Nashville patriot. [volume] (Nashville, Tenn.) 1858-1860, 1858-03-03

fkcrcfncsd1imE evzE sufficiently acquainted
with the business and trade of the country, to
see the folly and absurdity of attempting to
force upon the people of the State an exclu-
siyely gold and silver currency, whilst our
neighboring States used paper currency.
But these are not now the questions for the
General Assembly. We have State Bank
that has been in operation for twenty years,
created by the democratic party under the
lead of Mr.. Nicholson we have Stock Banks
that have had charters for a still longer time,
and we have Free Banks and several Stock
Banks recently chartered. We have these In
situations and their operations are SO inti-
mately connected with every business in
terest in the State, that no one of them can
be struck down without seriously injuring a
large class of our citizens. A commercial
crisis, extending over most parts of the civil
lied world, and for which your old Banks are
not more responsible than the Banks in every
other State indeed less liable to censnre, in
asmuch as their contractions and expansions
have been less severely felt here than in most
of the adjoining States. That the contraction
and expansion of the Union and Planters
Banks and the new Banks, may have contri-
buted somewhat to the prevailing distress,
none will question who have examined their
reports. But your State Bank cannot be
justly charged with contributing in the slight
est degree to the pressure in the money mar
ket. Upon looking into the reports of the
officers of that Bank, it will be seen that its
circulation in July, 1854, was near two and
half millions. Shortly after many new Banks
went into operation and the policy adopted of
exchanging their own paper for that of the
State Bank, and demanding exchange or gold
in payments, actually forced in its circulation
so rapidly, that in July 1855, it was reduced
I to about million and a quarter, and con-
| tinued about million and half until July,
| 1857. In the spring of that year so much
| discredit had been thrown upon the shin plas-
ter circulation, as to force them as well as the
/ Union and Planters Banks to contract their
/ circulation between four and five millions of
(. dollars in a few months. This pressure upon
| the community was, to some extent, relieved
by the conduct of the State Bank instead of
aiding in this pressure, it continued its loans
and gradually enlarged its circulation, SO as
to afford relief to the people, and continued
this policy until January last, when the re-
| port shows that its circulation fell but little
short of the amount in July. 1854. / will
not stop to enquire what would have been the
| condition of the country, but for the timely
| aid furnished by that Bank. Every business
man has seen and felt the beneficial influences
of the course adopted by it, and every bust
ness man, not in the interest Of other Banks,
not only approves of its course, but will stand
by and defend it. Our Legislators may take
warning and look to their course carefully
| the people will keep record too
What is now the state of things! You have
Your Bank has enlarged its circulation as far
as its means will justify, whilst the 9th
er Banks have called in their circulation, and
will continue to do SO until resumption.
You cannot fail to see, that to enable it to
preserve its credit and resume with the Other
Banks, its debt must be collected. She can dc
nothing during the next summer in the way
of discounts or purchasing biils,-nothing but
call in her notes and collect her debts Thii
state of things must occur during the summer
and where will the currency come from to do
the ordinary business of the country? TIL,
Planters and Union Banks, belonging to for
eigu stockholders mainly, will not do it. The
New and Free Banks cannot for the want o
credit You have prohibited the use of tn,
Bank notes of other States, and you forc'
from circulation the small notes after July
four months before the Banks resume. i re
peat under such circumstances what are tn,
people to do next summer for money! VIVA
for change? .Iaef
The intelligent and patriotic Senator from
Marshall county, looked at these things as
business man, as a patriot, and not as
partzan; Notwithstanding his prejudic
against Banks and Banking, and Brokers
determined to afford some relief to the people
| He came to the conclusion that it could be al
forded more readily by increasing the capita
of the Bank of Tennessee. and giving
Branch at Memphis and Knoxville, two of tn
most important business points in the State
thus enabling the Bank TO enlarge its business
to keep out its present circulation, and pei
| haps add to it, and to increase the profit c
( the Bank, and to that extent lessen the take
on the people. Such measure cannot bu
! give great relief-if this will not do, it b,
| comes the opponents of the measure to Civ
better one; none better has been offered c
suggested.
1t will not do for the opponents of the bi
to fold their arms and doggedly oppose
without offering something in its place.
The pretext that you cannot vote for Stat
Bonds, or to increase the indebtedness of I'll
State will not do, especially for that class
} its opponents who stand ready TO vote mi
; J lions for roads that are not wanting, even
\ companies who own the charters.
The purpose for which the Bonds of Il
| State are issued must be understood properl
, /, to settle this question. If issued for the pu
! pose of making Rad Roads, or other Intern
Improvement, not likely to yield any profit
| the State, would most heartily unite with i
opponents even If the roads run through m
own county-the Bonds proposed by the hi
are for the purpose of aiding the Treasury
the State to pay its debts and the interest
its Bonds instead of taxing the people-th,
are to be placed in Bank for its use as Il
former Bonds were, upon which business is