Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1858-03-04

call this relief measured The people are already
In debt and you propose to increase that debt a
million aud quarter, adding interest to the tune OF
seveuIy-fye thousand dollars per annum, for thirty
ycars-maBiDg =, 250, 600 in interest. This would
De a relief measure would it, / would like for
gentlemen to explain thisto show the relief to be
afforded by involving people il still deeper debt
By making "a necessary to raise BY taxes $4,000
year 70 pay this interests in addition to present de-
mands
But my honorable friend from Warren says the
bank vi make il. l wish to read for his benefit
few extracts from the bank report, and then will
submit The question to him upon the facts which
shall read. take the ground that the Bank Of len
ncssee has been failure; thatlt has never answered
the purposes for which it created; that Is has
| from lime 20 time sunk the capital stock and made
Unnecessary for the legislature to vote means to in
/ crease that capital stOok beg leave to read few
ezsrscts from the report Of that honorable and ven
cradle gentleman the president of the Bank Of Ten
! nessee made only two year ago, and We ourselves
have distinct recollection Of what has taken place
/ in that institution since that time.
| Mr. HILL interposing. l said the Bank had
made more than six per cent interest on the bonds
! Mr. TRAVIS. 1 would like to know how the gen.
| nemgp makes his estimates-whether he esti-
mates the bonds at par, or al their market value.
/ But / will read:
! The operations of the Bank in few years, seem
10 have convinced The General Assembly Of the i'm
p-actioabliy of accomplishing the great objects Of
It's creation under the organization which had been
! gven II: AMI an act passed in lS49, directing
the profits Of the Bank be paid into he Treasury,
I ard he payment Of the interest 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 tie Legislature, and the debts lost by the Bank.
By the act Of the 81 March, 1854, the annual profits
Of the Bank were directed to be applied to supply
the deficiency Of the capital 0coasoned by the bad
debts So that the Bank cannot be regarded, at this
time in any other light than financial project TO
aid the Treasury of the State. 1t can 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 a more wise and Judicious
disposition Of Them than in the stock of any cOrpO
ration Welding nOminally two or three per cent
more: and especially 10 one that subject, from
its organization to all the casualties arising from
the change Of its officers every few years, as the
one or the other party prevailed in our elections,
| and to the careessuess, negligence, or frauds OF
those controlling it."
! In the opinion Of the honorable Cave johnson two
/ wears ago it would have been much more wise to
have invested the School fund in State bonds bear
ing six per cent interest," than to have placed it in
I the Bank Of Tennessee. He goes on:
/ "From the operations of the bank heretofore,
there is strong reason to apprehend that losses Of
similar character may occur hereafter, and that the
profits bv the time the cEarter expires may be re
! ouired to reipsate the capital required by
! the act of 1854. Under such circumstances, it
would seem to be the policy of the State to pay
the million dollars for the bonds Of the State whilst
il 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 hazards
incident TO borrowing money to be re loaned under
the control Of any corporate body. The public Is
seldom benefited by such financial schemes"
Such were the impressions then upon the mind of
the President of the Bank of Tennessee, and what
3D., b1a for hn hafF with in he fVTO
/ wears passed? Il was then the deliberate opinion
OF this gentleman, that in all probability it would
REQUIRE all the profits of the Bank to renstate her
lost capital at the time when her charter shall eX
Pire.
! Mr. HILL Did you not vote TO increase the CAPT
| tai of the State Bank at the last session?
/ Mr. TRAVIS. ! was chairman of the Finance
Committee in the other Hall, at the last session,
and reported the bill to which the gentleman alludes
The gentleman will find that that law requires the
| Bank to pay its profits into the State Treasury.
