Fayetteville observer. [volume] (Fayetteville, Tenn.) 1850-1966, 1858-07-29
From the Memphis Appeal.
THE BANKS.

THE BANKS.
Quite an excitement Gn small
Way seems to have been kicked rp
ou account Of the Planters and T.
Mon Banks hayiug refused to3take
the notes Of the Bank Of Tennessee.
1t is not our purpose to enter5into an
investigation Of The present condition
Of either of the Banks, and see if
they have any particular claims on
the people Of Tennessee that would
justify them in making war on the
Bank of Tennessee, the only Bank
in the State the people have any
direct interest in, aud the only Bank
that has seemed to have the least
sympathy for The distressed condi-
ton of the people, or that has afford
Ell them relief in the pressure,
For twenty years, more or less,
he Stock Banks, (the Planters and
Union) have been virtually la a state
! of suspension; their notes hive been
payable in the most inaccessible pla-
ces In the mountains of East Tennes-
see. What have the Planters and
Union notes been worth for the lif-
teen years in Mempbis?-one-Ealf
and tw per cent. discount for specie
or Eastern Exchange. This is an
undeniabie fact Their system of
banking has been about this, they
have issued their mountain currency
discount two per cent, with it they
would buy bills at ninety days on
New Orleans at two and half dis.
count, with the proceeds Of these bills
they would buy sixty day bills on
New York at two per cent. discount,
and then sell it for two pei cent. pre-
MUM fer the very notes they first
paid out; for until recently, no one
ever dreamed Of sending these notes
TO the mountains for redemption
Thus in five months they make eight
land ene-fourth per cent. premium
without n single dollar invested oil
"a dollar ut risk, and this MI done
i too, for the benefit Of the Eastern
capitalist, for believe very little o.
he stock Of either Of these Banks is
. held in Tennessee. One Other
ler fact: last fall when these Bunks
suspended, it was understood it was
done for the purpose of enabling
them to afford some relief to the
people. DID they do it2 Who got
relief from them? Echo answers
who! Instead Of coming forward to
the relief of the distressed people oil
Tennessee. they cur.ailed, drew in,
put on the screws. and demanded
payment to the very last cent, thus,
by their lire Of policy, Gin first throw
ing out their issues, thus encourag
ing trade and speculation, and then
withdrawing all their circulation, J
producing more pecuniary distress
than oil other causes combined. =
How was it with the Bank of Ten.
nessee at this time? Instead oil
contracting. as other banks did. she
increased her line Of discount $780,.
900, thus nffording facilities for trade
and relieving the distress Of the
country. The Bank Of Tennessee is,
and has been, furnishing eastern ex.
change at nominal rate, and pay.
ing specie to the people, being virtu-
ally, SO fur as practical purposes are
concerned, in a state of resumption.
Yet, with a knowledge of all
these things, there are men in this
community, and even editors, that
are trying to get up sympathy. for
these stock banks in their uDjusiifi-
able war on the State Bank-- o.
oh, shame, where isthy blusha'
But it may be argued that it is
the duty OF these stock banks to
take care Of themselves. This may
be so. Most beautifully have they
taken care of themselves, in fleeing
the people of Tennessee, and more
particularly Of this section of the
State, out Of fifteen to thirty per
cent per annum ON millions of moun-