Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1858-07-09

4
sncy. supposa tho 500, GOO q soads to day was
n specie in your Bank. 1t would safely authorizes
circulation Of 81 600 600, and hence Of loans or dis
souns to that eEteat or more Instead Of that itls
dead shut out from active use, and whilst the Bank
fails to accommodate The people therein, they are
thereby crippled also in furnishing good currency
The fourth proposition, needs scarcely word OF
oommet since no one will deny, that the Bank OF
Tennessee is in suspended condition, with eircula.
ton less than her capital Her capital was ''Paid
in By the State and is considerably over SS,0O0,-
600, Il regret that have not the precise figures be-
fore me, but any one can see them by reference to
the bankreports and Gov ARRIs'messsge whilst her
circulation is only 50 100000. By what means and
for what purpose is the cspitalsO locked up that the
Bank cannot pay two thirds Other said capitals This
is question just nov Of deep interest to the people
Other banks have resumed Why not the Bank Of Ten
nessse? To this question replied that in the hour
OF deep distress with the people, the Bank of Ten
pesses threw out the means Of relief; that she met
the necessities Of the times with liberality in dis
counts Without calling in question the policy OF
her course since her suspension, the necessity Of
that suspension, yet, granting that but for the
suspension Of the New York and New Orleans banks,
she could have met all her responsibilities when
ever and however presented still, as The New York
and New Orleans bsnks, together with those around
her at home and abroad, have resumed, Why is it
that the Bank Of Tennessee is not to-day able to
pay her debts: OF her solVsney there is no ques-
ton; but as an agency Of sound circulating me-
dunn so long as she remains as she is, che must be
regarded Is failure. The mismanageinent Of the
Bank ia sinking her capital by the shaving OF
ds-hypotbooa'ing the bonds thus taken from
the active capital, as margin TO draw bills on
may add 10 the profits Of tire Bank but is demon
strated, it viii destroy her capacity to loan, or to
/ sustain sound eeFrsny. The Bank Of Tennessee
boasts of circulation less than tEO millions Of
/ discounted bills and notes Of about three and one
Quarter millions, as furnishing evidence Of her use
fulness and accommodation to The people For
time the people may be deceived, but they ask the
Question-why is it that the Bank in years previous
was able to maintain o larger circulation? and why
is it that the Bank nov, with her capital of over
three millions csnnOt issue one for one or and
half for one on her capital, and cannot aceOmmo
date the people with loans six to milliOnsi
point TO the fact that other banks have done IS
much, and safely. Take all these allegations, Mr.
Editor and you viii see that there is cause Of com
plant on the part Of the people, with the manage
ment Of their Bank.
In the outset Of this article, 1 stated that our
currency was in bad repute as we'll at home as
abroad. have said that the Bank of Tennessee
in her management was responsible, after legisla-
ton, for this state of facts With her present Cash
Ter, instead of filling the object and purpose of her
| IA II 4
of woes" The other banks in the State have not
been models of legitimate banking, and have nc
word Of defense to make for them. But, inssmuch
as respectable portion of the people have looked
to the Bank of Tennessee, land your correspondent
among the number,) as an agent, by which the cur
rency Of our State could be reformed, as bulWaFl
of safety in the struggle Of the people With thu
stock banks of the State, and knowing that with
her capital aud the confidence and Wish-to-suppOr
that she had, of the people, have thought it proper
to call attention TO these abuses 10 the Management
of the Bank, to the end that if true and properly
viewed, they may arrest the attention of the 'poW
ers that be- and the people, whose potent voice vii
demand their correction.
But pass on to the remaining point. Did tn
Bank Of Tennessee eonstrue the Law of 1856 cor
: reotlyH maintain that she did not. Prior to tn
/. act of 1856, the Free Banking Law required tn
Banker to deposit his bonds with the Comptroller
who, as matter Of fact, deposited them with III
Bank Now, such being the state of the case, if tn
Bank is correct in their construction no Legislation
n was necessary or required, If, after 1856, the
= were to be taken as special deposit, why, so the
we're taken before 1854 If the Bank had no re
spOnsibility after 1885, she had before. If th
: Comptroller was responsible for the safe keeping
. the bonds before 1856, he surely was then unde
the construction Of the Bsnk, he was responsible
e after 1856; SO that in effect, by the construction
y. the Bank, the legislation of 1856 meant nothing
But the Legislature did mean something Prior
1856, no one knew but the Banker, whether Ii
Comptroller got any bonds When he oOuntersigoe
notes No one knew what disposition was made
to be made of bonds when received or e.delivere
> In other words, in no department was there an
n check whatsoever upon the Comptroller. For rem
" dy whereof, it was enacted by the Legislature
i 1866:
If Sec a. Be IL further enacted, That the bonds r
uured TO be deposited with the Comptroller by vi
81 tue of this act and the act which this is intended
ok amend shall be placed upon depOsite in the Bank
Tennessee and that no note shall be eountersignt
X issued to any person, bank or association, uni
this is first done.
las Sec 10. Be it further enacted, That the bonds
n POSTED shall be subject 10 the order of the Com
nk trOler only for the purpose of carrying into eHe
m this act and the act which this is intended to
az This being the law, it will be that after Il
or act of 1885, the Comptroller could only the bond
, but for the purpose of complying with the law, Il
n. bank being the custodian of the bonds. They We
be required in the first instance to be deposited wi
he the Bank Of Tennessee, before the Comptroll
x could sign any note, and being there, they We
I'll subject not to his manipulation, not TO his inspC
ov tion care but to his order only for the purpO
lee of complying with the law. Being construed so
ICE to protect the note-holder and the banker, as
IN act should have been, the Law would have Operat
Use as a check upon the Comptroller, and the Com
its trOller SIS check upon the .snk; and being
TO strued most probably of bedefalcatOns Viii
bis have occurred in connection with the free bsnl
he would not have happened, and thus the PEOPLE
lat Of loss and currency the dscredit thrown
is it. But, Mr.. Editor, the plea made in behalf of
of bank, makes the case even worse for them. Al
ant understand that plea, it is that the bank regard
of the act of 1856 as simply directory, &c, and Il
ic they received and treated the free bank bonds
by special deposits Now this being the construct
till of the bank, and the proof being, as the public