IN CALIFORNIA.