Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1858-12-24
EoR rm uS1os AND AMERICAN.


to spiFituslism.
FOR Tm US1os AND AMERICAN.
I Shall the People Govern the BanlSss or the
Ranks Govern the People!
In determining this question the most serious OBJ
stacIe to be encountered is the Bank of Tennessee
As great as are the evils of the Union and Planters
Banks, they are not political instituOHs, and have
not therefore, the same means Of perpeuatiag heir
existence as hss this monster evil founded DFa the
common labor of The people, and the favored bsnt-
ling Of politicians and trieksters With its branch
districts encOmpasaing the entire State, controlled
in the main by Directors composed Of leading poll
tieions Of whatever party CHANGED to be in the as
oeudaDt, with capital and credit st their command
to purchase favor and silence, it constitutes PoosT
of uDequalled importance, and only approached by
that Of other monster corporations springng 10 in
our State, and whose deleterious influence will be
source Of constant dread in all future legislation.
The utter failure Of this institution accomplish
the good for which it wss intended is matter Of
common experience, and has been aitested by near
u every President Of the mother Bank since the
early history Of its organization. In elueidstOn Of
this fset l can use no stronger argument than to
adopt the following language used BY the President
and Directors in their Report to the Legislature of
1866:
aThe operations Of tho Bank in few years seem
to have convinced the General Assembly Of the i'm
praeticabity Of accomplishing the great objects Of
its creation under the organization which had been
given it; and en- act wss passed in 1919 directing
the profits Of the Bank to be paid into the Treasury
By that time near q millien Of dollars had been
taken fOm the capital by appropriations Of the
Legislature, and the debts lost b. He Bsnk. By the
act of the Sd Of March, 1854, the annual profits Of
the Bank we're directed to be applied 10 supply the
deficiency Of the capital eccasoHsd by bad debts So
that the Bank cannot be regarded st this time in any
other light than financial project to aid the treas
ury Of the State. Il can scarcely be doubted that
an investment of The School Funds, composing in
part the capital of the Bank, in the bonds Of the
State, bearing an interest Of per cent road hare
been more rise and judcious disposition Of them than
the stock Of any corporation yielding nOmnslly two
or three per cent more and especially ia one which
was subject from its organization to all the casual
ties arising from the change of it's officers every few
years. as the the other party prevailed in our
elections and 10 the caTslcsHsss negligence frauds
Of those controlling IT, The other portion Of its caPi-
tai belonging to the State million of dollars,
obtained by issuing bonds of the State, bearing six
per cent interest," and upon which the Slate pays
interest, and will be compelled to pay whether the
Bank yields profit or not.
"From the operations of the bank heretofore,
there Is strong reason to aRPrsFsnd that Iosse; Of
similar character may ocel hsrsqr, aud hat profits
By the time the charter expires meg be required to rein
state the earital as ao required By the act Of 1854
Under such circumstances, it would seem to be the
true policy Of the State to pay the million dollars for
the bonds of the State, whilst ii has the under
the control of the bank, and to invest the school
funds in ether bonds Of the State bearing interest,"
and thus svoid the hazards incident to borrowing
money to be reoaned under the control of any
porate body. The public is seldom benefited by
such financial schemes. If the money has to be paid
By the citizens it makes but little difference whether
it be done through the Treasury or by profits on
discounts, and loans made to them through such
corporation: the more direct tie mode adopted, the
better generally for the citizens 1t is, in the opinion
Of the Board Of Directors unimPOrtaut matter to
svoid the danger, seriously apprehended by many,
Of subiecing the citizens to taxation for the pay
nent of debts created for the establishment of the
bank arich ,could BE the IN the event Of any ser
,us disaster happening TO il before the expiration # its
,aarter."
"By closing the concerns Of the bank, an end will
De made of the competition for making money be-
Wesn the State and its own citizens and especially
With those corporations in which it has so large
interest Such contests arrays result in the loss Of
sOrey az cell a, credit to he STATE; and ereing con-
ests for the control of its c0pitaI WHICH WITNESS
ID ALMOST AT EVERY GENERAL ELECTION, WILL BE
WOODED"
In the language of Gov JOHNSON, in his closing
Message to the Legislature last winter, g This
ort Of the President and Directors, of ITSELF
lmost conclusive upon the subject, well nigh SUI {
erseding the propriety Of offering anything more
D addition to what they have said. The necessity
nd expediency Of longer continuing the Bank as I
seal agent for the Treasury, or as convenience
" the people in their monetary affairs, would seem,
fer reading the able report made by the President
nd Directors of the Bank, an utter a5sTdy; and it
,ould be dispensed with, and thereby al conDec>
on between the State and Banks be dissolved. The
,rryins on the business Of banking is not enc OF
lie objects Tor which ;he State was created, no o
ore than it was to 20 into the pursuits Of agrcul
re or mechanics. :
at is the opinion of some, and it may be urged Il
fore the Legislature that the capital Of the Bank b
ght TO be increased 20 an AMOUNT that SOuld ena 81
II to control the entire banking accommodations -
ID eirculsting medium of the State, and at the A
ne time giving TO the President and Directory Of
PEissiPal baRk, located ct Nashville, absolute Of