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

\
aud Planters Banks, to ~,
| be, .............. ..,........ % "ui't'' o.
/ Which, when taken from
the amount actually paid
in, shows that she has
sustained q loss Of her
s ss'TitliI amounting to-. S7GI, O74 %
PAYMENTS MADE by THE BANK.
| Rv act Of the General Assembly passed 9th Feb
rUsry 1850, the bank was relieved from the pay
lnent Of interest on the State debt, and the annual
payments TO schools and academies, and required
10 pay her profits semi-anDualy into the Treasury
The books Of the Comptroller OF the Treasury
show that from the passage of this act up 10 LIST
October 1851, there was paid into the Treasury as
/ the profits of the Bank So-ZltU 40
Fornezt two years ending lst Oct 1873 Sg4SlS "a
LIST Oct. 1857, 100000 90
Total amount paid into Treasury, 1881, 1888 %
! 1t will be seen by examining table 80
that from the organization Of the bank
| up to July, 1912, she had paid for the
use of schools and academies, ), DE, 900 %
| Also interest on State debt ,377.j29 20
| Interest on State debt which
accrued from lsJ July
| lS4g. to 9th Feb. 1850,
and which should have
been charged TO the
count OF interest on State
debt instead of the Treas
! ury, as stated by the
port Of the Bank Of 1851, g4,G28 -
paid by the bank, sI,472, I57 %
| The same table shows that the Bank
m mem g 81 rivers. 1916 Sc
orr origin NJ to Igt January, ISIS, s4,23o, 500 IS
PROFITS OF TIE BANK.
Table "a" shows that the aggregate profits Of
the Rank from its OTirIU to January ],
1855, is $4,2GG,O8 IS
And that. within the same period she
has reduced her capital BY the loss
Of bad debts, Sc, 76l,O74 %
s8,5O5,ola 81
This amount includes lac dividends
received upon the Union and Plan
ters' Bank stock, amounting to SI4G,2l4 10
Which taken from the profits leaves as
the result Of the operations Of the
Bank of Tennessee for nineteen
and half years "a nett profit Of S33JS,G93 i
Tably "a" also shows the rate per cent per an
NUN, ranging from CS-l00 to - per cent, which
the Bank has made upon her capital.
It is proper, however, to remark that he calcu-
Lotions which produced this result based upon
what is termed ''actUal capital and not upon the
amount Of money actually paid into the bank as
capital This table shows that the 'actual capita"
Of the bank has for several years been fuctUathC,
being diminished 10y the failure Of their debtors &c,
and increased by the collection Of debts which had
been changed of as lOsJ.
IS 10 seems he the object Of the House of Rep
resentatives TO ascertain to what extent the funds
Of the State have been probably invested in the
business of banking, and whether or not it would
be good policy for the State 10 borrow money at six
per cent per annum, payable AZ New York semi
annually, 20 increase her banking capital, have
made accurate calculation Of the simple interest
upon each item Of the cash capital Of the Bank Of
Tennessee from the date IL was paid in, shown
by table "B, " up TO the LIST Of January, 1858.
GLIDING the stock in the Uaon and Planters Bank
from this interest calculation, and find that if the
same funds had been invested in State bonds, bear
ing interest Of six per cent per annUm, 1t would
have yielded profit Of SG609, l33 90
While the same funds used in banking
have yielded, as shown above, net
groftof only S3.858,C99 Il
Showing that at six per cent the fund
would have yielded S25O,433 %
more profit TO the State than the Bank has made
upon It.
Bat more important consideration than that of
the amount Of profit be realized, will he found in
the fact that the investment In State Government
securities is much more safe, involving less, vastly
less danger of the loss Of the capital invested.
and the profits while It IS larger, is a sum fixed
and certain, which the State can calculate and
confidently rely upon, and the whole opera.
ton is simple and easy of comprehension and
equally easy of management, requiring very
small proportion of the time and attention of the
Comptrocro or Treasurer for its entire management
without mourning the expeDse of keepiDr m the
machinery Of a banking establishment and the risk
of losing the original capital by failures defalca-
tions. ins0lvCuCies, &c, &c.
The statement Of the profits Of the Bank, as
shown by table a Is based on the supposition that
fa 81 0- IS7 50 of the present means of The bank
. shawn Inv the report Of the LIST of January 1888
consisting Of discounted notes, bills Of exchange,
hills and notice in suit State bonds real estate sna
Gle rr yr y are of arvaTup and will be realized
and inst d, he extent that losses are sustained in
collecting or converting those means into money.
win the 3rofts es shown. be reduced
ON frl Is. 7f January 1853 the hank had been
in nnararf,- nineteen and "a half wears and the
anoau. or r,f.- shown above. proves that she has
realized les than SIX Per cent per annum upon the
sotr,r .a.f, r,T:tsI yrfcb s5e Teocive5 With this
% the result of an s~n,rj neDt Of nineteen and a
half vaars in t5a b..Irsss If bapLfny ia IT GOOD
Dorirv for the Stale IN b,rropr money having an in
le~asf n six nor cent nor oDnur, o1n1aIIv in
New York with exchange say one rer cent to raise
nancy 10 increase orr -frg rsrirsI4 If the hank
has f,fraI I'm realize s;v Nor s,t man her canitol
ba-aIofore what assurance have we that she will
mako f. hereafter
Rrt one of the most zarious evils n he appre-
bonda1 from the polic of issrrir Sfata honda IN
fnrrease her cap8L is the Jcrrpc9fion oF olr State
securities which is result that rrlusf fo1Iov as in
-arr- os that SUNNY and demand ,,tI tho mice
I q. W I
bonds are now selling in New York at rom S. n
GOD CENTS. while Kentucky six per cent bonds. are
selling in the same market for from IOn to 1O2 cents
! IN The d6IIsr2
Has Kentucky been more punctuaI in the nav.
rneut of her liabilities than Tennessee? This will
not be pretended; for no State has paid her iabiH
! lies more uuuctuaIIv than Tennessee Are the re-
sources of Kentucky super0rt0 those Of Tennessee
The last census report shows that they are not
Why this ference then in the market value of the
securities of the two States. The answer is to be
found in the fact that Kentucky has issued very few
Stale bonds: while We by our system Of legislation
/ have issued aad authorized the issuance Of near
/ twenty milHons-au amount so large, that We have
20 some extent, shocked the confidence OF capital
lists in our ability TO meet our heavy and constantly
/ increasing liabilities
our state securities have, however, within the last
few months advanced rom aDou' ~ 10 % OF WV on