Daily Nashville patriot. [volume] (Nashville, Tenn.) 1857-1858, 1857-10-03

Inc Legislature reserves the to amend.
alter or repeal, this Act, in such mannC
as may work no injury to the banks, nc
impair any vested rights.
The Legislature of 1854, so altere
the above Act, as to repeal that provisiO' Z
requiring three-fourths of the securities d.
posted to be bonds of the State of Tei'-
nessee.
The Legislature of 1866, passed tT
Acts affecting the Free Banks, the first
which provides that after LIST Septembe
1856, they should not issue notes OF les
than five dollars; and that the circulate
of any bank or branch bank shall, with
any six months, computing from LIST Jan
airy to LIST July and from LIST July to L.
January, nat eroeed its discounts more tn
ta0o thousand dollars-excepting the Ban :
of Tennessee. s-EE 10
The other Act of the last session pro
vides that no Free Bank shall thereaft'
be organized with a less capital than 100, :
600 dollars, and that commissioners, az
pointed by the Governor, shall receive tt
money, and the bonds be purchased by tt !.
Comptroller. 1t also provides that if IT,
bonds used by bankers shall decline and re
main below par in the city Of New York
as shown by the sales of the Stock Boar
of chat city, then the Comptroller is It
CURED to retain the interest on such bond
as are deposited, accrued or to accrue, tt.
additional bonds are deposited with him
to make good the par value of such bonds
And in case of such depreciation the Conn
troller shall give notice of the same, anf
the banker shall, within sixty days, depo'
it additional bonds to make them good
and in case of failure to do so, the Comp
troller is directed to take charge of the as
sets and wind up the bank: That no Free
bank shall be organized with less than ten
bona tfde stock holders; a majority of the
stock to be owned by residents of the State /;
and the semi-annual reports or statements
shall specify the name, residence and
amount of each stock holder. That with
the advice of the Governor and Secretary
of State, the Comptroller may wind up
any bank for a violation Of any of these
provisions of the law; and sell the bonds
at auction in New York, after thirty
days notice in that city and in this
State: That the Comptroller shall give
notice to note holders, in case of liquida-
ton, in a newspaper in Nashville, and in
one in the county where the bank is located,
once month for two years, when he is au-
thOrized to hand over remaining assets and
bonds to stock holders: That the circu,
lation may be increased or decreased at
pleasure by increasing or withdrawing
bonds from the Comptroller-not to go be-
low 100, 900 dollars, nor exceed three times
the amount of capital actually paid in:
That in case of suspension, any person hold
ing one thousand dollars of the notes of the
bank, may present them to the ComptrOl-
Ter and receive from him in lieu, one thou
sand dollars sir per cent. coupon bonds, at
Ne1O York market Ualue, provided the same IS
not under par: That bankers under this
Act, or that of 1872 shall not discount
notes directly or indirectly, at a greater IN
terest than other banks are aUOa0ed, under
penalty Of forfeiture of the rights Of banking,
and fine not less than so nor more than 500
dollars. The other provisions are unimpor-
tant, except that the provisions of this Act
apply to those banks already organized under
tile Free Banking LaaO, as fully as to those to
be organized, SO far as 1t does not infringe
Uested rights.
This is the sum and substance of the
Free Banking laws of Tennessee. The
length of the synopsis, precludes US from
any comments to-day-and indeed we do
not know that any are necessary. We
may, however, refer to the subject gain.