Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1857-12-23
TENNESSEE LEGISLATURE,
FRIDAY, Dec. is, 1857.
BANKS AND BANEINe,
RI, continuation


In continuation.
4 Mr. TURNER. of Sumner proposed 10 amend the
bill, by inserting appropriately in the second line
these words: except the Bank of Tennessee and
its branches" and after 1883, in the 4th line,
these words: ''and the said Bank of Tennessee
shall resume specie payments on or before the first
day OF January, 1859. ,
Mr. St. JOHN proposed to add these words: "when
presented by the note holder"
Mr. TURNER, of Sumner. Mr. Speaker: 1t is
not my intention to discuss this general question at
all bat only to present few views in regard to the
Bank Of Tennessee and its branches My individ
ua views of Banking different from those of the
trainers of the bin under consideration; but beliey
ing that the interests of the State demand some &C.
ton, and that it should be done at once. l am will
ling TO 90 for the BILL though IL does not go as far
as could desire.
In regard to the amendment have offered, I sub
nit these considerations: On The first day of Janu
airy, 1857 the bank note circulation in the State Of
Tennessee amounted to about nine millions. The
banks then commenced rapidly TO take up their cir
culatOn, and by the first day # July, 1t had been
brought down to something like three millions and
hall and from the first day of July to this ime' it
has been decreasing, till it does not exceed three
millions to three millions and half.
What is il that has produced the crisis In Tonnes
| see? What is it that has deranged everything in
\ our monetary afflirsl Why. il is, thai from our
! eight or nine millions Of bunk note circulation, II
has been suddenly brought down 20 three millions!
a decrease Of three hundred per cent. Every bank
in the State, except the State Bank, have been Ia
king up their circulation and running upon the
State Balk for specie, whilst the State Bank has
| been steadily endeayoring extend relief to he
people of the State, and prevent the present crisis
and to-day the amount OF the circulation Of thai
bank is as great as 1t was at the beginning OF the
year.
Now under this management, submit, what will
be the effect of the proposed resumption upon The
| Safe Bank! Why, sir, the STATE Bank, which has
/ been the only bank that has been relieving the
people by citing the wants Of the community, wall
be forced TO take up their circulation and cause
a still deeper monetary distress, by leaving not
! enough for the necessities Of trade.
| What will be the effect on the other banks? They,
having comparatively circulation out 90 day, 1t
will not be necessary for them TO prepare for re-
| sumption. What will they do? Knowing that the
circulation of the Bank OF Tennessee is equal TO all
| the balance of the circulation in the State, they
gather up the circulation of the State Bank and
will make their runs upon her.
! Now believing that something is demanded of
us in this state of the case-beeving that the
State Bank should not be forced 10 resume without
! throwing some defense around her, have proposed
to insert the words have up, i'll order that the
State Bank may not be compelled to sustain this
run upon her. Sir, look at the course which has
been pursued by the Union Bank and the Planters
Bank forcing the State Bank to furnish over three
millions OF exchange on New \ ork and Philadelphia.
| | think the times demand that the Stale Bank
sumption should be plac over till the first of
January, instead of the first Of July.
| Mr. ROWLES. Mr. Speaker, | am opposed to that
part of the amendment which proposes to exempt
the State Bank and branches. l wish 10 deal fairly
and equally with all the banks But that portion OF
the amendment which proposes to postpone resump-
ton till the first of January 1852 meets my hearty
Concurrence and | shall for it. l hope the
| gentleman will withdraw that portion which pro-
| poses to exempt the State Bank. Don't let the
other banks have occasion TO say, are egislating
with iuvidOus distinctions. Let US put them all
alike ON the question of resumption do not think
| the State Bans requires any such hing Of US. Let
Us put them all upon the broad form ( equal =.
Mr. TURNER, Of Sumner. l withdraw The Whole
amendment.
Mr. DAVIDSON Mr. Speaker, propose to strike
out in the third and fourth lines the words, July,
1885," with view of inserting January, 1853"
MIR BULLOCK. The object would be accomplish
ed by putting january" Tor July" and changing
The figure for the year.
MIR KING. Mr. Speaker, apprehend that the
amendment which | shall offer in lieu of that
before the House, will be acceptable 10 the members
on this floor. 1t is known that the months OF De-
cemOer, January, and February, are the most inau
spicious of any time in the year, for the banks to
resume specie payments; and, therefore, in lieu Of
the first of January, shall, at the proper time pro-
pose the tenth of March, 1853.
Mr. STOVALL. That would be equivalent to not
resuming at all.
Mr. WILLIAMS demanded the yeas and nays on
Mr. Dayidson's amendment, and they were ordered
MIR DAVIDSON. l suggest, that the first qeustion
should be on striking out 1.-The first of July;" and
then it will be for the House, to say whether they
will insert January, or postpone I'LL the time pro-
posed by the gentleman from Shelby.
