Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1857-12-09


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and accept in writing to the provisions of this act
as amendment 70 their several charters, or the
laws under which they exercise banking powers,
and to be considered as obligatory upon them in ali
respects said assent in writing to be Sled with the
Governor Of the State, within the time aforesaid.
ANY chartered bank, banking association, COM
pany as Aforesaid that does not, within the time
prescribed accept the provisions of this act above
directed, and file the credenee Of such acceptance
In the time and with the person above provided for,
shall forthwith be proceeded against at the suit of
the State have its charter declared forfeited by
Judicial sentence, the powers Of said banking
ISOLATION company to follow the business Of bank.
ing cancelled; and the Attorney General Of the
State is hereby directed either by himself by the
Attorney for the State in the respective judicial cir
cults where such banks or banking associations
located, to file bill of information or sue out
sere faeios take all such legal steps and proce-
dure on behalf Of the State, in law is necessary
to have carried out to Judicial sentence the provi
Ons Of this section, against any bank or banking
association or company aforesaid, that shall have
failed accept the provisions of this bill as herein
provided for"
Mr. R0WLES. If we legislate at all upon the
subject Of banks, in favor of efectual iegisls-
ton. / consider, Mr. Speaker, that without this, OF
some similar proposition, the most essential pro-
visions of this bill viii be Of no avail 1t is not
stand in the nature of a contract and that we have
to make any change in them without the consent of
the corporations contracting with US. That being
so, sir, L hold it matter of law-not necessary
TO be discussed this me-that the banks by their
suspensions of specie payments, have placed them
selves in such situation, hat We hold the right OF
forfeiture over them, and may enforce 1t, not.
But in order to amend their charters, and throw
additional protection around the system of banking
as it exists IN tins State, have gone with the
work OF amending this bill It's provisions are rad
zeal Ia respects. 1t proposes important changes;
but hold, u legal man, Lhat If the banks do not
accept these changes, they are not obligatory on
them Tee only remedy we have, is 10 proceed
against Them for forfeiture of their charters. be-
Ieve they will accepts but make the matter sure,
am for compelling them 10 accept. L am for say
ing to them: Unless you accept these provisions
amendments to your charters the proper law officers
of the State khal forthwith proceed against you for
Forfeiture and if you fail in your defense, the
piraton OF the sixty days, Lhey shall carry judi
cal sentence of forfeiture execution againstyo
l know, Mr. Speaker, that there gentlemen
this OOr and legal men without, who hold that the
banks, by refusing specie payments, have not for
felted Cher charters and that the State cannot by
any legal procedure have their charters declared
forfeit differ with these gentlemen; and think,
if l had time, could show, by fixed principles of
law, well by special cases Of adjudication, that,
by their suspensions, the banks have invested the
State with the right to take the prescribed legal
steps to have their charters declared TO be forfeited,
imperative, null and void This being so-and
believe the best legal counsel of the banks them
selves will tell them soand believing as do, that,
without this provision, all we may do will be totally
inoperative-a mere nulhty, which the banks may
disregard and laugh us TO scorn-entertain these
views as TO thelaw the case, and wishing TO legs
late efectively-to egisate SO as to carry out the
provisions of the bill have offered this amend
ment in lieu of the 9TH section.
Mr. THOMPSON was in favor Of the amendment;
but he desired retain the It'll section because of
the penalty il contained.
Mr. KING. l desire to ask the gentleman from
Bradley, and the gentleman from Maury, whether
they intend the several provisions in the amend
ment and in the original section, apply to such
stock banks as have not suspended
Mr. ROWLES. l intend my provision to apply
to all banks, but particularly such as have
pended My opinion is, that it would not be obliga-
tory on banks which have not suspended, for they
would not be compelled to accept. But whether
they accept not, 1t would make no difference, if
they are paying specie because they are acting in
good faith. But We know not, but that before the
rising of this General Assembly, very soon there
after, they may suspend
Mr. KING. Ii the stock banks have suspended,
what authority this legislative body to the LA
bilities of any chartered bank?
