Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1858-03-16

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equally misIed aud to say the least, could not
their profits be divided by two-and if these bonds
should not COME up owing to the incompetence OF
the refreshing showers Of which my friends have so
beautifully spoken why then the whole thing is
total loss to The good people, for whose benefit they
say his project is put upon foot. ask the friends
Of this bill pause before they tax the people for
the mex. thirty years to pay the interest On these
7 bonds and them bring tax on future generations
! for the ultimate payment Of the bonds themselves.
Is it not the duty Of Senators before they vote to
make an investment Of the peoples funds to show
that their capital win be probably employed? Gen
tlemen talk very loudly Of nine and fifteen per cent
/ pTohts-but what does sl this signify unless they
| can show Us what has become OF the mOney-what
! does it benefit the people that one year you made
money but lost it the neztG If your profits have
been so great why have they not relieved the people
of their taxes charge no one improperly using
the funds Of the bank but assert that all the profits
have been consumed in the payment or expenses
7 necessary for the management Of the Bank and its
brancbes-and fear portion Of the capital has
gone that way
Mr. HILL. The Bank reports show that millions
Of dollars have been paid into the State Treasury.
/ Mr. MUNDAY. More Of the genteman's figures
but think if be viii examine very closely, he will
fud that whenever the Bank has paid debt for the
| State her reports will show him she received the
! money from the State with which to make the pay
/ ment If gentlemen wish TO show the true coudi-
klDp OF the Dluk--lhe amount NHtth hAG mas iUiu6
or lost-the proper way to do this is TO charge her
with what she has received, and give her credit for
What she has paid out, adding to each side Of The
! q count the interest and you will have the true
ate Of the amount; and [ assure gentlemen, this
can be ascertained in no other way. Now, l make
this charge that if gentlemen will state the account
a ter this manner they will find that the Bank has
failed 10 make per cent interest the amount Of
her capital, by between two aud three hundred
thousand dollars Let them run the account from
/ the commencement Of the operations Of the Bank,
/ down to the present time, and the result will be
found stated which the friends Of this bill dare
| not deny. If the capital Of The Bank had been
vested in State securities, or other six per cent
funds, the condition Of the State, in pecuniary
point would have been better by two or three hun
! bred thousand dollars. l have tested the reports
sufficiently to justify me in making this statement.
If in error, desire to be corrected, for glad
| would be if it were otherwise.
Now, sir, aside and apart from the question Of
the prohableness of the investment Of this capital
let what will be the result Of giving this ad
dtional aid to the State Bank. Blythe terms of the
charter Of this institution, it expires in about ten
years These bonds to run for thirty years, ard
It is expected that the Bank will meet the interest
upon the bonds, and ultimately pay the bonds them
selves, which, 10 say the least of the proposition,
will require the extension Of the charter at least
| twenty years. Now, sir, how does this cOmpOrt
] with the recommendations of the Executives of this
not now to refer to these recommendation but will
rest the matter with the able Presidentos the Bank,
to whose management this fund is to be entrusted
/ in whom all have an abiding confidence, and none
mere than myself The question is, is it expedient
20 continue to period this institution? Let
the honorable Cave Johnson speak for himself and
permit to say, that he but gives utterance the
recommendations Of present and past Governors
Of the State and those Of his predecessors in the
! Presidency Of the Bank of Tennessee. l refer to
these matters for the purpose of showing that the
friends Of this bill going contrary to the express
opinions, not only Of the former Governors Of the
State, but likewise those Of the President of the
Bank, and if they succeed, that liquidation which
these officers recommend, will be postponed by the
perpetuatiOn Of this institution? Here the PTesi-
dent in his report to the General Assembly years
ngo-after abiding to the number Of banks already
/ chartered-says:
"In the conflicts likely to arise from such compe-
tition institution belonging to the State, organ
lied as the Bank Of the State is at present. is likely
to be made the victim Of the sefshness and cunning
of others more interested and more skfu in their
management than inexperienced citizens can be
and the Legislature cannot now recall the char
tiers granted to Others the Directors have come to
the conclusion, with great unsnimity and from a
settled conviction, thathe best interests of the State
require it, that the Bank Of Tennessee should be
put in liquidation and its concerns closed at as ear
y period as the convenience of the citizens will
allow.
