Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1857-02-17
BANKS AND BANKING.

back to the time when our legislature gave every
body the privilege to bank, ard socn thereafter
the country was flooded with Kincannon- tickets, /
Chsfin, Kirk & Co. sbinplssters, and others of Ike
material All these Ike the moras muitcaulis,
became worthless, except as fuel TO kindle morn
Jog fire. Subsequently the Formers and Mer-
chants Bank of Memphis was chartered Then
came the Bank of East Tennessee. The next
birth in the Bank family named the CLAW
renceburg Bank" The Legislature of 1872
oharteredthe Citizens Bank aud passed general
law allowing any person banking PRIVILEGES WHO
would deposite $4,000 in bonds With the Comp
troler. II the legislature following had looked
back to the condition of the banks chartered by
theiriustriOus predecessors, and made an estimate
Of the loss sustained by the hard wO king people
in consequence Of bank failures, surely they would
have waited a while to see what tsx the people
could stand before ourthening taem with any more
banks. But there was not yet a stopping place.
Alter the adjournment Of the legislature of 1853
4, (the same body that made JOHN BELL SenatOr)
we find on the statutes charters for eight more
new stock banks. Three Of them-the Mechanics
Bank at Memphis, the Cen trail Bank at Nashville,
aod the Miners sad Manufacturers Bank ct
Knoxville, have failed Two others-the Bank
Of West Tennessee, at MemPhi1, and the Agricul-
tural Bank at Brownsville are said to be shivering
in the chilly breeze of adversely. There was yet
no stopping place Although JOHN BELL had failed
| politically and the three banks above nsmed had
failed pecuniarily, yet with all these evils staring
| them in the face, the legislature of 1866 char
| tered the Bank of America, with the power to
establish two branches ard the privilege of incress
| ing its capital to one million two hundred thous
and dollars and to issue two dollars for one Of
capital paid. This same legislature seemed, by
their action, to be of the opinion that there had
been rather loose way Of banking in Tennessee,
and they passed an act requiring all the banks and
branches to make semi-sunual reports to the
Governor, ard that the branch bark reports should
be separate and stiuct from the return of the
mother bank" But not one single branch has
complied with this act ct may be proper here
to remark that the act makes an exception as to the
State Bank, and that the Bank of America IN
icn, Planters and Citizens Banks are all that have
branches. Even Inc Bank Of America chartered
at the same session which required branches to
report to the Governor, has paid no attention to
this act The same act also prohibits any bank
or branch bank from having circulation which
shall exceed It's discounts more than $4,000
If the branches had made reports as required by
law, the people could see aud understand the
practice Of lodging the payment Of their debts by
giving the people of ClsrksYille notes payable at
Rogersvlle or Dresden, and by giving the people
of Nashville notes payable at Athens, Pulaski
Jackson or Knoxville. Now we ssk the reader
to run over the list of ba ks named in this article
and estimate if be can the heavy tax sustained BY
the people in consequences Of the failure Of banks
created by our legislature from the days of Kin
cannon to the present time. On whom has this
loss fslen7 Even at the risk of woanding tie
feelings of what, il refined circles are called com.
me-ciaI men" We say that toe great injury done
by the breaking of a bank is done to the farmer
the mechanic and the day lBborer. You rarely see
a commercial man" with broken bank money on
bis hands. He is right at the door of some bank
where he can deposite such funds IS will not get
him exchange to pay his Northern or Southern
debt-he can depOsie every Gay, AMI the next day
the meauest money he has deposited is paid out
on bis check to the farmer for his cotton corn, OF
Other articles of trade, and to the mechanic fol
labor done Oh his house or steamboat But SUP,
pose the bank breaks where the "commercia
man keeps his account: don'the lose then? II
nine cases out Of ten Lot red, but oftener makes
by the failure; for he generally has note or bill
IN the bank aud he checks for tie Opposite to be
applied to the payment Of the note or bill arc
often has chance to buy up the noUes Of the bank
at heavy discount TO take up his own paper
ke has no note of his own, be knows of friend
who has and be will work in his broken bank de,
posite. The only way these commercial men
lose by bank failures is when they become toe
knowing and buy up hank notes when the bank
is going down hill and are caught in their spec1la
ton.
We think it clear that banks have greatly in.
jured the people pecunsrily We 60 further
With the single exception of hypocritical know.
nothing clergy, we think banks and banking are
fer shaad Of any thing in injuring the morals O.
the community. They do every thing in tEei
power to avoid paying their debts For instance
A cotton Spectator draws a bill on his New Or.
leans merchant for $4,000. The bank discounts
| TIE rll' Va lOOhiLg over the money ne has re-
csved for his bill ne finds that it Is all payable at
Jackson, or Pulaski, or Dresden. He goes to one
OF these points to make his purchases and finds
that by paying gold be can purchase at a lower
price; so he goes to the branch bank and gets
the coin. The cashier is mad because be had to
pay an honest debt, and he Immediately write,
to the parent bank, tells what notes he redeemed
and what sort of man presented them. When
this letter reaches the parent bank, there is a
whispering between the president, cashier, and
teller and the identity of Mr.. Cotton speculstor is
fixed. Do you suppose lie could ever get a bill
discounted ia that bank agsin2 Not a bit Of it.
Why? Was that bill he drew not paid? Oh
yes, the cotton spectators bill was met promptly;
but the bank did not expect to pay their notes !
And because the bank was not successful in avoid
ing the payment Of its notes, it will have no
dealings with the man that ms,ses it pay.
But agan: Bsnks ipiure the morals of the
people by giving character to the paper Of or er
BAuks which they believe to be unsound, and if
banks can DO this thing, the example is apt to bs
followed aud the fraud becomes general For in.
stance: A new bank is started without capital
! The first object is to Get out q circulation. The