Fayetteville observer. [volume] (Fayetteville, Tenn.) 1850-1966, 1858-09-16

t managerial Nashville say that gol
! land silver is not necessary. Pay |
lin the notes of specie paying bank
and if our bank when it goes in
operation should require specie, sh
r, can call on the bank in whose note
you pay, and get specie for them.
In this way, the first instalment o
the stock of these banks was paid il
!, How was it subsequently? Th
banks issued a call for an instalmen
WAS that instalment paid in gold an
silver, as the charter required? i
some cases it may have been so; bu
In many instances the stakeholder
got their notes discounted in banks
the proceeds of these nutes we're pass
ed to their credit on the discoun
books of the banks; and then th'
stockholders gave a check to the clerl
on the other side Of the room for. tht
amount they were cailed.upon to pa,
on the stock. The clerk took the
check, gave the stockholders ere di
for so much paid on their stock &C.
count; went to the discounthook there
charged them with the amount Of the
check paid this day, aud thus the
books were balanced. Others paid
in the notes Of the bank. And the
people found two dollars of this pa
per currency pat in circulation for
every dollar Of the stockholders
notes, and bank notes paid in as cap
ital stock. .
We have another, which is said TO
be the Peoples Bank. 1t is all a
lie. In the whole history of paper
money, there never yet was bank
made for the people or their good
And there never can be, nor can the
interest and welfare of the people
ever be promoted by such means
How was this State Bank to be made2
For the People-it was to be own ed
by the State, and all its profits were
to-enure to the good Of the people.
It went into operation in 1888. It
commenced business in a suspended
state; and when individuals borrowed
the notes of that bank, payable.
twelve months after date, its paper
was from 8 to I0per cent. discount.
1t had no specie on which to issue
is notes. 1t had the surplus reve-
hue deposited with Tennessee by this !
Government. then in the stock banks
of the State, the school fund, and
some State bonds, the issue Of which
had been authorized. The president
md one of the directors Of the bank
;ook a trip to New York. They there
ell in with a Fire Insurance Compa-I
", an agent of the celebrated Bank
# the United States. The president |
ind director of,the Bank Of Tennes-E
zee negotiated ene million of these
State bonds with the Fire Insurance
Company, for which they received
lot a dollar in specie, but credi. on !
he books of Mr.. Biddle's bank for the |
unds of these bonds. The presi- |
lent and director took a certificate Of /
returned to Nashville, set
,be bank in operation on this one
million certificate, issued two millions
ipon it; these very notes being then !
1t a discount of 8 percent. What
became Of the million ofdollar bonds?
Did we even get;a dollar for them I?
No, but the Bank of Tennessee had
credit at Mr.. Biddle's bank for the |
mount. Mr.. BiddIe sent the bonds |
,ohis agentin London or Liverpool, +
Mr. Jaudon, who sold or hypotheca-
ed them there, and thus Mr.. Biddle
vas enabled to draw upon England.
When the merchants of Tennessee,
Who had gotten an accommodation at
he Bank of Tennessee, or who had /
.eceivedits notes inepayment of debts
rom their customers at par; desired
funds in Philadelphia, they applied
% the Bank Of Tennessee, and pro-
cured checks on the bank inPhila-
lelphia, paying for the same in Bank
of Tennessee notes at a discount of
5 or l0.per cent, Whsn,they afri-
ved in Philadelphia, they either paid
previously bought, or bought
new goods, for which they paid with
these drafts. The drafts being then
IN the hands Of the wholesale impor.
ting merchants of Philadelphia, were
by them exchanged with Mr.. Biddie
for drafts on England with which
they paid for former importations. or
paid for new eargees Of goods, and
them into the country
And thus the importing merchants