Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1858-12-25
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( said In ny last srticle that, notwithanding the
mary serious objections that could be urged against
the Union and Planters' Banks, regarded the Bank
oR Tennessee as presenting the most serious Obsia-
Gle II the way Of wholesome reform; for the reason
that It is essentially pOiaical institution Surely
no friend Of the Bank viii take issue with me on
this psnt IN the face Of the admissions OF Us pres
emit ahle President that athe change Of It's officers
every few years. as the one or the other party IRE
wills in our elections, and the exciting contests
for the control Of its capital which are Witnessed st
slmost every general election, are elils peculiar
70 lie organization producing casualties Of the most
serious character One Of the greatest evils incl
dent to the United States Bank .wss its political
oharaeter--.he fact that it made itself PoiesT In
the legislation of the country; was the patron Of
politicians and used the influence which its capital
afforded in determining The action Of the govern
ment Impartial history tells US Of the "unexam-
pied interference Of its chief Oieers, BY loans to
newspaper editors, pIOiuse publications Of pamPh-
let's and other means, inaaming general sentiment
against President Jackson and the party opposed to
that Institution, and by secret appropriations OF
large sums for open denuneiation, and also BY ez-
tension Of loans to bring large numbers into the
Banks power" In this point Of view where Is the
material difference between the organization Of
Slate Bank and United States Bank, except in the
extent Of its sphere Of sctOnI Is not the former
liable 10 the same abuses, the same corruption and
the seine hazardous usurpation Of pOHers What
motive had the United States Bank 10 interfere in
4 elections that State Bank may not have! What
motive had 3 United States Bank to corrupt the
press and send forth false and spurious publications
1 against its opponents, that State Bank may not
havaf What motive had the United States Bank
10 make heavy loans of its capital TO politicians and
others in order to increase the circle Of its intu
encs, that State Bank may not haye9 We answer,
none. Because We may have been, in the history
Of the Bank Of Tennessee thus far, fortunate as
to have kept that institution under the control of
men who are incapable of doing wrong, it does not
follow nor is it reasonable to suppose that We shan
continue 90 fortuna e. But even under the man
ssemsnt Of the board previous to the enc now In
pover, there were not wanting those who openly
declared upon recorded fscts, that It was sink OF
eorruption and perverted to the most unworthy uses
So. under the nsgement Of the present board,
there have been those who have protested to detect
the Rrossest aouses and the most unWarraptaOle
uses Of its patronage and power. BE this as It may
it is not my purpose to deal with the |0ts0s' Of
those who now govern it; but cOncsding them 81
they can ask, honesty of purpose, l can see in It
much that likens it to the old United States Bank.
For instance, q disregard Of its charter. None will
question. I believe, that this has been more than
once violated in spirit if not in letter. This you
have 50 often shown through your paper that need
not particulsrize Also its disregard Of the laws
For instance: The friends of stinsttuiOn asked
permission of the last Legislature that the bonds OF
the State should be issued and its capital increased
The Legislature refused to do so, but passed an act
authorizing the President and Directors Of the Bank
Of Tennessee 10 sell 100000 Of the stock Of the
State in the Union and Planters Bank, provided it
could be sold at par in gold and silver and the pro-
eeeds when realized, applied to the establishment
: Of branches at Knoxville aud Memphis. 1t was
clear that the organization Of those branches was
made dependent on The sale Of the stock at par in
t gold and silver. The stock at the time, and fol-
: months afterwards, would not command par. What
was done? Was the law permitted to take its sourse
Upon the contrary in utter disregard of its spirit
! tie branches were organised, banking houses se'
, cured. and officers elected end put upon salary
,Sh,Es the stock yet lag the Uaas Of The Bank abh
to command par.
Again. the legislature ct its last session, in re
spopse to the general sentiment Of the people, agree
upon the policy Of retiring small notes 1t, there
fore. passed an act declaring that from and afte
January. 1860, no bank in this State shall issue
emit pay out or circulate any HCte of less demon
6 nation than FIVE dollars" The Bank of TeRnesse
was the only bank that had the privilege Ofissuin
notes under that denomination, all other banks haV
ing been previously prohibited. The object Of tn
legislature was to call in these small notes rapid
: as possible, in order that specie might take thei
place. contend, and the great mass Of the PeOPl
contend, that this policy is good one But be tina
as it may, it was the bOunden euty Of those govern
ing the Bank Of Tennessee to observe the act IN 4
. FIJI intent. But what are the facts! Just upon tn
eve Of the time when the law takes effect, find tn
y mother bank and several of its branches, and IN
derstand the policy be general issuing their shin
plaster currency in abundance, and circulating 1t a
over the State in the place Of their larger issue thu
: postponing the operation Of the act beyond the tim
: intended BY the legislature.
? Again, it has been bOsst Of the Bank Of Tennes
r see that she has furnished very large amount Q
: exchange to the commercial and trading classes
since the time Of her suspension, at the extreme O'
u | price OF q " 7 PeA SeN'' AAA0 49, -
talked of by the officers and friends Of that instiLu
tion to create an outside feeling in its favor with tn
people. What are the facts When the mOthe
bank at Nashville was selling the peoples exchaDg
at per cent below its market value, its branches
> some Of them at least, we're buying exchange iron
individuals and paying one and haif per cent VIII
;, should the mother bank be selling at while tn
: branches we're buying at u? 1 know Of bu
one difference in their relative positions at tina
time: there was legislature in session when tn
mother bank was creating good feeling BY sellin
at ouarter-tbere was no legislature in the cOuntr
y towns where the branches were buying at one and
! half
Again, the Bank of Tennessee boasts much Of 1t
accom- aodations to the people in times Of need.
has much larger capital than any other institution
and belongs to the people, and can afford to accom-
modaie them; and, when 1t suits the purpose Of it
: friends, seldom fails to do But what are tn
Eactsi Her officers have boosted recently that th
institution was in better condition and upon
more solid basis than at any time since its organiza
ton. having nearly dollar in specie, or its equivO
lent, for every dollar in paper. This being so, tn
Bank of Tennessee ought to have been gerry accOmmo
dating for the last few months. The farmers and
:, others stood more in need Of bank accommodation
while the crops we're being gathered and shipped 4