Previously, there had been law passed authorizing
the Bank to appropriate her profits to the increase
! of her capital stock. She had sunk about or
eight hundred thousand dollars of her capital; this
/ law had been passed TO supply that. When the last
| General Assembly convened, two years ago, it was
found that this law had created deficiency in the
/ treasury. l foun that that deficiency could be
! made up by requiring the bank profits to be paid
| into the treasury l also recommended that the
I State stocks in the Union and Planters Banks be
sold and put into the State Bank. recommended
/ this in order to prevent a revulsion account Of
/ the withdrawal Of her profits. But 60 on with my
! extracts:
alt is in the opinion of the Board of Directors,
nounimp0raut matter to avoid the DANGER seriously
aPpreLenIei by many, Of subjecGng the citizens to
taxation for the payment Of the debts created for
the establishment of the bank, which would be the
cazein the event of any serious disaster happening
| to IL before the expiration Of its charter"
10 would be far more wise to let the people pay
their money directly, without allowingit 60 through
the hands OF an incorporation, with all It's officers
/ clerks and servants.
Now, upon these extracts which have read from
the report Of the President of the Bank Of Ten
nessee, made TO the Legislature two years sgo,
take this position After the Bank Of Tennessee
has been in operation twenty years, the honorable
Cave johnson its President comes into the Legisla
ture and expresses his opinion that it has proved
failure. Now if the bank had proved failure two
years ago ask the Senate, if there is any thing in
her history since that time, to prove that she is
any thing better than failure. l take the state
meut Of the President Of the bank; he said two |
years ago that in her winding up, il would require
all her profits to reinstate her capital stock What
mas she done since? She has borne part with the !
other banking institutions Of the State, in bringing
about the ruin and distress in the country that is
complained of on this floor. And am one Of those !
who believe that this crisis has been brought about
by he banks intentionally, for the purpose Of spec
uLatiOn, and for nothing else. If there was any le
climate and substantial cause TO bring about the !
late crisis ask why has it disappeared so sudden
W. When the Bank Of Tennessee was called upon |
TO suspend last fall by the merchants of Nashville,
the President answered: The bank is able now, |
and at all times to meet every demand that may be
brought against her and she would not be justified |
in suspeuding." But when it was found out that |
general suspension was to take place, we find the |
Bank Of Tennessee leading the Way-and that, too,
at a time when she had more metal in her vaults |
sI rag han Oh boIo
day since hat suspension Her excuses for suspen-
sion are, lst In order to prevent the brokers and
bankers Of New York, from exhausting her metal
a most beautiful and effective argument Senators
went right off with it. But then, the next thing
We hear, in a few brief months, those very banks,
that they said had driven them into suspension re-
smed Now what is their excuse? The banks have
resumed. IL is said now that money is more album
daut in the eastern and nOthern Cities than it has
been for ten years.
Why is IL that the Bank of Tennessee refuses still
to pay the debts they honestly owe to the people?
It's because they will not make the sacrifice them
selves of buying gold and silver for the purpose of
rcdecmug their notes They can make the people
sustain the loss and they will do i'll do not fall
out with them for this, because it is their bu-
siness 10 make money. 1t is the end of their
ton. I DO not blame them, but blame the Legis-
latUre which gave them their charters. We sell and
barter away the sovereignty Of the people for song
do not blame the banks, for you, and l. and all
mt aN.ll. ourselves OF proper ana lawful means
% make money, every man 0etters his condition in
this way if he can the banks will do the same
thing, and IL is not worth while to blame them But
arethe Representatives Of the people blameless who
granted these charters. l think not.
The proposition to-day is to tax the people to raise
money in order that the people may be swindled and
defrauded. This is the proposition 1t is a debt
deliberately voted upon the rising generation-de-
Ibgrately here to-day voted upon our children, for
them TO pay aud by direct taxation at that Unless
gentlemen viii concede the point that they intend to
create necessity to re-charter the Bank at the end
of years. there can be no other way but to meet
this debt by direct taxation 1t follows inevitably:
gentlemen must shoulder the necessity ola re-char-
ter of the Bank.
The Senator from Warren has seen proper to give
this General Assembly that view which he enter
tanned and expressed to his constituents when he
was canvassiug before them for a seat upon this
floor. l have no doubt his ability enabled him to
make good cause. l cannot tell what democracy
is in his district; but am prepared to say that in
my district there is not a in the broad State Of
Tennessee who has talent enough TO carry that pro