Mr. NEWMAN. Is not the amendment of the gen.
tleman from Lincoln in lieu of the amendment of
the gentleman from Sumner?
The SPEAKER. The gentleman from Sumner
has withdrawn his amendment
Mr. RICHARDSON Mr. Speaker, would it be in
order now offer bill N lieu?
The SPEAKER. Ii will be in order as soon as this
amendment is disposed OF.
The yeas and nays were now taken on Mr. David
sons amendment Mr.. b. did insist Il divi-
sion OF the question: -resulting-yeas 40 nays 2o
as follow:
Yeqs-Messrs Anderson, Bate, Bayless, Benton,
Bicknell, Brazelton, Bulloch Carter of Carter,
Cooper, Copeland. Davidson, Dayie, DodsOD, Dunlap
Ewing, Frazer, Cannon, Golladay, Griffith Holmes |
I'VE, hceuey, hing, Lackey, Marls, Newbern, Polk,
Randolph, Roulston, Richardson, Roberts, Rose, !
R5Wles, SchmiJt0u, Senter Smart, Stanton, Turner
Of Roaue, Wilson, and YHughn-4O
Nays -Messrs. Algee, Bla;k burn, Bradford, Cad- |
well Carter Of Hardin DObsOD, Estes, Fulton, Ham
iltOn, Harvey, johnson, kendrick, Lamb, Lloyd, |
Low, Mickey, Newman, Rensnaw, st. john Saun-
ders, Shrewsbury, StOvall, Taylor, Turner Of sum
ncr, Williams. White OF Hamilt on, Wood and Speak |
er DJneson-2S.
So assumptions were postponed till the frs. day |
of January, 1853, and the question REQUIRED the
second reading Of the bill.
Mr. RICHARDSON. Mr. Speaker, l offer now the !
following amendment, in lieu OF the bill amended;
and believe that if you adopt The bill from the !
Senate, you viii wind up every stock bank IN the
Stale, and such calamity will eusue in this State,
il less than twelve months, as has never yet been
heard Of offer, sir, short bill, very simple in
It's provisions and which in my opinion wilt cover
the case entirely, and answer every purpose. By
permission Of the House l will read it in my place
The bill provides
l. That all the Banks and Branch Banks in the
this State shall resume on the first day OF March,
1859.
2. That no bank in this State shall issue any note
for circulation Of less denomination thanS lO after
the above date.
g. That all the issues of all the banks in this State
sEall be redeemable at the places where they are
issued.
+ That the act of 1S5l-2-the free banking law
be repealed far as to prohibit the creation Of
any new bank
Sir KOwLES demanded the yeas and nay on the
adoption Of the substitute and the same 0eng or
lered and taken, IesulIed-yeas 70, nays 39-as
follow:
Ysas-Messrs. Agee Anderson, Beale Benton,
Bickne Brazelton, DuIlOch, Cooper, DAVE, DJdson,
Dunlap, Ewing, Frazer, GUiaday Griffith, Holmes,
Roulston, Richardson, SenIer, Stanton, Taylor,
and White, OF HamutOn-26.
Ndys-AIessrs Bate, Black burn, Bradford, Bayless,
Caldwell, Carter,of Hardin, Copeland Davidson, Dob
,On, Estes, Fulton, Cannon, Hamilton, Harvey,
Johnson, King, Lamb, Low, MaIis, Mickey, Newman,
Polk Reushuw, Roberts, Rose, Rowles, ST. John,
saunders, Scumittou Shrewsbury, Smartr, Stovan,
Turner, Of Roane, Turner, OF sumner, Williams,
Nilsson, Wood, Vaughn, and Mr. SpeakerDOnelson
-S6.
So, the bill in lieu rejected, and the question
occurred again on the second reading Of the bill.
Mr. STANTON proposed TO amend The bill by add
ng TO The second section the following words: .
ind be IL Jartasr Enacted, That the Individual
property Of ali the Stockholders Of such banks as
nay take tue benefit OF this act shall be liable to
be demands OF the creditors of such banks, after
heir corporate property shall have been exhausted"
MIR TURNER Of Sumner moved to lay this amend :
nent On the liable :
Mr. STANTON demanded the yeas and nays on :
he motion, and the same being ordered and taken, )
esulted-yens AZ, nays 25-as follow: :
Tsas-Messrs Bate, Bayless, Blackburn, Bradford,
,razelton, bullock, Caldwell Carer of Hardin,
,opeland Davidson Dunlap, Estes, Ewing, Fulton, .
iammon. Griffith, Hamilton, Harvey, Holmes, Ivie, :