Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1857-12-25
TENNESSEE LEGISLATURR.
HOUSE OF REPRESENTATIVES.
FRIDAY, Dec. Is, 1857.
BANKS AND BANKING.

before the House and the country. This Legisla-
ture 1t does seen to me, in one single respect has
presented itself in most disagreeable attitude
Your banks Lave suspended; and, as a consequence
of this the business of whole country has been
suspended, and ruin, financially, has stared us in
the face; and yet for three months we have been
| here, doing nothing at all. And now-after bill
that, at least, would have enabled the banks to have
gone on safely, would haveput guards and restrictions
| upon them, and at the same time would have ena-
bed them to afford relief to the country-after sucn
q bill was matured-another bill has been offered
and adopted in lieu And, ask what is the char
acter of the bill, and how it brought before this
House?
Mr. Speaker, what does this bill in lieu propose I?
In my opinion, sir, lis caption ought be changed
to read bill for the relief of the banks and
to enable them to continue to swindle the country
Such is the caption would have given to that bill
for it is most expressive Of its direct object and
! effect.
Sir, why have the banks suspended? 1t has been
done to enable them TO make larger pro6ts-to ena.
Bile them to sell gold and silver at ten and twelve
per cent. premium-as 1t is now done. They have
shipped their gold and silver to New York. and have
been exchanging upon it at eight, ten and twelve
| per cent, whilst they have been redeeming their
notes here with the notes of other banks. ask, sir
if members of this Legislature willing to stand
| by and see this done by the banks, and thereupCn
| pass bill under which they may claim that it is
| right for them do so?
Suppose any private individual were to use, in
this manner, to pay his debts, the laws Of the
country would compel him to ply, let the sacrifice
be what it may.
But, by this bill in lieu, all the pains and penal
| ties which the banks have incurred are suspended
till the first of January, 1859. Would not that Pc
vision relieve these banks from the ten per cent
| damages they have incurred 10 the note holder?
dare say, there is not "A legal gentleman upon this
floor, but would say that is so. Then ask for the
man to stand up here and say, it is right TO allow
the banks thus to break their contracts with impu-
nifty. The holders of their notes have been forced
by their failures, to buy exchange at ten 10 four
| teen per cent. premium aud now, ask, if ii is
right that the banks which have sold this same gold
and silver should be relieved from paying their for
FIXTURES? When bring myself to that point, sir,
sh al be willing to vote for law that shall
be compelled to pay his honest debts, however and
whenever contracted.
Sir, can we do it? Would the Courts Of the coun-
try sustain such act? l say they would not.
These charters were passed number of years ago.
They have therein said their notehOders may have
ten per cent damages if they suspend. Why was
this required? Because it was known that exchange
ia gold and silver would rise, in the event Of bank
suspension, and the country would have to pay the
price Herein the contract between the individual
noe-holder and these corporations and ask if this
Legislature have the power to annul that contract!
1t is clear that they have not.
''That no bank, agent of bank, broker, insurance
office, savings institution, any person or persons
whatever, acting under charter or license from
this State shall pay out the issues or notes Of any
other bank other institution not incorporated by
the State of Tennessee" How are you going 10
enforce this Are you going to order scirs faeias
to be issued against them? No sir; they will still
continue to pay out The notes OF foreign banks, and
issue their own five and dollar notes, regardless
of this. How can we act upon them? If they
have vested rights in virtue of their charters which
cannot be changed unless they are forfeited, OF
course cannot act upon them but by bill or seire
facilS. This bill does not propose any such thing,
but just says
''SEo T. That every bank DESTROYS of receiving
the benefits of the above act, shall file their
with the Secretary of State within sixty days after
its passage-whereupon this act is declared to be
part of heir respective charters far as the
is applicable to them"
l ask sir if there is any provision here TO force
them to accept? There is no penalty whatever. 1t
is equivalent telling the banks You were light in
violating your contra t. when you shipped yOur,gold
to New York and paid out the notes of other States
to redeem your own Iwould not commit myself to
bill of that character for my right arm.
Mr. GOLLADAY interposing and Mr. T. giving
way Mr. Speaker, does the gentleman hold thai
the Legislature of Tennessee have the power TO
take from or add to the charters of the stock banks
one solitary provision without their consent?