MIR R0WLES. l have said that the banks are
under no legal obligation accept this bill as an
amendment TO their charters but that, in order to
compel them to accept, direction is given to the
Attorney General, if they fail to accept, and file
their acceptance in writing, to proceed against
them for forfeiture Of charter. This Legislature
does not declare whether their charters are forfeit
ed or not. That is a matter of judicial inquiry;
and i, is provided in my amendment, that that
inquiry shall be certainly made. If they have full
filled The obligations of their charters it will be SO
IL, nd all
operate upon. Does the gentleman wish to avoid
judicial inquiry? know that legal men in Ohio,
have decided that suspension is not forfeiture but
the bank charters there are different from those
granted in Tennessee. If our banks think they
nave not forfeited their charters, they may laugh
this amendment to scorn; but say, woe, TO them,
and 10 their councillors who advise them TO the
issue lam as well satisfied as / am of any propo-
stion that has not been adjudcated by the Supreme
Court, that it is fundamental condition of their
charters, that they should, at all times when pre-
sented, redsem their notes with gold and silver.
Mr. KING. l would ask the gentleman from
Bradley another question. l want to understand
his position distinctly. The charter Of the Union
Bank, the Planters's Bank, and, in fact of all the
stock banks in Tennessee with which have any
provide, that in of a suspension
of specie payments the bank soSsuspending, shall
forfeit Per cent. to the noteholder, for refusal
to redeem their notes in specie presentation for
event of the bank doing anything by which the
Legislature shall be satisfied that it should work
forfeiture of charter, that then, by joint resolution
of both Houses of the General Assembly, they shall
direct scTe aeias to issue against them from the
Supreme Court of the State; and l would ask,
whether any act passed by this Legislature change
or enlarge the liabilities of these corporate contract
ing parties and especially if that act be passed
before the banks have made any failure to comply
with the conditions of their charters
MIR ROWLES. have before had occasion to say
that these provisions of the bank charters were for
the protection of the note holders and also for the
protection of the State. The right of the note
holder and his remedy enforce the collection of
his demands against the banks is one thing; and
the right which the State has to declare their char
tiers forfeited and void, is quite another thing. ]
am aware that in the charters of the Union Bank
the Planters Bank, &C., there is a provision of the
kind referred to by the gentleman from Shelby (Mr
hIng) That provision is, that, upon failure of the
bank TO pay specie, the note-holder shall recover
of the banks ten per cent on all the notes held by
him from the date of their protest 1t is the note
holder that recovers-not the State But, in the
very same section of that charter there is another
provision to the effect that the bank shall always
redeem its notes in specie on their presentation
then there is another provision that when the Le-
glslature shall be of opinion that the bank has
violated its charter they shall direct the Attorney
General TO out Scre faeias, calling upon them
to show cause why their charter shall not be de-
clared null and void.
Mr.. POLK. What does your bill prescribe in
such case?
Mr. R0WLES. l will tell the gentleman that
before this Legislature shall be brought to close
intend to close that door. l intend to introduce
joint resolution to direct the Supreme Court and
the Att icy Genera, to rOceed against thesebanks
for forfeiture of charter with instructions that if
the banks comply with, and accept the provisions
of this act, much of their charters then they
shall not be prosecuted. have looked ever these
charters and intend to leave no corner open.
Mr. POLK. If the gentleman from Bradley will
turn to the tenth section Of this BILL he will find
there that the Governor is authorized to direct the
Attorney General to proceed against the banks. l
hold different doctrine from the gentleman
| hold that where State has made contract
with a corporation, and has made in it certain
conditions and penalties, upon the violation of them
the State 60 further than to enforce the PEN
aties. Now the penalties which is expressed the
face of these bank charters is, that when in a sus-
pended condition, they are to pay ten per cent. to
the note-holder. Does the gentleman hold that l.
as contracting party, Can be made to pay add-
Uonal penalties? Does he hold that there is vio-
laton of charter, while the note holder enjoys all
his lawful remedy? If we may violate contracts