Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1857-02-18
BANKS AND BANKING.

BANKS AND BANKING.
We think it probable that nine-tenths Of the
people Of Tennessee agree with us that Banks as
at preseuI conducted, are doing serious injury, and
it is considered almost impossible to pass law
which cannot IN some way be evaded. We are OF
the opinion that our next Legislature viii be com
posed Of the right material, and that the heavy
loss sustained BY our people can be prevented.
our legislature could preventive failure OF the corn
or wheat crop, and made no effort to 90 So inc
people would take the matter in hand ana "oOiu
make thstths sole Issue in 3 canvass. The loss TO
the psopls on aeoou Mt Of broken banks, spurious
counterfeit and uncurreut bank notes is not great
vsys behind the failure of corn crop. Ask our
Bankers and Brokers bow much uncurrent money
of Georgia, Illinois, Indiana, DC, is offered for |
ssleP How much counterfeit money on the VAri-
on, Banks in the Union is presented ct their eoun-
tsrs2 RoW for the remedy. As fast as the Bank |
charters expire let them wind up. Don't renew a
single one. Pass act prohibiting the paying out
of any note under the denomin ationiof IS, Make
It miHdemsansr punishable BY fine Of $500, for
any corporation or individual to psss any bank
note under s.. Compel every Bank to pay out
no notes but their own, redeemable in god and
silver where they are paid out
When this is done we will have no worthless
| Georgia Bank notes in circulation. Then we VIII
/ have no money deposited in Knoxville, Nashville
or Memphis to induce Bankers to pay out incur
| rent money. Then We will have fewer Banks
! fewer brokers' Look ct some of the reports made
BY our Banks. We find that some Of them re-
port q capital of $50 900 psid-the profits in
months amount to about $4,000; or 40 per cent
Per aunum-others with paid in capital Ct $780,
600 have even gone beyond this per centHge. To
account for this, when the law restricts them to
cent interest on notes and when first class short
bills can readily be esahed ct from to 10 per cent.
"a plsiu maa who knew nothing Of the transAc-
tons which the wit of man could work, would be
/ Ant 10 conclude that there must be some sWinding
or that they got hold Of /" Aladin's lamp, which
was burned about from Bank to Bank. We know
this plan of paying out counter notes would lessen
their profit. But still they could make plenty
any Free Bank with the advantage Of the interest
on bonds deposited with the Comptroller can make
clear of ell expenses II per cent. on its capital
ANY Stock Bank with the advantage of issuing
double the amount of capital, can make As much
II Bankers think this is not enough then let them
turn their bank houses into shoe shops or 9 family
grocery; the people viii lose nothing BY the change
The Union, Planters, and State Banks all make
shout u per cent on their capital and,hiS is con.
, Iidered good Banking. To have & sound currency
it is absolutely necessary that Banks be restricted
to paving out counter notes. Bat some are appre-
hsnsivs that the Bank of Tennessee cannot do this
thing. Is it possible that the Bank of Tennessee,
with all the advantages of receiving and dsbursing
the revenue of the Stste--With eli the advantage
Of the credit II has on account Of being State in.
Etitution, cannot compete with other Banks1 If
80 we had better quit the trade. Do not be in the
way Of giving the people good sound curren'
cy. Do not teach them here to avoid paying
, debt by giving them promises to pay which re-
quire journey Of eeVerAl hundred miles to collect.
Ifits absolutely necessary for the State to estAb.
q lfsh some branch of trade to make money of Of
T the people, and it cannot be done by the right
sort of banking, better open model farm near
Nashville, with branches at good market towns,
where they could supply the consumers with beei
and onions, or other articles Of daily consumption
d The Bank of Tennessee should take, the lead IN
I
:; set an example worthy of imitation. That Bank
was never created for any other purpose than that
OF benefItipg the people. When the Union Bank
Il was established it was a "reIief measure" The
!, Legislature were OF the opinion that the people
s would BE- greatly relieved of their embsrrEssments
|. BY giving them bank Bot the Very next Lsgis'
lsture saw that it did not answer the purpose, and
: the Planters Bank was chartered with view tc
check up the Union. The next Legislature saw
e the evil of the two preceding ones, and the STATE
Bank was chartered to correct eVils--nOt to aiC
d the good the other two were doing, but actually
n to make them do vel since than we have beer
9 making little Banks to correct the big ones, snt
9 large Banks to check up little ones until our bank
ing system has, by its injury done to the people
and by impairng the credit Of our State, becom'
Is an alarming evil.
:. Bankers of the present dsy, say the people
d don't understand Banking That is an admitted
q fact and that of isslf shows that it IS an evil
s We don't mean that the people should understand
e how to make entries on your ledgers, bill books
b. &c But We do cay that 8 straight forward, hon
z eat system of Banking should be sdOpted-on
Is thst will enable the people to understand how t
y get hold Of good bank notes, or else we SHOULD
have none The people don't understand the de
= tails Of merchandising, yet they know very wei
ct where to get good ron salt sugar, coffee, or any
= other article they wish to purchase. Now wher
% the Legislature grants privilege to few indVid
y uAls to start Bank, and leaves their charter
Is a condition by which the people may be swiudled
Z . great evil has been done the body polite.
a A STRANGE CASE.
D. In tie aush times Of Mississippi twenty years agc