Fayetteville observer. [volume] (Fayetteville, Tenn.) 1850-1966, 1858-04-08
BANKS AND BANKING.

: Eyplanation by NJ. Fulton, Of LIN
coin, of his position to,card tn
proposition to re-charter the Onion
and Planters Banks-delivereu
1uarea II, 1858, inthe House q
/ Representatives. Of the Tennessee
Legislature.
MI. Fulton when bis name was
called. said:
+ MIR. Speaker: / regret exceeding
lily that | am unable to record my
vote upon any of these propositions
relating to banks, for ] regard them
as the most important aud moment
Gus questions that have been before
this Legislature for their considers
tion. Ii is known that | have paired
off with the honorable member from
Carter upon all questions pertaining
to banks. Therefore | will merely
state my position upon them, SO
that when my constituents referto the
journals and find my name not recor-
ded, will have sufficient, and
what ] consider valid excuse, for it
not being recorded. ! hope the
House, therefore, will indulge me II
few moments until | state my posi-
tion. The Senate bill proposes to
increase the capital Of the Bank Of
Tennessee by the issuance of one
million and quarter Of dollars in
State bonds, and establish two
branches, one in the eastern and the
other 10 the western part ofthe
State, which, / think, comes with
very bad grace from this House; for
it will be remembered tha. about the
time this General Assembly convened
resolutions were adopted, almost
unanimously, declaring our utter re-
pugnance and holy horror to the is
suance Of any more State bonds, or
any farther increase Of our State in
debtedness. But now, upon the heels
Of the session, We propose to increase
the State Indebtedness one million
two hundred and fifty thousand dol.
lars, on which We will have to pay
thirty seven thousand five hundred
dollars interest every six months, or
seventy-fve thousand dollars every
year, which will foot up Mt the end OF
thirty years interest to the amount
Of two million two hundred and fifty
thousand dollars. Now, / ask gen.
tlemen, if they are willing to entail
this enormous debt on their children,
and their chiIdren's children, # they
are, the next generation, instead Of
rising up and calling us blessed, will,
like Banquo's ghost, rise up in judg'
ment against Us.
But what is the good sense, ask,
Mr.. Speaker, Of borrowing money, at
six per cent to bank upoa, and pay
interest semi-annually, when the ex-
perience of nineteen and half years
has fully demonstrated that the Bank
has not and cannot realize 6 per
cent, on the amount of capital she
has invested. By reference to his
Excellency ]. G. Harris late mes.
sage, it will be seen that tire total
amount Of capital paid into the Bank
was S4,l2S,Sl2 "a, and her capital
on the LIST Of January, '5S, was SS,-
367,737 80, which shows that the
Bank since its origin, has sustained
loss of ST6I,920. We also learn by
reference to the same message, that
if the capital that has been invested
in the same Bank, had been invested
in State bonds. bearing an interest ol
six per cent, it would have yielded
! 100000 dollars more to the State
! than the Bank has done with all
these facts and figures before me,
would be compelled to vote against
such proposition.
But, Mr.. Speaker, We have anosh-
er proposition under consideration,
which is more odious than the former,
| II is to. recharter the Union ana
Planters Banks. Why are they 10
such hot haste to get these banks
| re.cha, tered? There are two more
| Legislatures to assemble inthis Cap
itoI before their charters expiie'
Thev doubtless think that under the
specious prstext Of the.R .Rslisf ,oi tae
People, they stand pretty good op.
portunity Of having them re.chartel-
sd. Sir, a my constituents have 70
get reiiefby Tie re-charter Of the u
niau and Printers Banks they are 10 .
| ~ IL l.o,oakahla conditi0n