Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1858-07-23

import Of these instructions. According to our
Outstanding the Bank would not HAYS to pay any bat
legitimate demands under any circumstances. And
further, according 10 our understanding note or
bill Of the Bank is legitimate demand against At,
1t matters not who may be the holder. 1t matters
not whether Che holder be male female, black or
white banker, broker private citizen, il IS still
8 demand against the institution, legitimate de
msnd Of the strietest sort. We are firmly Of the
opinion that this policy Of the State Bank has had
tendency to limit the other Banks in their ability 10
afford the trade Of the country such facilities IS they
would otherwise have been able to extend.
The Memphis appeal. in q lengthy article, headed
eThe Banks and the People" contains the following
on the same subject:
Awaiting itself Of provision, incorporated 10 an
set Of the late Legislature, which empowered II 70
fix the time Of its oWnresumptlon Of specie pay mems
in the event the stock banks refused TO comply Win
the conditions Of the act imposing restrictions upon
them the Bank Of Tennessee has also set ASIDE the
principles Of sounding banking and safety 10 t1e
holders OF its notes and has postponed indefinitely
the time for its resumption. II IS true lupV tue
President Of the Bank states in his letter 10 'Ae
Shelby county Representatives that 'more thsn Two
months ago the Branches we're instructed to pay
coin upon all legitimate demands Of the clzehS IoI
business purposes" excluding money dealers anu
brokers' and the non accepting ba5ks. But THIS III
struction clearly leaves it TO the discretion o. ts
officers Of The Branches TO determine what aemAnos
are legitimate
Ifau individual holds too large an amount Of the
notes Of the Bank of Tennessee and demands the golG
for them, the probability is that his demanu Wouio
not be Jnsidered legitimate. We are unao'e 70 see
The equity Of one issuing notes OF promises 10 pay
whether it be a corporation OF IA lhulF!tuaI' us
criminatiug between The holders and saying 10 one
sir your demand is Legitimate here is your mon
/ ev !" and chen say 10 another who comes win The
! sane note in his hand 'sir, your demand ls nlegu'
! U,afe We cannot psy you The broker andthe non
accepting banks are only the agents for those who
/ wish gold and silver for legitimate business purpo
! ses They furnish gold and silver to the business
! community for business purposes.
! If they, therefore, send package Of the notes
| of the State Bank from Memphis TO Sparta or Rog-
ersville, and demand the gold for them, the Proba
bility il that they do SO 10 supply legitimate de
mand at Memphis They would scarcely incur the
/ expeuse unless there was q chance Of profit and
their profits arise from supplying the bu-iness com
muniry. We therefore, think, with all due respect
20 the venerable and respected President Of the
Bank that his instructions 10 the Branches instu
I a most metaphysical distinction, not based upon
/ equity? But the venerable President Of the Bank
apprehends that a combination Of the housekeeping
Banks. in the event of its resumption, might force
some of the Branches 10 suspend, and thus cause a
| forfeiture Of its charter. Such combination would
ne deserving Of the severest Odum and Censure aud
did we know it TO exist we should advocate the e1-
tirpatiOn of every bank charler IN Inc state Does
here really exist that jealous feeling between the
! state and Stock Banks which would utterly destroy
each other, diseredt their notes aud force forfeit
! ure Of their charters? If there does, then down
with such rotton institutions, established for the
peoples convenience, but perverted wholly TO selfish
and corrupt ends. But are the fears of the dstins
guished p esideut entirely reasonable? Has not the
State Bank the means Of fighting back with eficien
| cy against the supposed combination The capital
! OF the State Bank is about equal TO that of the
! Union and Planters united May it not, too, draw
coin from their Vaultsl II may not work a forfeit
ure of their charters if the Courts sustain the doc
trine of vested rights. But it may damage them to
such an extent as force them to desst from tbeiI
| supposed odious and infamous combination. At all
events it is the duty of the State Bank to try every
resource with which its vast power has clothed it,
rather than degrade its notes and lower the credit
Of the State by refusing to resume specie payments
al a time when all the other Banks of the Union
have commenced paying specie. We would even
prefer the alternative, suggested By President John
SON. Of reducing its creuationto the actual amount
Of gold in its vaults rather than see State Bank
/ lag behind all other institutions and bring up the
rear Of the specie paying Banks 1t were better
for the credit of the Bank better for the State and
better for the people at large, though il might ope
/ rate severely upon lew.