Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1857-10-21

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banks In the State lrsre and have been, and stu are
able to redeem their notes and liabilities, and shsy
have said ans SILL say they able to Dc il their
recent suspension vas yn9ise -Epslit.c sn1 mex
pedent, and : an uutrags On thepsoFls sza Dis
honor TO the Stale; and that such banks should for
felt public conf ence and favor, aud suffer all the
pains aud peDslies Of the laws, rgdly enforced for
such suspension, and should be wound up early
day the public interest win allow, in order to
prevent the recurrence Of similar outrage.
Resoged That ifthe banks ofthe State Of Tennessee
which haFE suspended are unable 10 redeem their
notes or liabilities, which they have Represented
themselves able to do, then and in that event they
have forfeited their claim to public confidence and
should receive no favor from The General Assembly,
but be wound up as soon the public interest will
allow.
Resolved, That il is unwise and impoltie TO allow
banks or individuals oereste new liabilities OF debts,
when they refuse e pay those they already owe and
hence the proposition contained in the memorial or
statement of the Bank Of Tennessee to-wt +" 1t 1.-THE
bank will be enabled heretofore, to continue It's
usual accommodations to its customers, and to re-
lieve, some extent, under proper circumstances,
many Of its Debtors" is neither correct in morals
wise in legislation, and oughtto De- and hereby
rebuked and censored by this Legislature.
Resolved That because murder is committed in
one State it is no justification for the commission Of
it in another and therefore, on the same principle
the suspension of the banks in other States is no
reason nor justification for the suspension Of the
Bank of Tennessee or any other bank in this State
ResoEued That it is time the people returning
to the Constitutional currency and getting rid of all
paper issues bills as early as it can be accom-
piished with safety to the people.
MrDUNLAP. Mr.. Speaker: I move to suspend
the rules for the consideration of these resolutions
and if the House will indulge me, desire to show
the necessity for prompt action upon them. II is an
| nj crisis at WI ar
consider sir that it is the tendency Of such resolu-
tlons this time, to bring more disasters upon the
country and the people than the suspension OF
| the Banks Any man who has lived, as l have, till
his head blossomed with years, and witnessed the
monetary disasters Of 1919, 1926 and 1887 must feel
the necessity OF cautious and wise action on the part
! of this body. The case, in 1919, was insolvent
breaking up of the Banks. The whole country was
flooded with irresponsible Bank paper; property
was increased IN value. Speculation pervaded ev-
cry State in the Union, AID men were indebted fer
! their property purchased at very high prices.
| AT the time OF the suspension of 1887, we find the
| same state of things The whole country had ma
MIA for Land Specuiations. In 1886, Jour Federal
| Government disposed Of immense quantities of the
pubEic lands Men borrowed all the money they
| could and bought land. The price of land rails
ed and the produce Of the country had got up to the
very highest piich aud, before, the country was
/ flooded with bank paper. There was scarcely a
| man in the country but had his pockets erammed
with spurious bank paper.
What is the condition of things now? We have
the condition OF things in the former monetary
disasters but what is the condition now? You have
| heard Tor more than twelve month that all the
banks were boarding their money, and that they
were bearing down upon each other, and that the
banks making brokere of themselves. 1t is not
now properly breaking Of the banks--it is only a
suspension. And why! Let-us look around US.
Whit is the situation of France and England? We
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! OF bank after bank, and OF one mercantile house
alter another those countries, until it has been
| impossible Tor our importing and exporting mer-
| chants to use their bills for want of confidence in
these foreign banks. They have been unable to get
the money their bills; they have been obliged to
| take out the specie. When they have been unable
| to yet foreign bills of the banks in Boston, New
Yerk, Philadelphia and New Orleans, they have
been compelled to take away specie from the United
States to meet their foreign liabilities and in this
way our whole country was likely to be drained OF
| the precious metals. But, 10 prevent this, the
banks have suspendei-refused to pay out their
| gold. II is not breaking of the banks; and when
confidence shall be restored abroad, and when the
usual communication by way Of exchange and the
transfer of money from one government the other
sail be restored, then the present demand for
| specie will be abated, and the banks will resume.
