Fayetteville observer. [volume] (Fayetteville, Tenn.) 1850-1966, 1858-09-16
NMa ElrFRIhR PTEnB sy 1853 l Who'll NO. st

2 .
-lprovision of the charter which mac
Q ltheir notes receivable in the paymeI
D siof Government dues. That ban
was created pretty much like all oil
: ers. You may search the histor
f of banks in this country, and, so "a
as I can learn, you cannot find en-
4 solitary instance in which they hav
been organized according to. she pro
visions and acquisitions of thei
tcharters. How waseit with this ver,
Bank of the United States? Al
account Of that matter has beel
Igiyen by an individual who lived re
Gently, / believe, at Cincin natl, aut
whose. name is Thomas. He say1
/ that about the time when the banl
went into operation, when -subscrip
,tions to the capital stock were being
received, he, concluded to take a
portion Of it. He supposed it to be
a fine opportunity for investment
He had provided himself with the
means to take fifty thousand dollars
worth of the stock, or more. The
charter required that the capital
should be paid in three instalments;
one at the organization or at the
election Of officers; the second In six
months; and the third in six months
thereafter. On the first instalment,
if | mistake not, it Was required
that five dollars should be paid in
gold and silver, and the balance in
United States six per cent. stocks.
The other two instalments were to
be paid in proportions Of ten dollars
of specie, and the balance in United
States stock. AS the time approach
ed for paying in the first instalment,
specie and the six per cent. stocks
advanced in the market; and Mr..
Thomas says, that, supposing still
further advance might take place,
aud that it might be difficult for him
to procure the sort Of funds requir-.
ed by the charter to pay the second
and third mstalments, he declined to
take any Of the stock. But be says
that those who understood the mat
ter better than he did, who knew
how it was to operate, and what
we're the gambling. fraud, and trick
sry, which were to be practiced upon
the people in the establishment of
he bank, took immense amounts of
he stock; enc hundred, two hundred,
hree hundred thousand dollars
worth. ard even larger amounts;
knowing that they would have the !
,ower, under the charter, to elect
directors in proportion to the amountl
# stock for which they subscribed; t
md that, consequently, the large
stockholders, could elect a directory |
'ubservient TO themselves. -s
The stockholders who took but
small amount Of the stock, with !
he intention to pay up honestly |
lid pay up, according to the requisi-
ions of the charter But the large !
stockholders, who entered on a
leep figure, managed by some means
o get the requisite amount of
.old and silver and Uuited States
itock to pay up The first ins.aIment. /
The bank was, opened, the officers
we're elected and it went into oper-
atom. And when the next install
nent fell due, the large stockholders
Who; had elected the directory called
,pon them to loan out to them, ON
discount, the same specie and United
State stocks which they had paid
n rs part OF the first instruments
Fhis was done, and the same operas
ion was repeated in the third and |
asst payment. If this statement OF
acts is correct, as | do not doubt It'll
s, then the conclusion is clear to my
mind that the bank never did, in
lny one hour of its existence, pos
,ess the ability to meet its liabilities,
md to pay its debts, as the charter re-
l1ired. -
And this is The history Of all banks.
[ have never voted for a bank char
ser: But in. the State Of Tennessee
hey have made hanks--some stock
ranks. They were an Improvement
On the old stock note system which
exploded in L7 Is; and they re-
qlired that the stock should be paid
in gold and silver. Was this done?4
No, but, when the books were OPEN
ed, and q person came to subscribe
lor, tho stock, he would say,aI have
not brought any god and silver"
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