Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1857-02-06
BANKING.

MussRs ED1ToRI: In your valuable paper Of the sOth
ut appeared communication, signed 'W, and headed,
Proposed ebasgSs Of tie Free Baking LaS-tts ne7'
Legi2atvrS Your correspondent starts out with the
losses sustained BY the failure of the Bank Of East Ten
nsssss and the inequality of banking system, and par
tcuIay ss BaEiSg system which be says 'cas fer
reform" Well we think 30 too but not in the way your
correspondent suggests He proposes 6rst tina the
Legislature change the free banking law to remove
ell restrictions the amount of capital necessary for
an individual or company to commence banking In our
free banking law as passed in 1852 it requires that any
individual company, organizing under this law for the
purpose Of Banking shall deposit with the Comptroller Of
the State in Tennessee State bonds any bonds
endorsed BY the State United States bonds. But the
sensible and thinking portion Of the community found
that the minimum of $4,000 was too low and that great
evil almost certain to grow out Of it, and at the sug
esdon and earnest solicitation of Of most per-
ma merit and best business men, last Legislature
we'd the most Of those saekWsted, sud cid cat Tesrc
TONS that were upon the free banking law Of State
free banking law under the old restrictions liable
to be greatly abused and State by thousand
title free banks managed BY aOild cat bankers whom
the hair and claws we're an zach and b1kf long.
But free ban king law it now stands. requiring
ten bona tide stockholders with capital Of 100000 in
gold and silver laid down in the hands of the Governor
purchase the bonds WITH makes of the beet and sqf
bank ng laws ts the note holder in the world. Your
respondent w would have every man. who is the
or Of one thousand dollars buy him house aud 20 to
B1nHg just if be could his $1,000 in the ordinary
course Of trade, to good advantage though be
using it under the Of bank. This ssck.twistsd
system Of giving every man who could get up credit
enough to buy $4,000 Of bonds credit and pay for
them Of bis issues tried to the entire satisfaction
Of the community in Indiana, few years sgo The note
a.
system rsH0VS one out Of sgEtg free banks
that put into operation in the Of two years.
less than six months after they we're started zrr THREI
Of this number went by the board and just now there
great troubein Illinois under the system and had it
been for tho wisdom and timely Intervention of our
Legislature in throwing around free banking law safe
usrds and stringent restrictions ere this we would have
had to 60 through the exciting scenes that have
shocked and discredited other States.
Your correspondent claims that the man who holds
note bank With capital of $40 OOO just as secure
ss the man who holds bank of 100000. In his
We hold he greatly srrs for it The Legislature we're to
reduce The minimum to $40 ,OOO every man then who
could get credit for that amount would have bank and
that system Of banking without capital what has
Ted and is still creating much trouble among the bank
eB and the community; and moreover II the so 900 sys-
TEN we're sdo 5ed their regulation would be such clog
the larger banks that they would pretty send all
Of the smaller fy to the sa and then for loss to the
note holder Of from 10 TO 20 per cent Men, in the gen.
srBl do understand banking like they do farming
Your correspondent TO think that were it not for
few remnants Of English sristOcTacy' holding the notions
that governed the old o. s. Bank bis plans could all be
accomplished 1t isr to presume that be is aiming his
thrust when speaking Of the remnants of English aris-
ocracy) at the present Cashier Of the Union Bank and
the President OF the Nashville. II So his thrust will
never hurt them they stand too high in the moral scale
be reached by newspaper article # your read
ers will follow your correspondent close up, they will
soon see tn whole drift Of his srtcs it is in our opn.
ion that Of these "h6 pars& granite s0IK banks
with their fine Cashiers ROOM c4rpesd floors and silk
plush seats have refused your correspondent W" loan
for two three four months II this be correct that
the banks declined doing any thing for him. he ought not
to have taken hard; but determined like have
der similar eircumstances-o osr better paper the next
/ time
The Free Banking Law is generslone and every indi
vidual who has the money borrow it. has right to
organize under it, and when organised be has the right
build hns banking house and fine vaults IS be
plsases and then finish his according to hsOwu
ssts and if he chooses to give his customers when they
call to see him. seats covered with satin dsmask it is ell
right and If your correspondent is opposed to these fine
E1a5 let him have nothing to do with them; if he
should be may swear the sarbs will all be let loose and
/ they will get the lat drop of blood out Of him.
And in conclusion would say your friend "W =" il
We should be member of the Legislature we will 20
not for taking of restrictions but putting on as many
more as We think necessary the perfect security Of the
note hOders for the innocent people throughout the
try cannot be too well protected when there many
,siS eat bankers throughout the land that are daily
" seeking whom they may devour."