Mr. TURNER, of Sumner resuming. Upon that |
point have this to say That when the Legislature
granted those charters there were two parties TO |
the contract Upon the first part the people OF
the State of Tennessee, and upon the second part
the corporation In consideration of the fact that |
the State of Tennessee granted them their charters,
they agreed to furnish to the people of the State
circulating medium, which should be at all times
redeemable in gold and sver-a circulating me-
dunn which could at all times be converted INFO |
gold and silver, with which we could pay our debts
At that time there were only two parties to the
tract. But since these banks went into operation
there appears third Party-the nOteholders-
they come in and give their notes to the bank Tor
four months, and receive say thousand dollars in
Inc notes of the bank Here hen there are three !
parties. The Legislature, in granting these char
.ers, looked forward to the contingency, that the
banks might suspend specie payment and said to
hem If you do suspend you shall pay ten per cent.
to the note-holder. But did they say, if you do
suspend the Legislature shall, by joint resolution,
lirect the issuance of fqciaS against them for
forfeiture of charter? They did not: | did think at
,ne time that they had not forfeited their charters
BY suspension. But not of that opinion now.
They have forfeited the right to continue to issue
medium For if they had not agreed to
urnsh good sound circulating medium am sure
10 member of the Legislature could have been in
luced to give them a charter. They have forfeited
heir right TO continue They have forfeited their |
contract with the State of Tennessee and they have
eTfeited their ract with the individual who !
las received their notes-haye they not Most GER
ainly they have; and for forfeiture of their con-
ract with the nOe-holder they forced under the
aw to pay him ten per cent. damages. But where
the adequate penalty for the forfeiture of their
Ontract with the State? | say, sir it must be in
he forfeiture of their charter But they say, You
ave placed upon us ten per cent, damages, and 5
hat is the fOrfeture the Legislature did not mean
hat should forfeit anything else, for if they had
hey would have expressed it in the charter. 1t
true, there is clause placed in the charter of
ny bank describing what is forfeiture, for that is
question 10 be decided by the Courts, whenever a
ne Legislature shall see proper to order the Attor
ey General to proceed against than by scire taciaS
Mr. POLK interposng, and Mr. I. giving way C
II Speaker, 1 wish to know whether l understand $
lie gentleman correctly. Do ! understand him to q
that the banks by suspension have forfeited their
larters? ii
Mr. TURNER. say they have. "
Mr. POLK. Under such circumstances, is the Il
nteman in favor of re-chartering any bank? a
Mr. TURNER. ! say am not u
Mr. POLK Then / ask the gentleman if he did II
It vote for the Senate BILL which re-charters the Il
INKS, on certain conditions? Il
Mr. TURNER resuming will answer the gentle a.
an Mr. Speaker, shrink from no mans question "
g. Mr. Speaker, this is legal question, which is d,
be settled by the cours; and whatever may e al
? opinion, it Cannot settle the question. And
ough the gentleman from Maury, and every other m
ntleman upon this foor we're OF the same opinion CT
tn me, it would not settle the question. am of
inion that they have forfeited their charters and
uld be willing pass joint resolution ordering til
torney General TO proceed against them, but in
" Of the fact that a crisis is upon us, and of the
Their fact that some of these banks will soon pass Tx
of existence, am unwilling to do y now, if the
lks will come up and accept certain conditions
difying their charters. And say TO the gentle co
n, that If, before forfeiture is declared, we say
the banks we will proceed against you provid tn
you accept proper organic provIsiOns-I say that b
not are-charteEiRg Of the banks. 1t is not re or
lizng them. They not out of existence,
ugh they have forfeited their charters, because dil
courts have not said So But if after the courts
declared their forfeiture, the Legislature should
ne UP and revive Them that would be re charter
70 give an instance: l have a claim against an D
ividual, and | am about to proceed against him. ella
says ! offer compromise, and | accept it. So,
Understand this to be compromise; and so | vote
the Senate bill-nOt as a re-Ghater, but as a
lpromse-for the banks have not gone into Eoui. v
ion They are not out of existence. Whenever adj
fact is declared auhOrtaiyely, then l shall be .
inst re, ,hartering But before that time may hor
ly certain restrictions upon their charters, and
,e the banks to come up to them. -
low, Mr. Speaker, are we willing to pass this bill?
L.