Clarksville chronicle. (Clarksville, Tenn.) 1857-1865, 1858-07-16
From the Nashville Gazette.
THE POLICY OF OUR BANKS.

Of talk on the streets, and is the cause Of
much warm discussion between the friends
of the two Banks. We have met and talk
ed with many intelligent persons who are
friends to both the State and Planters
Banks, whose understandings seem to be
entirely obscure in respect to the policy of
the Planters Bank throwing out the State
Banks notes, and the community generally,
not being able to appreciate it earnestly
ask why was this done, lift was not for the
purpose Of injuring the State Bank. Now
we answer that Mr. Weaver was Influenced
by the same motive which induced the
State Bank few days since to throw out
the notes of the Citizens, Bank, which was
done, not because she thought the Citizens,
Bank was not good, not because she wish
edto injure the Bank or break il down,
and thereby be instrumental in bringing a
heavy loss upon the country in the way of
deprecated currency, but it was because
the Citizens Bank made no arrangement
to pay her debts, or to take up her notes,
which is one and the same thing, and she
(the State Bank would not pay them out,
for the simple fact that she could not do it
and protect her own circulation. And
again, why did the State Bank not receive
on deposit all the Free Bank notes, during
last winter, and not compel the people, who
she claims to be protecting, to go in the
street, and stand discount of from 40 to
80 cents in the dollar? 1t was because the
Free Banks could not, or would not, pay
her back what she gave for them.
Now, it was exactly upon the same prin-
ciple that the Planters Bank threw out the
notes of the State Bank.
We have been asked repeatedly why the
Banks do not receive and pay out each 9th.
ers notes Unfortunately. We would an
swer, that this could be done without any
inconvenience to either of the parties, pro-
vided we have no foreign debts to pay.
The Planters, Bank cannot meet the de-
mands upon her for exchange, and receive
in payment for this exchange, State Bank
paper while she has a circulation of her
own to protect. And why can she not do
so2 We will answer this question by an
illustration: Suppose the State Bank has
but $4,000 in circulation, and that the
Planters Bank also has but 100000 in
circulation. Now, it is presumable that
each of these amounts were put out in a
Legitimate way on bills payable in New
York. These bills, at maturity, are paid
to the credit of each respective bank. Yer
y well! 1t so happens, N the course of
trade, that John Smith gets hold of the
S100,000 of the State Banks notes and
Mr.. Jones gets the 500, 900 issued by the
Planters Bank. Mr.. Smith goes to Mr..
Weaver with the State Bank notes and asks
him for the amount in exchange on New
York; Mr.. Weaver gives it to him. Right
here you will see that Mr.. Weaver has Civ
en- away the very thing that he had to re-
deem his own notes with Mr.. Smith has
not more than left the bank, before Mr..
Jones walks in with the S100,0 900 in Plan
ters' Bank notes, and claims of Mr.. Weav-
er, the amount, in exchange On New York.
Mr.. Weaver tells him he has Mt got it to-
day. Mr.. Jones tells him positively that
he must have the exchange or the gold,
fer here are your notes and you must re-
deem. them Mr.. Weaver asks him to be
seated, while he steps up to the State Bank
and see if Mr.. Morton will take up the
notes that he (Mr. Weaver redeemed
Mr.. Morton refuses to take them up, not
for want of ability for he has sl00,00A In
New York but for want Of inebiaatiors,
Mr.. Weaver goes back and tells Mr.. Jones
that he cannot possibly do anything for
him; that ME-. Morton will not pay him
what he owes him, neither in exchange or
COIN that the State Bank suspended, and
he (Mn Weaxer) can not get it. Now, we
ask what is the. nessjt of such proceeding?
Mr.. Weaver has lost his exchange, that he
gave for the State Bank notes, Mr.. Nor
ton refuses 10 make him whole, Mr. Jones
refuses TO- take anything but the gold or
exchange, and consequently protests every
note that he holds. So you will see, that
the Planters Bank, by relying upon what
she supposed to be an honorable institu-
tion, to pay her back, has been deceived,
protested, and hen credit ruined And if
the staAs Bank breaks at this juncture, Mr..
Weaver loses 100000 in the operation,
by redeeming the State Banks notes
The above fully illustrates the position of
the two banks at the present time; and now,
We ask every candid, sober-thinking
man if Mr.. Weaver was not right in throw
ing out the notes of the SsaAe Bank?
The above supposed case is based upon
the presumption that there must DO, a ba-
as;s Of circulation, and that exchange is
kept by all banks, to prevent daily re-
newal Of her supply of coin, aud that this
exchange is looked upon as faiS repre-
ssntati0n' Of ooin.
The policy of the Planters Bank is a
sound policy, and has been, adopted after
naatNye reflection, aud not from malice, or
upon the spur Of the moment, as some
seem to think. MIR. Weaver is not a man
to go off with his plans half matured,. and
if he adheres TO this present policy, five
years from to-day it will be said that the
Planters Bank, under the policy as adOp-
ted by Mr.. Weaver, has done more tones
tore sound currency in, Tennessee than
any bank ever did in the State. We shall
have occasion to notice the subject farther.
OK"