Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1858-08-29

system which exploded q II, s1s; ab6 they rsquir-
ed that the sock should 1e paid h gold and slVer
Was this douel 10, butNhen The books we're open
ed, and person came subscribe for the stock, he
would say, 81 bsyenot hFougb SOY gold and siiser
Those having the mana cement Of the Gffair would
reply, "Itdces not make any difference; subscribe,
The managers ct Nashville say that gold and silver
is not necessary. Pay Us in the notes of specie
paying banks; and if bank when It goes into up
GRAFTON should require specie, she can call on the
bank in whose notes you pay, and get specie for
them" In this way, the fret instalment on the
stock Of these hanks was paid IN.
How was it subsequently, The hanks issued
call for an inssalment. Was that instalment paid
IN gold and silver, as the charter required In
some cases It may have been 50; but IN many an
stances the stockholders got their notes discounted
in banks the proceeds Of these notes we're passed 10
their credit on the discount books Of The banks; and
then the stockholders gave check to the clerk on
the other side of the ro0mfor the amount they were
called upon TO pay the stock The clerk took the
check, gave the stockholders credit for 50 much
paid their stock account; went TO the discount
book there charged them with the amount OF the
check paid this day, and thus The books were bal.
anced. Othe paid in the notes Of the bank And
the people found two dollars Of this paper currency
nut in circulation for every dollar OF the stoekhoi-
ders notes. and bank notes paid in as capital stock
We have another which is said to be the Peoples
Bank II is all a lie In the whole history OF paper
money, there never yet was bank made for the
people or Tor LlelE EOCu anu AutlS k-Sf0A ONA beJ
nor can the interest and welfare Of the people ever
| be promoted by saeh MEANS HoW vas this State
] Bank to be made! For the people-it was to be
owned by the Stale, and all its profits were TO enure
10 the good Of the people. Il went into operation in
! 1898 Il commenced business in suspended stsle;
/ and when individuals borrowed the notes of that
bank, payable twelVe months after date, its paper
from TO 10 per cent. discount. Il had no spe-
Gle on which issue its notes.. IL had the surplus
revenue deposited with Tennessee by this Govern.
ment then in the stock banks of heSiae, the school
fund, and some State bonds the issue Of which had
been authorized The president and one Of the dl-
rectors of the bank took a trip TO New York They
/ there fell in with Fire Insurance Company, an
agent Of the celebrated Bank Of the United States
The president and director Of the Bank OF Tennessee
negotiated million of these State bonds with the
/ Fire Insurance Company, for which they received
not dollar in specie, but credit on the books OF
/ Mr. Biddle's bank for the funds of these bonds.
The president and director took certificate OF de-
posit returned to Nashville set the bank in opera
ton on this one million certificate, issued two mil
lions upon il; these very notes being then at dis
count OF per cent. What became Of the million OF
I dollar bOndsl Did We even get dollar for them!
! No; but tbe Bank of Tennessee had credit at Mr.
| Biddle's bank for the amount Mr. Biddle sent the
bonds to his agent in London or Liverpool, Mr.
i Jaudon, who sold or hypobecated them there, and
! thus Mr. Biddle was enabled to draw upon England
/ When the merchants Of Tennessee, who had gotten
| an accommodation at the Bank Of Tennessee. or who
had received its notes in payment OF debts from ner
customers at par desired funds IN Phila1elpba they
4 applied 10 the Bank of Tennessee, and procured
checks on the bank in Philadelphia, paying for the
same in Bank Of Tennessee notes at discount OF
or 10 per cent. When they arrived in Philadelphia
they either paid for goods previously bought, or
! bought new goods, for which they paid with these
I drafts The drafts being then in the hands OF the
| wholesale importing merchants of Philadelphia
were by them exchanged with Mr.. Bid5le for drafts
on England, with which they paid for former I'M
pOriations, or paid for new cargoes Of goods, and
I imported them into the country. And thus Inc I'M
I porting merchants brought into the country one
million dollars worth Of goods for the one million OF
Tennessee bonds. The bonds are now out We are
paying 6 per cent. interest upon them. They have
thirty years run. At the end Of that time, to say
nothing Of the cost of collecting the interest, We
shall have paid one million eight hundred thousand
dollars by way of interest," and We shall still owe
the original one million Of dollars.
