Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1858-03-16


those wNo preceded the present Board, it is deemed
not out q llaee to specify some Of the evils grow
ing out If lAe want Of power to control them.
II demand be made at the counter Of one Of its
Branches upon its own notes for payment sud the
Cashier refuses, with ample means in the vault of
the Bank and his conduct be sustained by the Board
of Directors, thus discrediting the Branch and in
ficting upon the other Branches as well as the prin
oipal Bank the most serious injury ought not DOW
er to rest somewhere 10 remedy such an evil?
If the principal Bank is advised Of the employ
ment Of unsafe agents and large sums Of money
left in their hands for months though urged to have
the agent removed and the money placed In the
Branch, and refused until heavy losses are sustained
should there be no remedy but suit at law for the
recove ~ Of the money
If the Bank discovers large sums Of money re-
naming for months in the hands Of agents of the
Branches, yielding profit, not even interest when
thousands Of dallars could be made by a judioious
investment of it, ought there not TO be a power
somewhere to order the investment and thus secure
the profits
In periods of pressurein the moneymarket which
often OCCUR when the collection Of its debts becomes
necessary to preserve the credit Of the institution
ought any of the Branches TO be permitted to con-
tiRUe their discounts and refuse the collection Of
their debts thus throwing upon the principal Bank
and the other Branches the necessity Of protecting
is credit as well as their own.
Ia the earlier stages Of the Bank, combinations
were discovered by which large accommodations
we're given to few faYOries; sometimes for the use
Of Directors, 10 violation Of law; and occasionally
to promote Internal improvements, build up fac
tories for the Advancement Of local private in
terests; ought there not to he power somewhere
to arrest such evils?
SueIeyils have repeatedly occurred, and for want
Of proper supervision Of the Branches thousands
Of dollars have been lost to The State"
Is not the direct effect Of this bin to multiply the
evils here strongly complained Of, and asked to
be suppressed? Why not Incorporate provision
with view of correcting these evils, which have
done so much injury to the currency and interest Of
our State The reason, Mr. Speaker, IS too obvious
TO require comment The bill would be shorn Of
one half its strength.
If the present financial ability is to be urged as a
reason why this bill should be passed, why not give
vitality and effect the foregoing wise and prudent
suggestions Of his If the branches under the pre-
sent government, with a limited capital cause he
principal losses is it probable the evil will be rene
died by increasing their number and capital? Is it
not evident their power Of doing mischief, increas
ing arrangement in our currency and squandering
the peoples money, will be greatly augmented p
Reason can answer the question in but one way. 1t
will.
There is another strong objection, which have to
the passage Of this bill. The State by her liberal
aid has induced many Of our citizens to embark in
the construction Of railroads, number Of which
now in forward state of completion, and will be
ready to receive the rail during the next eighteen
months. These companies are relying upon the
State aid to complete their works, which has to be
received in State bonds. These bonds will have TO
go into the market, and must be sold at soma price
these Companies will be forced to stop works
This viii not only be loss 10 stockholders and
counties, which have taken stock, but serious in
jury to the State at large. Owing TO the great guam
tty of these securiGes, which 1t was anticipated
ho fbo
raj internal Improvement acts, our bonds have been
seriously deprecated Ia the home and foreign mar
kets. That the actual and prospective liability Of
the State would be increased during the present ses
sion Of the Legislature, was utterly repudisted by
all parties in the last canvass If our people
ever unit upon any question, it was that more
State debt should be contracted. Atthe commence
ment of the session every indication was, that this
edct should be strictly and relIgiOusly executed
Much Of the prospective liability Of the State,
cast of by refusing 10 extend further time to num-
Der Of roads, which had not been commenced. Mil
lions of dollars saved to the people by this cut
ing off process What was the effect Of all this Mr.
Speaker, upon our State bonds? Why, sir, in the
midst of q crying panic, our firm and decided &C
ton inspired capitalists with confidence and the
result was that our State securities ran instantly
up from 20 and IS to SO and 80 cents. Now, this
is not the least remarkable, 1t Is but the common
suit of prudence and caution well directed. It is
WAdl every ptIsVA Ga peStEu ao AhAuE1l event.
