Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1858-03-16
DEFERRED DEBATE.
IN SENATE.
WEDNESDAY,, February a, 1858.
TCoHeludsd

MI Speaker mas not D6en ny AeAhN-N5 NfiA-5 ~
business engagements, to be present during the
Entire period which this protracted discussion
has occupied; and hope to be paIdoned though
the bour is rapidly approaching when, by com
mon consent it is proposed to take the vote
for submitting few remarks, by way OF assigning
the reasons which govern and influence the vote
eboU most sssuredy cast unless my present con-
victions undergo a sudden and material change.
In the first place. desire to state, with due defer
nce to the opinions Of other Senator's that the ap
pearance Of the present proposition, to me seems
rather strange and hasty-a proposition uncalled
for and wholly grautous on the part Of its peculiar
friends and suthOr--a work Of supererOgation, not
demanded by the wants Of our people or those OF the
trading community. 1t need not be said that the
Bank Of Tennessee in its present Management, is
under the control and direction Of an able President
and efficient Directors and if they understand the
business confded to their keeping, as they should
and doubtless do it does to me, that they are
more competent to judge Of the demands and ne
cessities Of the people-at least Of those growing
out Of the limited abilities Of the institution under
their charge-to determine whether rs advisable
and expecient to increase the stock Of the Bank OF
Tennessee; and to inform this body whether, as Is
asserted. if this proposition fail country will
meet with dire calsmity-eommerce and trade, Of
every description will be Frustrated and distress
sure to follow and affect everything with Whch
money has aught 10 DO again repeat, that
il really does appear to me, that these able gen
tleman, have greater facilities to announce 20
the people Of Tennessee, and their representatives
here assembled these extraordinary facts, If they
be SUCH than outsiders, casual observers, auu
politicians. Nov, sir, you have received no such
information either directly or indirectly from the
officers Of the Bank, either by way Of otclal com
munication or private suggestion or intimation rs
we know OF, or has been asserted upon TINS noor.
No COMPLAINT by the officers Of the Bank, or the
people Of Tennessee, has come to US Of the insut-
ficiency Of the capital Of the Bank until snnOuh-
ced in this hall within the last few days-that an
nouncement fell like the notes OF an alarm GeL,
seeing the Quarter from whence It came-the last
source one who had heard former professions,
wonld have ever anticipated. Like the lndia-rub-
Der man. our friend has turned the wrong side out
going backwards where be would convince his friends
be was advancing. Sir, there IS no demand any
where for an increase of the capital Of the bank
Even if there were this proposition at this time IS
Objectionable, for several valid reasons which we
will proceed to show.
Now, the proposition is, to dispose Of the State
stock in the Turnpike Companies which, 1t Is sald
will Weld about $3.50 000 and to issue the coupon
bonds Of the State tothe amount Of one and quar-
ter millions of dollars making total Of Sl,5OQOOO
this sum is to be put in the Bank as capital; and
by the way of inducing extremes TO embrace with
that fervor which Mammon can inspire, branch IS
to be located at Memphis, and one at Knoxville. Is
this desirabe is it expedient? is 1t to the interest
of the people Of Tennessee? l assume IN the mega
tive all the propositions.
It is said by the friends of the BILL that this ad-
ditonal capital will enable the bank to expand her
circulation, which will beyond doubt relieve the
people from their present difficulties. Now, sir, as
general thing Iregard politicians as the most IN
competent of persons to give advice In matters Of
practical monetary operation. If gentlemen take 1t
upon themselves to assert that the circulation can
not be increased but by the grant of this additional
capital, why not give US some good reason for the
decaration-has it been done!
If we are to be lead by the deusive sounds OF re-
lief as preached by the friends Of this BILL the hr5t
result of an increased circulation would be, that the
embarrassed would have only to present themselves at
the counter of the Bank and receive the sums neoes
sary for their relief. Those who have pracueal
knowledge of this matter have found the facts quite
different. Before the people get money, they must
have something to get it with-if you increase the
amount forty fold they cannot obtain It without II
has always been the favorite theme Of politicians In
time Of monetary revulslOns, and sucn times ana
such deceptive logic, have been the parents OF al
the banks chartered in our country. l grant that
in many instances temporary relief has resulted
but it was but an outside healing Of the wound not
a permanent cure, and the second attack has always
proven more fatal, and rarely results IN anything
but pecuniary death.
