Daily Nashville patriot. [volume] (Nashville, Tenn.) 1857-1858, 1857-10-03
n NASHVILLE:
SATURDAY, OCTOBER 8, 1857.
Free Banks and Free Ranking Laws of
Tennessee.

| SNN0N u TIC Hei5nDOFlHS OCaCes,
we have condensed the main provisions of
the statutes authorizing and regulating
Ihese institutions. The Legislature of
1912, was the first to inaugurate the
system In Tennessee. The act of that ses-
sion provides that any person or association
OF persons, having at least fifty thousand
dollars, may carry on the business of bank
ing, on the following conditions First,
the banker shall legally tronsfer to the
Comptroller of the State public stocks of
The State: or bonds Of iacOrporated cOmpa-
mics, endorsed By the State: or bonds of The
United States. These bonds or stocks shall.
in all cases, be equal to stocks producing
SIX per cent. interest per annum; and the
Comptroller shall not receive any such
stock at rate above its par value, or
which shall not be a0Orth upOm sale, made
TOR gold or slLUer, one hundred cents ON tie
dollar. Upon the deposit of such securities,
at least three foUrths of qolicb shall be bonds
OF the State Of Tennessee, the Comptroller
shall issue an equal amount in bank notes
for circulation, registered and counterSign-
| ed by him. And the banks shall not have,
for twenty days together, on hand at their
place of business, in specie less than ten per
| cent. Of their circulation. Before commenc-
| ing business the banker shall make, ac-
knowledge, and cause to be registered in
| the County Registers office, a memorandum
specifying, LIST. the name of the bank; 3D.
the place of business; Sd. the amount of
capital stock, and the number of shares !;
4th. the names and places of residence of
the shareholders, and the number held by
each; 9Th. the period when the bank shall
commence and terminate, not to exceed 90
years These conditions being complied
| with, and the Comptroller having executed
also his bond, in such sum as the Governor
may direct, the bank is placed on the foot
ing of q corporation, and entitled to the
usual rights and liabilities of such. The
notes having been signed by the bank off
GERS, in such manner as to make them OBJ
ligatory promisSory notes, payable on demand
at their place Of business, IN this State, may
be circulated as money.
The Comptroller is prohibited from issu
ing an amount of circulating notes, exceed
ing the aggregate value of the securities
delivered to him, under penalty of removal
from office, and being personally liable to
any note holder for the full amount with
interest, of any note or notes that may be
lost On account of his failure to comply with
the provisions of the act.
If upon lawful demand between the hours
of ten and three o'clock, at the place where
the notes are made payable, the makers or
bankers shall fail or refuse to redeem such
notes, in lawful money of the United States,
the holder making such demand, may cause
such notes to be protested for non-payment
by notary public in the usual manner.
Upon receiving the notice of such protest,
the Comptroller shall file the same in his
Office, and forthwith give notice in writing,
to the makers or bankers, to pay the same,
together with all costs of protest, and other
damages and charges arising out of such de
fault; and if tbEy shall omit to do so for ten
days after such notice, then the Comptroller
shall give notice in three or more newspa-
pers, published in the State, that all the cir
culating notes of such bank will be redeemed
out of the trust funds in his hands for that
! purpose. The Comptroller is required to
apply the trust funds to the payment, pro
rata, Of all the circulating notes, aobether pro
tested or not, put IN circulation By the bank or
: makers. And the Comptroller may, after
ten days, with the advice of the Governor
and Attorney General, proceed TO sell at
public auction the stocks or bonds, or any of
them, deposited with him by such failing
banker; or, with the advice aforesaid, he
may postpone the sale, not more than six
months, after which he is required to
proceed as before mentioned The costs
of protest, &c, shall be first paid by
the person procuring such services, but
! the bank is liable for the amount. But
the costs are not to be paid out of the
trust fund, the bonds, until all the circu
letting notes are redeemed-if then there is
an overplus it may go in that way. And
if any bank shall be wound up in this man.
ner, the protest of the first note protested
shall constitute lien for tie benefit of TIL
creditors Of the bank, upon all the assets O
tie bank, not in the hands Of the Comptroller
and any cOnUeyan after such protest, shall b
UOid.
On every note demanded and refused tt
be redeemed, the banker shall pay DANA
ges, in lieu of interest, at the rate of tlo.lv,
per cent. per annum.
These are the provisions of most interest
at the present time. The Act goes on tC
specify that the shares of stock shall bt
held as personal property and be transfer
able on the books of the Company Thai
the property of the bank shall be liable t.
execution and sale on judgments aud de
crees: That the banks may hold real estate
when necessary for the transaction of bus
mess; or mortgaged in good faith; or con
veyed for debts owing to them; or pur
chased under judgments held by it: THAI
they shall furnish semi-annual statements tC
the Comptroller on the first of January
and july: That bonus OF % cents il
I each 100 dollars of caDitaI shall Ia retain