Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1857-12-17

the hands Of spectators who have elresdy skinned
the people, and got possession of all THIS free bank
paper?
Mr. BRAZELTON proposed to amend the amend
ment by adding after the words Estate bonds these
| words, -'or their own issues"
Mr. RICHARDSON accepted.
| Mr. CALDWELL moved 10 lay the amendment on
the table; and the yeas and nays being demanded
and taken thereon, result-yess 80, nays S4-the
motion was lost
| Mr. R0WLES. The State taxes were to pay the
State dues-the State officers. Could these notes
| be made available for these purposes? They could
not. They we're deprecated Then there was in
this proposition, discrimination in the payment OF
taxes IN favor CT the man who happens TO hold free
| bank paper. II was proposition TO tax the whole
people Of the State to make good the depreciation
Of this free bank paper. 1t would operate for the
| benefit of spectators. This money was not now in
| the hands Of the common people.
| Mr. RICHARDSON. He would pay the officers of
the State in the funds which the State had i'm
posed upon the people through these banks, which
were banking upon the bonds Of the State. His
amendment was proposition to protect the note
| holder.
| MIR THOMPSON replied, that the bonds would not
be due for % 80 years. the State could not be
required, in justice, to make good these bank de-
precautions. Besides, the State could not make this
currency" constitutional tender-they could not
pay with it. The gentleman's argument would lead
70 making good the notes of the INK Of East Ten
nessee and all the notes of the Wild
Germ the Legislature chartered. He was oPpos-
ed TO all tanks--iree, stock and State-but most
partial TO the free banks: still he would not impose
| depreeIated currency. lie was for the let-alone
policy. He gave examples.
Mr. BRAZELTON replied, alleging, that the
amendment a measure of relief to the people.
Mr. R0WLES gave example against the argu-
ment of the gentleman from MISUNDERSTANDING
that liability on does till the
becomes due, and applied it against the claim that
the State is bound make good the free bank de-
precautions
MIR RICHARDSON. The passage of this amend
ment will do three things 1t will enable poor peo-
pie who have free bank money TO pay their taxes.
1t will instantly put stop shaving in these free
bank notes; and it would raise our State bonds to
par value in New York. in less than "a hours after
its passage by this Legislature.
Mr. SHREWSBURY considered the amendment of
more importance than all the balance Of the bill.
The State had endorsed this free bank paper, and
were so far bound TO make it good He had told his
people to hold on to this paper; and considered it
was still in great part in the hands OF the people.
Mr. RICHARDSON referred to the third section of
the BILL requiring thes free banks to make their
notes OF par value. 1t was impossible for the Legis
ature to 20 further in this direcion-they would be
doing no more than what the House had already
done, by the adoption Of this third section.
Mr. R0WLES This third section requisi
ton upon the banks. The gentleman's amendment
was requisitioD upon the State.
Mr. THOMPSON would like to know how this
amendment would raise the price of State bonds in
New York? 1t would certainly operate as pledge
against repudiation-nothing further The price of
our bonds was regulated by The common rule Of de-
mand and supply.
Mr. RICHARDSON submitted the following, by
way Of substitute for his amendment He desired TO
remove all difficulties
"Be IL enacted, That as the free banks COM
u Il. -
BILL their shall be received in payment of taxes
due the State"
Mr. ROWLES submitted that this was identical
with what had already been adopted by the House,
and therefore out Of order.
Mr. RICHARDSON then withdrew the substitute
willing to take the vote on the original amend
ment.
The question was then taken on the adoption of
Mr. Richardson's amendment, with the result-yeas
so, nays 33-following:
Yeas.-Messrs Algee, Anderson, Benton, Bick-
nell, Brazelton, Bulloch, Cooper Copeland, Davie,
DodsOn, Estes, Ewing, Frazer, Holmes, Ivie, Ken
drick, Keeney, Lackey, Lloyd, Randolph, ROulston,
Renshsw, Richardson, Saunders Senter, Shrews-
bury, Stanton, Williams, White Of Hamilton, and
White of knox-3O
Naus.-Messrs Bate, Bentley, Blackburn, Brad
ford Caldwell, Carter of Hardin Davidson. Dobson
Dunlap, Fulton, Cannon, Golladay, Griffith, Hlmil
ton, Harvey, johnson, King, Lamb, Low, Maris |
tou, Smart, StOvall, Thompson, Turner of ROane,
Wilson, Wood and Speaker DonelsOn.-33.
