Daily Nashville patriot. [volume] (Nashville, Tenn.) 1857-1858, 1857-09-29
The Eankos Na.nriIIe.


institution has been forced to suspend pay
ment. The run upon this bank was, we
understand, mainly by depositors, and was
commenced last week, and continued so
heavily that yesterday morning it was fore
ed into suspension. We have no other in
formation in regard to the condition of the
bank. than that disclosed by the card Of
the officers. The fact that this bank, from
being regarded one of the most solvent
and reliable, of all that class of banks or
gained under the general free banking law
of the State, should so suddenly close its
doors, was an event which caused no little
excitement throughout the city, not only
among the merchants, but also among the
banks and others. Although the Bank of
Nashville, by It's last semi-annual report in
July last, showed that it was doing bust
ness of upwards of eight hundred thousand
dollars, on a paid in stock capital of one
hundred thousand dcLlars, it exhibited assets
amply sufficient to meet its liabilities, in-
Guiding one hundred thousand dollars of
undivided profits, accruing within the
previous six months. If this state
ment were truthful-a and we have no
reason to doubt it, as it was made
under the oath of the Cashier-we cannot
well see how it could, so soon, have passed
into a hopeless state of insolvency. It's de-
posites, at the same date, however, from
individuals, amounted to little more than
four hundred and twenty thousand dollars,
more than half its entire liabilities. While
this fact shows in what repute the bank
stood, it also shows, how easy it could be
oVerslaughed, by Simultaneous run on
the part of the depositors. And this might
| be done, while the bank maintained its gen
eral solVency. We presume, if the cOndi-
ton of the bank, was not rapidly and I'M
accountably changed, between the first of
July and its suspension, yesterday morning,
this is the true explanation of its difficulties
If this is true, and indeed whatever may be
the true explanation, we think the officers
of the bank owe it to the public to make
|
ticable moment in order that the commu-
nifty, both at home and abroad may be
relieved of the anxiety and suspense,
which the event naturally engenders.
AS matter of course, the sufferers, if
there are any by this failure, will be the
depositors. The note-holders of the bank,
will doubtless be secure, by the indemnity,
in the shape of Bonds, deposited with the
State Comptroler-and we should say
there was no reason or necessity for the
note-holder's submitting to any great sac
rifce. For them, the Comptroller stands
in the place of Trustee, and is bound by
law, to dispose of the bonds for their ben
eft.
But the suspension of the Bank eff Nash
vile, whatever may be its condition, will
not affect only its creditors. We very much
fear that it will prove the inception of a
panic which it will be difficult for our
staunchest banks to withstand, and which
will seriously involve the business of the
whole State. The immediate effect in this
! city, has been to discredt most of the banks
of the State. The Bank of Tennessee,
yesterday, threw out the notes of all banks
not redeemable directly or by agencies, in
| this city; and we learn that pretty
mnch the same course was pursued by the
Union and Planters Banks. The circula-
ton here, will of necessity, be reduced to
currency bankable here. And if the pan
ic extends to the verge thus indicated, and
diseredit, or even suspicion, is thrown up
on all other banks, the consequence may
prove truly disastrous.
There appears to us but one remedy and
that is for the people to sustain their curren-
cy. We are persuaded that all the note
holders of the free banks are secure; andif
the depositors viii but allow them time to col
lect their assets, all will probably be well.
And so it may be with many of the stock
banks. Money is, undoubtedly, as plenty
in the city and State to-day as it was any
day last week, aud if the proper course is
pursued, and the Wild and too often fatal
spirit of fear and distrust, be repressed, we
believe there is as little real cause of
alarm as there has been at any time here
tofore. We learn that meeting of the
Merchants of Nashville, was called yester-
day, and that they recommended, TO all
the banks in the city to suspend specie pay
ments, for the time being. We we are not
just now prepared, nor have we the time,
to speak of the proprety or policy of such
a course, at the present moment. We
should certainly hope there was no occa-
sion for fear and distrust so general as
this would indicate.
BASK OF NASHVILLE, Sept. 2s, 1851.
In consequences Of pFeju9lesl and unfouaded re-
ports rvlsve she sOlveuey Of tits Bank, causing
large number Of dePositOrs 80 wilhdFas their
funds, besides heavy demand for coin, re have
been forced 20 suspend payments for the present.
We beg Of oar lFieads TO take DO action 10 the
matter for = iew days nad We have bad time Tor
r,asetiOn as to the bess course TO be pursued Our
assets ample 70 pay ali labiatles. and they shall
be iallhially applied.
n HoBSoS. President
W. NHELESS. Cashier.
To place Creditors Of Ihs Bsnk OF Nashville be-
youd III doubts We have determined TO eoaEry eur
privass property additional security to De used
u ths event Of e,oessty. Feservng oniy saOagh 20
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