Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1858-03-14
RANKs AxD BAEKIEa

"
day! The friends Of this measure desire TO 20 be-
yond the legitimate functions Of the legislator and
borrow money to enable the State to 60 further into
/ the banking business. Banking is more the
/ business OF a State than agriculture manufac-
/ lures.
am somewhat surprised that the Senator from
/ Marshall Mr. Davis should be the lntroducer Of
this hill to give the directory Of the Bank Of Ten
| nessee control over additional million and
! quarter Of dollars. If / mistake not, that Senator
some three months ago refusedto endorse the course
/ Of the Bank, and refused TO vote to confirm the
nomination Of the present board Of directors. lie
/ was unwilling TO vote against the nominations Of
the Governor, and yet, rather than vote to confirm
| these nominations that Senator walked outside of
| the bar Of this chamber. Then the Senator told US
| very significantly that he thought the beard had
ssteered their bark into rather poOrhaven." What
has occurred to change the opinion Of the Senator
| within the space Of four short moons? II the di-
! rect1ry were then unworthy TO control the Bank,
| what has happened since that should authorize US
10 entrust that same board with the management of
| an additional million and a quarter Of dollars p
| But Senators say this bill must be passed; the
Bank must be relieved; this Legislature has already
enacted a law under which the Bank cannot exist.
And yet if l mistake not, every Senator who is ad
vocalng this bill voted for that law except the Sen
ator from Shelby (Nlr Walker) They first pass a
! bill 10 cripple the Bank, and then they turn round
and ask for the passage Of a second bill, to relieve
/ the Bank from the effects of the first.
! Mr. HILL, interpOsing The bank bill it passed
! the Senate its third reading contained two fea-
! lures which induced me to vote for it. 1t did not
have, at first the provision for the withdrawal Of
small notes so soon the first day Of July and it
/ gave them until November to resume specie pay
/ ments The changes made in the BILL in these re.
speuts viii put them to great inconvenience Ihave
objections TO Two other provisions Of that bill
which induced me 10 vote against the report Of the
! Conference Committee. But voted for the original
| Senate bill
| Mr. BURCH, resuming. As l understood the
amendments Of the bill, submitted by the Confer
euce Committee they were Of an ameliorating char
aCter-Caculated 10 lessen sTIngency Of the original
bill But the Senator from Warren (AIr Hill voted
against the Conference report, and Tor the original
! bank bill, with all its gripping conditions. 1t is
unfortunate for the Senator that he sustained that
! bill in the month Of December and then comes here
/ in the month Of February and asks to pass an
other bill TO relieve the bank from the restrictions
/ OF his first bill.
1t is insisted that We pass this bill to enable
the bank to increase its circulation and thus relieve
the people If this is the only object Of the bill,
will endeavor TO show that there Is necessity for
plunging the State further in debt to enable the
bank to increase her circulation, not two and half
Millions but from three 70 four millions Of dollars
The argument Of the Senator from Warren, is:
e. Lend the bank a million and quarter Of dollars
and upon that under her charter she can issue
3 100000 in her notes" If that is the Only pur-
pose Of the bill, let Senators 60 to the bank and tell
ner TO do what her charter now allows her to do.
DO not come here aud ask the people TO issue their
notes for 25O. 900. Let her issue two dollars for
every one Of her capital stock, the Senator from
Warren informs US her charter allows hertO do.
find upon examination Of the last July report of
the bank that her capital stock is So 36l l3l IA.
Upon that she has the right to issue a circulation
of So ~ 262 without any increase Of her capital
without voting to increase the debt of the State a
sim frIa 711Ia fhnrf inf rn-
port l find that the circulation Of the Bank, on the
50 of July, was 81 5lS, 463. Bear in mind that the
friends of this bill wish the State TO borrow this
million and quarter Of dollars TO enable the Bank
90 increase her circulation s. OOO But deduct
the amount of her circulation, (Sl,5lS 1921 from
the amount she has the right to issue without in
creasiug the debt Of the State (S5 10, 252,) and
you find that under her charter, she has the right
put in circulation j,2O3, 1913, than she had
in circulation az the time of her report. Then If all
you wish is TO increase the circulation 100000
60 ahead and increase It; you have the capital TO
10 II, you have the right do it, without borrowing
another dollar The State is already grooming and
sweating under her Indebtedness. our argument
IN this particular having been fully answered, do
not take another tack aud say that your object in
running The State further in debt is not TO increase
the circulation Of the Bank, but to enable her to
keep in circulation that which she now has out |
Some out of the way individual, some man. who |
does not depend upon Bank officer 90 do his thinking
may reply 10 such argument by telling you that
the Bank with a capital stock Of 80 600 900 paid in,
raat cannot keep out and protect a circulation Of
ST., aUu,UU1, is either unwilling relieve the people
or unworthy Of their confidence. Such q bank has |
e.thgru.t The disposition the ability to DO egit-
mate banking business.
