Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1857-12-16
THE ENoRMITY OF THE BANK M


The Washington Union very justly remarks. that
"thS people Of the United States are Of all others
the most Jealous Of their liberties. They would
spurn the idea Of intrasting them to an irrespons
Bile President, an irresponsible Congress- or an ir-
responsible State Legislature. They demand to have
voice in the choice of all those to whom their
rights and their welfare are intrusted Yet they
have for half century past permitted their legsla-
tors 10 delegate power, which exercices a greater
influence over thegensral prosperity and happiness,
than aaOtherfunctiOns of government combined, to
set of nkdrectOrs and bank officers, in the choice
Of whom they have no agency, and over whose &C
tions they have no control They have acouiesced
In the delegation Of power which their legislatures
were prohibited by the constitution from exercising
themselves, to small portion of their fellow-cti-
zens; power to monoplize that medium through
which all their wants are supplied; power that
may be exercised at discretion, without Limit or
eOntrol-fOr experience has proved it beyond the
reach Of the law; power to make men rich or poor
at pleasure; to convert paupers into milliOnaries
and miilionaries into pauPers by resolution of
board Of directors; a power that can make money
plenty orscaree at pleasure, and gather harvest
from both one and the other; power that affords
the means for the most boundless prodigality
moment, the next takes the very bread from our
mouths; power whose tyrannical and capricious
exercise subjects mankind to exgences which sOrely
try their integrity, and, by sudden changes from
prosperity to adversely exposes them to temptations
beyond the common standard of human virtue to
resist.
The truth of these suggestions has been very for
chilly illustrated in Tennessee and the experience of
this State is the experience of every other where
the banking system prevails. Who can estimate the
annual TAX that our farmers and mechanics have
to pay to keep up this splendid system of financial
swindling? What community IN the State has not
lost its hundreds thousands of dollars year after
year, in counterfeit, broken or deprecated bank
paper? And every dollar so lost, is that much alb
stracted from the accumulaons Of honest industry,
for the benft of speculative gambler, who, by
authority Of law, was licensed TO swindle and de-
fraud the public.
Broken banks and bank suspensions are matters
Of such occurrence, that it is not necessary
refer as far back as the time when the State was
flooded with the shinplaster currency of /" Oats,
Arnold s. Co.," "Chafhn, Kirk Co.." "Hiwassee
Railroad Co.," ''AIorgan, Allison Co.," ''Paul,
Negrin," " Kincannon, &C., &C., to form some
conception of the heavy tax which is constantly
levied the pockets of the people for the support
Of these privileged corporations. We need only
recur to the experience of the last two or three
years.
Among the broken banks are the following: Bank
Of East Tennessee, supposed to have had a cir
culatiOn of from six to eight hundred thousand
Farmers and Merchants Bank, with circulation
Of near q million--Mechanics' Bank Agricultural
Bank, Miners and Manufacturer Bank, and the
Memphis Savings Institute, whose circulation,
though large, we are unable to give. In addition to
these, is the famous Central Bank, that has never
paid fsrthing upon its issue since the day it first
closed doors.
The millions for which all these banks failed was
direct TAX upon the pockets of the peOple-as
much so as if the revenue collectors had gone round
and assessed it upon their property. There is
ly community in the State, that has not lost its
hundreds or thousands by these bankrupt concerns.
In addition, we still have on hand quite respec-
table circulation of the following banks, at depre-
citation of from 80 to so per cent: Bank of Law
renceburg, Bank of Sbelbyville, and OcOee and the
free banks of Tazewel, jefferson, Claiborne, Tren-
ton, Knoxville and Nashville. How many thousands
have the people been required to loose by these in
situations?
But these are not all their losses. The very best
Of the banks have been and are still at a deprecia-
ton A few of them are quoted, by those who fix
mp our bank tables, at par, But what is meant by
"par?" Simply that it is the best of bad and de-
preciated currency. For instance the notes on the
Bank Of Tennessee, to be actually at par should be
equivalent to legal tender-tO the thing it is in
tended to represent-gOld and silver; and yet
they are below par, whenever measured by this
standard, from Z to 10 per cent.
Who can estimate the losses of the people Of Ten
nessee? Who can tell the amount paid by them to
the support of banksl