So the amendment was rejected.
Mr. WHITE, of Knox, proposed to amend, by add |
ing.
'Bs It enacted. That from and after the first of |
January, 1859, the collectors in this State
shall not receive anything but gold and silver in pay
ment Of taxes due the State"
Mr. ROWLES demanded the yeas and nays upon |
III question, and The same being taken, resulted
yeas ), nays g.
So the amen dment was rejected.
Mr. VAUGHN proposed to amend by adding the |
following;
''SECTIoN -. Be It further enacted, That it shall |
not lie lawful for any bank, person or corporation,
engaged in banking in the State of Tennessee, TO
1ly out any other bank notes than its own. And /
should any bank. person or corporation engaged in
banking violate this section by paying out or any
other bank notes than its own, such bank, person
engaged in banking, shall forfeit to the
State Of Tennessee the sum of thousand dollars
every such offence which said forfeiture shall be
by action of debt. by the Attorney Gen
srsl of the district in which such offence may be
committed; and the Attorney General shall be emit
led to five per centum on the amount by him colleo
ed for hi services.
SECTION -. Be 1t further enacted, That it shall
lot be lawful for any bank or person, corpora
ion, engaged in banking in the State of Tennessee,
0 psy interest on deposits. And should any bank,
person or corporation engaged in banking, violate
his section, for every such offence, such bank person
T corporation shall incur the penalty forfeiture
n the above section, recoverable IN like manner;
be Attorney General receive for his services the
'er cent. prescribed in the above section"
Mr. VAUGHN said: In his opinion the passage of l.
he amendment, 1.-THE first section especially) would
ure of the greatest evils in our banking system.
lie was in favor of prohibiting banks from paying |
mi he of oth fhaU he | !
litted to pay out any other than their notes,
heir interest requires them to pay out, circulate
nd keep their vaults free of the notes of those t
anks whose sOlvency is questioned or suspected, in
rider to prevent loss in case of failure or depreca
on of security.
The effect is The continued that banks that are
erfectly solvent and amply able to meet their own
ablti and redeem their issue in specie, will car
? on their business, in a great degree upon the t
otes Of other banks, whose solvency may be ques-
oned; it matters not to them what amount of notes
ny other bank may have in circulation or how ma
y notes Of other banks are paid out from their q
,unters, as they not required to redeem them.
In this way the worst and most doubtful paper is d
rOwn into circulation, and the issue of banks n
hose sOlvency is unquestiOnable, is withheld To c
ave the best and most reliable circulating medium
the true policy of the State. Who does not re- | Il
ember that upon the very of the failure of the
ank Of East Tennessee, its bills we're vomed forth Il
ON banks upon the people. Who does not remem- | G
r the excitement and exertions made by banks to
st out of their vaults, among the people, the Cen
al Bank paper, to relieve themselves, and let
e loss fall upon the people Banks will save them- e.
Ives and the history Of bank failures is the best 4
oof of this fact. Z
A gain, Mr. Speaker: 1t diminishes the security Il
note-holders to permit banks of unquestionable Ii
lvency to pay their debts with the notes of ques-
)nable banks. q
To explain my position. Suppose Mr.. Speaker, to
u worth 81 600, 900, and was indebted to me al
the of $4,000 l call upon you for settle "
emit, and ask for your note. You, sir, refuse to
me your individual note, but propose to pay me ia
the notes of another man. who is worth muchles CT
$4,000. Is thereauy right justice in giving al
u power thus to diminish my security? l think tr
t. Banks are daily exercising this power tn
On the other hand, if banks be prohibited from ca
wing out any other than their own notes they ha
II become more cautious, they are required to TO
leem them in specie, and the evils of a redundan WI
Of papercurrency viii be tOsome extent checked tn
am opposed to that intimacy between banks 10
lich enable those of questionable solvency, TO tn
stain themselves by leaning upon solvent banks;
d which enable solvent banks to pay out and cir M
late the notes of other banks in whose solvency Tt
fbot ~. | an