Nashville patriot. [volume] (Nashville, Tenn.) 1858-1860, 1858-10-28

control of the stock banks, as it has hereto
fore been, and whenever their interests may
demand il, which are often most advanced BY
its irregularity.
Whatever may now be thought OF the pro-.
priety of the organization of those nstitu-g
tons, it can scarcely be doubted that such
conflicting interests can never be reconciled
or the evils now felt from ii I've remedied I'M
til it is settled which Of them shall be adopted,
Aer whether allaof them shall be discontinued.
The necessity of protecting the citizens
against the expansions and contractioBs of the
stock banks, which existed and produced the
charter of the Bank of Tennessee in 1888
exists at the present time, and is more urgent
ly demanded now than at that time. The
policy which led to its adoption will require
its protection now. and an increase of its
capital to the amount originally contemplated
so as to enable it to supply any deficiency in
| in capital and currency which will be pro-
duced by a withdrawal of the capital of the
ether banks, If il shall be the determination
of the people to dispense with them at the ex-
piration of their charters.
1t was apprehended last winter that the
present state of things would occur and it
was urged upon the members of the General
Assembly to increase the capital of the bank
for the purpose now SO much needed. of ena-
bling it to afford some relief to the people by
supplying thedeficiency in the paper currency
which now exists,
The State cannot dispense with the use of
banks during the existence of the present
charters without violation of their vested
rights; nor is it probable that it will resort
to an exclusive gold and silver currency at
any time. The people have been accustomed
to the use of bank paper for half century,
it is the currency in almost every State of the
Union, and in most of the commercial coun-
tries, so intimately connected with the value
of property and price of labor-So convenient
in the transactions of every business, that it's
abolition, however gradual. would produce a
revolution in business and trade, and in the
value of property, that would neither advance
the interest of the State nor the people. If
adopted, it would probably result in the use
of the paper money of the adjoining States,
as is believed to be the case at this time in
Mississippi and Arkansas, and would afford a
less reliable currency than that furnished by
our own banks. 1t Is urged by the advocates
of that system, that upon the withdrawal of
the paper money its place would be. at once
supplied by the precious metals. Within the
last two years. ever six million of the paper
currency of the State has been withdrawn
from circulation, cannot see that as yet gold
and silver has taken its place, if it has not
done SD within two years, how much longer
time will be required?
The influx of gold and silver will mainly
depand upon the returns from the surplus
and will not probably occur whilst we buy
more than we sell, or whilst our banks by
their policy give currency to foreign bank
notes, thereby permitting them to displace
the circulation of our own banks within the
State, and to realize large amount of eX-
change from the sales of our surplus pro-
ducts.
The experiment now being made, of dis
pensing with the use of bank-notes under ten
al llp to la her bar filr.
Their steps can be taken towards an exclusively
gold and silver currency consistently with the
true interests of the people, and when and
how it is to be done.
The paper currency of the State is so in
terwoven with every industrial pursuit. and
has So much influence upon the value OF prop
erty and price of labor, that its proper regu-
latiou has become of the utmost Importance
to every interest, and should not be left to
the control of bankers and brokers as hereto
fore, but should be placed under the control
of the Representatives of the people. The
State should not only control the amount to
be used and the kind, but should be made re-
spOnsihle to its holders for every paper dollar
issued by its authority, and that all the profits
arising from the banking system, should be
paid into the public treasury and relieve the
people from taxation to that extent.
l entertain not doubt thate the Bank of
Tennessee and its branches. by proper amend
ments of its charter, and an increase of its
capital to the amount originally contemplated
by its trainers. will be enabled to do the entire
banking business of the State, more satsfac-
torily than heretofore done by all the banks,
and pay annually into the public treasury
more than half million of dolars-at the
same time its circulation will be made safe to
its holders by the ultimate liability of the
State for its redemption. .. ....
And with such restrictions as expert
ence has proven necessary for the proper
control of all banks, the currency may be
made convertible into gold and silver at the
pleasure of the holder, and the exchanges
kept equal in every part of State--we should
thus have one and but one paper currency,
uniform and safe, which would dispense with
brokerage of all sorts by rendering it unpro-
fitable. The bank thus modified would be
the Bank of the State, and at all times sub
ject to the control of the Representatives of
the people.
c. JOHNSON,
President of the Bank of Tennessee.