Daily Nashville patriot. [volume] (Nashville, Tenn.) 1857-1858, 1857-10-16

FRIDAY. OoTOBER ls. so.
rhe Band oe Tennessee.

The Bank Of Tennessee.
This Institution suspended specie pay
ments yesterday. The movement was SO
much in accordance with the wishes of the
larger portion of our business men, that 1t
created but momentary excitement, and has
not diminished the confidence of the public
in the management of the Bank, or its abil- |
ity to meet all its engagements. This is
evidenced in the additional deposites, and |
the returns of specie, which were received |
during the day. The object OF the move
ment was to protect the interests of the |
people of Tennessee, by retaining the spe-
Gle in its vaults at home as the basis of
operations for their benefit, instead of per-
hitting it to be drawn by brokers for pur-
poses of speculation, and by foreign banks
for the good of other communities 1t is
at all times to be regretted that the
necessity for such a step should exist; but
it is the part of wisdom to take it, as the
Bank has, in this instance, boldly and
promptly; and we doubt not it will com
mand general appreciation. The suspension,
we are persuaded, will be of short duration.
The condition of the Bank was such that it
might, and doubtless would have gone on,
had it been actuated by disregard of all
interests save its own, as Bank. We ad-
mire that species of courage which moved
the Directory of the Bank of the State to
this course. They saw plainly how disas-
trous would be the effects of continuance,
and they promptly threw themselves in the
breach. If it is assumed from this circum-
stance, that theB ank is bursted, we can
only say that if the assumption is true the
State Of Tennessee is insolVent. Such an
idea could not be tolerated for a moment.
1t would involve not only the idea, but the
fact of reputation And we have too
much faith in the honor and integrity of the
State Individually and collectively, to cher
ish this idea for an instant. To those who
have looked specifically and with distrust
upon the banking operations Of the State,
this step will probably appear to have been
| ill-adVised and imprudent. We do not take
this view, but rather applaud the course
the Directory have seen proper to pursue
The Union and Planters Banks, are still
paying and will likely continue to pay, I'M
less a suspension on their part shall be le-
CALLED by the Legislature. Whether this
viii be done or not, we cannot tell. But
if there existed any necessity, for such a
off hot j.
still more imperative by the course of the
State Bank. Their notes will, as a matter
of course, be appreciated, and will be
collected and send in for redemption.
When specie is in such demand, those
Banks which pay it will meet with unceasing
calls for it. Though this may not break
them, it will in a measure destroy their
ability to afford any assistance or relief to
the country. The specie will go out of the
country, and the country will not only not
receive it in return for its produce, but it's
produce will be left as so much dead, inert
weight in the hands of the people.
We do not advocate that the Legisla-
ture should grant the privilege of suspen-
sion without limit. It might license fraud
under color of law but to those banks
which can make a showing of solvency Gas
we believe the old stock banks of this city,
and probably some Free Banks of the
State can do) we believe this privilege
should be accorded-we repeat not special
ly for the benefit of the banks, but of the
people The resolutions which were intro
duced into the Legislature yesterday were
too broad but we still believe that such
action might be taken by that body as
would rebound to the interest of the peo-
pie at large, and should be taken. The
Bank of Tennessee, taking a wide and
comprehensive view of this subject, has,
with an utter disregard Of what may be
the immediate consequences to the institu-
ton itself, dared to consult the public
good, rather than sacrifice it to the evil
spirit of popular panic and tumult. We
renew the suggestion we yesterday made
to the Legislature.