That an increase Of the liability of the State will de-
preeiste bonds, is no less natural and inevta-
bic consequence, no one will deny.
New, sir, you propose to increase the liability of
the State one and O quarter million Of dOlars-de-
preciate our State bOnds-prOstrate cur railroad
crush private individuals. who have
their means in these works. and finally to put upon
the tax payers of the State thirty years debt.
charge gentlemen beware what they do.
The cry is that there is no money In the country
and if this bill fails the people ruined-their
property will be sacrificed and such like catch-Words
to produce false alarm are employed by Senators.
have as much right to my opinion as they, and be
lieve it al Cannon; grant that there is some
barrassment amongst our people, but not half so
great as gentlemen would have you believe. little
patience, economy, and industry will relieve them,
nothing short of this can be much ''rcef for the
people. This st the present day they pretty well
and I think gentlemen will find it diff
cult to make them believe it is a reieftO 60 in debt
and pay fourteen per cent interest for the of
money. But this is a matter for which they, and 4
not I, must account.
If expansion be necessary to bring the desired |
relief the Bank Of Tennessee has abundant ability /
according to the gentleman's own showing, to give
this relief She could expand her circulation to
million dollars more without Gripping her efficiency
in the least if are to believe the doctrine Of
friends who state that circulation Of two and three
for one can be maintained. That Of the Bank of /
is not now two for one by over one |
million of dollars. Then, if more paper money be |
Bill that is wanting, let the officers Of the Bank send
il forth upon its mission Of salvation. Senators /
would have you believe that if this bill pass, the
people could obtain what money they wanted with
out difficulty. A more d0lusive doctrine was never
promulgated by intelligent men. The people can
not get this any other money, without something
10 get it with. If you viii give them the corn to-
oaocO, wheat, and other commodities they can
obtain it anyWhere-tbis the people understand,
and gentlemen, though high in authority, cannot
CANNON them into a contrary opinion. That day
has passed long since.
In conclusion, Mr.. Speaker, have only to say
hat the idea Of banking upon credit, stocks, and
public securities, has been recently exploded is
most manifest from the general breaking up, and
'uinous consequences of what are commonly known
Is free banks in this and other States On this
point, our people have been taught a sad and ever
ODE remembered lesson, which years will fail to
wipe Out-their instruction has come through the
pocket which rarely fails to make an indelible i'm
preston. If gentlemen choose to repeat the exper
ment by the exercise Of the power they have with
,ut being called upon by the people, let them take
he responsibility wash my hands Of it. II
hey will run the people in debt one and quarter
Millions Of dollars and tax the present generation
o pay the interest upon the bonds, and burthen
heir offspring with heavy interest to pay the prin-
ipal, for the purpose Of ministering to the vOra-
nous appetite OF an lnCrulnaJe thirst Tor paper mo-
ey-paper money based upon paper promises-let
he country know it, Formy partI choose not fur
her to involve the people, and am willing to abide
he result, be it what it may For these reasons, l
annot support this bill, believing, as do, it is
raught with much mischief.
Mr. Speaker BURCH-at this point in the debate,
received note from the President Of the State
sank, responding to a resolution Of the Senate,
dopted this morning. which was read upon the
DOR. 1t is as follows
BANK OF TENNESSEE, Feb. q, 1853
p he Senate Of the State Of Tennessee:
GENTLEMEN: In answer to a Resolution Of the
enate passed this morning, requiring ''the Presi-
ent Of the Bank of Tennessee forthwith to inform
be Senate, whether it is necessary to the existence
the Bank of Tennessee to increase its capital by
n issue of State BOnds-and secondly, whether said
Increase aforesaid is demanded by the interests Of
be people," have the honor to state, that such
Increase Of its capital by the issuance of State Bonds
) by no means necessary TO the existence Of the
tank That no doubt is entertained with its present
leans, that every liability Of the Bank and will
e met and leave very large surplus for the use Of
be State
To the second question, the undersigned has the
81 % oortfa :