Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1857-10-21
COMMUNICATED
WHAT SHALL BE DONE?

In the present deranged state of the currency
resulting from the suspension Of specie payments
By the Banks generally and particularly in our own
ate. we often hear the question asked;
"What shall be dOne?"
True financial policy consists in adopting our
me ,sures 10 our means and to the circumstances
with which we are surrounded.
The suspension of the Banks in New York, Bos-
ton Philadelphia, Charleston and New Orleans lett
no alternative to the Bank of Tennessee, consistent
with her duty to the people and the State, but to
suspend also.
No one doubts her ability TO resume whenever the
Banks at the large commercial ports shall return to
specie payments.
Then let the Legislature sanction the suspension
for the present. but prohibit the Bank from char
ging more than half to per cent in the sale OF
exchange on any place in the United States. inns
would prevent exhorbitant rates being demanded
for exchange, during the period of suspension ana
compel them TO resume cash payments with the
Banks of our sister States.
The Bank should be required to pay specie on all
its notes under five dollars, and after resumption,
to issue no note that is not payable at the place OF
issue.
Extend the benefits of the act to all the Banks in
the State, Stock as well as Free. Provided that no
Bank shall be entitled to any of the provisions OF
the act that does not pay to its dePOsitOrs on de-
mand in current funds (such are received by the
Bank of Tennessre) and make satisfactory arrange
ment with that Bank for the reception, and short
periodical redemption of its notes. No dihcuity' II
is confidently believed would be experienced oy the
solvent Stock and Free Banks, i'm making such ar
raugement. Of the Union and Planters Banks 1t
is useless to speak Their circulation is small and
they are in strong positions. In the daily exohan-
pes they are usually tho creditor Banks The
Banks of smaller capital might make the arrange
ment by deposit of State Bonds or other coiia'e-
rails by the discount of portion of their Bills OF
Exchange of which it is said they all have plenty,
or by the deposit of portion of their coin.
Toe ability of the suspended Banks would thus
be tested. Uniformity in the currency oil the state
in ordinary transactions, and with the Banks pro-
duced, large amount Of Bank notes now incur
rent would enter into immediate circulation. Con-
fdeuce, to a great extent, would be restored and
pecuniary embarrassment aleviated.
The Banks that failed TO pay depositors, or make
the required arrangement with the bsnA oi ie"-
nessee, in - days C5or 20 would be sufficiently
should be put into liquidation.
No time should be fixed by the Legislature ior
resumption. Desirable as is that event. 1t must de-
p nd upon circumstances beyond the limits or con-
troll Of the State which no man now can fOresee
Tae produce of the country must be sent to MARKET
aud the Indebtedness to considerable extent not
only in this, but in other States, paid on before
q at should be attempted, or can be safely accom-
plshed The provision N regard to the SAFE Oh eA-
change will compel hem to pay specie "heh the
Banks of the other States resume.
The right to Legislate in regard to all the BANKS
or to wind them up, should be expressly reserved 10
any subsequent Legislature
This would give time for discussion and reheet'on'
and for thorough reformation Of the banking sys
tenn Of the country. A MERCHANT.