Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1857-12-02

l. AHue6 TOOK
the consideration Of bis bill 23S 70 authorize the
Governor 20 appoint County Judge for Giles eoun-
ty, 10 serve during the December term, and il was
passed the third and last reading in the House Of
Representatives; and then,
On the further motion Of Mr. HARVEY, it was
ordered to be forthwith enrolled and transmitted to
the Senate.
AGRICULTURAL BUREAU.
On motion by MIR EWING, the House took up the
consideration of the Agricultural Committees bill
T2561 for the benefit of the Agricultural Bureau.
fauthorizing the sale of a portion Of the Fair
Grounds. Sci and the same was passed third
reading il, the Heuse Of Representatives, By yeas
90, nsys2
SPECIAL oRpER-BANKs AND BANKING.
On motion BY Mr. POLK, the House now took up
the special order-the various propositions for the
regulation of Banks and Banking in the State Of
Tennessee.
The SPEAKER directed the Clerk to read first,
The Bank Committees bill (2l6 for the better regu
laton of the Bank Of Tennessee and other Banks,
during the Time Of their suspension; dthen,
Mr. NEWMAN'S bill (2164) in lieu, entitled an act
to regulate and amend lhe charters OF the banks Of
Tennessee was read, with certain amendments pro-
posed by him, to wit:
"That all banks, banking associations or indiyid-
ual bankers SHALL or before the first day of Au-
gust 1858, redeem with specie all notes Of denom-
nation of So andess, and such notes when redeem
ed shall not again be issued as circulation by such
bank, but shall be destroyed F"
Adding in another secuon.
9Th. And no bank, banking association, cor
poration or individual banker snail pay interest,
either direct or indirect on any money, mortgage,
or other evidence of debt placed deposit in such
bank, banking association, corporation individual
banker. ="
And,
:" Sec. IA. Be it further enacted. That the stock
holders OF all stocks the banking institutions Of
this State be required pay within six months from
and after the passage of Ehls act their subscription
stock and stock notesin gold and silver-snd shall
not be withdrawn, except 10 redeem notes.
"Sec. 10. The President and Cashier Of each
institution, render to the Governor sworn state
ment Of compliance or compliance with the re-
quiremens of the 18th section-on pain Of forfeit
OF Charter"
MIR NEWMAN would state the provision of the
bill in lieu just read to the House. propose lisa id
he) in the first place withdraw from circulation
ali bills of less denomination than FIVE dollars.
propose then that before the LIST day Of March,
1885, these small notes shall all be redeemed.
propose then, that before the first day of Aug
ust next, all notes of less denomination than ten
dollars shall be Withdrawn and redeemed and that
notes of less denomination than dollars of other
States shall not be received deposit after that
time, be made payment Of the tender of debts in
Tennessee.
The bill proposes stop all descriptions of agen-
cies of banks, except such shall be expressly
authorized by the Legislature Of Tennessee. No
bank without the State to have agency within the
State; and bank OF this State shall establish an
agency anywhere, without express authority of the
Legislature. The bill provides, also, that instead of
centrslizng the State Bank, and removing all the
banks of the State 10 the city Of Nashville it pro-
poses to increase the capital stock of the branches
it proposes that the bank at Nashville, shall not
have the control of the banks in the country-that
the bank at Nashville shall not say how much TOm
Smith or John Jones, shall receive by way of dis
counts, at Rogersville, sc. 1t proposes that each
branch shall redeem its own issues and not look to
the mother bank to do that; it proposes that no
bank in the State of Tennessee shall receive interest
on any deposit, either direct or indirect, on any
money, mort gage, other evidence of debt placed
in such bank
The 9Th section provides that the individual stock
holders shall be personally liable for the debts of the
concern. 1t proposes that when any bank refuses
to pay specie their notes of circulation, that all
such banks shall receive interest their notes
against individuals during such suspension. As far
as notes Of circulation concerned, the bill pro-
poses that all her assets shall stand to redeem her
notes of circulation frst-the first object being TO
protect the note holder and the the deposition
and it makes it felony, punishable with confne
men in the Penitentiary to violate any these pro-
visions. 1t provides also that no bank shall issue
than two dollars of circulation for dollar
of specie in their vaults II provides also for the
faithful discharge Of their duties by the officers of
the banks, under the pains and penalties of perjury
Il repeats the free banking law. The last section
proposes that all stock holders shall pay in their
stock bona fds. That they shall not give note,
and on that draw money-an abuse which had been
often practeed the and loss Of the labor of
the country
Mr. ST JOHN desired the reading of the several
propositions.
