Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1858-02-10

UsDhA LAVE
Mr. BEALE entered his motion TO reconsider the
vote Of yesterday, rejecting the bill to repeal the
usury laws.
Mr. WHITE Of Hamilton obtained unanimous con-
sent to take up the bill from the Senate (l64) to
amend the charter Of the Htna Mining and Manu-
featuring Company, and the same vas referred 10
the Committee on Interpretations
Neutrality-suspicious.
Mr. VAUGHN, ION leave granted stated. that in
last Thursday printed proceedings in this mornings
! Union he was recorded as voting in the negative
| on the passage Of the bill for the benefit Of the
| Memphis and Ohio Railroad Company wien the
fact was be was not present when that vote vas
KEN lie had voted for the bill on the former read
ings.
AMENDMESTs OF THE CONSTITUTION IN REGARD TO
BANKS, SO.
! Mr. NEWMAN'S resolutions proposing amend
ment of the State Constitution in these respects
coming up, as the special order Of the day, they
we're again read through BY the Clerk.
Mr. BATE said;
I Mr. Speaker This occasion is proper for more
full expression of my opinions the subject Of our
I currency than / gave in few desultery remarks
/ on the passage of the bank bill, which remarks
/ perceive, from their report Of yesterday morning,
! were not sufficiently explicit 90 do justice 10 my
our desires with the objects suited to their grstifea-
ton. Our food and dress aud labor Of every hour,
physical or intellectual indicate the universally Of
our desires and Of the objects suited TO their gratf
cation Our labor modihes and adapts these obi ects
10 our use when they are called products, and the
materials used in their production and exchange,
capital Individually, we direct our labor to one,
! or a few products, and we desire innumerable so
we exchange this product for commodity Of univer-
sal desire by which, through the INGREDIENT, We pro-
| cure Whatever We need. Rhis commodity we call
] circulating medium With all civilized nations
| gold and silver are regarded as composing this
medium Of exchange They are 80 regarded, not
| on account of any act Of government but because
of their properties, suited to such purposes, and
because they representa- given amount OF value and
! labor. This medium composes but q small portion
of the capital of country, not more, tits believed,
than in the proportion Of one of the former to thirty
one Of the latter In the same proportion, 1t has
been supposed, as the blood ciroulates through
bodies supply them with the elements Of vitality
and development does that commodity circulate thrO
capital distribute its products to clOhe, feed
and inform US. 1t enlarges the comprehension Of
/ our unity, and binds US in mutual dependence,
through the universRity Of Desires and Of the
means necessary for their qualification. The amount
Of this medium then, in any country, will depend
principally upon its products and its facilities
exchange; for should its products increase and de-
mand larger currency, they will become relatively
cheaper than elsewhere, and more be exported than
! imported and money viii be imported but
bat should there be a larger amount Of this
medium than necessary for exchanges, its pro-
ducts will be higher than elsewhere, and more viii
he imported than exported, and money exported. In
the first instance the balance Oftrade would be infa
Vor and in the second instance against that country
We're our currency, then, gold and silver, and too
small for the equal exchange Of our products with
the rest Of the world, cost Of production would
be less and we can sell the product cheaper than
I III, .r,T rnou and NM
ducts would be cheaper than elsewhere, it would be
TO our interest to open highways for the convenience
Of our competition to abolish stay and tariff laws
and to quicken exchanges and circulation. The
money imported for our products We could invest to
develop our immense resources and enlarge our
capital, that would require a further increase Of
currency, and thus without increasing circuls-
ton so as to increase the cost Of production,
could progress by multiplying our products and en-
lsrging capital whilst our cities would continue
TO grow and every occupation Of labor to prosper.
