Daily Nashville patriot. [volume] (Nashville, Tenn.) 1857-1858, 1857-03-13

For the Patriot
il appears from al article in the Knoxville Mer-
curry Of recent date, that citizens of Knoxvins
are very seriously alarmed, because Memphis Bro
kers e they sllege have had the audaci.y to pre-
sent At the counter Of the branch of the Union
Bank 'st that place. her promises to pay and to
demand as they had the legal and moral right to
90 specfs Tor them. Even two grave Judges, Nc
Ainneys of theSGpreme Bench, and Jones, Of what
bench your correspondent knows not, and cares
less, partook SO largely of the panic that they par
tcipated in meeting of the aforesaid citizens call
Cd for the purpose Of doing something-it does not
appear exactly what-to restrain the brokers'
It is probably true, as was stated at the meeting,
tbatsome 500, 600 10 specie have been drawn from
the vaults OF the Union Bank at Knoxville. Ifso,
il was The inevitable result of the policy which the
Union Bank has been pursuing Let US examine o
little into the facts of the case: 1t appears that
the Union Bank has either been unable unwilling
to redeem her notes at Memphis, where they are
paid out in exchange as the Planters Bank, and
others have always done, ard are still doing, and
tbstthe brokers, with their small capitals, have been
unable to furnish exchange for all the Union Bank
notes they receive and then hold these notes until
it might suit the CONVENIENCE or caprice of the
Bank to refund the exchange-hence, they have
been compelled, in self defence, to draw and ship
coin. Now, what is the reason the Union Bank
cannot pay her just debts other Banks are doines
The true reason can be told in few words This
Bank has been the largest buyer of cotton bills at
Memphis this season, running the circulation up
to nearly three millions Of dollars. When these
cotton bills matured in New Orleans, instead of
dering sight.funds to New York and furnishing
her portion Of the New York exchange required
by the wants of the community, as the Planters
and State Banks have done, the Union Bank at IS
anderstood) has invested, and now holds three mil
lions ofdolars of seventy day bills drawn at New Or
leans on NewYork, which were bought at 81 to per
cent discount, thus leaning three millions of dollars
to parties o of the State and leaving the circulation
to take of ITSELF Is it very strange then that
she cannot discount note at Knoxville for $500 at
sixty days. when she is getting the rate OF Is to 25
per cent. for money at New Orleans Or is it at
all strange that the Memphis Brokers refuse to
hold up Union Bank notes, and wait for the Bank
to get ready, to pay them when money appears to
be so valuable? ..s
From this il will be seen that the Union Bank has
Invested all her capital, and nearly thirteen hun
bred thousand dollars besides, in long bills at New
Orleans on New York, (loaning nearly double the
amount of her capital out of the StGte and then can
not discount for her suffering customers at home.
| Why because the Brokers are drawing her coin
Is this not supremely ridicuous2
The last Legislature passed an act requiring all
the Banks to make their notes payable at the point
where they were doing business; OR in other words,
that the circulation of any branch bank should not
exceed its discounts than two thousand dollars
The Union Bank must have out least million and
a-haf Of notes payable at Knoxville and probably
more. LetJudge Mckinney, who presided at the
Knoxville meeting, examine and see if the Knoxville
Branch has line Of discounts amounting to with
$1,000 of the sum- and if she has not, require the
Bank to comply with the law. think that if this
law was enforced the people of Knoxville would
have very extensive Bank Accommodations, at any
rate they would not be troubled with Memphis
| Brokers.
The citizens of, Knoxville instead of hurting
snathemas at the brokers, would subserve their
own and the interests Of the State better if they
would place the blame at the proper door, and en-
desvor to effect change in the policy of the Union
Bank-a policy which seeks to build up the Insti-
ton and TO feather the nests OF the stockholders
but cares little about accommodating the business
| men Of Tennessee.
|