Daily Nashville patriot. [volume] (Nashville, Tenn.) 1857-1858, 1858-01-25
For the Ma hville Patriot.
A Suggestion 10 the Settlement of the
Free Banks.

Free Banks.
To the General assembly:
A plan for the redemption of the notes OF
Banks which have deposited with the Comptroller
Bonds of the State for the security of such notes,
and who having failed to redeem tue same, are
'forced into liquidation"
Ist. The General Assembly to authorize the
State Bank and its Branches to receive on deposit
the notes of Banks, which have refused to redeem
their notee and are declared to have forfeited their
charters. and, for every deposit 20 made, in sums
not less than FIVE dollars, the State Bank or Branch
es shall give the depostor certificate addressed
to the Comptroller.
3D. The Comptroller on delivery of the certih-
cate to him. shall give the person delivering the
same Cat his, the presenters, opion)-one or more
obligations of the State 10 pay on future day, and
VITA interest-tsay or per cent zone or more
sums, in the aggregate, equal to the amount stated
in the certificate of deposit. The obligations to
be in sums not less than five dollars and in semi
decimal ratio and to bear date the day the deposite
was made in the State Bank or Branches, or the
day of delivery of the certificate to the Comptrol-
Ter.
81. The "ObHgations." with the interest accru-
ing thereon, shall be made payable simultaneously
with the day of payment of the State Bonds depos-
tied with the comptroller for the security and re-
demption of the notes, in lieu of which the obga-
tions of the State issued.
4th The Treasurer of the State, Collectors of
Taxes or of other dues TO the State TO be author
lied to receive when due or thereafter, the obli-
cations, as above issued by the Comptroller, in
payment of Taxes other debts due the State.
9Th. The Comptroller, ar any other proper off,
cer to be authorized to retain the interest accru
ing on the forfeited Bonds, and to invest the same
in the purchase of other Bonds OF the State;-and,
all interest accrung on Bonds so purchased to be
applied in like manner and for the same purpose.
The fund thus obtained to be held to satisfy If not
otherwise cancelled, the "OHigations" issued by
| the Comptroller for the redemption of the notes Of
discredited Bsnks;-the surplus, If any, OF said
fund to be retained for the OF the State.
9th The State 10 be reimbursed of all expenses,
of deposits made and certificates given oy the State
Bank and Branches, end, for the obligations
issued by the Comptroller, out of the 10 per cent.
excess of State Bonds deposited for the security
of Bank notes redeemed by said obligations
Banks, falling to redeem their notes in conformity
to their charters have forfeited the Bonds OF the
State deposited with the Comptroler for the secu-
ty of such notes; therefore the State should make
such disposition of the Bonds that the Bill hold
ers may suffer no loss. If according to existing
law, the forfeited Bonds be sold under the present
financial pressure, they will not bring their par
value or, an amount equal to that of the Bank
notes for which they designed to be held as a
security. The plaa suggested will obviate the ne
cessty of selling the forfeited Bonds at discount
or making any disposition of them otherwise than
| either exchanging them for the notes OF the dis
credited Bank in sums equal TO Bond or Bonds
deposited for their security, or, for the 'O6liga
| tions" Of the State Issued suggested.
| In the aggregate very large proportion Of the
notes OF discredited Banks will be held by labor
| ers, farmers aud trades-people; bot held by them
| severally in sums less than the amount OF State
| Bond held by the State for their security. The
plan, ged In legal form, will remove the
cessity of suhjecting such holders of discounted
| Bank notes 90 e loss for the benefit of dshons Sc
Bankers, no, for full consi Iteration, have circula-
of "shaving" spectators in State Bonds; for this
purpose the notes OF some OF the ''Bond Banks"
| are now deemed to be uncurept and are bought at
discount of Is to so cents of loo, or Is to loo
| per cent advance on the amount OF CURRENT Bank
| notes paid for the diserediIed notes. .s..+er
The obligations" of the State Issued by the
Comptroller tor the redemption of the notes OF dis
credited Banks. being aeeumuiztve and receivable,
ultimately, for aud other debts due the State
vi be, Ia trading trans actions, available
| OF exchange and q ssfe TORN Tor trust fnnds.