In competition With the old world, we would have
the advantage, besides others nnumerBble, in the
tendency Of our currency, to develop our resources
and enlarge our capital and Of theirs to be sb-
sorbed in the Of luxury and Of refined ciyili
zstion. But we're our currency too large for our
purposes of exchange, its value being relative
every thing else would increase in price, and the
cost Of our production, matter ef course others
would then produce cheaper than We could; their
products would be imported, our highways would be
oonveniences for their competition, and cOmpe-
titon languish and decline; our productive capital
would lessen and would require less currency; our
labor would 60 elsewhere, or crowd into the mer-
camille or professional pursuits, engage in agri-
cultural products that would furnish only means
of exchange. Our agriculture would thus absorb
our entire productive labor-the slave in compeii-
ton with the white man-and those portions Of our
State where agricultural labor was Improbable,
would be impoverished.
The discovery of America filed Spain with gold
and silver The cost Of the products Of her indus
try was relatively increased the cheaper products
/ of ether nations we're imported and her gold and
silver exported, regardless Of her most stringent
laws and tariffs TO prevent the importation Of the
former and the expectation Of the latter. Her colo
MES revOIted, and her supplies ceased; her prOduc
tive capital and her industry had declined and her
currency has sunk to their depression.
England by her cheap labor, and her facilities OF
exchange, by refining and widening the means Of
her industry, and by absorbing the surplus Of her
circulation in the luxury and refnements Of her
civilization, has advanced to the highest refinement
of civilized life and increased the wonderful magn-
tude Of capital and labor.
For the safety Of the precious metals, the first
bank was established at Veaice in I'LL For the
preservation Of their purity and for convenience
Of loans and exchange, the bank Of Amsterdam was
established. The first was a bank Of deposits the
second bank Of deposit and discount, and were
created for the safety and purity Of the precious
metals and to assist credit and exchange; and never
supplied the place Of these metals by any eireula
ton of their own and we're always sound and sol
vent. To the principles Of these banks may be at
tributed all the benefits Of the banking system, and
all its evils to those that distinguished their success
sers Banks of deposit, discount and circulation,
succeeded. Their CIRCULATION first bssed on the
faith Of prompt convertibiity into gold and silver
but afterwards, the faith Of public securities
individual responsibility, and proportion OF the
precious metals
In Tennessee, the banking system has been 50
modified, that their circulation rests upOa the
credit Of means composed Of individual RESPONSE
bilitY for which IL was exchanged and q small
proportion Of coin, as that of stock banks, OF
upon the further security Of State bonds, that Of
our State Bank and with limitation Of the amount
Of circulation 10 the value Of tbs State bonds, as
that of our Free Banks. Assuming these banks to |
have been solvent and conducted with ability and
integrity what effect has their currency had upon |
the labor, industry, and prosperity Of the State!
With her. proportion Of the precious metals the /
cost of her production would have been regulated
by the representative Of value, that OF 9TH
er eOuntries-her competition would have been IN /
skill, ohespness Of products, and facilities Of trans
portstiOn. Now suppose her banks, for the purpose
Of making more money and capital, had issued an /
equal amount Of their notes IN circulation, every
thing else would have assumed relative price, and
had it cost five dollars before, it would have cost
twice as much afterwards or ten dollars, TO nave !
to the producer but the cost of the foreign produo-
ton of the same article would remain IS before, at
FIVE dollars, the foreign article would have been I'M
ported and sold by her merchants, whose sales would
have increased with apparent general prosperity IS
our products would have diminished before the IN
equal competition, and the balance of trade Wou.d
have turned against her. The merchant unable 70
pay with her bank circulation, would have sought
exchange from the exports Of her agricultural pro
Duets which being insufficient, Der coin would nave
been demanded to supply the defciency-her banks
would have expanded to supply the vacuum, ana
have increased the proportion Of their paper 70 inc
coin in circulation-the demand for her coin would
have increased until her banks, unable to supply,
would have been forced TO suspend In the mean
time her manufacturing labor would ha e fed ! er
highways or eon6neditset the cOarsest products,
and her enterprise crowded into mercantile or pro-
fessional pursuits where still pursued by exhaust
ing cost, would have wasted before this haf-human
monster Of her lsbyrinths. Her banks have thus
expanded her circulston-increased the cost OF ner
Observation-Disclosures her own, and increased IN
Importation Of foreign products, and turned the
balance of trade against her: which has caused
demand for her coin beyond her ability 70 supply
hv and gusDengonB, with their