This issuing of bonds by the States in my opinion
the great cause Ofthe expansion which took place
in the years go ~, and '38. The States we're mad
upon issuing their bonds. These bonds went to
Europe; not dollar Of real money found Its way
back; but, in lieu, we took the fabrics Of England
We received them, not in exchange for our prOdue
tions, but for evidences of debt against the States
The goods are worn OUT the people are still paying
interest these bonds; they will continue 70 do SO
for years to come; and then they must fi0ally pay
the principal. This is the way, 10 part, in which
the Bank Of Tennessee was brought into existence
Does this look like the picture Of anything that had
ever been intended for the accommodation or benefit
OF the people of that State2 No. Andsueh, doubt
not is the condition of other States of the Union
Their bonds have been issued; they have found their
way to Europe; and goods have been brought back,
instead Of money, in the place Of them These bonds
profess TO be given for money borrowed. Say there
have been two hundred millions Of them issued; and
suppose they had been really the evidences of debt
for money borrowed and brought into the country;
if we had received, in gold and silver, the amount
for which these two hundred millions purported 10
be issued this country would have experienced
the reVulsions Of the last few years. But these
transactions bear strong resemblance 10 the conduct
of many individuals in the management Of their own
affairs They go in debt year after year, and finally,
when they called on TO pay, they ind that all
that they have received for the evidences OF debt for
which they have to make satisfaction, has been con
sumed, and that they have nothing left whereRith
to pay. So it is with the States that have, In this
way, run into debt They have consumed all they
received in lieu Of their bouds and they have noh>
ing left TO show for them But still the interest
must be paid; and hope that every State in this
Union will yet pay, faithfully and hOnOraOly, every
cent that she owes Bnt again remind gentlemen,
that so long as this unredeemed paper (holding up
the Continental meney) stands against their own
Government they ought 10 be too harsh in their
complaints against individual States which ind
themseve unable to meet their Liabilities.
Mr. Chairman, as | have before said, ADVOCATE
the passage of this bill, because believe it to be
the legitimate and cOnsti utioDa mode in which the
moneys of this Government ought to be collected,
kept and disbursed. l advocate it another
ground not secondary TO that-because it is the
great antagonist measure of thatworst Of all systems
that ever fasteneditsef on this any other oounN
try. There are two great things, strict adher-
ence to which cannot fail to keep this country In
a prosperous condition, that is TO say, keep your
cufren6y-your standard Of value-sGund aud stable;
let there be no fluctuations, and power IN one
State to make q dollar one hundred and twenty five
cents and in another, one hundred and fifty cents,
and in another, one hundred aud ten cents, within
its limits. This cannot be done if bank, or any
other paper money is to enter into the circulation
When you have accomplished this end, then, in
the exercise Of the taxing power be governed alone
by the single principle of levying taxes on your cit
| liens sufficient, and no more than sufficient, to
i defray the expenses Of your Government economi-
cally administered In my judgment, no other
object should be regarded in levyiDg but the
single of raising revenue enough to meet your
| just and proper expenditures.
| The hour expired
NoTE-The advocates of ''paper money" boldly
assert that General Jackson was for Bank Of the
United States at one period of his life And sustain
them in this assertion, they rely mainly, if not
solely, upon certain portions of bis Message vetoing
the bill passed by Congress to modify and continue
the act entitled 'An act 10 incorporate the subscri
bers TO the Bank of the United States in 1882; in
which he says, "a Bank Of the United States is, in
many respects conVeneRt for the Government and