Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1858-01-29

4 have not changed cur opinion. It is a question
worthy the calm and unbiased consideration Of the
Legislature, and We hoped that in opening our col
umns to those who did not think with US, no i'm
proper motives would be attributed to US in having
urged the Legislators to carry out the views of the
Bank officers themselves the Governor Of the State,
and many others who thought the State ought not to
engage in the business Of banking.
We have published articles over the signature Of
"H., - defending the bank; and it affords us plea
sure to do so. he is an able writer, man of ex-
tensive information, and well calculated to make
| the worse appear the better cause. But unfortu-
nately like many others who are jealous friends Of
that institution his arguments and conclusions are
built upon sandy foundation errors Of feet, which
are as easily overlbrOwn they we're to build up
Had he taken upon himself the trouble to investi-
gate the condition Of the State debt and our stat
utes relative to the duties of the bank, instead Of
taking things upon faith and seeking his informa
ton from interested parties, there are some state
ments in his first article which We are sure would
have beenvery materially altered.
We do not desire to 60 into a re-argument Of the
| Bank of Tennessee. Our views have been fully,
freely. and fearessly expressed upon that subject
No one fact that we have ever stated has been Or
can be, successfully cOntroverted; but we cannot
! permit the present opportunity to pass, without
showing how it is that many persons, ike our cor
respondent " H." are honestly, though egregiously
deceived as to the operations Of the Bank Of Ten
nessee.
For instance, after speaking Of the condition Of
the country, the suspension Of the banks in New
York, New Orleans, &C., H." says:
''IYhat was the State Bank to do under such cir
cumstances? 1t was bound to pay near $500, 600 in
gold in the city Of New York, on the first day Of
January last, either directly or contingently.
previous legislature had authorized sale Of the
State stock in the Union and Planters Banks with
view to increase the capital Ofthe State Bank and
TO pay a debt Of SI25, 900, due on matured bonds
That stock was not sold and the bank had to meet
the debt out Of its profits. 1t was paid. 1t had to
pay interest on State bonds (Sl50,OOO) It did pay
1t. 1t was responsible on endorsed bonds Of rail
road companies. It had to be in readiness TO meet
that interest the State from dishonor IN the
contingency Of failure Of any railroad 10 meet the
demand One company did fail and the bank paid
$4,000 and did save that road and the State from
dishonor The bank furnished gold in the city Of
New York for the whole Of the railroad payments,
in lieu Of State paper"
Here is a great deal in few words, and our cor
respondent doubtless believes all Of it just it
told to him. Now, why was the Bank ''bOund to pay
near S4OO 900 in the city of New York on the 1st
day Of January last ?" We are left totally in the
dark as to the nature Of this indebtedness Was it
not, in the main, debt created by the Bank We
have taken some pains to investigate the condition
Of the State debt, and there was nothing Of this
kind due from the State. The railroad companies
owed about $780, on that day account of bonds
loaned, but we have understood that the companies
themselves provided for that interest, except in the
case named where So 600 was loaned by the Bank of
Tennessee for that purpose. The statute requires
that the companies shall pay the interest into the
Bank Of Tennessee fifteen days before it falls due in
New York. If there is failure in any case, the
duty Of the Comptroller is plain. That officer must
notify the Governor Of the delinquency; and as we
never heard of any such notice. take it for granted
that the Bank was not burthened because of the
failure Of the roads to meet their interest.
Again: "H" says the stock in the Union and
Planters Banks had been transferred to the State
Bank to increase her capital, and to pay debt Of
SI25,O0O due on matured bonds-''that the stock
was not sold and the bank had to meet the debt out
Of its profits" Now, our correspondent is innocent
and honest in this assertion. He states it, doubt,
just as it was told to him by the Cashier Of the Bank
Of Tennessee when as matter of fact, the Bank Of
Tennessee has received from the Union and Plan
tiers Banks dividends on this very transferred stock
more than sufficient to cover this S125 900 Since
January, 1856, the Planters Bank has paid to the
Bank Of Tennessee SAC, $40; and the Union Bank |
S99, ga on account of dividends-total Sl46,214
In all conscience this is ample to pay Sl25, 900. |
But in addition to this sum already received there
is now due the January dividends from each of these
banks which viii amount to over $4,000 more.
But, again says 'sH !" SIT (the Bank Of Tennes-
see) was responsible on endorsed bonds of railroad
companies 1t had to be in readiness to meet that /
interest to save the State from dishonor in the con-
tingency of a failure Of any railroad to meet the
demand" Where is the statute throwing any such |
responsibility upon the bank as above stated? fit
Is to be found, why did not the bank step forward
and pay the small sum Of $4,000 due the lst of |
November last, on bonds endorsed for q railroad |
company? The coupons were returned from New |
York unpaid. It was a subject Of conversation
here for weeks afterwards and no one ever thought
of asking the Bank of Tennessee to save the credit
Of the State by paying them; if the bank was
asked we are sure it refused; for when the coupons
were taken up IL was by the company itself, and not
by the Bank Of Tennessee. And thus it is that our
correspondent has been, again, led into error.
Oh. further says, cit (the Bank of Tennessee, had
to pay interest on State bonds CS15OOOO) It did
pay it," When did it pay this interest? The
COmprolIers report shows the State debt as follows:
Int Imp bonds, 81 per cent interest,". S227 41G &C
" ... 1924, 44O 90
Union Bank bonds. ....... 100000 90
Bank Of Tennessee bOnds.............. 100000 90
Capitol bonds S4l 200 90
The semi-anuual interest on the 81 per centum
On the per oents........ ............. 1851 90
On the Union Bank bonds ................ G,25O 90
On the Bank Of Tennessee bouds......... $4,000 90
On the Capitol 1920 90
Total semi-annual interest........... Sll3,344 50
This falls considerably short of $4,000.
But we assert that the bank did not even pay
5I8.8l4 % on the lst of January in the city Of
New 0rk on account Of interest for the State. Be
cause, by our statutes the interest all Of the 81
per cent bonds are payable the Office of the State
Treasurer, and only small portion Of them, held
by the General Government, are paid here in coin.
The interest on the capital bonds is also paid by
The Treasurer. Nearly all of the latter fall due in
the months Of Sept and March-of the balance of
he interest large portion did not fall due the
first of January, and viii not be due until the months
Of April and May. But it is said the Bank Of Ten.
,1geon Furnished avchonCe ON Nav York IN he