Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1858-12-16

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the Uuitsd states Bank, vas theone, which PsFspad
ed the people. that they would be without any cur
rency Of value. To meet which, the opponents Of
the re charter, as matter Of policy. moi Of principle,
fell upon the plan Of organizing banks in the States
oOptanding that those States which then had them.
4 furnished convincing proof that the States could
give as coed, if not better currency, than the one
furnished BY the bank Of the United States without
being exposed io the great and serious objections,
1 which existed in the immense aud ? ,Werful infu>
encs of that Institution, politically aad otherwise.
1 Under these circumstances and for these reasons,
l was the Union Bank ehartersd-to aid and in fur
iherancs Of which purposes ct the same to act
check upon the power and influence Of the Union,
was the Planters Bank chartered In other words
to meet the spprehended necessities of the people
and to provide strictly convertible currency. we're
the Union and Planters Banks chartered. So care
full indeed was the Legislature of the last purpose
that they provided that the stock should be paid in
specie. quote from section first Of the charter Of
the Union Bank as follows: "And the amount Of
the share or shares so subscribed shall Be paid for IN
gold or silU, as follows that is TO say, ten dollars
upon each share to The proper commissioners ct the
time Of subscribing, and ninety dollars 10 the d.
reetors Of the Bank for the time being in such in
stalmenis as they may from time to time require"
You will remember that my first objection to the
re-charter Of these institutions was, that "they
we're organized in violation of the spirit if not the
letter of the Law creating them; and in their mans
| agement, have defeated the intent and purpose Of
their charters" Nov that most careful and exact
statesman and public servant, George ". Jones, in
] A.. N. - o.,
gress April ls ls46, says In regard to the Organi
cation of stock banks in Tennessee, Qhe Union and
Planters were the only ones that " have never
voted for Bank charter. But in the State of Ten
nessee they have made banks-some stock banks.
! They were an improvement on the old stock note
system which exploded in IL, Is and they requir
ed that the stock should be paid in gold and silver
/ Was this done? No; but when the books were
| opened, and a person came to subscribe for the
stock, he would say, / have not brought any gold
and silver Those having the management of the
affair would reply, "It does not make any dHer-
! sRce subscribe. The managers at Nashville say
that gold and silver is not necessary Pay us in the
notes of spseiepsying banks; and if our bank when
it goes into operation should require specie, she
call on the bank in whose notes you psy, and get
on the stock Of these banks was paid in.
How wss it subsequently,? The banks issued
call for an nslalment Was that instalment paid in
gold and silver, as the charter required! In some
cases may have been so butin many instances the
stock holders got their notes discounted in banks
the proceeds of these notes we're passed to their
credit on the discount books Of the banks and then
the stockholders gave check to the clerk on
the other side Of the room for the amount they
were called upon to pay on the stock. The clerk
took the check gave the stockholders credit for
much paid on their stock account; went to the dis
count book and there charged them with the amount
of the check paid this day. and thus the books
basnced. Others paid in the roies Of the bank
And the people found two dollars of this paper
rsncy put in circulation for every dollar Of soek
holders notes and bank notes paid in as capital
stock"
These statements of the Hen Geo. ". Jones have
not been denied, and thus you see, that Wilfully
have the ockholders of these institutions violated
the letter and the spirit Of the law creating them.
But recently immense indignation was expressed at
the basis and means of organization of the Citizens
Bank; yet where is the difference? What assurance
have the people Of the State that single dollar of
the capital of the Union andPlanCrs' Banks is bet
ter secured than was the capital Of the Citizens
o. Bank or the Bank Of East TENNESSEE How are our
citizens under the law to kHolC that the capital Of
these two old 'uns are not labelled the same way
as was discovered in the "young 'uns Z" Founded
upon credit is it to such, that We shall concede the
right "to coin money and regulate the value there
Off" Hitherto these things have been quietly borne,
endured by the people, because they were without
adequate remedy-but the question lie, shall this
abuse Of law and right be recognized andre chartered!
But going farther on, they have defeated The in
tent and purpose Of their creation" We have seen,
that the intent and purpose of their creation was to
supply the people with currency equal to specie |
and strictly convertible To prove that am correct
in my objection it is only necessary to refer to !
two suspensiOns-One for several years Post notes,
l. E. notes due after date issued and circulated by
them. Kite notes, l. e. notes issued at one point,
payable at distant and inaccessible points. All OF
which, making an inconvertibls currency, enriched
the banks at the expense of the people. believe,
that the system of issuing kite notes is still indug
ed in Except at AIemphis) This imposition is but
genteel way of rObbing the people which they
eptailed upon the Bapk Uf Tennessee and now make
it reproach to that institution.
From these and kindred operations of the Union
and Planters Banks, which make manifest that they
have defeated the purpose Of their creation, it is
evident, that "instead Of providing the people with
a currency equal to specie, they have made an in
convertible currency and assisted in driving specie
from the State" since it is true, that Of two cur
rencies of unequal value the of the least value
supplantug that Of the higher will drive it out Our
own experience under the administration Of the
Union and Planters Banks suests the truth Of this
financial axiom Their credit money payable in the
was and is necessarily inoonvertible at
he will Of the holder-because at l0iU he could not
demand payment Of the mountain bsnk-snd being
hus of less value than specie, circulated TO the ex
,lusion Of gold and silver which thus in obedience
o the natural Law of currency, driven from the
State whereby the currency subject TO con- 3
ant fuouaioos and contractions to the great pref
ldce and injury of the labor and wealth Of the cti-
ems Of the State. The fourth objection, made to
he re-charter, was that "instead of aiding and as
listing the people, from whom they hsd Obtained
;rant of exclusive privileges of great profit they had
impressed them; and the fifth objection made was
their repeated suspensions" That the Union and
Planters Banks have exclusive privileges very vslu-
ble and which the great body of the people are ,
rohibited from enjoying under heavy penaties-no
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