''The operations of the Bank in a few years. seem
to have convinced the General Assembly Of the i'm
practicabiity Of accomplishing the great objects of
its creation, under the organization which had been
given it; and an act was passed in l849, directing
the profits Of the bank be paid into the Treasury
and the payment Of the interests on the Bonds of
the State and the School Fund to be made by the
Treasury; by that time, near million Of dollars
had been taken from the capital by appropriations
of the Legislature, and the debts lost by the Bank
By the act Of the Sd March, 1854 the annual profits
OF the Bank we're directed to be applied, to supply
the deficiency Of the capital occasioned by the bad
debts. So that the Bank cannot be regarded, this
time in any other light, than financial project to
aid the Treasury Of the State. 1t scarcely be
doubted, that an investment of the School funds,
composing in part the capital Of the Bank in the
bonds Of the State, bearing an interest of six per
cent, would have been more wise and judicous
disposition Of them, than in the Stock of any corpO-
ration yielding nOminally two three per cent
more; and especially in one which was subject
from its organization, to all the casualties arising
from the change of its officers every few years, as
the or the other party prevailed in elections,
and to the carelessness, negligence, frauds of
those controlling it. The other portion Of its capt.
tai belong to the State, million Of dollars, was OBJ
tanned by issuing Bonds Of the State bearing six
per cent interest, and upon which the State now
pays interest, and will be compelled to pay whether
the Bank yields profit or not
"From the operations Of the Bank, heretofore,
there is strong to apprehend that losses of
similar character may hereafter and that the
profits, by the time the charter expires may be re-
quired to reinstate the capital as now required by
the act Of 1854. Under such circumstances, it
would seem to be the true policy Of the State to
pay the million dollars for the bonds of the State
whilst it has the means under the control of the
Bank and to invest the school funds in other bonds
Of the State, bearing interest, and thus avoid the
10 o IN ba nod
under the control Of any corporate body. The
public is seldom benefited by such financial schemes
"If the money has to be paid by the citizens, it
makes but little difference whether it be done through
the Treasury or by the profits on discounts and
loans made to them through such q COrpOration the
more direct the mode adopted the better generally
for the citizens. 1t is, in the opinion of the Board
of Directors, no Unimportant matter to avoid the
danger seriously appreheuded by many of subject
ing the citizens to taxation for the payment of the
debts created for the establishment of the Bank |
which would be the case, in the event Of any serious
disaster happening it, before the expiration of its
charter. The fund now belonging TO the State and /
in Bank, will 20 far toward extinguishing the |
present Indebtedness Of the State. The present |
time seems more favorable for the accomplishment |
Of this object, than any other for years past or /
that may be expected for years to come The cir /
culatiOn Of this Bank is less than it has been
for years. and if Withdrawn, its place will be at once
supplied by the numerous banks now in operation
and its loss will be scarcely felt by the community"
L have quoted at length from this document in or
der give the friends Of this the full bene-
fit of all that able officer there said Now the cues
ton arises, has his mind undergone any change upon
this subject, to render necessary the passage
Of this BILL much in antagonsm with the doctrine
here so broadly laid down and with such emphasis
We answer, no. And again quote from his report
made to the present session of the General Assem-
bly,:
The President and Directors still entertain the
opinion communicated to the General Assembly in |
their former report and do not doubt that the true
interests Of the State hereafter will be best promo
ted by dissolution of all connection with Banks |
or Internal Improvement companies, at as early |
period as the finances of the Stale will admit it.
without unnecessarily expressing the people, and !
with due regard to the public faith pledged to
them"
In all csndoT can any Senator give his support to
this BILL if he believe in the soundness of the prin-
oipes set forth in these reports? If it is advisable
at no remote day to put the Bank Of Tennessee in
HquidatiOn-if it be the true policy Of the govern
ment to be separated from Banks-how can anv GEN
tleman eterntainng these opinions give his vote for
this bill? leave them TO answer for themselves
and their constituency.