Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1858-01-24
COMMERCIAL


] ALonSA8Eg ana commercial
onths 18th inst, 5000 Of Tennessee SIS sold
in New York at SIS, and s., 900 at ss3
! If the estimate could be made says the Memphis
AppsaI it would beinterestingto ascertain what our
people are now paying the banks, while in asuspen-
ded condition, for. exchange on the North, South,
I East and West Debts due in New York, New Or.
leans, St. Louis or Louisville, or any other of the
/ great commercial points with which Tennessee
trades can only be paid in exchange or gold These
are nov bearing a premium Of from i've to eight
per cent This will continue to be the as long
as the banks remain in 8 suspended condition, and
rather than this enormous drain OF tax upon the
people and the country shall continue, We maintain
that it would be far better that the banks wind up
and withdraw their capital from the State.
The following article from the St. Louis Democrat
is equally applicable to the present condition Of af
fairs in Tennessee:
Many persons begin to believe that our banks do
not intend to resume specie payments soon, and for
the reason that they find it more profitable to re-
/ main suspended and tax the community with enOr-
nous rates of usury The banks realize how ex-
ceedingly remunerative is to give the people their
promises to pay, with the privilege to charge them
| two per cent day fer doing what they promised,
that is, to pay demand In other words, if silver
is needed meet cash transaction, the recipient
of their paper in addition to the usual discount has
to pay the two per cent on every operation to con-
vert itinto money This TAX as is well known falls
at last upon the labOring and consuming portion Of
the people.
! Our community is in q fair way 10 become bankrupt
il 1t longer tolerates suspended banks in cOntn
! uing the present system. The rates OF exchange
transactions now no less than 2 per cent. per
anuum, while the law comtemplltes that the banks
create by the people should charge but unreasonable
aud limited rate ofinterest 1t is almost needless to
say that such imposition WILSON break up any bust
ness man. Toilustrate the assertion that our banks
do charge p per cent per annum, we have simply to
I quote their published rates. For go day date paper
New York, their charge is q per cent off in
! pended paper and if the purchaser simultaneously
1 buys of them sight exchange on New York, they
/ charge premium Of per cent. This amounts to
AZ per cent for sixty days time and is equal to p
( per cent. per annum. The exorbtantper cent thus
extored is further shown by the fact OF their declar
/ ing large dividends While in suspended state-a
/ thing never heard Of before in any country. This
usury, too, is set apart for their stockholders,
whilst they refusing payment to their bi-hold-
At present they are in amuch better condition,
far specie goes, than they will be 1.-THE end OF
ninety days,as every one of their directors know,
and the community also is in better condition to
stand it, for gold and silver will flow from US If the
| banks continue suspended. Their only excuse,
therefore for refusing resume, is that they may
| persist in making their enormous profits
1t ought to be feeling Of modification to every
citizen of Missouri, to reflect that our State Bank
! is under suspension, and its issues deprecating,
when no other Westers banks are In similar posi-
/ ton. 1t is hard, too for the poor and laboring
classes to have to pay enhanced prices for all the
! necessities of life in order thata few banks may
| charge outrageous rates for the benefit Of the
/ stockholders Yet, such is the result. Retail and
/ even wholesale dealers subjected to such heavy
share unon their busiDRgs ODnTaious charge IL in
turn in the shape prices upon therc ustomers and
! the consumer eventually is saddled with the whole
| burden. We may state the question fairly to all,
/ and ask how long any community can thrive and
prosper under such psury? Those who are willing
to pay such rates for continued suspension are well
come to their choice; those who are not, should
/ unite il demanding that banks resume and fulfil
their proper function or else cease TO exist and give
their place TO those who will. As matters now
stand, the suspended banks cripple the action of
those that do pay specie on demand.
The New York Tribuns of the l9tb says:
! The Weekly Bank averages continues to show an
increase of the unprecedented specie reserve, the
average now exceeding thirty millions, au increase
/ of over twenty four millions since the day Of the
| suspension Of the banks. The amount Of specie is
now over forty r cent of the liabilities Ofthe banks,
including circulation which is also secured 10 con-
| siderable extent by deposits in the Bank Depart
/ ment. 1t is difficult to how these lnstl-
tutlcns can Iall 70 feduce ihelI usual ulFIueHs WINE
carrying SO large portion Of their assets as dead
/ weight. The excess of loans over capital is but
about thirty-four Millions while before the late cr
sis the excess Of loans over capital was fifty to
sixty millions. The line Of loans show still very
moderate expansion, proving the continued inactiy
ity of general business, while the accumulation of
idle capital still goes here the deposits showing
further accession Of over million and three quar-
tiers Of dollars. A mach larger proportion Of the
deposits than usual individual, the bank balances
being reduced by the redemption Of State currency
which are still going on. The deposits show, since
the suspension, an enlargement Of about twenty-five
millions while the loans have increased less than
five millions. We presume there never was class
of banks sustained on a stronger basis than those
of New York at the present time
The following is a comparative statement Of the
condition of the Banks ofthe City Of New York, Jan
2, Jan g. and Jan IS, 1858.