Again sir, the immediate cause of the prevailing
panic has been an over issue Of paper circulation;
in other words, more money than was necessary to
meet the legitimate trade aad commerce OF our coun
try-mOney, just previous to the panic flowed over
our country like pigeons in mast time. Men Of small
means, and less honesty, could without difficulty,
procure any amount of funds, with which to embark
upon the wild Sea of speculation Now, ask what
was the result of this superabundaHce Of money!
It was to increase the price Of every commodity IN
markedly increasing the amount Of money you
decrease its value. Thus the matter continued
.Fr- T-Sr, ma
ladon" as these gentlemen term it. 1t all would
have done very we'll but for the fact that there was
a day Of reCkoning-a time to pay not very distant
and 10 and behold when 1t came they had not
whereWith tomeet their magnificent speculations,
and down went their sun Of paper money glory. II
the injury had fallen alone upon the authors Of
these magnificent speculations," the misfortune
would have been relieved Of the greater portion Of
its burthen But the whole of it fell upon the poor,
the producing classes-the men at whose expenses
" magnificent speCuatiOns" are carried on And
now we are asked to increase the very cause Of this
evl-the argument, suppose is, that the d" hair Of
a dog is good for the bite'-the same thing which
produced at one time may avert at another It's but
Of the authors proposition to increase the facilities of
these magnificent speculations" for shall not
consent that this be done. l say to you and to my
people that nothing short of industry aad economy
viii bring relief to our country.
Upon the subject Of affording facilities of relefto
the people, wish to put the question in another as
pect Are the people Of Tennessee in so great dis
tress to justify them in paying fourteen per cent
for the use of money? Is the crisis so crying and
SO great as to demand this sacrifice For it is de-
monstrable that this would be the result Of the
adoption Of the pending proposition Let this bill
pass and what will be its operation with the man in
distress who is forced to borrow? It viii be In my
opinion equivalent to paying fourteen per cent Tor
money You issue coupon bonds Of the State, with
in Enu
is about equal to seven per centper annum. These
bonds are sold and the proceeds put IN the Bank
and branches. The distressed man comes and wishes
to borrow this money. lou loan it to him for four
months deducting at the time interest at the rate Of
6 per cent per annum-which is again.. at the eXpi-
ration of the four months, re-loaned TO him or some
other person-which at the end Of the year amounts
to about seven per cent Now, if the Bank does not
make clear profits sufficient to pay of the interest
ON these bonds need l ask if these very same Dor
rowers as tax payers, have not to pay the interest
on these bonds, which added TO the amount they
have paid for the use Of the money amounts TO
about fourteen per cent. l anticipate the reply Of
Senators They will ask what becomes Of the in
toresf realized from the loans of the bank? They
will say do they not 90 into the Treasury and there
by inure TO the benefit Of the entire people Of the
State? grant that there is some plausibi!ity in the
argument when gentlemen show that the Bank Of
Tennessee has made money upon her present CAPT
tai This they have not done. We assert that the
several reports Of the officers Of the Bank do not
show the fact, but on the contrary we insist that
they exhibit the fact that she has lost money, charg
ing her with interestfrOm the time the capital was ad
vauced An the credit that can be claimed for the
Bank Of Tennessee is that she has aided in furnish
ing a tOerably sound paper circulating medium.
She has made no money TO pay the taxes Of the
people as is so vehementy urged by her particular
friends 1t is also proposed to create two additional
branches, which will very much enlarge the eT-
penses without cOrrospOndingly increasing the prof
its 1t will require all the profits to pay salaries Of
officers building banking houses, &c, together with
losses sustained loans, &c. Do not tell the peo
pIe that YOU will relieve them from all liability in
consequence of the issuance Of the bonds asked for
under this bill. The argument is deusive-the eE-
pertinent has been tried and failure is the result
But upon the subject Of profits we are appealed to
upon the faith Of Bank reports. We are assured
that these reports show large profits, ranging from
9 to ] ) per cent per suuum. confess my general
Ignorance of what are called bank statements and
reports. but at the same time there is one thing
which I believe is common to them all, and which I
suppose all know. Did any Of you ever see one that
did not balance to a fraction All that have ever
seen with the exception of one did; and this the one
made by the officers Of Brandon Bank Of Mississippi
few days before sgnaliy failed. My reCOllec-
ton Is that that report showed clear profit Of
60 80, Go bundra8 fhOussnl dollars Buf fhougb