NrHILL Is not the stock in The Union and .
Planters banks unsold.
Mr. BJRCH. ] so understand 1t.
Ar HILL Is not the Sj42,7 in State bonds I'M
sold, and are they not part Of the capital stock: /
Mr. BURCH / DO not know, and il is not mate
rial IN the argument Of this question, whether they
are sold or uus0l. The Bank bought the State /
bonds and the bank can sell them or retain them,
iusr as she peases. The last Legislature gave the
bank the stock iuthe Union and Planters banks and |
gave her power 20 sell that stock If the bank wishes
c. increase her circulation, and the amount Of stock
Iu fhc Union and Planters Banks is a part of her
capital, she can any day realize dollar for dollar
She can sell the SogI, ly4 stock IN the Union and
Planters banks, and upon that, issue Sl,1g4 ass
My Information is, that the bank only gave sixty
five cents ia the dollar, for the State bonds which
she owns. tt this be so, she sell the bonds FOR
which she gave ~6A2, I23, for at least 500, 1000
Let her do So and upon that amount, if it is pOr-
non of her capital stock, issue $1,000 900. Thus
by the sale of Union and Planters Bank stock, and
the state bonds owned by the Bank you will enable
her TO increase her circulation $ z94, 1873. That
is more than you ask TO increase % in your argu-
meuts ] take It,, however, that the State bonds
of her capital stock THAI the bills and notes dis
counted by her ! again urge il upon Senators to
ICt the Bank do in The way Of increasing her crcu-
.atIuu, what she has the right 10 do under her
charter, before we add another dollar 10 the State
debt Having the power TO increase the circulation
greater extent than they require under this bill
heseeCh Senators, they regard the interests Of
the people, the credit of the State the success of
our internal Improvement system. the interests of
the holders of the free-bauk nav 20 pause before
- -r.+ ..-g 10Th, !. 71-
Iue senator from Warren, gives US q glowing &C
count OF the business of the Bank. According to
Hls statement, 10 has been making for some years
pas, from Twelve TO fifteen per cent profit per auuum
Mr. HILL. [ said the bank had made for the last
four years, nine, ten, and fifteen per profit
The average of that is eleven and half per cent.
Mr. BUbCH. If the Senator will look 20 table q
of the last report, he will hud that estimating the
capital of the bank $780, 600, she has not made
SIX per cent on that amount but six years of the
nineteen that she has been II existence l do not
kn0v what has been the actual capital during the
ytrI0us years OF its existence, II having been &C.
casi0nslly reduced by appropriations Of the Gene
raj Assembly and by loss from bad debts 1t is, ;
therefore, probable that this last calculation is in
correct. lt You will take into consideration the
fact that the Bank has thergbt TO issue two dollars
-0r of stock paid H. and base your calculation
upon the circulation she had the right TO hSve out
3 on wall find that the Bank Of Tennessee, has not
averaged net proht of nine per cent or Of ersE the
half Of HlEf per cent If you will give me three
millions Of dollars, with the right TO issue six mil
IONS ] caninyCst 1t 10 dry goods and groceries and
ina Ike more money than your Bank has made out of
that amount ] will venture that can put it into
LIQUOR establishment, and make more money than =
he Bank Of Tennessee ever has, or ever will make a
A word or two more in relation to this Bank. Its
distinguished President says in his Oct6ber report:
. In the opinion Of the Board OF Directors If such b
amendments shall be made 10 the charter, as will
7lace the bank upon footing with the stock banks
If the State, with its present means and credit, if
,roperly conducted it would afford much aid to v
he Treasury and be useful TO the citizens any
,tber mode that could be adopted. One or two too
panv eff" for me TO risk any mere Of the money
# NV constituents in the concern. Mark yoU-"y 6
cE amendments shall be MADE 10 ybs charter WU 8
lace the BanE, upon footing Of equality with the
took banks Of The State" and J properly conduct p