Mr. STOVALL regarded the reading Of printed
bill as useless expenditure of time.
Mr. DUNLAP. There has been many bills offered
here on this subject, and It to be necessary
that the present Legislature should pass some law
on the subject of banks. That, sir, is what we
here to consult HpOn. | hold that we come here
for the purpose not of legslating to destroy the
banks, nor 20 legislate exclusively for the banks
but We come here to egislaJe for the advantage of
the country at large l hold, sir, that We should
have but object in view, and that should be to
adopt such measures as will benefit the masses of the
people.
What is our present situation? We have gather
ed most abundant crop during the last harvest
SON. The whole country is flooded W tn the richest
produce Of the soil We came here into these halls,
and organized this Leg stature under these prosper
Gus circumstances, and the pressure has come upon
US suddenly. IL has come upon Us, not by the mis-
arrangements of the banks. We have to look beyond
the seas for the origin of the present money panic.
We ind the failures commencing there. They sus-
pended over the water fret, and when the pressure
reached our country, we constrained to suspend
as matter Of policy. 1t is not now as it was in
1887. In 1887 the banks had Over-issued. They
had flooded the country with circulation of eight
or ten to one Of specie in the country The country
itself, Also was almost as bankrupt as the banks.
But find the banks embarrassed by the in
discretiOns of trade abroad The Legislature has
chartered these, our banks, and put their money
to circulation. The Legislature gave II currency
made n a he of OuP
and now the way to avoid the threatened ruin
not be TO destroy the banks. What called |
upon to do? Our farmers granaries all loaded
to the full There is a depression in the money !
market, and in every market; and if We force the
banks to pay their debts under these circumstances,
they force the cotton and tobacco of the farmer
and planter into the market to be sold at ruinOus |
rates to pay their debts TO the banks and the
sequence will be direct injury and oppression upon
the laboring and producing divisions of the commu-
nity-the men who are the very support of this gov
1t is for the advantage OF this portion Of
the community, that we should legislae. We should
do something for their substantial relief and in
what does that consist 1t consists in enabling the
banks to extend their facilities Of money to enable
the farmer to send off his produce, and obtain the
market for it, and realize for himself the benefit of
it. We should do this now, and look to some future
period for ultimate action with reference the reg
nlatien Of the banks. Let the producer have his
recourse to the banks for present relief Give them
time to send their produce to market, and get the
best price they can from the money-holters abroad
Give time to the banks to resume so that they may
give time to the Individual-an all they want is
hat you should give time for the farmer to send his
crop into the market and get his return; and then,
be, paying his debts to the banks, will enable the
banks to redeem the notes they have put into circu-
ation.
One of the bills proposes that they shall resume
BY the first Of July. and the other by the first Of
August. They are both wrong. The original bill
the Bank Committees bill-provides also for re-
sumption within sixty days after the resumption by
he banks in New York and NeW-Orleans; and this
also is wrong What would be the result of this
policy? When the farmer goes into one of these
banks after money, what will they tell him? They
will say to him, =" We do not know how soon we may
lave to resume. We must resume in sixty days, 1t
nay be. 1t would be impossible for the farmer to
make his return in sixty days, and so the banks
would be compelled to refuse relieve the country.
f you put off resumption till the first eff January,
$685. the banks could loan their money to the farmer
md the planter, and they wonld have the whole #
he season to get ready to pay their notes, and so
he advantages of two crops would be made avail
bile for the relief of the country.
- IL.