Daily national Democrat., 1858-08-15
DAILY DEMOCRAT DAILY DEMOCRAT
Early Banking m Tennessee.

CH"oi IHlS Hetu correspondent OF
the St Louis Republican tells story
illustrative of the embarrassment which
the old Bank of Nashville encountered
and the circumstances which forced it
into liquidation
Upwards of forty years ago, the Leg
islature Of Tennessee chartered the
Bank Of Nashville, and in due course of
time the necessary organization, under
the charter, was effected, and the notes
beautifully engraved and properly sign
ed, were read y for circulation. At this
point, .however, the Bank encountered
an unexpected and formidable obstacle.
The people Of Tennessee at that day
were self relying and practical people,
and had but little confidence in Bank
Directors or paper money, and could
not realize that piece of paper money
was as good as silver dollar. In short.
they positively refused to receive the
issues Of the Bank in payment for the
surplus products of their farms. The
Bank was in trouble, and unless this
foolish prejudice Of the people could be
overcome it would prove a still-born
affair. At this period the merchants of
that region bought up the surplus cat
tie of the farmers and drove them to
Philadelphia and Baltimore and sold
them and laid in their annual supply
of goods. At this time Joseph John.
son, (now an old and most respectable
citizen Of ClarkSville, Tennessee was
leading merchant at Lebanon, some
thirty or forty miles from Nashville
lie dealt i'll cattle more extensively
than any other man in the country, and
was more generally known in his own
and the surrounding counties, than any
man in Middle Tennessee. And no
man in the State enjoyed tie confd, nee
OF the people to greater extent than
he did. 1t occurred to the President of
the Bank that johnson was the very
man to inspire the people with conf
dence in the institution, and if his CO.
operation could be secured, there would
be an end to their trouble, and the p, o
pie would soon be brought to under
stand and appreciate the beauties and
advantages Of a paper currency. lie
communicated his views to the Board,
and they were adopted, and he was au-
thorlzed to open negotiations with John
son at once.
Bright and early the next morning,
the President set out on his financial
mission, with good horse and a pair of
saddle-bags, well filled with bank notes
under hlm. lie reached Lebanon that
night, and called on Johnson next morn
ing. A satisfactory arrangement was
soon made. johnson was to pay out
the notes Of the Bank for cattle, and the
Bank was to provide for their redemp-
tion at Johnson's store, in Lebanon
johnson supplied his agents with both
silver and paper, and instructed them
to pay out the paper money to those
who were willing to take his guarantee
that it could be converted into specie,
either at his store or at the Bank in
Nashville.
Johnson's pledge that it would be re-
deemed with specie at the will of the
holder, induced many of the farmers to
take it in payment for their cattle
Esq. Fitzpatrick, Of Smith county, sold
one of Johnson's agents ten head OF cat
tie, and received a one hundred dollar
bill in payment. After helping to start
the cattle, he went to the house and
found dinner waiting. He took a seat
opposite to his wife. A large bright
pewter basin, filed with rich hot soup,
occupied the centre Of the table, and
near the table on the Esqr's right, IA
vorite dog was sqnatted on his latter
end. with his mouth open ready to re-
ceive whatever his kind master might
throw him. Whilst the Esqr's soup
was cooling he took the bank note from
his pocket and handed it to his wife.
She unfolded it, and after examining
the pictures and figures on it, asked the
Esquire what it was:
Is that money ! exclaimed the good
woman.
Yes responded the husband 4 took
it for ten steers that | sold Joe John
SON.
well did | ever hear of such a fool,
put in the old lady.
Never mind, said the Esquire, Joe
Johnson sent me word that can get Il
hundred dollars in specie foI it when
ever want it, either at his store or at
the Bank, and his word is as good as
gold.
well, take good care Of it until you
90 to town. said the wife, and then fol-
ded it up very carefully and reached it
across the table to hand it to her hus-
band, but by some mishap dropped it
into the soup BASIN Quicker than
thought the old mans right hand was
up to the knuekles in the hot soup. He
instantly grasped the note and with.
drew his hand, smarting with pain, and
threw it out in the direction Of the dog
The folded note slipt out, and in the
twinkling of an eye it was in Roses ca
pacious stomach. The old man sprang
up and seized Rose by the throat, but il
was too late.
Ten steers at one swallow, Joe John
son nor Joe Damnation, will never
make me take any more paper money,
roared the enraged Esquire.
Poor Rose, unconscious of the value
of the morsel that he had swallowed