Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1857-10-13
COMMUNICATION.
rHE CRISIS AID THE BANKS.


The policy of the Banks of Tennessee is such as
to continue the panic, and consequent depression in
monetary affairs.
They say they strong; admit it, what good does
their boosted strength do the commercial sgricul
turaI community? They neither afford relief to the
one the other.
If they persist in their present of contract
ing-and without some relief measure they cannot
well do otherwise-the result is easily foreseen.
The Planters. Union and State Banks can con-
tinue to pay their debts in coin long they
continue to force that coin out of their debOrs-no
longer When their bills receivable are exhausted
or protested-which is just as certain anything
can be, they must suspend unless they discount to
those whose bills they hold that the Cotton, Wheat
Tobacco, Corn and Pork can be shipped to market
and converted into coin; thus affording exchange,
which is requisite to relieve the Banks and their
debtors.
But the bakk officers, say they, cannot discount
while the Brokers are running on them for coin.
Why is this? Simply because merchants, whose
credit is as dear to them, the Banks credit can
be to the Banks must have exchange and it can
only be had by shipping cOin which is being done by
the merchants through the Brokers.
The Banks cannot now suspend. To do so, after
asserting that they were fully able TO pay their
debts; would be ruin and disgracethey could never
hope to restore confidence again.
tWhat is to be done. Some body must suspend,
either the Banks OF the banks debtors, if the Banks
continue to pay, the debtor must continue to pay also
or cheek; when the debtors begin to suspend the
banks will not he able to pay specie great while
longer, for upon the one the other depends. 1t is
folly, more than nonsense, 20 talk of Banks being
able TO pay their, debts when public confidence
(which is worth more to Banks than their coin) is
entirely Frustrated.
1t is granted that they able to pay their pres
ent current demands-but how long will they con-
tinue able? Where are they to get the coin? Bills
receivable an not Gold. Their corresponding banks
in New Orleans, Philadelphia and New York, upon
whom they have been accustomed to lean in emer-
gencies, cannot now more than support themselves
Hence we the only hope that even the old Banks
can have to hold up while longer, is by pressing
their customers, who press the people Shall the
Banks stand the Merchants and business men fall :?
And thus finally, not only force the Banks to sus-
pend, but break them; by destroying the value of
their bills receivabe by destroying the credit ofthe
drawer and deprecisting the value of the property
upon which the bills are based? For example. A.
sells his bills to the Union Bank based upon wheat
which wheat, when purchased at the time the bin
was discounted, was worth Sl,25 per bushel-but
cannot now be sold for much over half that price
Now, how long will it take to use up the coin of
Raplyz &
constitute their only hope of supply: and more, not
one Of them will deny this fall! But they say the
drawers good outside of the produce-in some cases
they are, but they have no coin or they would not
owe the Banks-they have property but it cannot be
cashed, and if so, not in time furnish coin for the
Banks, and if sold at all would be at runous rates
These are facts designed to show that Banks are
wholly dependent upon public confidence and the
credit of their customers and are no more to be re-
lied upon in times like theset any prudent bust
ness man IN proportion to means to meetJ their
liabilities. Without some relief measure, the Banks
must suspend.
If they would relieve the community and them
selves; let them issue Three Million of DoHqrs nav
able IN coin in six months at their respective
counters-this will ship the produce of the country
aud replensh the exhausted vaults with coin fall
though the produce may have TO be sold at low rates
still it is better than having it to rot on the hands o
the producers and business will revive and 90 On
as usual-except that class called brokers. their
occupation will be gone
In this way the Banks can protect themselves and
afford immediate relief to the country. The mer-
chants will be forced to continue to draw coin for
short time until the produce can be got to market
but probably the Banks can furnish it to them bv
relieving the people with discounts
1t will be temporary expedient such as should
only be resorted to in times when necessity becomes
emphstically the mother of invention 1t is believed
to be the only hope of relief either to the Banks or
the business community. We are fast exhausting
our means paying to per cent to the brokers' who
are drawing the coin from the Banks but our credit
must. be sustained well as that Of the Banks.
even into all falling togetherwhich is soon to be
the case if no relief measure is adopted 1t is only
question Of time and not long time at that Every
days transaction winds the ball up closer and tighter
The Atlantic cable thought to be, by scientific
men, as strong for its purposes as the officers of the
old Banks Of Tennessee think their institutions are.
1t has left its mark upon the page of fate and large
cargo of wire upon the decks of Government vessels
which perhaps is as valuable as the Bills receivable
hat may be left upon the counters of once yery
strong Banks. MERCHANTS.