We have hundreds of m lions of specie now in
the country more than we had In 1887. We have
monthly by millions. When we came up here but
! tie other day, we left our constituents, we
thought in prosperous condition; and we supposed
| the whole country was prosperous. The community
was not oppressed with debt. All the people desired
| WIS a market for their produce. And now, sudden
! ly, we find all the banks have suspended. Here,
| ALSO the Legislature il in session, and it becomes
their duty do something in this matter before then
| iEal adjournment. But If, at the very threshold,
the very news to be sent the wires of the
telegraph shall be- that member Of the Legislature
mas offered resolution TO wind up all the banks in
| tl.e State-wbat will be the consequence? The
| b,-nks, not knowing what the Legislature will do
whether they will ceeree them to pay out their gold,
| OF compel them TO 90 into iquidation-will neees-
| ssriy withhold all accommodations, and proceed to
| collect their dues We must not do anything in
ht ste which is calculated so manifesty Dure ouI
| constituents; but we must give lime. We must let
the banks alone, and whether they will come 70
| the help of the community. When the banks shall
fad to do this, then it will be time enough for the
! Legislature act. We shall be here yet ninety
days or more. Confidence must be restored in Eu-
rope. They must have our produce, cotton and
tobacco; and II Confidence be not restored, they
bring the gold and silver TO get our pro
| duce and we shall see, in less than these ninety
days the gold and silver from all the ports of Eu
rope coming in TO buy our cotton and tobacco.
| Then shall be relieved somewhat to the de-
II tnds for specie and if then the banks refuse TO
for take Action. But, sir, put yourself in the
power of these nks, and they will produce pres
sure, such as We have not yet heard OF. They will
compel every man who has bill note falling due
to come up and pay They will say, your Legsla-
ture is coercing and We must eoerce you we
not pay until you pay. 1t was for the same reason
that the old Bank Of the United States refused
Communications when the Government deposits were
| removed by Gen Jackson; and what was the conse
| quence Of their cvntractiOns Ths hundreds Of
thousands OF customers Of that bank sent in their
petitions to Congress for the restoration Of the de-
| posts, and the re-charter Of the Bank of The
| United States.
| | know, sir, that the Democratic party will be
held responsible Tor the acts OF this body; and in
| view of this, and all that can be made out of the
| rejection Of the resolution Of the gentleman from
| hickman, MIR Williams, say, let the banks alone
for the present. Let take up these resolutions:
then let them be laid upon the table, and let 1t go TO
The country that this Legislature is not going to act
hastily this matter, but that when the proper time
| comes she will do her duty.
| Mr. POLK Mr. Speaker desire to ask the gen
| temau from Hickman for expla alton in regard
! to these resolutions. From the reading do not
discover thai there is any thing very definite il
| tlom AT the close of the first and second resOlu-
lions il is declared that, that the Banks " should
be wound up at as early day as the public interest
will allow" Who is TO be the Judge of the puOe
| interest in this case Are the Banks to judge?
| what DO the RESOLUTIONS mean! hntEe uOeS me
gentleman locate the power Of judging and deciding
when The public interest Iall require this action?
Ii he intends take any action against the banks,
| it seems to me he ought to go to their charters.
! Their charters now authorize him to run scirs
jacas and wind them up. But this proposition to
wind up the banks soon as the public interest
will allow is too indefinite TO time.
MIR WILLIAMS. l dislike 10 go into the discus
sion before the subject is before the House. But in
reply the gentlemans question, as to who is to
judge of the requirements of the public interest,
say, that the resolutions were not intended
to wind up every bank in the State. They are only
declaraIory of the sense of the General Assembly
Of course, this General Assembly is TO be judge OF
the case, when and how the Banks are to he wound
up.
In reply to the remarks of the gentleman from
Shelby MIR Dunlap,) for whose opinions entertain
the highest respect have this to say: understand,
from the course Of his remarks not from his positive
declarations that he objects to the resolutions on
the ground that he is in favor of legislating
to wind up the banks in other words, that he is
in favor Of egalizing the present bank suspension
VIZ nIunr urnU a